How to Open an Architectural Firm? Advice from Lawyers and an Architect

Contents:

• 2013, the year in which three architect friends decided on an experiment
• LLC or Sole Proprietorship?
• Why do you need a business plan?
• Do you need a license to open an architectural bureau?
• 2016, the year in which Novoye loses a copyright lawsuit, hires and loses employees
• How to preserve authorship
• How to hire employees
• 2020, the year in which the pandemic began and creative holidays
• To summarize

You're a young architect with a set of drawings in hand. What are your next steps: will you work for an architectural firm or decide to open your own architectural studio?

In 2013, Sergey Nebotov decided to create the architectural firm "Novoe" together with his colleagues. In an interview for Skillbox Media, he shared his experience and views on architecture and design. The Novoye bureau strives to offer innovative solutions and unique projects that meet modern requirements and trends in architecture.

• how the co-founders divided responsibilities among themselves;
• how they lost their first court case defending their copyright;
• how the pandemic affected the team.

We asked lawyers to clarify the situation.

• how to properly formalize a partnership between co-founders;
• is a license and business plan required;
• how to provide for work in case of force majeure in a contract with clients.

The co-founder of the Novoye architectural bureau is actively involved in the development of unique architectural solutions. Novoye has established itself as a leader in the field of contemporary design and sustainable architecture. We strive to create innovative projects that harmoniously fit into the environment and meet the needs of our clients. Our team of specialists works on various projects, from residential and commercial buildings to landscape design, ensuring high quality and originality at every stage.

A lawyer with over 20 years of experience in the field of legal services. In his practice, he consulted for organizations such as the Strelka Institute and Strelka Design Bureau. He participated in supporting architectural competitions and developing draft regulations in the field of urban development. He is also a speaker on the course "Architects' Law", sharing his knowledge and experience with professionals in this field.

Lawyer Semenov & Pevzner, managing partner of the St. Petersburg office, has more than 10 years of experience in the field of intellectual property. Specializing in legal issues related to architectural firms, he offers qualified legal services and consultations. He is also a speaker for the "Architects' Law" course, where he shares his knowledge and experience with professionals in the field.

2013, when three architect friends decided to try an experiment

In 2013, Sergei Nebotov, a freelance architect, teamed up with Anastasia Gritskova and Tatyana Leshikhina, both of whom work at Buro Moscow, to implement a joint project—a winter pavilion for the Megafon company at the skating rink in Gorky Park. Realizing that their collaboration was producing excellent results and was comfortable, the architects decided to create their own firm. This is how Novoye was born, which became an important step in their careers and brought a fresh perspective to the architectural community.

Co-founder of the Novoye architectural bureau, specializing in innovative approaches to architecture and design. Our team strives to create unique and functional spaces, taking into account modern trends and client needs. We work on projects of various scales, from residential complexes to public buildings, guaranteeing high quality and a personalized approach in each case. The Novoye architectural bureau is your opportunity to realize bold architectural ideas.

At that time, the architectural market was primarily represented by companies with over 30 years of experience. In this context, we decided to create our own architectural bureau. At the beginning of our journey, none of us considered this a business project; we viewed starting our own business more as an experiment. Our foundation was a shared portfolio, which became the starting point for further development.

Our team and I won a competition organized by the Garage Museum of Contemporary Art, where we completed our project, the Summer Pavilion. Anastasia and Tatyana were awarded the title of Best Young Architects of Russia as part of the Avangard Prize. This success underscored our commitment to innovation in architecture and contemporary art, as well as the importance of supporting talented professionals in this field.

We pooled everyone's achievements and began establishing a shared studio, which is gradually acquiring the necessary infrastructure.

Initially, we focused on thoroughly mastering the architectural design process. Our goal was to create numerous in-house projects that we could manage from concept to completion. We sought not only to gain experience but also to build a high-quality portfolio. We had previously worked on cases, but these mostly concerned competitive design projects, which differs significantly from real-world practice. This disconnects one from professional practice and turns an architect into a dreamer with no guarantee of career advancement. We were looking for the optimal way to effectively go through the entire cycle of creating an architectural object.

The Novoye company has successfully focused on specializing in temporary architecture. Their portfolio includes projects for temporary pavilions in Gorky Park, the creation of the Megafon zone at Krasny Oktyabr, and the development of the courtyard of the Museum of Moscow. These projects highlight the company's creative approach to organizing space and their ability to adapt architectural solutions to temporary needs.

