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    11 Replies Latest reply on Mar 16, 2011 6:55 PM by hereislacey

    do I need an CPA?

    d_styles Newbie
      I just incorporated a business, got a tax ID, and a corporate bank account...but not a lot of cash flow. This is a side business that has yet to 'take off' and I probably generate only about 1000/month right now. Before I incorporated, I just put the money in my pocket...but now, I'm hesitant to withdraw b/c I'm not sure if I can do it without an accountant. What should I do and how should I continue?
        • Re: do I need an CPA?
          amspcs Ranger
          As in any other endeavor, business or otherwise, either you know what you're doing, or you don't in which case you hire someone who does. In this case, since you obviously have questions regarding how to do business from within a corporate
          structure that you don't know the answers to, it's clear that you need professional advise from an accountant. Which makes we wonder: On what did you base your decision to go out and incorporate in the first place? Did you made the decision on your own with no
          clear reason in mind, or did you seek knowledgable advise as I hope you did? In any event, if you can't afford an accountant, there are possibly free or reasonably priced resources out there, depending on where you live. SCORE, SBA, business schools at local colleges to name just a few. Perhaps if you shared a little more about yourself in your profile, this forum would be better able to offer more appropriate advise to you.
            • Re: do I need an CPA?
              d_styles Newbie
              It might seem that I "obviously" don't know what I am doing, but let me tell you something else that is obvious to me...If I want to start a business selling lemonade, I wouldn't go paying everyone and their mother to try to get off the ground. I would rather use whatever resources at my disposal to figure out what it is that my competitors are doing, and perhaps try to do it a little better.

              The obvious thing in my case was to incorporate as an S Corp. Before I started working for myself, I took note that most all the other similar companies in my area were structured as an S Corp. I figured, why reinvent the wheel if it's working well for them?

              I would love to have a CPA help guide me in the future, but it's not feasible right now. I was hoping this forum might help me get started with finding some of the "free or reasonably priced resources" that you mentioned.
                • Re: do I need an CPA?
                  amspcs Ranger
                  Can't say that I agree with you on a number of counts. Setting up a business properly is the most important step to assuring long-term success, and the expenses therefrom are a necessary cost of doing business. If someone tells me they can't afford
                  necessary costs of doing business, my response to them would be they probably shouldn' be starting a business in the first place. Also, there are a number of alternatives to S Corps, and each have their advantages and drawbacks, depending on the unique
                  needs and circumstances of each individual. Given the fact that the vast majority of new businesses fail, I would think basing my decision on what the other guy is doing is probably not sound reasoning. Again, that's what professional advise is for.
                  • Re: do I need an CPA?
                    Fasttireinc Newbie

                     

                    I think you understand that an accountant is mandatory. I understand that things may be tight however you're starting the foundation of your empire and it must be solid. An observation regarding your response to an advisor with obvious wisdom. Your response suggested you were insulted or frustrated. One huge rule of thumb in business is that you must take constructive input with open arms no matter how it is presented. If you let simple dialog frustrate you from a person that doesn't need to take the time to give advice; in which you are asking for, you most definitely will have a long hard road ahead. I learned a long time ago in business ‘when you're the boss; everyone's your boss.
                • Re: do I need an CPA?
                  LUCKIEST Guide
                  do I need an CPA??

                  Great answer from amspcs. YES everybody in business should have an accountant (not necessary a CPA), a lawyer and maybe an insurance agent.

                  Hopefully your business will grow and YES it is important to build the right foundation.

                  Good luck
                  • Re: do I need an CPA?
                    SAFEGUARD Wayfarer

                    Every business should have an accountant. There are a lot of question that they can help you with. Corporate tax laws & forms are confusing to most people. Better safe than sorry. I would suggest calling local CPA's, ask them how much the charge and what services they provide. Ask your friends that have businesses who their CPA's are. Shop around like you would for anything else.
                    • Re: do I need an CPA?
                      SAFEGUARD Wayfarer
                      I agree with the advisor that posted on 10/26/10. Especialy the comment "When you are the boss; everyone's your boss. These are the things I am looking for while participating in these forums. Unfortunetly the original questioner of " Do I need a CPA?" Doesn't really want to know.

                      This was posted on their profile page "I tried to cancel my membership from this forum, and found no way...So I just reset my email to something random and reset my password to something I would never remember."

                      Thank you to the advisors that answered the question.

                      Have a "Great Day Everyone"
                      • do I need an CPA?
                        hereislacey Newbie

                        Unfortunately the best way for you to proceed would be to get an accountant. It doesn't necessarily mean that you have to have a CPA but you will need an accountant to help you understand what you should or shouldn't do. But a CPA would be best because they are the best in their field. Here are some good Reno CPA if you live that way.

                        http://www.ashleyquinncpas.com