I am thinking about getting my LLC taxes done by a CPA but their prices are
just so crazy $250 for a consultation and then up to $800 for taxes.....
really?!?!?!? Do you guys think it is necessary for a sole proprietor to pay
this much to have my taxes done. I have not even completed my first year of
business so this is not an expense I can quite afford. Does anyone have any
recommendations or resources for taxes?
Biz, what programs are you using. I've checked out the schedule c form and I
know I qualify as a sole prop. It also looks really simple I just want to
make sure the things I am writing off are actually eligible and that I am
writing them off correctly. Is there a program that helps with this?
BizResearcher | Window Shopper |
9/12/2012 - 11:28 am
Show Replied Text…
Biz, what programs are you using. I've checked out the schedule c form and I know I qualify as a sole prop. It also looks really simple I just want to make sure the things I am writing off are actually eligible and that I am writing them off correctly. Is there a program that helps with this?
I prepare my taxes using the software issued by H&R Block, though TurboTax is
also good. I also use QuickBooks as my business accounting software. If you
consistently enter all income and expenses, Quickbooks can create a year end
profit and loss statement, balance sheet, and any other reports you may need,
such as accounts receivables and accounts payable reports. At the end of each
year, I print off those reports and keep them in my files. I also use them to
prepare the schedule C.
My recommendation is to print a schedule C from the IRS website and use it as
a guide. Be sure you are keeping records of everything, including mileage if
that is applicable to your business. You should have a business bank account
from which you pay your business expenses and into which you deposit business
income. It is important to keep your business and personal finances separate.
If you don't, tax time could be a nightmare.
I think this is a little more nuanced than BizResearcher does. Though let me
say first that if all you're paying for is data entry, I maybe almost agree
with BizResearcher (as long as someone is doing a simple return).
But there's another side to this if you're getting more than just data entry
and are getting tax planning either informally or formally. E.g., an LLC may
make elections to be treated for tax accounting purposes as something other
than the default classification (which for a single member LLC is "sole
proprietorship" if you're operating an active trade or business). This
election can often save the small business owner thousands of dollars
annually in taxes. Furthermore, in a sense, these elections can also
sometimes allow you to double-deduct some items.
My suggestion, therefore, would not be to look only at the cost but also at
the benefit. It would not be a bad deal to pay a $1000 for tax accounting
help if that outlay later means you save $5000.
Stephen L. Nelson, CPA, Author QuickBooks for Dummies
BizResearcher | Window Shopper |
8/28/2012 - 11:30 am
No, it is not necessary to pay that much for your tax preparation. I have
owned a single person LLC for over 10 years. I prepare my own taxes each
year. If your business is fairly simple and you are the only owner, you can
file a Schedule C with your personal taxes.
If you are uncomfortable doing your own taxes, then look for a bookkeeping
service to help. Most firms, CPAs included, use tax preparation software,
which isn't that difficult to use.
JohnnyWW | Window Shopper | 9/8/2012 - 1:30 pm
know I qualify as a sole prop. It also looks really simple I just want to
make sure the things I am writing off are actually eligible and that I am
writing them off correctly. Is there a program that helps with this?
BizResearcher | Window Shopper | 9/12/2012 - 11:28 am
also good. I also use QuickBooks as my business accounting software. If you
consistently enter all income and expenses, Quickbooks can create a year end
profit and loss statement, balance sheet, and any other reports you may need,
such as accounts receivables and accounts payable reports. At the end of each
year, I print off those reports and keep them in my files. I also use them to
prepare the schedule C.
My recommendation is to print a schedule C from the IRS website and use it as
a guide. Be sure you are keeping records of everything, including mileage if
that is applicable to your business. You should have a business bank account
from which you pay your business expenses and into which you deposit business
income. It is important to keep your business and personal finances separate.
If you don't, tax time could be a nightmare.
SeattleCPA | Window Shopper | 8/28/2012 - 4:03 pm
say first that if all you're paying for is data entry, I maybe almost agree
with BizResearcher (as long as someone is doing a simple return).
But there's another side to this if you're getting more than just data entry
and are getting tax planning either informally or formally. E.g., an LLC may
make elections to be treated for tax accounting purposes as something other
than the default classification (which for a single member LLC is "sole
proprietorship" if you're operating an active trade or business). This
election can often save the small business owner thousands of dollars
annually in taxes. Furthermore, in a sense, these elections can also
sometimes allow you to double-deduct some items.
My suggestion, therefore, would not be to look only at the cost but also at
the benefit. It would not be a bad deal to pay a $1000 for tax accounting
help if that outlay later means you save $5000.
BizResearcher | Window Shopper | 8/28/2012 - 11:30 am
owned a single person LLC for over 10 years. I prepare my own taxes each
year. If your business is fairly simple and you are the only owner, you can
file a Schedule C with your personal taxes.
If you are uncomfortable doing your own taxes, then look for a bookkeeping
service to help. Most firms, CPAs included, use tax preparation software,
which isn't that difficult to use.
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