Jacksonville CPA | Achieving Your Goals Financially

Hello everyone and welcome to today’s podcast. My name is Brandon Mack Roy and I’m the president of Mineva, a tax and accounting from tax accounting and consulting firm in Jacksonville, Florida. If you have a Jacksonville CPA that you’re frustrated and tired, they’re not very proactive, you don’t feel like you’re getting what you need to achieve your goals, then give them an eva call. We’d be glad to talk to you and help you achieve the goals that you want to achieve. So I’d like to just reflect a little bit on today client meeting that I had today. Go over a few things for someone who is out there that maybe working a job and would like to transition into business ownership, which is what this couple was doing. Um, so they were going out to become like a, a music teacher, like an independent music teacher. Okay. So, um, client was a musician.

So what I would recommend for entrepreneurship, um, is don’t just go quit your job and just jump right into something because you have to have the knowledge and experience and sometimes small business ownership can slap you upside the head. I saw that recently with a, um, someone that came to me and they’d shut their business down within about a year and a half because they had no idea what, what they were doing. So you want to make a gradual transition. So if your Jacksonville CPA is not talking about these things, then come give them a call. So if you have your service or your product or whatever it is that you’re going to be selling or offering the marketplace, you should start small. Make sure that you become good at whatever you’re selling or whatever you were, whatever service you’re providing, start small and then scale from there. So for instance, this client that came in today, he’s still working a job and he’s transitioning over to business ownership.

So the, as he’s building his clientele has students, um, for his piano and voice teaching, he’s also working a job and his wife is working a job as well. So that’s the first thing because they’re just so many things that um, you know, if you, if you bet the farm on a business and you get a get into with no experience, it’s going to end up pretty bad. So make sure that you have a trusted advisor. So if you don’t have a Jacksonville CPA, um, or if you have a Jacksonville CPA that you’re frustrated with and then give them an eva a call. So here’s what happened with the client today. So they came in, they’d, they went to their banker who, well, but who works for very large corporate bank, um, and doesn’t really have any business experience and they don’t have any knowledge of how to properly structure things for tax purposes and just for general costs savings.

So they went to their banker and the banker said, well, you need to get set up with payroll. We didn’t ask them what the entity they were. You said you need to get a setup, get set up with payroll since you have, since you’re gonna need to pay yourself out of this business. Well, the client just took the advice. I’m figured the banker knew what they were talking about and they had payroll setup with ADP, which ADP is a good current company, great payroll. They do billions of dollars worth of payroll. Um, there are many Jacksonville cpas that work with ADP, but this client was set up as an llc with two members, husband and wife, a which automatically classifies them as a partnership as far as taxation goes. So they would be liable to file a partnership tax return, which is a pass through entity. And the thing about partnership tax return, you’re not required to do payroll for the partners.

You can just take out the partner distribution or some kind of guaranteed payment and not have to worry about the payroll fees that and you know, all of the new tools and withholding and, and whatnot. So I told them, you know, here’s what I would recommend for someone like you just getting started, you know, just file a schedule C, you’re going to pay some self employment tax. That’s not the optimal entity selection longterm. But for now, as you transition over just a, it was a husband and wife, the husband was the one that was operating the business. Check the wife off of the LLC. That way you’re a single member LLC.

Single member LLC is treated for tax purposes is it’s filed on a schedule C, which is a schedule. It’s an attachment to your form 40. Um, and so that move alone, just in tax preparation fees is gonna. Save them anywhere from $500, $900 just so that’s gonna. Save them a lot of money. So if you have a Jacksonville CPA that is not a, doesn’t have your best interest at heart, then give them a call and we’ll help you make sure your small businesses set up optimally for tax purposes. It’s, it’s so much easier to get it right in the beginning than to try to fix things on the back end. So I told them to discontinue the relationship with ADP. So that’s a sole proprietor. When you need to pay yourself, you just write yourself a check or make a bank transfer. You don’t have to worry about withholding payroll taxes every paycheck because you, when you do your personal tax return, all of the payroll taxes or Aka self employment taxes are calculated on your personal tax return at the end of the year and you pay them, you pay both the employer and the employee portions on your tax return at the end of the year.

So now what I did caution them was to make sure that they had sufficient quarterly estimated payments paid into the irs, which after we went through their, their whole situation within their free consultation, I found out that their income wasn’t going to be at a certain level and they had a few dependence. And with the new tax law, uh, with the $2,000 per child tax credit, they, um, I recommended that they not pay any quarterly estimates because of the credits that they will be getting and the estimated versus the estimated tax liability they had if they didn’t pay any taxes. And they’re still going to get a refund at the end of the year. So if you’re Jacksonville CPA, we’ll sit down with you and go through, make sure that they are not referring services to you that, that you don’t need so they can make a commission or I’m trying to have you file extra returns that you don’t need to, so you know, they can make extra money than come give Mineva call. Um, because I felt like a saved this couple, several thousands in just the short half hour meeting that we had today and they were very pleased, uh, which is what I like to have my customers come away from the meeting, very pleased to have their needs met. So if you have a Jack Small CPA that you’re frustrated or tired with that, come to Mineva and, uh, we will help you meet your financial goals. So make sure your business entity is set up properly.

Make sure you have the right advisors around you when you’re transitioning from being an employee to a small business owner. And don’t do it all at once. Make a gradual transition. Now, as you replace your income cut back on your hours or however your job is, is set up your current employee job setup. No, make it gradual decrease in one and increase the other. And for a short period you’ll have to work extra, but I’m not. That’s what entrepreneurship is all about. So, um, thank you for listening today. Uh, again, if you have a Jacksonville CPA that is not working out for you, then give them an eva call. We’d be glad to help you out.