The co-founder of the Novoye architectural bureau is actively involved in the development of modern architectural solutions. The firm specializes in residential and commercial design, striving to create functional and aesthetically pleasing spaces. A professional approach to each project and attention to detail enable the team to achieve outstanding results. Novoye focuses on innovative technologies and sustainable development, making it one of the leading architectural firms in the region.

At that time, the architectural market was primarily represented by established architectural firms with over 30 years of experience. In this context, we decided to embark on our own journey. None of us viewed this as a business opportunity; for us, starting our own business was a kind of experiment. Our foundation is our shared portfolio, which we proudly present.

Our team won a competition organized by the Garage Museum of Contemporary Art with their project "Summer Pavilion." Anastasia and Tatyana were awarded the title of Best Young Architects of Russia as part of the Avangard Prize. This success underscores the importance of our approach to architecture and contemporary art, and demonstrates the high level of professionalism and creativity of our team.

We pooled the achievements of each participant and began furnishing the studio, allowing us to gradually create a comfortable and functional space.

During the first phase of our project, we focused on thoroughly mastering the full cycle of architectural project implementation. Our goal was to create numerous original projects that we could manage from concept to completion. This allowed us not only to gain practical experience but also to build a high-quality portfolio. Although we had some previous cases, most of them were competition projects, which do not always reflect real-life practice. Such activities often separate architects from practical work, turning them into dreamers and offering no guarantee of professional growth. We were looking for the optimal path to effectively complete the entire architectural design cycle, from concept to implementation.

LLC or Sole Proprietor?

The terms "partner" or "co-founder" can only be officially used within a limited liability company (LLC). A corporate agreement, also known as a participant rights agreement, is used to regulate the relationship between the founders. Evgeny Ryabov, an expert in corporate law, highlights key aspects related to regulating the relationship between the founders. A corporate agreement clearly defines the rights and obligations of the parties, which helps prevent conflicts and misunderstandings in the future.

• Decide what percentage of the share each will have. It is better not to split the company in half. Otherwise, no one will have the right to a prevailing decision. In a conflict, this could lead to a deadlock and, consequently, ruin.
• Transfer exclusive intellectual property rights not to a specific individual, but to the organization. Each of the LLC participants contributes their available resources: some with money, some with their actions. If this is not done, any partner can take away everything they believe belongs to them.
• Agree on how long from the founding of the LLC the partners cannot leave it. And what to do if one is suddenly expelled. If you agree that the share of the person leaving will be sold, then determine its lower and upper value.

When it comes to individual entrepreneurship (IE), it should be noted that there is no legal way to formalize a partnership. In this case, responsibility for all aspects of the business falls on one person, who is its owner. This means that all risks and obligations will be borne solely by the individual entrepreneur.

A lawyer is a legal specialist who provides legal services and protects the interests of clients in legal matters. Lawyers represent their clients in court, prepare legal documents, and also advise on various aspects of the law. An important aspect of a lawyer's work is maintaining the confidentiality of a client's information and ensuring their rights.

There are many specializations among lawyers, including criminal, civil, family, tax, and corporate law. The choice of lawyer depends on the specific legal problem the client faces. High-quality legal services can significantly impact the outcome of a case, so it is important to choose a lawyer with the relevant experience and reputation.

Lawyers also play a key role in mediation and negotiations, helping parties reach compromises and avoid litigation. In the context of modern legislation, having a qualified lawyer is becoming essential for both individuals and businesses.

If you require professional legal assistance, it is important to consider the lawyer's qualifications and experience in your field. Choosing the right lawyer can ensure the protection of your rights and legal interests.

Helping a friend who is a sole proprietor can be done on a voluntary basis, but it's important to understand that this does not create any real rights to their business income. The safest way to formalize the relationship is to work for the sole proprietor under an employment contract or enter into another compensated agreement that will protect your interests. However, this approach does not correspond to the concept of a joint venture. A joint venture involves creating a legal entity, such as a limited liability company (LLC), in which each partner owns a certain share. This share grants the right to participate in the management of the company and to profit from its operations. Properly formalizing the relationship is a key step to a successful partnership and protecting your financial interests.

Bureau "Novoe" is registered and continues to operate as a sole proprietorship. Sergey is formally the director of the bureau, but this does not affect the distribution of income—the co-founders receive equal salaries, and the remaining profits are used to develop and improve the workshop. The partners did not enter into any additional agreements, which underlines their trusting relationship and shared approach to business.

