1) Do I need CPA ?
Did you know that about 80% of new businesses fail within the first 5 years? Of the remaining 20%, 2/3rd go onto become millionaires. The trick, therefore, is to survive the first five years. While hard work, and burning the mid-night oil, is the necessary condition for success, many businesses also fail because of a) poor financial advice, b) poor planning, and c) poor capitalization. This is where TAA can help by keeping you out of trouble with the IRS, helping you think through difficult business issues, and helping you develop a sound business plan using the SWOT methodology.
2) Should I get a CPA from the get-go?
You should get a CPA from the get-go if you have a sound business plan and are adequately capitalized to meet the demands of the business. Unfortunately, most small businesses do not fit this category. More often then not, businesses get started without any idea of how they would go about getting their first client. If you are in the later group, I suggest you give us a call for a free consultation.
3) Should I incorporate or form a LLC?
There are definite benefits to forming a corporation in terms of limited liability and tax savings etc. However,these generally accrue when you have a healthy profitable business. If you do not have any clients, our suggestion generally has been to first operate as a sole-proprietor and get adequate liability insurance. Once you have found a way to get clients month after month then it is time to consider a more complex business structure such as a Corporation or LLC or LLP or a S-corporation.
4) If I do not have any employees, do I need to be on a payroll?
If you are a sole-proprietor then the answer is “no.” It is better to forego an accountant for such a payroll service. However, if you are a profitable corporation, generally you should get a payroll service where you are paying both social security and income taxes regularly.
5) What items are needed to prepare my tax return?
Nearly 80% of our clients find the Taxpayer Information Form adequate for knowing what documents to bring to your initial tax preparation interview. As to the rest, it may be more advantageous to download the Tax Organizer.
6) How can I have my taxes done through email?
We have many clients who wish to get their tax returns done by email as it saves them some much needed time. If you wish to take advantage of this service, simply fill out the Taxpayer Information form and email to us at email@example.com along with your scanned tax documents such as W2s, 1099s and 1098s.
Our clients who have moved out of Atlanta find this service particularly helpful as they do not have to ever worry about changing their CPA.