I'm getting ready to form an LLC for my small handyman business and I keep going back and forth on whether to pay an accountant for a one-hour consult first. I've read plenty of online guides but I'm worried I'll miss something that matters for my situation. Has anyone done a paid consult before filing and felt it was worth it? Or did you just use a formation service?
LLC Formation
A one-hour accountant consultation before forming an LLC might save me trouble
I did a one-hour consult with a CPA before forming mine. Honestly the biggest Thing was that she caught a tax election issue I didn't know to ask about. I think it was around $150 and I'd do it again.
What did she catch, if you don't mind sharing?
She pointed out that if I expected to have losses in the first year, the default tax treatment might not be what I wanted, and we talked through whether an S corp election made sense down the road. It wasn't something I'd have found in a basic formation article.
I skipped the consult And used a formation service. It was fine for getting the paperwork filed, but I had to go back and fix a couple of things later, including a business bank account setup issue that an accountant probably would have flagged. Not a disaster, just extra hassle.
It depends on what questions you actually have. If you're a single member LLC with no employees and simple income, a lot of the basics are straightforward. The consult is more valuable if you've got partners, employees, or you're unsure about tax elections.
This thread is making me reconsider my plan. I was just going to file online and be done with it.
I'd also ask the accountant whether your state has any local licensing or registration requirements that the formation service wont handle. That was a surprise for me and cost more time than the LLC filing itself.
For a handyman business, I'd want to talk through liability and how business and personal assets are kept separate. Having a CPA explain that in plain terms was helpful to me, even though it's not strictly a tax question.
Appreciate the input. The points about tax elections and local licensing are the kind of thing I was worried about. I think I'll go ahead and schedule the consult before I file.