Lawyer Semenov & Pevzner offers professional legal services, ensuring high quality service and an individual approach to each client. Our team of experienced lawyers provides consultations on various legal matters, including contract law, corporate law, and consumer protection. We strive to protect our clients' interests and find optimal solutions to complex situations. By contacting Semenov & Pevzner, you gain a reliable partner in resolving legal issues. We value our clients' trust and guarantee confidentiality at every stage of our collaboration.

To begin working for yourself, you can register as self-employed. However, if you plan to open a business, there are two main registration options: individual entrepreneur (IE) and limited liability company (LLC). The choice between IE and LLC depends on many factors, including the scale of the business, tax obligations, and level of liability. Registering as an IE is usually simpler and faster, while an LLC offers more opportunities for asset protection and investment attraction. It is important to carefully consider all aspects before deciding on a registration form.

A limited liability company (LLC) is a more complex, yet secure, form of business registration. LLC founders are not personally liable for the company's actions, unlike sole proprietors (SPs), who are liable for all their assets. The main reason architects choose to register as LLCs is the opportunity to participate in government contracts, which are unavailable to sole proprietors. When choosing a business structure, it's important to clearly define the goals and scope of your activities, as this will help you choose the most suitable option for successful business management. Avoid registering at multiple addresses, as this is a service provided by the owner of the premises to several companies simultaneously. While this method of obtaining a legal address may seem more cost-effective, it can lead to additional tax audits or even denial of your company's registration. Choosing a unique legal address will provide you with greater protection and reduce the risks associated with audits by tax authorities.

We were warned that not all customers are ready to work with individual entrepreneurs (IE). However, we have not encountered any problems in this matter. Discussion of registering a limited liability company (LLC) periodically arises, perceived as a step toward a new stage of business development. However, complexities associated with accounting, taxation, and reporting requirements often hinder us.

When registering a limited liability company (LLC) or sole proprietorship (SP), it is necessary to choose an appropriate taxation system. If you have fewer than 100 employees, annual profits do not exceed 150 million rubles, and do not have branches or shares in other companies, which is typical for start-up businesses, it is worth considering a simplified taxation system (STS). The STS applies a single tax rate of 6% of income or 1% in some regions. Income and property taxes are not levied, significantly simplifying bookkeeping and reducing the tax burden on businesses.

Taxation systems such as UTII and OSN are aimed at larger companies. When choosing a suitable tax system, the key factors are the number of employees and revenue. Choosing the right tax system can significantly impact a business's financial performance and optimize tax liabilities.

According to Ekaterina Semenova, registering a limited liability company (LLC) or sole proprietorship (SE) takes approximately seven days. This is one of the simplest steps faced by aspiring entrepreneurs. You can complete the registration process yourself. However, for effective business management, it is recommended to engage professionals in this field. They will help avoid errors and optimize processes, which will ultimately save time and resources.

When planning your accounting, you need to decide whether you will have an accountant on staff or you will prefer outsourcing. If you have employees, it is important to organize personnel records in accordance with the Labor Code. Software is also worth considering: architects often face claims from copyright holders for using unlicensed software. Choosing the right accounting firm and adhering to the law will help avoid legal problems and ensure the stable operation of your company.

For a thorough understanding of architectural legislation, it is recommended to carefully study the Federal Law "On Architectural Activity," as well as Part IV of the Civil Code, which covers general provisions and the section on copyright. These documents contain key aspects regulating the design, construction and protection of architects' copyright, which is important for successful practice in this field.

A lawyer is a qualified legal specialist who provides legal services and protects the interests of clients. A lawyer's primary role is to ensure that their clients' rights and legitimate interests are protected in various legal situations. Lawyers can represent clients in court, participate in negotiations, and provide legal advice.

Choosing a lawyer is an important step in resolving legal issues. Key criteria include experience, specialization, and reputation. Lawyers can specialize in various areas of law, such as criminal, civil, family, or tax law. This allows them to provide more targeted and effective services.

A lawyer also plays a vital role in drafting documents such as contracts, applications, and lawsuits. A qualified lawyer can help avoid legal errors and protect your interests. If you need legal defense or legal advice, it is important to contact a lawyer who can offer professional assistance and support.

