How to Start an Accounting Firm: Your checklist for successfully starting a firm
Accounting services track expenses, income, taxes, and other information related to the financial condition of the organizations. These types of services are in-demand for a good reason. The professional accountants give business owners a clear picture of strategies related to tax mitigation, finances, and all types of financial benefits for clients.
Below are some steps to start an Accounting Business:
Choose the name of the Business
It sounds quite easier to choose the name of the business; however, a lot of effort is required to choose a name for your business. Some of the entrepreneurs choose to put their first and last name in their business, or to sound more creative, they chose a trading name. If you expect to expand your business in other states, a trademark search is also a smarter move.
Choose Entity Type and Register the Accounting Business
The business structure has some legal implications for an accounting business. The small firms and one-person accounting businesses choose to form LLC (Limited Liability Company), PLLC (Professional Limited Liability Company), or PC (Professional Corporation). However, for initiating an accounting business with more than one owner, accountants pay attention to the LLP structure. They offer some degree of liability protection for the business owners as they are considered a separate legal entity. The business entities are State constructs; therefore, the cost of their creation varies from one state to another.
Apply for Employer Identification Number
Employer Identification Number is also known as the Federal Tax ID Number. It also identifies your business for tax filing and reporting purposes. The businesses which have employees and operate being a corporation must obtain an EIN. Before opening an account in a bank for the business, most of the banks require that a business must have an EIN.
Get mandated Permits and Licenses
A CPA exam must be cleared by Certified Public Accountants for certification and license to practice. Moreover, the states have their own experience and educational requirements before allowing a person to provide services as a CPA. You may get more details about professional requirements from the Accountancy Board of your state. The local municipalities and State also need such permits and licenses.
Open a Business Bank Account
Being an accounting professional you must know the significance of keeping personal and business finances separate for legal and tax purposes. For corporations and LLC, separate business and personal financial assets are required for the protection of business owners from the liabilities of the business. When the company gets registered with the state and has got EIN, it must have the information to open a business bank and credit accounts.
Protection of your business with insurance
Forming a business entity limits the liability of the owner related to business debts and lawsuits; however, it will not protect personal assets when the action gets brought against the entrepreneur as a conclusion of the own actions of an individual. The insurance policy may give additional protection and give peace of mind. A reputable and knowledgeable insurance agent who knows the requirements of the business in the financial services industry can assist you in all kinds of policies that could be good for you.
Let Reliable Accounting Services help you to start Your Business to achieve Success
Contact Now Reliable Accounting Services for all your business formation and compliance requirements. Our professional staff is experienced to assist businesses in Australia with registered agent requirements, registration paperwork, EIN applications, business licenses, and permits, etc.