📝Incorporating your tax and bookkeeping business is recommended for legitimacy and liability separation.
💼Forming a Limited Liability Company (LLC) provides liability protection while simplifying taxation as a disregarded entity.
💡Once profitable, consider electing S-Corporation status to minimize self-employment tax.
⏰You have three years to elect S-Corporation status using Form 2553.
💼Choose a business name that aligns with your target audience and services offered.
Should I incorporate my tax and bookkeeping business?
—Yes, incorporating your business is recommended for legitimacy and liability separation.
Which business entity should I choose?
—Forming a Limited Liability Company (LLC) provides liability protection while simplifying taxation as a disregarded entity.
When should I consider electing S-Corporation status?
—Once your business becomes profitable, typically within three years, you can consider electing S-Corporation status to minimize self-employment tax.
How do I elect S-Corporation status?
—To elect S-Corporation status, file Form 2553 with the Internal Revenue Service (IRS) within three years of becoming profitable.
How important is choosing a business name?
—Choosing a business name that aligns with your target audience and services offered can help establish your brand identity and attract clients.
00:00The presenter introduces the topic of business setup for tax and bookkeeping professionals and recommends watching the presentation on YouTube for a more detailed walkthrough.
01:22The presenter shares a personal story about overcoming a speech impediment and the importance of clear communication.
02:46The presenter introduces the topics to be covered, including business entity formation, business banking, obtaining necessary licenses, and obtaining errors and omissions insurance.
03:40The presenter explains the importance of incorporating your tax and bookkeeping business for legitimacy and liability separation.
06:42The presenter discusses the benefits of forming a Limited Liability Company (LLC) for liability protection and simplified taxation as a disregarded entity.
09:29The presenter explains the process of electing S-Corporation status for tax purposes and provides information on filing Form 2553 with the IRS.
10:52The presenter emphasizes the importance of choosing a business name that aligns with your target audience and services offered.