Assistance for a sole proprietor is possible, but it is important to understand that such assistance does not create actual rights to the business's income. If you want to legally participate in a business, the best option is to work for a sole proprietor under an employment contract or enter into another paid agreement. However, such agreements do not provide the status of a joint venture. A joint venture requires the creation of a legal entity, such as a limited liability company (LLC). In this case, each partner receives a share, which grants rights to participate in the company's management and profits. Thus, in order to form a true partnership, it is necessary to formalize the business properly, which will ensure legal rights and guarantees for all participants.

Semenov & Pevzner lawyers offer professional legal services covering a wide range of legal issues. Our team of experts has extensive experience in various areas of law, including civil, criminal, corporate, and family law. We strive to provide our clients with high-quality legal advice and support, ensuring a personalized approach to each case. By contacting us, you can be assured of a high level of service and the competence of our specialists. Choose Semenov & Pevzner for reliable protection of your rights and interests. Currently, to start your own business, you can register as self-employed. However, if you plan to open a firm, there are two main registration options: individual entrepreneur (IE) and limited liability company (LLC). The choice between IE and LLC depends on the scale of the business, tax obligations, and level of liability. A limited liability company (LLC) is a more complex, but safer form of business registration. LLC founders are not personally liable for the company's actions, unlike individual entrepreneurs (IE), who are liable for all their property. The main incentive for architects to register as LLCs is the opportunity to participate in government contracts, as sole proprietors are not eligible for such contracts. When choosing a business type, it's important to clearly define the goals and scope of your operations, which will help you choose the most appropriate legal structure for successful business management. Avoid registering at multiple addresses, as this is a service provided by the owner of the premises to several companies simultaneously, sometimes even a large number of companies. While this method of obtaining a legal address may seem more cost-effective, it carries risks, such as additional tax audits and possible denial of your company's registration. Choosing a unique and reliable legal address will significantly reduce the likelihood of problems with tax authorities and provide your company with a more stable legal basis.

We were warned that not all customers are ready to work with sole proprietors. However, we haven't experienced any problems in this regard. The question of registering a limited liability company (LLC) comes up from time to time, as it can be an important step in the development of our business. However, we are stopped by more complex accounting, taxation, and reporting requirements.

When planning your accounting, it is important to decide whether you will have an accountant in-house or outsource it. If your company plans to have employees, it is necessary to organize personnel records and ensure compliance with labor code requirements. It is also worth paying attention to the choice of software, as architects often face claims from copyright holders for using illegal versions of programs. Ensuring the legality and reliability of the software you use will help avoid legal problems and increase the credibility of your company.

For a thorough understanding of the legislation regulating architectural activity, we recommend carefully studying the Federal Law "On Architectural Activity" and Part IV of the Civil Code, which contains general provisions and a section on copyright. These documents are the main sources of information and will help you better navigate the legal aspects associated with design and construction.

Why do you need a business plan?

When registering a legal entity, you do not need to develop a business plan. Financial calculations may be needed only when applying for a loan, since this document is of a business nature and serves for an internal assessment of results. At the initial stage of a business, no special calculations are required. A business plan becomes relevant when the need to attract investment arises.

In entrepreneurship, there are two key approaches: effectuation and causation. Effectuation is based on working with limited resources, allowing entrepreneurs to effectively exploit existing opportunities. This approach is the foundation for creating startups, where flexibility and creativity play a crucial role. In contrast, causation focuses on long-term planning and strategic thinking. Both methods have their advantages and can be effectively applied in various business situations, allowing entrepreneurs to adapt to market changes and achieve their goals.

Sergey and his team opted for the first option. They quickly organized and began implementing the assigned tasks. It's important to note that the key to success is not so much business plans and agreements, but a shared understanding of goals and objectives. This allows the team to work harmoniously and effectively, which ultimately leads to the achievement of the set results.

Initially, the goal of creating a large organization was not. We gradually solved emerging problems, without realizing the scale of the upcoming development. Looking back, we should have paid more attention to the administrative aspects. We didn't expect our experiment to develop so dynamically and successfully, and we didn't plan our next steps in advance. Working as a three-person team was challenging, as we had to juggle multiple responsibilities simultaneously. We developed a system to effectively divide tasks into unique and shared ones. Responsibilities were divided into three main categories: business, accounting, and communications. If one of us was better at negotiations, they would handle that task. At the same time, everyone had access to all internal information and documents, which allowed us to back each other up at any time and ensured the team's smooth operation. This approach contributed to increased productivity and improved the quality of task completion.

