Advice on CPA/Tax accountants

[Austin De La Cruz]

I'm a first time OOS investor from California and I'm inquiring into CPAs/Tax attorneys to make sure everything is done correctly. Does anyone have any recommendations? Looking for Tax professionals who understand investing out of state and in multiple states through an LLC.

I was also curious about price points. I got quoted at $5,000/year for tax and accounting services. Is this within normal price range?

Thanks!

[Ashish Acharya]

This is a great place to be starting from, and you’re asking the right questions early.

One thing to be careful of right away is setting up an LLC with both you and your wife as members. Spousal multi-member LLCs often create what's treated as a "spousal partnership," which means you now have a partnership filing requirement (Form 1065) each year. That adds cost, complexity, and ongoing compliance that isn't always necessary at your stage.

In many cases, a cleaner structure is to keep things in a single-member LLC, paired with a holding company and potentially a trust above that. That setup tends to be more flexible, easier to manage from a tax filing standpoint, and still gives you the structure you need as you scale. That said, everyone's situation is a little different, so it's important to tailor it to your long-term plan.

As for fees, around $5,000 for tax prep and ongoing consulting is pretty standard depending on the complexity of your situation, especially once you start adding entities and multiple properties.

Happy to connect.