Re: Uh, LLC formation has nothing to do with IRS - Posted by Peter_MD
Posted by Peter_MD on July 10, 2002 at 08:19:13:
Forming and establishing a business is one of the major areas a CPA can do best. It does not require an attorney with a law degree. The CPA will not be charged with practicing law.
CPAs are required (by the licensing State) to perform Continuing Education every year (just like Lawyers and Doctors). They are familiar with all the facets associated with Corporations (S & C), Partnerships, Sole Proprietorships, and LLCs.
I suggest you contact several CPAs and interview them regarding the establishment of LLCs. You’ll learn a whole lot about the procedures in your State. Get the initial consultation for free and decide which CPA you feel is the most knowledgeable and informative. Ensure they speak to you in terms you understand, if not, stop them and make them explain. If they don’t, thank them for their time and move on to “interviewing” the next one.
My experience is that attorneys do the same thing that I do but charge several times the amount. BTW, when you go to a law firm, you never really know who is putting the forms together and establishing the package. It could be an associate or a third year law student. This could happen with a CPA firm, but talk to the CPA and find out who will be handling the assignment if you choose to use their firm.
On reflective thought, include one or two initial consultations with an attorney and discuss this issue and the related costs for comparison. Talk to both the CPAs and attorneys to see if they are familiar with real estate investing.
Don’t forget that you need a CPA and attorney on your “team” in this business…if only for those times when one is needed quickly to “handle” a situation or problem.
Take your time and shop around wisely. It will be money well spent now rather than later.
Just the way I view this…