Initially, the goal was not to create a large organization. We solved the problems that arose step by step. However, looking back on the path taken, it can be noted that more attention should have been paid to administrative issues. We didn't expect our experiment to develop with such dynamism and success, and we didn't conduct thorough planning in advance. Going forward, we need to focus on strategic management and structural development to effectively manage growth and new challenges. Working with three people requires significant effort and multitasking skills. To optimize the process, we developed a system for dividing responsibilities into unique and shared ones. Tasks were divided into three key areas: business, accounting, and communications. Each of us focused on our areas of expertise. For example, if someone was better at negotiations, they were assigned that task. At the same time, all team members had access to all internal documentation and information, allowing them to support each other at any time and ensure smooth operation. This approach has significantly increased our efficiency and improved collaboration.

Do I need a license to open an architectural firm?

Previously, there was a concept of a "license for architectural activity," but this section was excluded from the Federal Law "On Architectural Activity in the Russian Federation." Now, a license is required only for design work, construction of facilities, and engineering modifications. Architectural firms engaged in pre-design work do not need to obtain special documents to begin their activities. "Novoe" is one of the architectural firms specializing in pre-project work.

There is no license for architectural activity in the traditional sense. Instead, licensing is required to perform certain types of work. In the case of construction, obtaining a permit is necessary, which is a separate administrative process.

There is a list of activities for which membership in a self-regulatory organization is mandatory. This is a non-profit association of construction professionals that issues permits for architectural design and engineering work. The membership process is free. Permits are required for specific types of work, not for the organization's overall activities. It is important to understand that compliance with these requirements is mandatory for legal work in this field.

There is no license for architectural activity in the traditional sense. However, special permits are required to perform certain types of work. In the context of construction, it is necessary to obtain the appropriate permit, which is a separate aspect of administrative regulation.

2016, in which Novoye loses a copyright lawsuit, hires and loses employees

Two or three years after the firm's founding, the architects began receiving orders comparable in budget to large construction projects. In 2017, the Sun, Water, and Wind pavilions at the Expo exhibition in Astana were built according to Novoye's design. After the exhibition ended, it was decided to preserve these temporary objects, which testifies to their significance and uniqueness in the architectural environment.

Networking has become an effective tool for us in finding clients, which allowed us to avoid long periods without work. This is due to two main factors. Firstly, we are young professionals, which reflects market demands. Secondly, cities have begun to recognize the value of public spaces, and creating such places has become our calling. We relish the opportunity to influence environmental change, which underscores our architectural mission.

The Novoye company evolved with the market, but questions soon began to arise. Initially, these concerned legal aspects, as the number of clients and contracts significantly increased. Following this, accounting inconsistencies arose that required immediate attention and resolution.

We didn't expect such rapid growth. We had an accountant, but to resolve the issues that arose, we had to bring in additional specialists. This allowed us to effectively cope with new challenges and ensure high-quality financial management in the face of increasing work volumes.

Networking has become a key tool in our work, allowing us to quickly find clients and avoid periods of idleness. Two main factors contributed to this success. Firstly, we were young professionals, which aligned with market needs. Secondly, cities were beginning to recognize the value of public spaces, and we were interested in participating in their creation. We sought to influence environmental change, which underscores our mission as architects. Architecture is not just designing buildings, but also transforming the urban environment, creating comfortable and functional spaces for people.

We didn't expect to experience such rapid growth. We already had an accountant, but the difficulties that arose required the involvement of additional specialists to address new issues.

How to Preserve Copyright

Copyright legislation in architecture is becoming a hot topic, especially when it comes to cases of bad faith behavior by clients. One such case demonstrates the importance of properly formalizing copyright. In this example, the architects encountered a situation where the client used the design but refused to pay the fee. An appeal to the court was unsuccessful because the architects failed to formally register the rights to their work and transfer them to the client. This underscores the need for careful consideration of legal aspects of copyright to protect the interests of architects and creative professionals. Proper registration of copyright will help to avoid such situations and ensure the protection of intellectual property.

The client seeks to obtain all rights to the project, while the architect wants to receive payment for his work. It is important to clearly define the moment of transfer of rights to the object from the contractor to the client. It is recommended to include a clause in the contract stating that the rights are not considered transferred until full payment is received. This will avoid misunderstandings and protect the interests of both parties. A properly executed contract will guarantee the fulfillment of obligations and ensure transparency in the relationship between the client and the contractor.

