Appraiser Trainee Running Their Own Business?

[DTB]

Individuals receive appraisal licenses, not corporations. Setting up a corporation doesn't change the relationship or responsibilities between a supervisory appraiser and their trainee.

At least you back to appraisal regs, not accounting and legality of business operation.
It's a start.

And yes the IC- Joe- can be assigned a duty. He may not be told exactly how it must be done by the firm that hired him. The appraisal regs will do that directing. Joe is also free to not accept the assignment, much like any other appraisal order.

See how that all works out very nicely. What your accountant would add to the discussion isn't really germane.

 

[The Warrior Monk]

At least you back to appraisal regs, not accounting and legality of business operation.
It's a start.

The regs are what determines the relationship. The IRS guidelines on the matter are very vague on the matter, for the simple reason that the relationship will be dictated by the circumstances. The one thing that is true of the appraisal regulations is that there is no such thing as an independent relationship between and supervisor and appraiser. The exception would be for the specific circumstances where the assignment is not a FRT, the state doesn't regulate that particular circumstance, and the client does not require a license.

And yes the IC- Joe- can be assigned a duty. He may not be told exactly how it must be done by the firm that hired him. The appraisal regs will do that directing. Joe is also free to not accept the assignment, much like any other appraisal order.

That is absolutely true.

But you conveniently left the trainee out of the statement. The trainee is never independent of the supervisor (barring the circumstances mentioned previously).

See how that all works out very nicely.

It's weaving a tangled web. You're arguing that a company hiring a supervisory appraiser to train a company employee who by law cannot work independently of the supervisor, and who actions are dictated by the supervisor, and who accepts liability on behalf of the independent contractor as the employee cannot work independently, establishes an independent contractor relationship.

 

[DTB]

Still, you are the only person trying to make the claim that the trainee is independent of the supervisor. I have not said it once nor believe it.
Still does not change anything in my assessment of the arrangement.

 

[The Warrior Monk]

Still, you are the only person trying to make the claim that the trainee is independent of the supervisor.

Quite the opposite.

The trainee is not independent of the supervisor, nor is the supervisor independent of the trainee.

Thus

The employee is not independent of the supervisor, nor is the supervisor independent of the trainee.

And if the company consists of a trainee, who hires supervisors as ICs, then not only is the trainee dependent on the supervisor(s), but the entire viability of the company is.

 

[Meandering]

Individuals receive appraisal licenses, not corporations. Setting up a corporation doesn't change the relationship or responsibilities between a supervisory appraiser and their trainee.

Absolutely correct.

And why it doesn't matter if the trainee owns the company

 

[Meandering]

Quite the opposite.

The trainee is not independent of the supervisor, nor is the supervisor independent of the trainee.

Thus

The employee is not independent of the supervisor, nor is the supervisor independent of the trainee.

And if the company consists of a trainee, who hires supervisors as ICs, then not only is the trainee dependent on the supervisor(s), but the entire viability of the company is.

Which has nothing to do with the ownership of the company.

The trainee could hire or contract, 10 appraiser mentors to train him/her, and still own the company. Heck, the trainee could even call it a "valuation" company and write their own AVM without the need of a mentor. And in some states, the trainee could do BPOs without the appraiser mentor.

.

.

 

[Vasher]

I started my business the same way. My mentor was 65 when I started. he was working for 50% split and I would get 25% of his split if i wrote the entire report. I can tell you the E&O and software only cost me about $3,000 a year.

The long part is earning the trust from the AMC's so they send work. It takes time for you to understand who you have to talk to and what you have to say to get on their prefered vendor list. And then you and your partner can get the order counts up. When I first did this I purchased a E&O insurance from www.errorsandomissionsonline.com and then I used the other guys software and MLS access to write reports outside his model. I figured since he was getting paid from the other fee split it didn't matter. No one ever questioned the name on the header of the report. However he knew we did some stuff on the side (everyone does). When he figured out that we were doing 10 orders a week on the side and his turn times were going backwards he had a choice. Either accept the fact that he didn't own us or we would split ways. He decided that we would continue to do a fee split with him and i pushed the turn times to about 10-15 days. I slowly walked away and began to gain our own clients. Over the next 12 months I busted my butt gaining as many clients as I could. Mainly AMC orders for $260-300 but we were getting full fees.

in the beginning I would sign up with 10 AMC's a day and on a good week I would get one or two orders from the signups.

Good luck!

 

[The Warrior Monk]

Which has nothing to do with the ownership of the company.

The trainee could hire or contract, 10 appraiser mentors to train him/her, and still own the company. Heck, the trainee could even call it a "valuation" company and write their own AVM without the need of a mentor. And in some states, the trainee could do BPOs without the appraiser mentor.

..

I've previously specifically excluded the circumstance where a trainee does not need a license for a particular assignment. That's the anecdote anyway.

In the cases where the the trainee is required by regulation to be supervised, no claim of independence between the two parties exists. It fails the behavioral test that the IRS uses.

 

[DTB]

I've previously specifically excluded the circumstance where a trainee does not need a license for a particular assignment. That's the anecdote anyway.

In the cases where the the trainee is required by regulation to be supervised, no claim of independence between the two parties exists. It fails the behavioral test that the IRS uses.

Since you keep bring up the IRS, do you believe that an employment relationship (between supervisor and trainee) is required in order to a supervisor-trainee relationship?

 

[The Warrior Monk]

Since you keep bring up the IRS, do you believe that an employment relationship (between supervisor and trainee) is required in order to a supervisor-trainee relationship?

In the case where a license is required, there isn't even a question about the relationship. The supervisor is directly responsible for the trainees workproduct of the trainee, so there is no such thing as an IC relationship in this case.

I bring up the IRS because if anyone is making any money, it's relevant. Plenty of people have paid hefty fines plus all back taxes due to classifying someone as independent when by law they are not.