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Bookkeeping BusinessHow to Start a Bookkeeping Business: LLC Setup
Thinking of starting a bookkeeping business? An IRS regulation counts failing to keep adequate books as negligence, so your own setup comes first. Here's the one habit that can weaken your LLC, and the key Bizee screens, start to finish.
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Why an LLC for this business
The name on the contract
Every engagement letter and invoice names one party
Mistakes
A claim lands on the business, and E&O answers it. Late counts.
Keep the money apart
The IRS: open a business account early. Courts can cite mixed money; laws vary
How to start it, in order
- Write a one-page scope: record, categorize, reconcile, report. Skip tax returns and IRS representation unless you hold the credential.
- Choose a name and title that don't imply a CPA license. Florida bars titles that tend to indicate one.
- Practice on real, messy books in QuickBooks or Xero. Credentials like ProAdvisor are optional, and they aren't licenses.
- Form your LLC and get its EIN, then open a business bank account in the LLC's name.
- Check your state and city for licenses. In California, paid tax prep can also mean CTEC registration.
- Buy errors-and-omissions insurance, and put a client contract in place before your first client.
- If you expect to owe $1,000 or more, mark estimated tax dates: April 15, June 15, September 15, January 15.
Every fact in this guide was checked against a primary source before the video was made.
QuickBooks and Xero are trademarks of their owners. This channel is not affiliated with or endorsed by QuickBooks, Intuit or Xero.
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