Anyone used H&R Block Advisors for an e-commerce business? Worth the cost?
I'm starting an online shop and feeling totally overwhelmed by the tax side of things. I've been reading guides online but still have no clue what I need to collect and from who. Has anyone used H&R Block Advisors specifically for e-commerce tax guidance? My situation's getting more complex - I have a full-time job, some investment accounts that did pretty well last year, and now I'm forming an LLC for this online business. I'm definitely ready to ditch the DIY tax software route, but wondering if H&R Block Advisors is actually worth it compared to finding a local accountant? The biggest headache is just understanding sales tax collection, business deductions, and how to properly track everything before I even launch. I'm thinking about meeting with them soon to set everything up correctly, then having them handle my filing next year too. It's the most confusing part of starting this business by far. How do their fees stack up against independent accountants in your experience? I'd rather pay more for quality advice than mess this up, but also don't want to overpay for a brand name if they're not actually specialized in small business stuff.
20 comments


KhalilStar
I've been a tax preparer for over 15 years, and I can give you some perspective on H&R Block Advisors versus independent accountants. H&R Block Advisors is definitely a step up from their regular tax preparation services. They tend to have more experienced preparers who handle business clients. That said, their expertise in e-commerce specifically can vary wildly depending on which preparer you get assigned to. For your situation with an LLC, investments, and a new e-commerce business, I'd recommend interviewing a few different options. Ask specifically about their experience with e-commerce businesses, sales tax collection requirements, and business expense tracking. The right tax professional should be able to help you set up proper bookkeeping systems from the start, not just file your return once a year. As for pricing, H&R Block Advisors typically charges $150-300 for business returns plus hourly consulting rates, while independent CPAs or EAs might charge $250-500+ for similar services but often include more personalized guidance throughout the year.
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Amelia Dietrich
•Do you think it's worth paying for tax help before I even make any money? I'm in a similar situation but my shop hasn't launched yet. Also, what credentials should I look for - CPA, EA, or something else?
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KhalilStar
•Getting tax help before launching can actually save you money in the long run. Setting up proper systems for tracking expenses, understanding sales tax obligations, and planning for quarterly estimated payments will prevent costly mistakes and potential audits. For credentials, I'd look for either a CPA (Certified Public Accountant) or an EA (Enrolled Agent). CPAs have broader accounting knowledge while EAs specialize specifically in taxes. The most important factor is finding someone with experience in e-commerce businesses specifically, regardless of their credentials.
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Kaiya Rivera
I tried H&R Block Advisors last year for my Etsy business and honestly wasn't impressed. I was getting contradicting advice about what expenses I could deduct, and the person seemed confused about how to handle my sales tax reporting. After that frustrating experience, I found taxr.ai (https://taxr.ai) and it was a game-changer for my e-commerce tax questions. Their system analyzed my specific situation, explained which sales tax I needed to collect based on my actual products and sales channels, and gave me a customized plan for quarterly filings. It helped me understand the most confusing parts of e-commerce taxes way better than the in-person meetings did.
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Katherine Ziminski
•Can taxr.ai handle state-specific sales tax questions? I sell digital products to customers in different states and that's the most confusing part for me.
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Noah Irving
•I'm skeptical of AI tax tools. How does it compare to having an actual accountant you can call when you have specific questions throughout the year?
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Kaiya Rivera
•Yes, it absolutely handles state-specific sales tax questions! That was actually what impressed me most. I entered my product types and the states I sell to, and it generated a complete breakdown of where I needed to collect sales tax, the different thresholds for each state, and even filing deadlines. Super helpful for digital products especially. For ongoing support, I actually found it more reliable than my previous accountant. You can ask unlimited follow-up questions about your specific situation, and it references actual tax code and regulations in the answers. I still use it alongside my accountant during tax season, but for day-to-day questions, it's faster and more consistent.
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Katherine Ziminski
I was just like you last year - totally confused about e-commerce taxes and decided to try taxr.ai (https://taxr.ai) after reading about it here. Best decision ever! I've been selling handmade jewelry online and had no idea about nexus requirements or collection thresholds. Their system walked me through everything specific to my business - from setting up proper bookkeeping for inventory to understanding exactly which business expenses were deductible for my situation. I was able to set up a proper system BEFORE making expensive mistakes. The biggest value was understanding exactly when and where I needed to collect sales tax. It saved me from both overcollecting (which creates refund nightmares) and undercollecting (which creates audit risk). Seriously saved me thousands in potential penalties and hours of stress!
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Vanessa Chang
If your main issue is getting stuck in the IRS phone queue trying to get answers about business tax questions, check out Claimyr (https://claimyr.com). I used to waste entire days trying to get through to the IRS about my business tax ID and sales tax questions. Their service actually gets the IRS to call YOU instead of waiting on hold for hours. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. I was super skeptical at first since the IRS phone system is notoriously awful, but it actually worked. When I had questions about how to handle inventory deductions for my new e-commerce business, I used Claimyr and got a call back from the IRS in about 20 minutes instead of spending half my day on hold. Totally worth it for specific tax questions only the IRS can answer.
