Why Accountants Should Not Form LLCs or PLLCs for Healthcare Practices Jackson LLP Healthcare Lawyers: Business Compliance Contracts

can an accountant set up an llc

In this case, you don’t need to disclose your home address (if you operate from home), constantly remain present at your business location, or interact with the process of service documents. You can list yourself as a registered agent for your business, add an employee, or a trusted third party. The requirement is that the provided registered agent’s address must be a physical business address (not a P.O. box), and the person must be at least 18 years old.

It was the classic case of too many cooks in the kitchen and one professional offering advice without considering the other important interests of the other. There’s an overlap between accountants and lawyers when it comes to LLCs. You should keep firmly in mind that the two professions serve quite different aspects of running a company. Doing so, you will save money on self-employment taxes when the business’s net income is substantial enough. And that is why many professionals will opt for S Corp instead of C Corp. Before you go ahead and take the decision to form a professional corporation, you need to have a clear understanding regarding it.

Limited liability

The same goes if you’re a licensed CPA restricting your services to bookkeeping and then wanting to promote your CPA license without a professional corporation registration. Before establishing a comprehensive accounting system, you’ll need to establish the tax treatment for LLC. You can choose to be taxed as a corporation, partnership, or sole proprietorship, and must make this election when you form the company. If you’re using accounting software like Quickbooks, select the entity type for your tax treatment, not LLC.

can an accountant set up an llc

When dropping the documents off in person, it will take about 10 business days. The California SOS website has up-to-date information on their processing times and expected delays. These factors need to be considered when choosing the organizational form for your business. LLCs versus S Corps
While the S corporation and LLC both have pass-through taxation, the S corporation lacks the flexibility of an LLC in allocating income to the owners. Additionally, an LLC may offer several classes of membership interest while an S corporation may only have one class of stock. Visit our article on LLCs versus S corporations to learn about other key differences.

How to Start an LLC

The average one-man accounting firm can make as much as $75,000 a year. The larger the client base, the more likely you will earn profit into the six figures. At a minimum, you’ll need general liability insurance, professional liability insurance, and commercial property insurance. LLCs are also affordable, highly flexible (from a tax point-of-view), and can make your accounting firm seem more credible.

  • 🙋‍♀️ The hours of time you’ve spent trying to find the perfect management method (that probably didn’t work anyway) can finally be put to sleep for good.
  • We’ll form your company, get your EIN, and help you open your business bank account.
  • Businesses can be set up without registration such as the case for a sole proprietorship.
  • Plus, you’ll need a registered agent in a state where you intend to operate.
  • Next, call each accountant on your list and ask for high-level solutions to your question.

The benefits of creating an LLC—as opposed to operating as a sole proprietorship or general partnership, or forming a corporation—typically outweigh any perceived disadvantages. The LLC allows for pass-through taxation, as its income is not taxed at the entity level; however, a tax return for the LLC must be completed if the LLC has more than one owner. Any LLC income or loss as shown on this return is passed through to the owner(s). The owners, also called members, must then report the income or loss on their personal tax returns and pay any necessary tax. Simplicity – Business owners that want liability protection but don’t want to deal with much complexity often find the LLC structure an ideal choice. Forming an LLC involves less paperwork than establishing a corporation.

Do LLCs Need Insurance?

The LLC must also file a Schedule K-1 that breaks down every member’s share percentage. Your LLC is a separate business entity, both legally and financially. llc bookkeeping Yes, you can transfer money to your company from your personal account. California doesn’t require a general business license for operating in the state.

Personal Liability Protection – Like a corporation, an LLC is its own legal entity. In most states, its assets and liabilities are separate from those of its owners. Therefore, if an LLC runs into financial or legal troubles, its owners’ personal assets typically are not at risk. This is a huge advantage over running a business as a sole proprietorship or partnership, in which owners’ and the business’s assets and liabilities are considered one in the same. This is something specific to discuss with an attorney about LLC laws in your state.

Is LLC The Best Entity For Me?

Next, call each accountant on your list and ask for high-level solutions to your question. Some CPAs may want to do in person only, however it’s https://www.bookstime.com/ up to you if you want to spend that extra time. I’ve interviewed accountants over the phone to save time and they were very understanding.

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