How much does a CPA cost in Florida?
This answer varies depending on the size of the firm you're hiring and the service you're looking to receive. The bigger the firm (i.e. PwC, Deloitte, etc.), generally the higher the fees because more than a handful of people will be staffed to your engagement. Additionally, depending on the service you're hiring for (i.e. tax preparation, audits, consulting), the fees can vary.
Most CPA hourly consulting fees average somewhere from $200-$300 per hour. Tax Returns for individuals can vary from $450-$850 if they aren't complex and involve multiple K1s, investments, etc. Tax Returns for businesses can vary from $850-$1,500 also depending on complexity.
Contact us today to meet with a Tampa Accountant at Taxes Tampa who can answer all of your individual tax questions via a free tax consultation!
What is the difference between a CPA and an Accountant?
A CPA, Certified Public Accountant, is an accounting professional who passed a four-part exam and is licensed to represent you before the IRS. An Accountant is not licensed and therefore not able to represent you before the IRS. There are three types of professionals who can represent you before the IRS: CPA, Attorney, and Enrolled Agent.
Any of the three above designations may prepare a power of attorney to contact the IRS on your behalf with regard to IRS notices, letters, and audits. Although an Accountant may be able to assist you with questions that arise from IRS notices and audits, they cannot speak to the IRS on your behalf.
Contact us today to meet with a Tampa Accountant at Taxes Tampa who can answer all of your individual tax questions via a free tax consultation!
Why do I need an Accountant?
There are a few reasons why hiring an Accountant is a smart move.
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We help make sure that you're maximizing all deductions and tax planning and strategizing on the individual side
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We run scenarios to figure out if investing in certain retirement vehicles have a greater impact on your refund/cash flow (like IRA's and HSA's)
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We review your prior year returns to make sure you historically haven't missed any deductions for things like rental depreciation (commonly missed), electric vehicle credits, residential energy credits, etc.
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We compare your filing status options to maximize your refund
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We look at your business entity(s) and triple check you are set up for maximum tax optimization (i.e. LLLC vs S-Corp vs C-Corp)
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We make sure your payroll taxes are compliant with the state and the IRS, while addressing any questions you may have
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We make sure your payroll is reasonable if you're an S-Corporation
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We make sure you're maximizing all business deductions and review your accounting records for missed opportunities
These are just a few examples of the many ways we try and provide value to our tax clients to ensure you're holistically set up for success!
Contact us today to schedule a free tax consultation with a Tampa Tax Accountant at Taxes Tampa to review our tax services and your business tax questions! We are the #1 Accountant dedicated to providing you with the best tax services in Tampa.
Hiring a Tampa Accountant vs H&R Block
There are a few reasons why hiring a tried and true Tampa Accountant vs hiring someone at H&R Block for your taxes is optimal.
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First and foremost, we have fixed MANY tax returns that have been errored by H&R Block. H&R Block is great if you have minimal taxable activity (i.e. a few W2's), however, it is not great if you have any self-employed activity or have anything complex like ESOP's. These complex items are when it's of greater value to hire a Tampa Accountant.
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We can verify your basis for ESOP's to ensure you're not double taxed, we can triple check your expenses to make sure you're not overpaying on self-employment taxes, we can recommend changing your entity optimization for tax savings, etc.
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There aren't many scenarios big or small that Accountants haven't seen, so it's better to hire one that you feel has strong communication and a background in the areas that make your taxes complex
Work with us to scale your firm in the most efficient and effective way possible! Contact us today to meet with a Tampa Accountant at Taxes Tampa who can answer all of your individual tax questions via a free tax consultation!
When should I consider converting my LLC into an S-Corporation?
This is arguably one of the most important questions you can ask because the difference between leaving your LLC as a sole proprietorship and converting to an S-Corporation can mean thousands and thousands of dollars in taxes. For simplicity, below are a few figures based on net earnings, and the taxes paid by both types of entities so you can see when it's optimal to convert.
Net Earnings of $25,000
LLC pays $4,300, S-Corp pays $900 ($4k difference)
Net Earnings of $50,000
LLC pays $10k, S-Corp pays $3k ($7k difference)
Net Earnings of $100,000
LLC pays $24k, S-Corp pays $11k ($13k difference)
As you can see, the more you make, the higher the difference in taxes paid vs taxes saved if you remain a sole proprietorship. This is because of 2 things: (1) The IRS incentivizes becoming an S-Corporation so that shareholders get on a reasonable/formal salary (think W2), (2) Second, sole-proprietorships were more designed for hobby income vs trades and businesses.
Contact us today to go over our tax services and your tax questions via a free tax consultation! Our Tampa Tax Accountants can't wait to meet you and learn more about your personal and business goals.
What Self-Employed Retirement options are available to me?
There are a few retirement options that a Tampa Accountant can help you look into in order to decide which one is best for long-term planning and current-year tax optimization.
Traditional 401k
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Pros: Lower tax bill during year of contributions
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Con: 10% early withdrawal penalty (age 59 ½ to avoid penalty)
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Con: Tax is paid on withdrawal at any age
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Maximum Yearly Contribution limit is $22,500
Roth IRA:
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Pro: Tax is paid on deposit at any age, so withdrawals are tax-free
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Con: Does not reduce taxable income
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Con: Income Limitations
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Maximum Yearly Contribution limit is $6,500
SEP IRA:
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Major plus is the ability to contribute 25% of Self Employment Income
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Con: Cannot be a Roth IRA
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Maximum Yearly Contribution limit is $61,000
SIMPLE IRA:
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Designed for firms with under 100 employees
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Pro: Can contribute up to $15,500 every year
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Con: 25% penalty on early withdrawals
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Con: Must contribute 3% to employees' plans
Solo 401k Plan:
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Can contribute up to $66,000
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Pro: Can be a Roth IRA
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Con: No employees can participate in the plan
Work with us to scale your firm in the most efficient and effective way possible! Contact us today to meet with a Tampa Accountant at Taxes Tampa who can answer all of your individual tax questions via a free tax consultation!
What's the difference between and S-Corporation and a C-Corporation?
The three major differences between an S-Corporation and a C-Corporation are: taxation, shareholder limitations and filing requirements.
Taxation
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Income from a C-Corporation is taxed twice. The corporation first pays tax on its net income. Second, shareholders pay additional tax on distributions or dividends paid.
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Income from an S-Corporation is taxed once at the shareholder level. The shareholder level is based on your personal tax rate.
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Shareholder Limitations
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An S corporation can have no more than 100 shareholders, unlike with a C-Corp where the shareholder cap is unlimited.
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With a C-Corp, there are unlimited fundraising options, and you can also go public, which gives you the benefit of limited personal liability for business activities.
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S-Corps cannot be owned by a C-Corp, other S-Corps, LLCs, partnerships, or many trusts. But a C-Corp. has no limits on who or what can be a shareholder.
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Filing Requirements
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All corporations are C corporations (under subchapter “C” of the tax code) unless they file for S status. If you take no action, your corporation is a C corporation.
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A corporation may be taxed as a C corporation for many years and then change to S status with the proper election.
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C-Corp files Articles of Incorporation.
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S-Corp files Articles of Organization.
Contact us today to go over our tax services and your tax questions via a free tax consultation! Our Tampa Tax Accountants can't wait to meet you and learn more about your personal and business goals.
