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Old 09-21-2007, 10:13 AM
spex x spex x is offline
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Default Re: How much should I allocate for end-of-the year accounting expenses?

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I started a business in early January of this year. It's an LLC with a total of 3 investors (45%, 45% and 10%), two of which are actually actively involved in the business. Besides the two out of the three founders, we have no one else working for us. We expect to take a small loss or to make a small profit by the end of the year. We have a detailed Excel spreadsheet with our revenue/expenses.

Approximately how much are we going to spend on accounting fees? How much money should be allocate for accounting fees (not the actually taxes, but how much we will pay the accountant for his time)?

Much obliged gentlemen (and ladies).

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This question is very difficult to answer given the information that you've given. I do my own taxes, and once in a while I hire a CPA or a tax lawyer for a specific action (i.e., a delayed exhange or some such). When I hire a tax advisor, I usually pay him/her between $100-$250 per hour. I also hire the best, most qualified advisors who have a proven track record and meet my very very stringent criteria. In the long run, I've found cheaper advisors to be highly -EV.

Anyway, it depends a lot on how complex your tax situation is. If you've got a complex situation, obv you've got a bigger expense.
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