COLLEGE OF ENGINEERING AND ARCHITECTURE

ARC 048 - PROFESSIONAL PRACTICE 02

UP-FC1-BSAR4-03

RSW NO. 3

How does an Architect establish an Architectural Firm?

OCTOBER 8, 2024

Marie Alysson Dela Cruz Mejia

Instructor

PICARDAL, KRISTINE A.
Student
An architectural office or "Architectural Firm" is defined as a sole proprietorship, a
partnership or a corporation registered with the proper government agencies.

Section 37 of Republic Act (RA) 9266 states that the practice of architecture is a professional
service, admission to which shall be determined upon the basis of individual personal
qualifications. However, a firm, company, partnership, corporation or association may be
registered or licensed as such for the practice of architecture under certain conditions.

Further, it states that only Filipino citizens properly registered and licensed as architects
may, among themselves, or together with allied technical professionals, form and obtain
registration as a firm, company, partnership, association or corporation for the practice of
architecture. In the case of association or partnership, the architect shall hold the majority of
the shares (75%) of the architectural firm. For a corporation, the registered and licensed
architects (RLAs) shall compose at least seventy-five percent (75) of the owners,
shareholders, members, incorporators, directors, executive officers, as the case may be.

For a single ownership or single proprietorship, the company will have to be registered with
the Department of Trade and Industry (DTI) as well as the Professional Regulation
Commission (PRC) - Professional Regulatory Board of Architecture (PRBoA). On the other
hand, for an association, partnership, or corporation, the company has to be registered with
the Securities and Exchange Commission (SEC), as well as the PRC-PRBoA. The office shall
also secure a business permit from the municipal or city hall. Furthermore, the business shall
also register with the Bureau of Internal Revenue (BIR) for securing official receipts as well
as proper reporting of company income and expenditures for tax purposes.

The individual members of such firm, partnership, association or corporation shall be

responsible for their individual and collective acts as an entity and as provided by law. The
RLA who signs and seals documents shall carry the civil liability as provided by the Article
17 of the Civil Code of the Philippines:
 FUNDAMENTAL STEPS TO START YOUR OWN
ARCHITECTURAL FIRM

Before you start giving out your business cards, you must ensure your architecture firm is
properly established, which requires following a few basic but vital steps. To give you the best
head start, let's look at the main aspects you should take care of.

1 - Have a Clear Business Plan

It doesn't matter if your are starting out or if you've been in business for a while. You must have
a solid and detailed business plan to map out your company's specifics and identify some
unknowns. This includes knowing what your startup and ongoing expenses will be, defining
your target market, as well as pricing and profit margins. You must decide things like whether
you're starting the business from home or you'll be renting a professional office, the types of
clients and projects you want to focus on, or if you want to do business management or focus
more on designing.

Additionally, anticipate the costs of hardware, software, utilities, licenses, website

development, marketing expenses and the many other tools needed when running the firm. You
must adjust these to your financial goals and the size of your business.

Write a business plan to layout your future projects and finances.

2 - Build Your Team

Being a successful business owner requires anticipating your need for support and knowing
just what that need will be. You must build a team around specific skill sets where you may be
lacking and focus more on your strengths. It's worth having a dedicated crew on speed dial
(even if you're not fully employing them), so they can quickly help out in case you need it.

Figuring this out could take some time, especially in the beginning when everything seems to
be happening at once. But you'll get there, you just have to know what you're looking for. Of
course, you will have to take on many of these roles at first, but try to have as much support as
you can afford to get. These are some of the main aspects of the business you will eventually
need to cover.
Project Management

Project managers are essential to meet client's expectations and streamline processes once those
new projects start coming in. You'll probably be able to tackle all aspects yourself at first
(budgeting, time tracking (check out our TSheets alternatives), meeting deadlines, updating
clients, etc...), but as your workload increases it's important to have a dedicated project manager
to take these time-consuming tasks off your plate.

A great alternative is to use project management software similar to Deltek Ajera that provides
you with the tools you need to achieve better results.

Here's an example of an architecture project schedule you can use to stay on top of deadlines.

Business Development

Architect business development refers to a broad range of strategies, plans, and projects aimed
to improve the company. It's always a great idea to have someone in charge of making strategic
decisions and can identify potential threats, emerging markets as well as growth potential for
the business.

