Setting up a business and hiring a lawyer and accountant (2 Viewers)

I think a package rate would be good for me. If a lawyer sets the whole thing up, do I even need an accountant for planning ahead (I would definitely hire one for taxes if I did an LLC or S Corp of course)?

Not unless you have initial accounting concerns (e.g. some tricky capitalization or loan issues), I wouldn't imagine that an accountant is necessary at the start. But if you're really not clear about business accounting and want good advice from the start, it could be a good idea to get a consultation.

I would always suggest hiring an accountant before starting a new venture. Having not done this a dozen or more times, I think I've learned my lesson.

Have your contributions properly accounted for and documented as they should be. Also, when you need to have audited financial statements in order to secure financing for plant and equipment, it's automatic if the accountant was on board from the start.

I don't know if your business will be like mine where you have to prove solvency or capitalization, but if you do, the up front investment is worth it and it shouldn't cost squat.
 
Are they really going to be independent contractors or are you just going to call them independent contractors to avoid paying taxes? The only reason I ask is because I've had 2 friends get jobs in the last 6 months as "independent contractors" when the reality is that they are employees.

Might want to read up to save some heartburn in the future. Independent Contractor (Self-Employed) or Employee?

Great point.

Actually, if in Louisiana, the "independent contractor" is to be considered an employee if he/she does not carry their own Workers Compensation.

In other words, if he/she gets injured on the job, and does not carry Work Comp on themselves as individuals, they can bring suit against you and/or your Work Comp carrier.

(Dre, this is insurance related, which will come later down the line for you )
 
I would always suggest hiring an accountant before starting a new venture. Having not done this a dozen or more times, I think I've learned my lesson.

Have your contributions properly accounted for and documented as they should be. Also, when you need to have audited financial statements in order to secure financing for plant and equipment, it's automatic if the accountant was on board from the start.

I don't know if your business will be like mine where you have to prove solvency or capitalization, but if you do, the up front investment is worth it and it shouldn't cost squat.


I agree. No offense to my lawyer friends in here, but a lot of times for a small business, an attorney is not entirely necessary. Certainly their are certain issues that may require getting one, but most CPAs will advise you of that before proceeding.

But definitely seek the advice of a CPA and one who is reputable and make sure they are actually holding themselves out as a CPA...anyway, it is better to make sure your i's are dotted and t's are crossed BEFORE you start business. I see all the time where someone comes in and says, "well no one told i should do it this way." And that mistake costs some serious cash.

Also know, as a sole prop, you are subject to self employment tax in addition to income tax...a lot of people dont realize that and it slaps them in the face when tax time comes around....especially if, heaven forbid, they cash in retirement funds to get their start up cash.

So have a conversation with a CPA first...highly advisable.
 
What these guys said. A CPA from the start is pretty important, and if a lawyer is necessary, the CPA more than likely knows a few and will advise you on that issue.

But if you start the business then go find a CPA next February or so to do your taxes, that could get expensive...especially after you find out you didn't file some pesky little state form and owe $500 or so in penalties and interest.

For most businesses, it's good to have a working relationship with a quality CPA. A guy I used to work for who started a small business and got a discount CPA (who mainly used the B/C-level student interns from my accounting classes to prepare everything), and from what I could tell, he was paying as much in penalties and interest as he could have paid a good CPA to do the work right.
 
Thanks guys!
 
A guy I used to work for who started a small business and got a discount CPA (who mainly used the B/C-level student interns from my accounting classes to prepare everything), and from what I could tell, he was paying as much in penalties and interest as he could have paid a good CPA to do the work right.


so true, so true.
 

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