Our clients turn to us on a daily basis to get answers to their questions, from financial advice to tax inquiries. So we’ve put together a list of the 6 most frequently asked questions and decided to share them with you!
Here are some of the most common questions we receive from our clients on a daily basis:
Q 1: What services do CPA’s provide?
A CPA or an accounting firm can offer more than just tax services. These professionals can offer any service from bookkeeping to payroll, to business problem solving and more.
Keep in mind that a CPA is qualified to do more than an accountant.
Q 2: Can you represent me if I get audited by the IRS?
All CPA’s are qualified to represent their clients in an IRS audit; ask your CPA about their experience with the IRS and tax audits. Our clients can rest easy knowing that their IRS issues will be resolved by our professionals accurately and diligently.
Q 3: What entity should I choose for my business?
One of the most frequently asked questions we get when our clients are interested in starting a business is: what entity should I choose for my business?
If you’re starting a business It’s important to know the difference between an S Corp, LLC, Partnership, Sole Proprietorship, etc.
The following descriptions come straight from IRS.gov
S Corporation: S corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on the corporate income. S corporations are responsible for tax on certain built-in gains and passive income at the entity level.
LLC: A Limited Liability Company (LLC) is a business structure allowed by state statute. Each state may use different regulations, and you should check with your state if you are interested in starting a Limited Liability Company.
Your CPA will go through your projected business structure/plan and evaluate your industry in order to help you decide which entity is best for you and your business.
Q 4: How do self-employment taxes work?
Individuals who are self-employed must pay SE taxes as well as their income taxes, SE taxes consists of social security tax and Medicare tax.
Q 5: If I’m starting my own business should I get advice from a CPA?
Getting the proper advice can save you from making mistakes that can later hurt you financially or even legally. A CPA will help you organize your new business for tax purposes as well as setting margins for profit.
Q 6: How do I know if I should do my own taxes or hire a CPA?
Tax laws are constantly changing! According to the IRS, it can take approximately 28.5 hours to research tax law, organize your records, and file a standard tax return.
If you’re not well educated, you may be missing out on deductions!
Have a question we didn’t answer?
Reach out to us, we’re here to help!