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  • 1.  California Professional Corporation

    Posted 10-30-2024 04:54 PM

    Hi,

    I've recently decided to work on a contract/consultancy basis.  The question now is whether to work on W2 or establish a business and report income on 1099.

    I'm based on California.  I carry a CMA.  I do not have a CPA.

    It is proving incredibly difficult to organize a simple sole proprietorship in CA.  An LLC is not an option for professional organizations.  An LLP and a PC also seem to require registration with the CA State BOA and thus must maintain a CPA in CA.  

    Unless I have misunderstood the CA SOS requirements, it would seem I must work on W2 basis.

    Is anyone willing to share how you were able to successfully organize a proprietorship focused on business/accounting consultancy in the state of CA?

    Thanks



    ------------------------------
    Cody Kaduce CMA
    Controller
    Hollywood CA
    United States
    ------------------------------


  • 2.  RE: California Professional Corporation

    Posted 10-31-2024 05:00 AM

    Hello !! while forming an LLC isn't an option for accounting professionals in CA, working as a sole proprietor might be the simplest route for you, or you can opt to work as a 1099 contractor. Both options keep things simple and don't require CPA licensing as long as your services stay in the realm of business consulting and management accounting.

    Thanks 







  • 3.  RE: California Professional Corporation

    Posted 10-31-2024 07:45 AM

    Hello! 

    You can form an Single member LLC or a C-Corp (which is easier in CA) and elect to be treated as an S-Corp. This election provides the liability protection you need along with pass-through tax advantages. You don't need a CPA to operate a consulting business.

    Good Luck!

    Best, 



    ------------------------------
    Catalina Jimenez CMA, CSCA
    Director/Manager
    North Miami FL
    United States
    ------------------------------



  • 4.  RE: California Professional Corporation

    Posted 10-31-2024 01:25 PM
    I am not that well versed in the subject but there is an organization "your part time Controller LLC" that you might peruse and possibly contact.  Looking at it, I can see on their website that they EXPLICITELY say "YPTC is not a CPA firm, and provides no attestation services with regard to financial reports. Our clients are nonprofit and for-profit corporations."  It may be HOW you describe your business.  An "accounting" services business might require a CPA but a business focused on management decisions may not.   Who We Are - Your Part-Time Controller, LLC  I haven't personally contacted the organization but they used to advertise on local NPR stations quite a bit.









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