Business owners - see milestone markers below
W2 employees - scroll down a little farther for recommendations
When Do I Need To Hire A CPA Yet?
Milestone 0
Make My First Sale
No. Do NOT Hire A CPA
-I don’t need strategy
-I don’t have taxes yet
-Skip LLCs & QuickBooks
Milestone 1
Hit $10k In Sales
Maybe Hire A CPA To File My Tax Returns
-Now get my LLC, EIN, & Quickbooks
-Open biz bank account
-Keep biz and personal separate
Milestone 2
Hit $50k sales & go full time
Yes. Hire A CPA to file your tax returns. Plus
-At least one meeting
-Track income & expenses
-Start saving 20% for taxes
Milestone 3
Hit $100k In Profit
Mandatory To Hire CPA to fiile your tax returns. Plus
-Tax planning
-Maybe hire a bookkeeper
-Maybe elect S Corp
-Maybe add to retirement
When should I, as a W2 employee, hire a CPA?
I have just W2 income…
honestly Turbo Tax is probably good enough
Not necessary to hire a CPA.
Still makes sense to hire a CPA to make sure all deductions and credits are captured. Plus make sure my taxes are done right.
I have…
-side income like 1099/contracting income, Uber, etc…any income outside your W2
-Own rental properties
-Major life and financial changes like inheritance, stock, marriage/divorce, etc.
Yes. Absolutely hire a CPA to at least file my tax returns. Maybe more, depends on situation
