# Update from my accountant



## jimandpj (Mar 11, 2008)

I've been searching long and hard for a GOOD accountant. I finally found one and met with him to get started on 2009 taxes. 

One thing he was pretty certain about was getting us set up in 2010 as a LLC - right now we're a sole proprietorship. Also when I talked to him about the amount we pay the children, he kind of blew that off and thought we'd have enough deductions without that.

So, I had a follow-up phone call with him and he has completely changed his mind. Apparently he thought we were one of those family companies who "say" their children work in the business and give them expensive salaries, but the children don't really do anything. 

Well, he went on my website and realized just how much an integral part of the business the children are. 

Now he is recommending that we NOT become an LLC and pay the children twice what we paid them this year. He thinks staying a sole proprietorship will be much better for us tax-wise.

Just wanted to share in case any of you are dealing with similar issues. 

PJ


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## Faye Farms (Sep 14, 2009)

It's absolutely amazing how much money a good accountant can save you. When we lived in WI we had an awesome accountant. With moving and selling our farm in WI our accountant saved us $20,000 in taxes, not to mention all the smaller amounts of money he saved us from year to year before that. I hate the fact that we don't have him anymore. 

So do the kids know they are getting a pay raise yet?


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## jimandpj (Mar 11, 2008)

Not yet - I think they're going to go back to more commission based - they've gotten kind of lazy being on "salary" LOL. But they're definitely going to be liking this accountant!

PJ


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## Kalne (Oct 25, 2007)

This is something I would like to do once we get to the point where we can actually use the help on a regular basis and I can afford to pay them. :LOL I need to find an accountant. We've done everything solo so far and I don't want the added stress of it anymore.


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## Anita Martin (Dec 26, 2007)

One of my clients has offered to help me with my taxes this year. I just met her a couple weeks ago to trim her horses. I was impressed by her knowledge and she had my head spinning by the time I left. I asked her what she charged and I think I remember her saying it was like $150 or so for a consult, then $250 for the taxes to get done, give or take. 

I told my fiance about it, and how much it cost...he didn't think it should cost so much. He does his own taxes on turbo tax, (he just has a couple of rental properties, no farm or anything). I paid a lady $50 last year to do my taxes. She did them as a farm. She was a friend of a friend, and honestly I did not feel comfortable having her do them again.(plus she STILL has not sent me copies of last year's return and I have called her several times about it!) She had only done one farm before, and did not have a good knowledge base. She was not a CPA per say, just a former H and R block worker or something like that. 

My buisnesses, the two of them, are small. They probably brought in less than $15,000 last year. I worked a regular, full-time job for 6 months of 09. What would you do in this case if it were you? Hire the CPA, or do a regular tax person (I know another guy that does it for $50), do my own at turbo tax, or????

I am so slow in my business right now that it's not even funny. I barely have anything coming in at all, and it probably won't improve for another month or two. I just need to know if it's worth it to spend the extra money that will be hard to come by. 

THANK YOU!


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## nightskyfarm (Sep 7, 2009)

Turbo Tax it, Anita. That's what we use for the farm, plus Quickbooks is a great help. Jennifer


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## Tallabred (Jun 12, 2008)

I agree with jennifer. Turbo Tax. My computer crashed so I went back and recreated my year knowing how I want to itemize things for taxes. Took me a couple of weeks(3 businesses, 2 checking accounts, 5 credit cards). I feel like it is so much better and I now understand what I am doing.

Turbo Tax also has a review system for a fee. If you have the time - do it yourself - learn and get better. Do it NOW! Business have to file by March 15th. I have started mine.


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## Kalne (Oct 25, 2007)

Businesses have to file by March 15th?

I'm working on my sales tax today and it's due tomorrow.


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## Anita Martin (Dec 26, 2007)

Thank you all so much! I will definitely start working on it right away, cause it's gonna take me about a 100 years to figure it all out.


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## Kalne (Oct 25, 2007)

Question about paying kids....mine do help a LOT with several aspects of the business (just not the actual soap making at this point) but none are paid at this point. However, is it really advantageous to pay them and then they in turn have to file tax returns?


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## Tallabred (Jun 12, 2008)

I have a chapter S business set up so it is due by March 15.

Anita, Go ahead and get your Turbo Tax - It will walk you through it. You can work on it a while and easily go back to it. 

Kalne, As long as your kids do not earn over $4800(I think that that is the number now) you will not have to withhold income tax and they will not have to file. I do deduct all of the other taxes and file them as employees.


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## Aja-Sammati (Oct 26, 2007)

My kids are staying off the books, they will have to keep being slave labor! I like having an accountant, eventhough I don't particularly like the one I have, we just don't have 'chemistry'. It costs me $175 a year for her to do my stuff, I did my own taxes when I owned a daycare, but the farm stuff is much harder for me at this point. Don't be afraid to get an accountant, especially if you have questions about how you should set stuff up- Turbo Tax doesn't give any advice


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## Faye Farms (Sep 14, 2009)

Anita the amount the CPA wants to charge you sounds pretty inline with what I have always been charged. I wouldn't bat an eye paying that much. If you are comfortable doing your own taxes then I would go ahead and do that but as your business grows it quickly gets to the point where a good CPA can save you a lot of money.


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