All aspects of your architecture firm, such as sales, marketing, human resources, accounting,
finance, product development, and vendor management, will be positively impacted by
effective business development. There are plenty of architect apps to help you run your
business's workflow.

Financial Planning

Financial planning involves revenue projection, staffing, overhead expense, and profit
planning. Proper financial planning is just as vital as your excellent design skills to keep the
show running. This might be time-consuming, but not giving it the attention it deserves can
cost you your whole architecture firm. Bonsai's accounting software for architects can help you
organize your finances and plan for projects.

Marketing

Your architecture firm needs to have a consistent stream of potential clients in the pipeline to
succeed. This is why marketing is of the utmost importance. While at first you may not have
enough budget or staff for it, make sure you have this aspect covered by developing a marketing
strategy yourself and building your networking skills.
Human Resources

This might not be an immediate necessity in the early stages of your business (especially if
you're registered as a sole-proprietorship), but keep it in mind if you are planning on expanding
soon. Every corporation with employees needs human resources to help find and retain skilled
employees to increase your business productivity. Additionally, HR makes sure that all
company, state, and federal regulations are followed.

3 - Get Your License and Permissions

Without the required permissions and licenses, architectural firms will risk paying heavy fines
or even the closure of your architecture business. State-specific legal requirements may differ,
but generally speaking, architecture companies must employ a minimum number of licensed
architects, at least one of whom has a license from the state.

A certain amount of schooling, professional experience, and passing an exam are often
requirements for obtaining an architect license (check with the National Architectural
Accrediting Board for requirements). Some states demand the acquisition of a separate license
for an architecture business. Check with your city, town or clerk's office to make sure you meet
all the requirements to run your own architecture firm.

4 - Register as a Business

Registering your business might differ depending on how big it is and what state you live in.
But in general, these are the basic steps you'll need to follow.

Choose a business structure

First, you must decide on a business structure (also known as a business entity). This will
determine the way you file taxes, how your firm is run on a day-to-day basis, and how much
of your personal assets are at risk if your company fails. The most common business structures
are sole proprietorship, limited liability corporation (LLC), partnership, and C-Corp. A legal
entity will separate you from the business and help you mitigate litigation from your personal
assets.

Register a business name

The next step is to register your name for your own business. Typically, the process of forming
different entities like LLCs and corporations includes registering a business name. However,
you might need to submit a DBA (a "doing business as" name) if you're creating a single
proprietorship or a partnership and choose a company name that isn't your own.

Register for taxes

In order to file taxes, you will also need to register your business with the IRS (Internal
Revenue Service). First, you must obtain your Employer Identification Number (EIN), which
is like your business's social security number. If you're registering as a sole proprietorship, this
will not be necessary, however, there are certain benefits of getting your EIN anyways.

State and Local Registration

After completing all federal registrations, you'll probably need to register your company with
one or more state or local entities, such as the revenue offices. You might also need to register
with your state agency to file payroll taxes if you intend to handle payroll.

5 - Open a Business Bank Account

When you don't keep your business and personal finances separate, all your personal assets
(home, vehicle, etc...), are at risk if your firm is sued. This is known as "piercing your
corporation veil" in business law. But the benefits of a dedicated business bank account go
further than just protecting your money.

Establishing corporate records (and credit) can help you secure loans, credit cards, and other
funding under your company's name rather than your own, as well as get better terms and credit
limits. Plus, keeping your business finances separate can make accounting and tax filing much
easier. It's recommended to open an architect bank account online.

6 - Get Business Insurance

Business insurance is just as necessary as your licenses and permits. It protects the financial
stability of your business in case of covered losses. There are many insurance policy types, and
the one you choose will depend on the different risks your architecture firm might face. If
you're not sure about what you will need in the future, getting a General Liability Insurance is
a great place to start. This policy usually guards architects from third-party harm, third-party
property loss and theft, as well as third-party harm from advertisements.
 Architecture Firms in The Philippines

TJSO ARCHITECTS

Arch. T. Jordan Ong graduated B.S. Architecture from the College of Architecture and Fine
Arts (Now College of Architecture) at the University of Santo Tomas. He has worked in various
reputable architectural firms and has risen among the top key employees on all occasions. He
has handled hundreds of residential and high-rise projects during his stay in one of his previous
firm, where he worked as department head for construction. But having the drive and passion
to pursue his goal, he humbly started his own practice in the summer of 2007 and since has
expanded his portfolio, designing various projects ranging from high-end residential projects,
townhouses, mid-rise buildings, high rise buildings, restaurants and commercial buildings. He
embraced the modern minimalist style, and it shows in all of his works, but has added his own
style in the process.