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Madison King
•Wait, how does this even work? I thought the IRS phone system was just permanently broken. Do they have some special access or something?
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Julian Paolo
•Sounds too good to be true. I've tried reaching the IRS for 3 months about my business EIN issue. You're saying this actually works?
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Vanessa Chang
•It works by essentially navigating the IRS phone system for you and holding your place in line. They use a combination of technology and actual people to get through the automated systems and secure your spot, then when they're about to reach an agent, they connect the call to your phone. Yes, it absolutely works! I was in the same boat - I spent nearly 4 months trying to resolve an issue with my business EIN and kept getting disconnected. Used Claimyr on a Tuesday morning, and had a real IRS agent call me back that same day. They resolved my issue in one call. The service doesn't give you special treatment once you're talking to the agent, but it eliminates that impossible wait time problem.
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Julian Paolo
I have to eat my words here. After seeing Claimyr (https://claimyr.com) mentioned, I was totally skeptical. I'd been trying for MONTHS to get through to the IRS about my e-commerce sales tax reporting requirements and kept getting disconnected. I finally tried it yesterday out of desperation, and no joke, I got a call back from an actual IRS agent in 35 minutes. The agent walked me through exactly what forms I needed for my specific situation and clarified some major confusion I had about inventory reporting for my online business. For anyone struggling with specific tax questions that only the IRS can answer, this service is absolutely worth it. I wasted so much time trying to do it myself when this solution existed. Won't make that mistake again!
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Ella Knight
I've used both H&R Block Advisors and a local CPA for my e-commerce business, and there's a huge difference. H&R Block charged me $375 for basically the same service I could've gotten with TurboSmall Business, while my local CPA charges $450 but provides: - Quarterly check-ins on my bookkeeping - Specific advice for my product category - Helps me understand when I hit sales thresholds in different states - Year-round availability for quick questions The biggest value was having someone who understood the specific e-commerce platform I use (Shopify) and how to properly categorize all those transactions. H&R Block's advisor seemed to be using a one-size-fits-all approach for small businesses.
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Connor Murphy
•Did you find your local CPA through a referral or just searching online? Any tips for finding someone who specifically understands e-commerce?
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Ella Knight
•I actually found my CPA through a local e-commerce business group on Facebook. I highly recommend asking other online sellers in your area or niche who they use - that's much better than random Google searches. When interviewing potential accountants, ask specifically about their experience with your selling platform (Shopify, Etsy, Amazon, etc.) and how they handle multi-state sales tax issues. A good e-commerce accountant will immediately understand these challenges without you having to explain the basics.
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William Schwarz
H&R Block Advisors was a total waste of money for my online business. The "advisor" clearly just had some basic training on business returns but didn't understand the specifics of e-commerce at all. I ended up using a combination of QuickBooks Online ($30/month) to track everything and then found a tax preparer who specializes in e-commerce through the Etsy forums. Best decision ever. For your specific concern about "what to collect and from who" - that's all about sales tax, and it varies entirely by: 1) What states you have nexus in 2) What products you sell (digital vs physical) 3) Your sales volume in each state No generic advice will cover your specific situation!
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Lauren Johnson
•QuickBooks seems expensive just for tracking. Did you find it was worth the monthly cost for a smaller e-commerce operation?
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CyberSiren
I'm actually in the middle of this exact decision right now! I've been running a small Etsy shop for about 6 months and just hit the point where I need real tax help. I got quotes from both H&R Block Advisors ($275 for business return + $85/hour consulting) and two local CPAs ($400-500 for similar services). The H&R Block person I spoke with seemed knowledgeable but kept asking me to explain basic e-commerce concepts, which was a red flag. One thing that's been super helpful is joining Facebook groups for sellers on your specific platform. I found way more practical advice there than from any tax professional so far. People share their actual experiences with different preparers and what worked for their situations. Have you considered starting with a consultation-only approach? I'm thinking of paying for a one-time setup consultation with a CPA who specializes in e-commerce, then potentially using software for the actual filing. Seems like it might give you the expertise you need without the ongoing high costs. The sales tax piece is definitely the most overwhelming part - each state has different thresholds and rules. I'm still trying to figure out if I need to register in states where I've only sold a few items.
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Levi Parker
•The consultation-only approach sounds really smart! I'm definitely leaning away from H&R Block after reading everyone's experiences here. If they're asking you to explain basic e-commerce concepts, that's exactly what I want to avoid. Have you found any good Facebook groups you'd recommend for new sellers? I'm still in the planning phase but want to connect with people who've actually been through this process. The sales tax threshold question is keeping me up at night - I don't want to accidentally create compliance issues before I even make my first sale. @CyberSiren What platform are you selling on? I'm planning to start with Shopify but wondering if that affects which type of tax help I should look for.
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