etting up your blogging business the right way (See: Checklist here) can be quite overwhelming. Many times you have no idea who to turn to for specific questions and ask “Should I hire a CPA or a Lawyer for my Blogging Business?”
So glad you asked!
Today we’re going to go over the specific situations and give some tips that you need to know for when, how and why to hire one of these professionals for specific situations.
CPA and Lawyers Defined
CPAs are Certified Public Accountants that work with a range of financial matters. These can be individuals, firms or institutions that provide these services. Typically, you’ll hire a CPA for help with preparing your taxes and financial planning for your Blogging business. These individuals offer way more benefits than merely inputting of financial reports, as they are licensed and educated to provide strategy advice and advisement for matters you may approach in your business.
Keep in mind a CPA is a certified and licensed individual. The terms “bookkeeper” or “tax-preparer” may be erroneously used interchangeably for the designation of CPA- and does not always relay whether an individual has the licensure or not.
Lawyers are individuals who are licensed at a State level to practice law. Lawyers are generally licensed (there are exceptions) but often specialize in the type of cases they take on. It is important to find a lawyer who is well versed in business transactions to properly and fully assist with your Blogging business. I will warn you – you’ll be hard pressed to find lawyers who have run a Blogging business to give this complete view, but we do exist out there!
What to ask a CPA:
- Best business formation for me (based on taxes)
- Tax strategy and planning
- Advisement on tax situations
What to ask a Lawyer:
- Best business formation for me (based on liability)
- Contract creation and review
- Advisement on client situations
A Mistake Many Bloggers Make
Many times small business owners, especially Bloggers, are erroneously told to just “hire a CPA” to set up your business. It is actually recommended to seek out the advisement of both types of professionals, lawyer and CPA. As you can see from the definitions here, both are licensed but are experts on different matters completely.
A CPA may be well equipped to help set up your Blogging business from a tax standpoint (tax liability, strategy, etc.) but may not be experienced in helping you choose the right business structure for your business – this is where lawyers come in.
Lawyers are required to study business transactions, and this subject is a portion of their licensing exams, therefore, they have the knowledge to provide advisement on legal formation matters.
How do I find these professionals?
It is recommended to always start with word-of-mouth recommendations by other local small business owners.
If you don’t know of anyone with a recommendation, start with the State Bar website to search for lawyers in the business arena and check out their credentials. Simply google “State name State Bar Association”. Directories are public and free to search.
Both of these professionals are necessities to business formation and management as they are required to have continuing education to keep their licenses current and up-to-date.
Always set up review times with these professionals to ensure you’re updated to the most current set of laws and see if changes need to be made as your business grows.