Some of TJSO ARCHITECTS’s most prominent projects include:

• SCRAP HOUSE: BICYCLE FRAME HOUSE
• MODERN TROPICAL HOUSE, Pinamalayan, The Philippines
• Yu house, Quezon City, The Philippines
• Uno resort hotel, Puerto Princesa, The Philippines
• Cogeo Commercial Building
The following statistics helped TJSO ARCHITECTS achieve 2nd place in the 7 Best
Architecture Firms in The Philippines:
DEQA Design Collaborative (formerly DDC Architectural Studio)
We create impactful and sensory experience ecosystems that use the power of design to inspire
and innovate our everyday. We are a design partner for ambitious clients and bold businesses.
DEQA designs through our ideas, objects, places, buildings and communities. We focus on
research-driven, human-centric and sustainably focused design.
We integrate planning, architecture, interior design, product design and branding to maximize
interdisciplinary cross-pollination in our practice. We design at all scales from the micro to the
macro, designing in powers of ten, to create value and innovation. Our process is highly
collaborative. We work closely with our clients to understand their visions, values and needs.

Some of DEQA Design Collaborative (formerly DDC Architectural Studio)’s most prominent
projects include:
• Rizal Eco Center, Rizal, Calabarzon, The Philippines
• Hyve, Taguig, The Philippines
• Hyphy’s, Pasig City, The Philippines
• Contemporary Museum of Art and Design Competition Entry, Taguig, The Philippines
• Vyne, Taguig, The Philippines
The following statistics helped DEQA Design Collaborative (formerly DDC Architectural
Studio) achieve 4th place in the 7 Best Architecture Firms in The Philippines:
WTA Architecture + Design Studio

Define. Design. Refine. We seek to redefine the role architecture plays in our society and focus
on the creation of positive social impact. We create architecture for moments. Moments that
matter to you, and the people around you. In WTA Architecture and Design Studio, we create
spaces that encourage connection. We believe in social architecture that engages people, breaks
down barriers and designs hyperlocal communities. At WTA, we build communities.

Some of WTA Architecture + Design Studio’s most prominent projects include:

• The Book Stop, Manila, The Philippines
• El Museo del Prado En Filipinas, Manila, The Philippines
• The Oriental Legazpi, Legazpi City, The Philippines
• The Oriental Leyte, Tacloban City, The Philippines
• New Taipei Museum of Art, Taipei, Taiwan
• Top image: Journey by the Bay, Concept
The following statistics helped WTA Architecture + Design Studio achieve 1st place in the 7
Best Architecture Firms in The Philippines:
Conclusion

To start an architectural firm, an architect first needs to define their vision and focus, such as
whether they want to work on homes, commercial buildings, or eco-friendly designs. Creating
a solid business plan is important; this plan should outline goals, target customers, and how the
firm will operate. Next, the architect must obtain the necessary licenses and certifications to
legally run the business. Building a portfolio that showcases their best work, even if it includes
personal or volunteer projects, will help attract clients. Effective branding and marketing, like
having a professional website and active social media, are crucial for getting noticed.
Networking with other professionals, such as builders and suppliers, can help create valuable
partnerships. As the firm grows, managing client relationships and using technology to keep
projects organized becomes essential. Ultimately, focusing on quality work, innovation, and
customer satisfaction will help build a successful architectural firm.

References
1. What is an architectural firm
https://ccdreview.blogspot.com/2015/01/establishing-architectural-office-legal.html
2. Fundamental steps to start your own architectural firm.
https://www.hellobonsai.com/blog/starting-an-architecture-firm
3. Architectural firms in the Philippines.
https://architizer.com/blog/inspiration/collections/best-architecture-firms-in-the-
philippines/