To ensure legal protection, it is important to organize the accounting and storage of internal documentation in the bureau. Having extensive evidence of authorship will significantly increase your chances in court. To confirm that the project was completed by you, we recommend collecting the following types of documentation:

• Indication of authorship on all copies of the project. Even on those intended for approval by authorized bodies.
• Drawings and drafts. Indicate authorship on them too, including on electronic copies.
• Service assignment. For example: "Ivan Ivanovich Ivanov is working on this project and undertakes to complete it within such-and-such a time frame." Accordingly, he is the author.
• Contract with the architect. If the architect acts as an individual, then the contract with him will also prove authorship.
• Deposit with a notary is the process when the author transfers documents to the client through a notary.

The client seeks to obtain all rights to project, while the architect awaits payment for the work performed. It is important to clearly define the moment of transfer of rights to the object from the contractor to the client. It is recommended to include in the contract a clause according to which the rights are considered transferred only after full payment. This will help avoid misunderstandings and protect the interests of both parties.

How to hire employees

The founders of the Novy company hired employees as needed, responding to the growing demands of the business. Initially, they recognized the need for an assistant architect, which allowed them to optimize work processes. Then the need arose for a manager for business activities, which contributed to improved resource management. Later, a manager was hired, responsible for organizing meetings with suppliers, partners, and customers. As a result, at its peak, the bureau had 16 employees, which testifies to its successful growth and development.

The founders of "Novy" strove to create a creative workshop with a friendly atmosphere, says Sergei Nebotov. The first employees were treated like children: they were cared for, fed, and not overloaded with work, showing care and attention. This supportive environment fostered creativity and collaboration, which became the foundation for the team's success.

When interacting with people who need to be hired, various issues may arise that require an assessment of the situation. Initially, it may seem as if the cause of failure lies within ourselves: "Maybe I set the task incorrectly? Should I have phrased it differently?" However, over time, it becomes clear that such relationships require consideration of the rights and responsibilities of both parties. Clearly defining your own and the employee's responsibilities helps establish effective relationships. If understanding cannot be reached, it may be best to part ways. We didn't have any problems with line employees, but conflicts arose with senior specialists. The main reason was that the procedure for a specialist's exit from the project was not worked out in a timely manner.

When hiring employees, it is important to include the results of intellectual activity in employment contracts. This will help avoid misunderstandings and protect your interests. Be sure to familiarize new employees with job descriptions so they clearly understand their responsibilities and duties. If it becomes necessary to remove someone from a project, be sure to obtain their written consent. For large projects, it is recommended to issue a work assignment for project documentation maintenance, specifying the specific location of the future work location. This will ensure a structured approach to project management and improve the team's efficiency.

Problems in relationships with employees can arise at any time, and it is important to be able to assess them correctly. A novice manager often faces a lack of experience in hiring and managing personnel. At first, doubts about one's actions arise: "Maybe I formulated the task incorrectly?" However, over time, an understanding comes that in a professional relationship, both parties have rights and responsibilities. Clearly defining areas of responsibility for both oneself and the employee allows one to build effective relationships. If understanding is not achieved, a decision must be made to part ways. This approach helps avoid conflicts and create a productive working atmosphere.

When recruiting employees, it is important to clearly define the results of intellectual activity in employment contracts. Do not forget to familiarize new employees with job descriptions, which will help avoid misunderstandings. If it becomes necessary to remove someone from a project, be sure to obtain their written consent. For large projects, it is recommended to formalize a work assignment for maintaining project documentation, specifying a specific project address. This will ensure transparency and protect the interests of all parties.

2020, the year the pandemic and sabbaticals began

During the pandemic, the Novy team found it difficult to maintain a creative atmosphere while working remotely. As a result, employees began requesting extended leave, and the firm's founders did not interfere. In the end, only five people remained on the team.

We came to the conclusion that creating joint projects remotely has its limitations. Creative work can be difficult in the digital space. Discussions and arguments with documents in hand are ineffective in Zoom. Creative processes are always nonlinear. Failure to discuss all changes in person can lead to a buildup of unresolved issues and negative consequences.

We have optimized our work to meet the needs of those who remain with us. We have agreed to a temporary pause with many of them. The pandemic has highlighted the importance of maintaining a special atmosphere within the creative team. This time has allowed us to deeply reflect on accumulated issues, including business aspects. We strive to create an environment that fosters not only the professional but also the personal development of each employee.

