Skip to main content

Accountants, lawyers and financial advisors, Oh My!


It is important to seek advise from professionals before you formally establish your business. There are various types of business structures, accounting processes, tax elections and retirement planning techniques. It is easiest to formulate the business correctly from the beginning.


Lawyers

 An attorney knowledgeable about the formation of businesses can assist you deciding the structure of your practice.  Each business structure has a different set of legal and tax considerations. Common forms of businesses include:

  • sole proprietorship
  • partnerhsip
  • corporation
  • S corp
  • C corp
  • Limited Liability Company (LLC)
An attorney can also assist you in creating various documents such as Articles of Incorporation, Articles of Organization, Buy/Sell agreements and By-Laws some of which will be required by the Secretary of State when you file for the initial business entity. Different forms of businesses also have varying requirements for members, meeting minutes and shareholders. Attorneys can assist you with your IRS tax registration (EIN). This insures that the IRS is taxing your business properly. Many attorneys will offer a one time free consultation. 


 Accountants

 Certified Public Accountants will shine the light for you about federal tax payments, state taxes, business deductions, W2/1099s and depreciation schedules. Often times accountants also employ bookkeepers in their offices that can offer support with payroll, annual report filings, and bookkeeping matters. It is beneficial to brainstorm what bookkeeping software is best suited for you and start using it immediately.  If you establish the correct categories in the bookkeeping software and log accordingly, reconciliation will be easier. Common bookkeeping programs include


  • Quickbooks
  • Quicken
  • Sage 50


Financial Advisors

 Choose a financial advisor that is familiar with self-employment investment options for retirement. As with most aspects of self-employment, there are federal tax implications with how you chose to invest. Common options for self funded retirement savings include

  • SEP-IRA
  • Simple IRA
  • Deferred Benefit
  • Solo 401 (k)
  • Traditional or Roth IRA

Comments

Post a Comment

Popular posts from this blog

State Rules and Regulations

The mental health licensing board in each state not only oversees the professional and ethical expectations of counselors but it typically outlines which professional licenses can and cannot own own private practices. For instance in the State of Wyoming, mental health licenses that require temporary or ongoing supervision are not allowed to own a private practice. This includes Certified Social Workers Provisionally Licensed Clinical Social Workers, Professional Counselors and Marriage and Family Therapists Certified Mental Health Worker Clinicians that have full licenses (LCSW, LMFT or LPC) typically have fewer restrictions in owning a private practice. If you are uncertain if you can own a private practice, review the rules and statutes posted by the mental health licensing board in your state. Call or email the board directly with any questions not outlined within the state statutes. 
Post a Comment
Read more

Getting Licensed in Wyoming

Depending on your graduate school specialty area, you can find Wyoming mental health provider application materials and requirements on the following websites: For bachelor or master level social workers, licensed professional counselors and psychotherapists, marriage and family therapists, you can obtain the needed application forms from the Wyoming Mental Health Professions Licensing Board at  http://mentalhealth.wyo.gov/ For doctoral level psychologists, school psychologists, post-doctoral psychology interns, and specialists in school psychology, you  can visit the Wyoming Board of Psychology at  http://psychology.wyo.gov/ School psychologists or Specialists in school psychology who wish to pursue a license as a Licensed Professional Counselor (LPC) should contact the Wyoming Mental Health Professions Licensing Board at  http://mentalhealth.wyo.gov/
Post a Comment
Read more

Federal Tax Payments

Federal taxes as a self employed individual and for a business operate differently then other employment arrangements. You will pay your typical percentage of tax withholding plus an additional self employment tax. Self employment tax is currently about 15%.  The rate consists of two parts:  12%  for social security (old-age, survivors, and disability insurance) and  3%  for Medicare (hospital insurance). Essentially self employment tax is the amount a company pays on your behalf when you work for them. Since you are now self employed, you are responsible for both chunks of the payment. Depending on how you established your practice as a legal entity alters how the business is taxed.   Remember that the legislators of the country reform tax law often and your tax liability may change with new laws. Consider having an CPA in your community complete your taxes rather than an online service. This can maximize your deductions.  Keep accurate logs and books throughout the year for
Post a Comment
Read more