CA PLS Exam Preparation

Comprehensive preparation for the California Professional Land Surveyor (PLS) exam. Based on the January 2025 Test Plan with 6 modules and 57 topics. Content adapted from CalTrans LS/LSIT Video Exam Preparation Course materials.

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Lesson 9

Managing a Surveying Business

Managing a Surveying Business

Overview

Operating a surveying business requires understanding of business fundamentals, professional requirements, and industry-specific challenges. Success depends on balancing technical excellence with sound business practices.

Learning Objectives

  • Understand business entity options
  • Manage financial operations
  • Maintain required licenses and insurance
  • Develop marketing strategies

Key Concepts

Business Entity Options

Common structures for survey firms:

  • Sole proprietorship
  • Partnership
  • Professional Corporation (PC)
  • Limited Liability Company (LLC)
  • Note: California requires a licensed surveyor to have responsible charge

Financial Management

Key financial considerations:

  • Billing and collections
  • Cost tracking by project
  • Overhead rate calculation
  • Equipment depreciation
  • Cash flow management

Professional Requirements

Maintaining a California survey practice requires:

  • Active PLS license in good standing
  • Continuing education compliance
  • Professional liability insurance
  • Workers' compensation coverage
  • Business licenses and registrations

Marketing and Business Development

Building a survey practice through:

  • Reputation and referrals
  • Professional networking
  • Online presence
  • Professional organization involvement
  • Quality client service

Key Terms

  • Overhead Rate: Indirect costs expressed as a percentage of direct labor
  • Utilization Rate: Percentage of time billed to clients
  • Professional Corporation: Business entity for licensed professionals

Practice Questions

  1. What licenses and insurance are required to operate a survey business in California?
  2. How is overhead rate calculated and why is it important?