When to contact a CPA

Question

So, I have a good contact for a CPA (thanks ned). My question is when should I contact them. I do not currently have any properties besides my primary residence and am looking into getting my things together (bandit signs, business cards, etc).

should i contact them now, wait till I get my LLC set up?

I don't want to run up big bills unnecessarily.

should i contact them now, wait till I get my LLC set up?

I don't want to run up big bills unnecessarily.

Christian Malesic · Answer

Are you looking to start a new hobby or run a business?

It sounds like a simple, even obvious, question.  You may even detect a bit of sarcasm between the words; though it is meant purely and seriously.

If it is a hobby, you may approach it cavalierly.  Each of our personalities are different and we will approach this new hobby as per those personalities.  Some will stick our big toe in the water, evaluate, pitter-patter, hum-haw, then wade in to our ankles.  Other will back up, get a good run going, and dive right in.  One thing is sure, it is all for fun.  The fun is in the learning process.  The game is about making our mistakes, learning, then improving.

Should we approach a business the same way?  I would argue not only ‘no’, but HECK NO.  Mistakes cost time and even more money.  We will make mistakes for sure.  We will need to back track, refigure, and re-attempt.  We will only do so, however, by accident - not as part of the game.  In business, we analyze and prepare for ALL variables.  Sure, we will miss a few, but we definitely will not miss a bunch.

What is your approach to Real Estate Investing?

Should the Businessman hire a CPA out of the gate?  Without a doubt.  An attorney? No hesitation.

Should a hobbyist?  Probably not.