FAQ's

During our nearly 35 years of working with businesses, we’ve been asked nearly every question possible. Below is a list of some of the most commonly asked questions – and their answers.

 

 

I am a new business. What types of taxes should I be prepared to pay?

I am thinking of starting a new business, what business structure is best for me?

When should I change from a Sole Proprietorship to a Corporation?

What is the difference between an Employee and an Independent Contractor?

I have scheduled an appointment. What should I bring with me?

Do you do personal tax returns?

I think I might have to file an extension for my taxes this year. What is involved?

What is the difference between an Enrolled Agent (E.A.) and a Certified Public Accountant (C.P.A.)?

I have received a letter from the IRS or the State of Florida. What do I do now?

How much do you charge?

 

 

Q. I am a new business. What types of taxes should I be prepared to pay?

A. Depending on your business structure, you will pay Income, Social Security, Medicare, unemployment, personal property and perhaps sales taxes. Please see our Business Entities Page for more details.

 

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Q. I am thinking of starting a new business, what business structure is best for me?

A. There are many varying reasons to select either forming either a corporation or a limited liability company. There are less attractive alternatives of being a partnership or sole proprietorship. Please see our Business Entities Page for more details.

 

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Q. When should I change from a Sole Proprietorship to a Corporation?

A. If you currently have a Sole Proprietorship, you should seriously consider forming a corporation or LLC for both liability purposes and taxation. Did you know that as a Sole Proprietor, you are the most aggressively taxed? Once you net $10,000, it is time to seriously consider a Corporation or LLC.

 

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Q. What is the difference between an Employee and an Independent Contractor?

A. The IRS is very clear about who is classified as an Employee and who is classified as an Independent Contractor. Typically, if an individual uses the employer’s equipment, works under the employer’s direction, and is paid by the hour or piece, that person is considered an employee. There are severe penalties for not classifying a worker as an employee when they fall under those guidelines.

 

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Q. I have scheduled an appointment. What should I bring with me?

A. If you are a Corporation, we need to see your Articles of Incorporation. If an LLC, we will need to see your Articles of Organization. If you are a partnership we also need to see any letters or correspondence that you have received from the State of Florida, or the Internal Revenue Service. If you are an individual we have an organizer that we can send you to help you in preparation for our meeting.

 

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Q. Do you do personal tax returns?

A. Yes we do.

 

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Q. I think I might have to file an extension for my taxes this year. What is involved?

A. An extension is only an extension of time to file. It is NOT an extension of time to pay. If you owe taxes, you will be charged penalties and interest from the due date of the tax return, until you pay the tax. A personal extension is good until October 15th. A Corporate or Partnership extension is good until September 15th.

 

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Q. What is the difference between an Enrolled Agent (E.A.) and a Certified Public Accountant (C.P.A.)?

A. Enrolled Agents are licensed by the Internal Revenue Service to represent clients before the Examinations, Collections, and Appeals divisions of the IRS. Certified Public Accountants are licensed by the State in which they practice to perform accountancy. All Enrolled Agents specialize in taxation, while most Certified Public Accountants do not.

 

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Q. I have received a letter from the IRS or the State of Florida. What do I do now?

A. Please notify the office right away when you have received a letter. Most letters can be handled with a response. Some letters will require more work. However, it is imperative that these letters are answered as they are time-sensitive.

 

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Q How much do you charge?

A. This is usually the first question that we are asked. If you were hiring a lawyer, would you want the best lawyer, or would you want the cheapest? You should want someone that has many years of experience, takes 30 hours of Continuing Professional Education, and is an specialized in taxation. Our fees are competitive with other Accounting Firms.

 

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