Advice on CPA/Tax accountants

Member since 2026 · 3 posts · 5 votes

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!

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Ashish AcharyaBusiness Member

CPA, CFP®, PFS · Sarasota, FL · Member since 2017 · 5k+ posts · 3k+ votes

7mo

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.

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Aaron ZimmermanBusiness Member
Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
7mo
@Austin De La Cruz - welcome! What states are you invested in? And how many properties do you have? Is the LLC a single member or multi member?
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- Austin De La Cruz
  OP
  Member since 2026 · 3 posts · 5 votes
  7mo
  Quote from @Aaron Zimmerman:
  
  @Austin De La Cruz - welcome! What states are you invested in? And how many properties do you have? Is the LLC a single member or multi member?
  
  We're first time investors looking into Dayton Ohio, Knoxville TN, Augusta GA, and OKC. We don't have any properties yet but we've been talking to agents and lenders in these areas. Nor do we have an LLC but we're looking to make one with both me and my wife's name on it
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- Aaron ZimmermanBusiness Member
  Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
  7mo
  @Austin De La Cruz of it . All can be great markets. I was just going to say what@Ashish Acharya said as well. Great callout there.
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Ashish AcharyaBusiness Member
CPA, CFP®, PFS · Sarasota, FL · Member since 2017 · 5k+ posts · 3k+ votes
7mo
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.
[email protected]941-914-7779
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Logan AllecBusiness Member
Accountant · Los Angeles, CA · Member since 2014 · 1k+ posts · 980 votes
7mo
If that $5,000 includes books, taxes, + strategy for a moderately complex situation...that sounds fairish.
If that $5,000 is just for bookkeeping for a few out-of-state rental properties plus your annual federal, California, and other-state(s) tax returns...that's sounding a bit steep.
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Jason MalabuteBusiness Member
Accountant · Los Angeles, CA · Member since 2016 · 2k+ posts · 914 votes
6mo
Hey Austin — Ashish is spot on about the spousal LLC, and since you're in California (a community property state) this matters even more: a multi-member LLC with your wife means you're filing a Form 1065 partnership return every year plus K-1s plus California's $800 minimum franchise tax on the LLC, all before you even touch the other states. You can elect to treat a spousal LLC as disregarded in a community property state, but the cleaner move starting out is usually a single-member LLC. On the multi-state side, California is going to tax your worldwide income regardless, so you'll file CA plus non-resident returns in OH, GA, and OK (Tennessee has no state income tax on rental income — one less return). As for the $5K quote, that's reasonable if it includes tax prep, entity guidance, bookkeeping support, and year-round planning — if it's just filing, push back and ask what else you're getting. Happy to connect if you want to talk through the setup before you buy.
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- Jennie Ballard
  Brazoria County · Member since 2020 · 69 posts · 24 votes
  6mo
  @Jason Malabute:
  You can elect to treat a spousal LLC as disregarded in a community property state, but the cleaner move starting out is usually a single-member LLC
  Can you elaborate more on this? My husband and I are starting to invest. We live and will be buying in Texas which is also community property state. He is the personable one and I'm the number cruncher so we would both be participating.
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Jake BakerBusiness Member
Flipper/Rehabber · San Diego, CA · Member since 2020 · 1k+ posts · 696 votes
6mo
@Austin De La Cruz
Does that $5k include tax prep and bookkeeping?
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Nigel Jackson
Cincinnati, OH · Member since 2026 · 23 posts · 9 votes
6mo
This is a great question, I have also been wondering the same thing. $5000 is pretty average however!
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Nate MeekerBusiness Member
Real Estate CPA | California · Member since 2020 · 544 posts · 251 votes
5mo
There's a lot to cover here, so I will simply say anything less than $2k will likely be rushed and/or miss out on details that could save you significant amounts.

$2-$8k is totally fair for multiple states, properties, returns, strategy, etc.

What you need is someone to help you execute the filings, not just deliver a plan.
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Basit SiddiqiBusiness Member
Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
4mo
Congrats on acquiring some rentals outside of California.

It is hard to guage whether $5,000 is a high quote or a normal quote.
It will depend on what you have going on, what services are included, how many rentals you have, are the LLC's considered disregarded, etc.

You may want to get a couple of quotes and move forward where you feel like you are being given value.
[email protected]917-280-8544
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