Questions to ask accountant for establishing LLC partnership

5 Replies

My business partner and I have an initial meet and greet with an accountant to discuss setting up the business. We just established an LLC and want to discuss tax parameters, financials, cash flow, etc.. We are a year or so away from purchasing an investment property and will be stashing money away until then. Any specific questions to ask to help organize the company?

Questions to ask your CPA:

1. What are your fees?

2. DO you work with real estate investors?

3. Is an LLC structure the best option for my specific facts and circumstances?

4. Can you review an Operating Agreement as it pertains to the tax implications and partners' capital accounts?

5. Will you be applying for an EIN?

6. Do you work with attorneys who you can refer me to?

7. Should we open a business bank account?

8. What type of records should we maintain?

9. Etc.

@Steven Whalen

Good list from @Lance Lvovsky . I would start elsewhere though.

Question #1: do you think we should, in fact, form a 50/50 LLC for our partnership? If he immediately answers yes - thank him and leave.

The correct response is: what are you trying to accomplish by partnering? And then quiz you on your plans, your resources etc. Hint: 50/50 LLC is usually the worst way to do business together.

Originally posted by @Steven Whalen :
@Michael Plaks that's good advice, I'd like to hear more on why a 50/50 llc is not the best way to go and other ways to structure.. Roles and responsibilities are being clearly defined in a maintenance agreement and business plan...

The shortest answer is: it is marriage. Easy to get into, and everything is rosy on the wedding day.  :)

For alternative structures, I would need to know your plans and resources, as I mentioned should be the topic of that discussion with your future accountant.