Just established LLC end of 2020. How do newbies find CPA?

14 Replies

Start with your network and ask around for suggestions and if people will give you their CPA's contact info.  If you don't have a network of investors built up, attend local RE meetings and stay active within the local BP forum of the area you're investing in.  

Hi @Chiquanna Banner ,

I found a great CPA/Tax Strategist by talking to a very successful agent in my area. I have been with them ever since and recommend them to everyone. It was important for me to find a CPA who works with a lot of other investors and is very familiar with taxes surrounding rental property etc. 

Biggerpockets is a great resource. Otherwise, as stated above, go to some meetings and ask people who their CPAs are. If you're looking to get plugged into some Chicago groups, happy to pass those links on to you!

Also- for the LLC you created, is it single member or multi-member?

Originally posted by @Chiquanna Banner :

Just established LLC end of 2020. How do new investors go about hiring a CPA who specializes in the real estate industry?

 

Drop me a Private Messsage & I'll provide you with a CPA referral.

Originally posted by @Chiquanna Banner :

@Crystal Smith Thing is I started my business end of last year but haven't gotten any properties yet. All I've brought is business expenses. Do I still have to file taxes for a single member llc?

 

I'm not a CPA, but I play one on TV. Yes, you should file taxes for your single-member LLC.

@Chiquanna Banner - I work with @Steven Hamilton II who works up in Greylake on the far Northside of Chicago, but he works with real estate investors all around the country.

Now is a tough time to be looking for a CPA, they are all swamped.  You'll want to do some tax planning after you find the right one.

@Chiquanna Banner

You mention having 'expenses' for 2020.
You want to speak with an accountant to understand the proper classification of those expenses for tax purposes.
They may be deemed 'start up expenses' or expenses that are normally capitalized.

Regarding finding a CPA - I would suggest the following steps

1) Reach out to your network of professionals for a recommendation - Ask real estate investors, your agent on recommendations
2) Attend a real estate networking event and reach out to see who others are using
3) Reach out on biggerpockets asking who people are using for their accountant.
The reason I would pick option 1 /option 2 over option 3 is that you are more likely to work with a CPA who understands both real estate taxation and Illinois state taxation.

If a single member LLC your first tax return would be included in your 2020 personal income tax return form 1040 on Schedule C. If a multimember LLC you first return was due March 15th of 2021. EVEN IF YOU MADE NO MONEY AND HAD NOT A SIINGLE TRANSACTION. You need to elect how you will be taxed (Partnership, S-Corp or C-Corp. If not already filed your business return is now 3 months late and the late filing fees of $195.00 per month per member are accumulating. Three months late 3 members the penalty is already $195.00 per month or $585 x 3 members = $1,755.00 So your first CPA needs to know how to get the late fees waived.

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