Lawyer Oleg Bryukhanovsky notes that the architectural business, even during crises, remains relatively resilient. Construction activity continues, supporting demand for architectural services. In the first months of the pandemic, architectural firms faced cash flow shortfalls, but they were not forced to close completely. They successfully adapted to the new conditions and continued their work remotely. This confirms the importance of flexibility and innovation in the architectural field, which allows it to effectively respond to changes in the economic environment.

Force majeure situations cannot be predicted, but their potential occurrence can be taken into account in the contract. It is important to include provisions regarding the suspension of obligations for a specified period. If circumstances do not change during this period, the parties terminate their obligations in the same state they were in at the time of suspension. This approach helps minimize risks and protects the interests of both parties by providing clear mechanisms for dealing with unforeseen situations. Closing a business is a serious step, and it is rare to find a company that voluntarily decides to cease operations. Typically, organizations try to fight to the last to maintain their market position. In cases where a company temporarily suspends its activities for internal reasons but does not formally liquidate, it is obliged to continue to comply with all requirements associated with maintaining the status of a sole proprietor or limited liability company. First and foremost, this concerns the submission and filing of mandatory reports. Maintaining the current status allows you to avoid additional fines and problems with tax authorities, which is an important aspect of running a business. Liquidation of a business includes the mandatory repayment of all debts, including obligations to the budget, creditors, and employees. After all financial obligations have been met, the company's remaining assets are distributed among the limited liability company's shareholders proportionately. If assets are insufficient to cover all debts, bankruptcy proceedings may need to be considered. It is important to keep in mind that properly formalizing liquidation and bankruptcy will help avoid legal consequences and protect the interests of the participants.

We came to the conclusion that creating joint projects remotely is not always productive. In today's digital world, creative work can be difficult. Discussions and debates with documents in hand are impossible to conduct effectively over Zoom. Processes often develop nonlinearly, and if changes are not discussed live, this can lead to a buildup of unresolved issues and negative emotions. Therefore, the importance of face-to-face communication and in-person meetings in creative work remains high.

We have optimized our work, focusing on those who remain with us. We have agreed to a temporary break with many of them. The pandemic has highlighted the importance of maintaining the unique atmosphere within the creative team. This time has provided an opportunity to analyze accumulated issues, including business aspects. We strive to create an environment that fosters and supports creativity, which is key to the successful functioning of our team.

Force majeure situations cannot be predicted, but their occurrence can be taken into account in the contract. It is important to prescribe the terms of suspension of obligations for a certain period. If circumstances do not change during this period, the parties terminate their obligations in the same state they were in at the time of suspension. This approach minimizes risks and protects the interests of the parties in a situation of uncertainty. Using clear language in the contract promotes legal clarity and facilitates more effective resolution of potential disputes. Closing a business is a complex process, and I don't know of a single company that would decide to voluntarily cease operations. All organizations strive to fight to the last, even in difficult times. If a company temporarily suspends its operations for its own reasons but does not formally file for liquidation, it is obligated to fulfill all obligations associated with maintaining the legal status of an individual entrepreneur or LLC. First and foremost, this includes filing mandatory reports. Maintaining the company's legal viability is important to avoid fines and other negative consequences. Liquidating a business requires full repayment of all obligations, including debts to the budget, creditors, and employees. After all debts are settled, the company's remaining assets are distributed among the limited liability company (LLC) participants in accordance with their equity participation. If the existing assets are insufficient to cover all debts, it may be necessary to consider bankruptcy proceedings. Bankruptcy allows you to legally resolve financial difficulties and protect the interests of both the debtor and creditors.

Let's summarize

• You can start working for yourself as a self-employed person (when working with individuals, you will pay a tax of only 4%, when working with legal entities - 6%). But if you plan to assemble a team and take orders from large clients, you may need to become an individual entrepreneur.
• If you open a firm with a partner, you may have to consider an LLC, because there are no legal ways to formalize a partnership as an individual entrepreneur.
• Copyright is one of the important areas of law for architects. Carefully study the legislation and draft contracts correctly from the very first order. It's best to engage specialists to draft contract templates with clients and contractors.
• The same applies to accounting. A responsible and experienced accountant who has been working with you from the very first days of your company's existence will save you from nitpicking and tax fines.
• Properly manage your bureau's internal documentation: save and organize all drawings, drafts, source files, and work assignments.
• At the start, you don't want to think about the bad, but it's still better to be prudent and include a clause in the contract specifying the rights and obligations of the parties to the contract in the event of force majeure.