We are self employed with two business together, own a home together... Who do we need to see for taxes, a cpa

Question

or someone else?

Answer 1

You may get off a little less expensive with a reliable Public Accountant.  I think you should not hire on a one time basis.  You really need an honest accountant to keep you updated on changes in state and federal tax changes.  In addition, to keeping you out of "trouble" an accountant will let you plan your tax strategy better than maybe you are now.  Ask questions, so that everyone is on the same sheet of music.  Do not just drop papers off to an accountant and never ask questions.  It is about your growth and the accountant's need to know the special facts of your business.  Which you and your partner know better than anyone.  It is time and money well spent.  

Answer 2

  If you a looking for help with your tax returns and tax planning you more than likely do not want a CPA.  I would suggest an Enrolled Agent (EA).  Most people think all CPAs are tax experts, this is far from being true--in fact most CPA firms hire someone else to prepare the tax returns for them.

  I'll explain the difference between the two. A CPA takes a 16 hour test that is very demanding, most don't pass it. This test covers mainly accounting rules (GAAP) with one section of the test covering taxation. An EA also takes a very demanding16 hour test given by the IRS, and most people don't pass it either. However, the entire 16 hours of this test covers taxation and the application of tax laws (2 hours are ethics for a tax professional) instead of just one section on tax theory for CPAs.

  Most CPAs are auditors, they provide certified financial statements by taking samples of transactions and verifying they are correct (unless you are a publicly traded corporation or a government contractor you probably don't need this service).

  Usually, an EA is only concerned with taxation and tax planning. Most of them can help you with most of the accounting questions and guidance that you might need. Usually EAs fees are less than CPAs.

  If you haven't guessed yet...I am an EA. So to be fair, I do know several CPAs that specialize in taxation and most of them are very good. But on the other hand I had a business (before I semi-retired) that did very well specializing in fixing mistakes made by CPAs and Lawyers.

  The choice is yours...but, hopefully you have more information now to make a decision.

FOOTNOTE: It might not even matter but it could make a huge difference. You stated that you are self-employed and you have two businesses together. If this is really true, then you have two partnerships or corporations and you aren't self-employeed. Partnerships and Corporations are a completely seperate entity therefore you would work for the Partnership/Corporation and withholding tax rules might apply (even though you own it). This is something an EA or a CPA (that specializes in taxation) can help you with.

Hope this helps.  

Answer 3

If you got time go to tax school yourself......you'll need every deduction you can get.

Answer 4

A CPA.