LLCs and Accountants

[Samantha Benz]

Hi everyone, I bought my first investment property in Huntsville, AL in March and am planning to buy another single family home and do a cosmetic flip in 2026. I am going to continue to grow my portfolio in this market because I really like my Property Manager out there and had a great experience with my realtor.

Now to my questions... First, does anyone have suggestions for how to find a good accountant? Ideally this person would be licensed in the state of Alabama so they will be familiar with the tax laws there. Second, since I only have one investment property, but still plan to grow in 2026, do I need to open a LLC? When is the right time to do this? Or, is being a sole proprietor a better idea?

Thank you for your advice!  

[Jason Malabute]

Hi Samantha,

Congrats on the new investment and on building your plan for 2026—that’s exciting!

Quick caution from something I recently saw: a client came to me after working with another accountant. When we reviewed her returns, we discovered that no Alabama non-resident state returns were filed even though she owned Alabama rentals. We had to go back and file 2018–2023, then calculate interest/penalties and submit a penalty-abatement request. It was stressful and completely avoidable.

If you’re investing across state lines, make sure your accountant is comfortable with multi-state filings—especially Alabama’s rules for non-residents with rental income. I’m based in California myself and see this specific issue pop up a lot with out-of-state rentals.

Wishing you smooth growth in Huntsville. If you ever want a neutral second set of eyes on the filing requirements, I’m happy to share general guidance.

Best,

Jason