Small business planning - what professional?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
Post Reply
Topic Author
Sam_957
Posts: 164
Joined: Tue Oct 27, 2020 7:04 pm
Location: USA

Small business planning - what professional?

Post by Sam_957 »

The last decade my wife and I have had an LLC with no employees, providing services for fee, a computer as depreciating asset every few years - she is the primary earner in it. I have my own w2 earnings. For a while we did the business bank account but got rid of it after revenue dipped to < $10k annually. This year she will likely make 50k and next year 100k+. We would like to avoid any mistakes during this transition. I’d like to consult with a professional on some tax and financial planning questions to make sure we are set.

Some activities or questions:
We would like to set up a solo 401k and start paying quarterly income tax as needed. How to calculate both. Should we set up new bank account for the LLC. Should we obtain any insurance for the business. Help with filing taxes, at least the first time - have been using turbo tax and found out we should have been filing k-1. Any other tax issues to consider as we move out of the 12% bracket and enter the long awaited ‘prime earning years’.

What pro(s) would be best suited to handle or advise on these tasks? CPA, Tax attorney, Fin Advisor, Other tax pro?

I know someone will say we can just DIY but I’d rather use this as a checkpoint now to be sure we are good. Hoping this will be 1-2k to avoid future trouble. We intend to understand all aspects and run it going forward if it doesn’t take too much time.

Thanks!
My other vehicle is an index fund.
carolinaman
Posts: 5453
Joined: Wed Dec 28, 2011 8:56 am
Location: North Carolina

Re: Small business planning - what professional?

Post by carolinaman »

I would probably find a CPA who does tax planning like what you need. Vet them carefully.
ZWorkLess
Posts: 425
Joined: Thu May 04, 2017 8:13 pm

Re: Small business planning - what professional?

Post by ZWorkLess »

CPA who does a lot of small business work. Check references.
User avatar
Windylotus
Posts: 228
Joined: Thu Nov 30, 2017 9:49 pm

Re: Small business planning - what professional?

Post by Windylotus »

I agree with the others. Get a good CPA.

DW and I are in the same boat as you but have been doing it for years now.

We have a great CPA to help guide our quarterly estimates as well as guiding us as we made ourselves W-2 employees of our S-Corp (no employees).

I opened Solo 401k's for both of us at Vanguard where I act as the plan administrator.
User avatar
Lee_WSP
Posts: 10346
Joined: Fri Apr 19, 2019 5:15 pm
Location: Arizona

Re: Small business planning - what professional?

Post by Lee_WSP »

Probably a generalist to help you find other specialists. A CPA who offers accounting services is always a good specialist to have if you aren't willing or able to do those tasks yourself. Although the CPA designation may not be needed, it's an easier way to filter out professionals.

A small business lawyer or a mentor should have most of this knowledge and contacts.
Topic Author
Sam_957
Posts: 164
Joined: Tue Oct 27, 2020 7:04 pm
Location: USA

Re: Small business planning - what professional?

Post by Sam_957 »

Thanks to everyone for the replies - this is helpful.
My other vehicle is an index fund.
Topic Author
Sam_957
Posts: 164
Joined: Tue Oct 27, 2020 7:04 pm
Location: USA

Re: Small business planning - what professional?

Post by Sam_957 »

Lee_WSP wrote: Sat Jul 31, 2021 11:19 am Probably a generalist to help you find other specialists. …

A small business lawyer or a mentor should have most of this knowledge and contacts.
This is an interesting take, thanks for the additional viewpoint.
My other vehicle is an index fund.
Post Reply