CPA and Law Firms (fees, loans, insurance, small business)

[Mooner76]

Looking at a small business startup (re-sale clothing) and researching local firms. Recommendations?

[TylerJAX]

I recommend getting a brain. You need to say where you live in order for anyone to help you.

[Mooner76]

Thank you for the valuable advice. New to forum.. I am in Hunstville AL.

[Wartrace]

First thing I would do is evaluate the "need" for a lawyer OR CPA firm. Is there something complex about the business structure that would require a lawyer/CPA to set up?

If you are intending to operate as a sole proprietor or partnership there is little need for a lawyer. I do NOT see the advantages of setting up an corporation or LLC for a resale clothing store. There isn't a whole lot of liability concern and what little there is can be (should be) covered with insurance. There is no advantage in obtaining financing through a corporation because until the corporation is established you will be asked to personally guarantee and loans.

Same issues with a CPA. The tax issues involved in the type of business you are intending to operate are not at all complex. The accounting can be done with something like QuickBooks or Peachtree which integrate with popular tax preparation software. You may need help in setting the accounting up properly but to have a CPA do it is a waste of capital. I am sure there are bookkeeping/tax/payroll businesses in your area that deal with QuickBooks/Peachtree and they could help you get started for a fraction of what a CPA would charge.

If you DO feel a need for a Lawyer and CPA I would shop around for a CPA that advertises QuickBooks/Peachtree services as an indication they are experienced in small business. AFTER talking to the CPA you can assess your need for a lawyer which I am sure the CPA can recommend.

One thing I would NOT do is ask a lawyer if he/she thinks you need a lawyer. (it's like asking a dog if its hungry) Ask the CPA if HE/SHE thinks you need one.

[daddiesgirl]

Adding to what Wartrace already stated, I am not quite sure why you would need a lawyer and a CPA for if you're only reselling old or used clothing. Setting up a new business just requires some filing fees and filling out some forms with your state, county and tax boards and buying a point of sale system that uses Quickbooks or Peachtree. You won't really need to talk to anyone unless you have a partnership agreement or some investment funding that is set out in contracts, or plan to have a lot of money coming in and sheltering your money, neither of which is common for new small or family owned start ups.

[Wartrace]

As full disclosure to the original poster- I am involved in QuickBooks as a pro advisor and therefore my opinion may be biased.

If you decide to use a program such as QuickBooks or Peachtree I strongly advise that you have professional help in setting it up properly as well as training on how to use it. This help "could" come from a CPA firm however they will charge you "CPA rates".

In my experience you can buy QuickBooks and start using it on your own easily enough. You won't realize you have any problems until you suddenly realize you have PROBLEMS. The cost to go back through months and years of bad accounting data and fixing those problems is far outweighed by the minimal cost and investment in learning how to do the bookkeeping right.

I am working right now with a client who is going to be forced to file amended tax returns for the previous four years due to this problem.

In a used clothing store situation you might deal with consignment sales? Unless the accounting is set up properly it can be a mess. (overstated cost of goods sold and income to name a few)

If you REALLY do not want to handle the bookkeeping duties internally every town/city has a tax/payroll/bookkeeping service or two that can do it for you.