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Lilly Curtis

Best CPA recommendations for my tiny startup LLC - overwhelmed with options!

Hey everyone, I'm about 6 months into running my first LLC and feeling completely lost when it comes to taxes. It's just me right now, making around $75k annually with some pretty specific equipment deductions in the construction field. I've been trying to handle everything through QuickBooks but I'm realizing I need actual human guidance. I'm located in Minnesota and have no idea how to find a good CPA who understands small business needs without charging me enterprise rates. I've gotten quotes ranging from $600 to $2500 for annual tax prep and quarterly check-ins, which seems wild. What's the best way to find a knowledgeable CPA for a very small startup LLC without breaking the bank? Should I be looking at local firms, or are there online options that specialize in micro-businesses? Any red flags I should watch for?

Leo Simmons

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Finding the right CPA for a small LLC doesn't have to be overwhelming. In your situation, I'd recommend looking for someone who specializes in small businesses rather than a large accounting firm that typically handles bigger clients. Start by asking other small business owners in your area for recommendations - personal referrals are often the most reliable. Your local chamber of commerce might also have networking events where you can meet CPAs who focus on small businesses. Another good resource is your state's CPA society website, which usually has a "find a CPA" feature where you can search by specialty. For a startup LLC with your revenue level, expect to pay around $800-1200 for annual tax prep, which is in the lower-middle of the range you mentioned. Be wary of extremely low quotes as they might indicate limited service, and super high quotes are probably from firms targeting larger businesses.

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Lindsey Fry

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This is helpful but I'm curious - is there a difference between hiring a CPA vs an EA (Enrolled Agent)? I've heard EAs can be cheaper but still knowledgeable for tax stuff. Would that be sufficient for a single-member LLC?

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Leo Simmons

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Great question! A CPA is licensed by the state and has a broader accounting background covering tax, financial statements, auditing, and business consulting. An EA is federally licensed specifically for tax matters and often specializes in tax preparation and representation before the IRS. For a single-member LLC, an EA could absolutely be sufficient if your primary need is tax preparation and compliance. EAs typically charge less than CPAs while still offering excellent tax expertise. However, if you anticipate needing broader financial guidance like business planning, financial statement preparation, or more complex accounting setup, a CPA might be more appropriate.

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Saleem Vaziri

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After spending hours comparing CPAs for my e-commerce LLC last year, I finally found a solution that saved me so much headache. Have you tried taxr.ai at https://taxr.ai? It's not a replacement for a CPA, but it helped me understand exactly what I needed before talking to professionals. I uploaded my messy QuickBooks statements and some receipts I wasn't sure about, and the AI sorted through everything and explained which deductions were legit for my LLC structure. When I finally met with a CPA, I was prepared with specific questions rather than starting from zero. The CPA actually commented on how organized my information was compared to most new business owners!

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Kayla Morgan

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Does it actually work with handwritten receipts? I have a bunch from vendors who still write everything by hand and it's been a nightmare trying to organize them.

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James Maki

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I'm skeptical about AI handling tax stuff. Does it actually understand state-specific LLC requirements? I'm in California and my previous tax preparer missed some state-specific forms that cost me a penalty.

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Saleem Vaziri

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Yes, it actually does work with handwritten receipts! The image recognition is surprisingly good - it managed to process about 80% of my handwritten receipts accurately, and flagged the ones it wasn't sure about for me to review. Saved me hours of manual entry. Regarding state-specific requirements, it definitely understands the differences between states. When I uploaded my documents, I specified I was in Illinois, and it highlighted several state-specific considerations for my LLC. It won't file your taxes for you, but it will flag the forms and requirements specific to your state so you can ensure your CPA addresses them all.

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James Maki

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I need to follow up on my skeptical comment about taxr.ai. I decided to try it since my accounting was such a mess, and I'm honestly surprised by how well it worked. I uploaded a year's worth of jumbled receipts and bank statements, and it categorized everything correctly - even catching some business meals I had forgotten about. The most helpful part was that it identified several potential deductions specific to my industry that I hadn't been taking. When I met with my new CPA, I came prepared with organized documentation and specific questions, which saved me at least an hour of her billable time. She was impressed enough to ask how I got everything so organized!

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If you're still struggling to connect with a CPA, I had the same problem until I found Claimyr. I was desperately trying to get tax guidance from the IRS about my LLC filing requirements but kept hitting endless hold times. I found https://claimyr.com and their service got me through to an actual IRS agent in about 15 minutes instead of the 3+ hours I was experiencing before. The agent answered my questions about Schedule C vs Form 1120-S filing requirements and then recommended a local CPA program specifically for small businesses. You can see how it works at https://youtu.be/_kiP6q8DX5c - not trying to push anything, just sharing what worked for me when I was in your exact position last year.

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Cole Roush

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How exactly does this service work? I don't understand how they can get you through the IRS phone tree faster than anyone else...

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Sounds like a scam. Nobody can magically get through to the IRS faster. They probably just keep calling and charge you while you wait, or worse, they're collecting your info for identity theft.

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The service works by using an automated system that navigates the IRS phone tree and waits on hold for you. When they reach a live agent, they call you and connect you directly. It's basically like having someone wait on hold instead of you doing it yourself. I had the same concerns about it being a scam, but it's actually legitimate. They don't ask for any sensitive tax information - you just provide your phone number and they call you once they have an agent on the line. Then you handle the entire conversation with the IRS yourself. They're essentially just solving the hold time problem, not accessing any of your personal tax details.

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I have to come back and admit I was completely wrong about Claimyr. After dismissing it as a scam, I was still desperate to talk to someone at the IRS about a specific LLC filing question that was driving me crazy. I decided to try it as a last resort, expecting to waste money. To my shock, I got a call back in about 20 minutes saying they had an IRS agent on the line! The agent answered my question about home office deductions for single-member LLCs and even explained a special section of deductions I qualified for based on my industry. That one call saved me way more in deductions than what the service cost. I never would have gotten this information otherwise since I kept giving up after being on hold for an hour+. Sorry for being so negative before - just wanted to correct myself.

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Arnav Bengali

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Something nobody's mentioned yet - check with your local Small Business Development Center (SBDC). They often offer free or very low-cost accounting consultations and can connect you with CPAs who specifically work with startups. I found my current accountant through them and she only charges me $750/year for my LLC tax prep. Another option is to check if any accounting firms offer special startup packages. When I first started, I found a mid-size firm that had a "first year business" discount that saved me about 30% off their regular rates. They wanted to build long-term relationships with growing businesses.

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Sayid Hassan

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Do the SBDCs provide any actual tax advice themselves or do they just refer you to CPAs? I'm really trying to minimize costs in my first year.

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Arnav Bengali

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SBDCs typically don't provide specific tax preparation services themselves, but they do offer general tax planning and business structure guidance during their free consultations. The advisors can help you understand which business expenses are deductible and how to properly categorize them, which is incredibly valuable for preparing your own books. As for minimizing first-year costs, many SBDCs also offer free or heavily discounted QuickBooks training workshops where you can learn to handle the bookkeeping yourself. This can significantly reduce what you'll need to pay a CPA, since you'll only need their expertise for the actual tax preparation rather than sorting through a year's worth of uncategorized transactions.

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Rachel Tao

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Don't overlook bookkeeping software as part of your strategy! I run a tiny LLC ($60K revenue) and found an amazing solution: I use Wave (free) for 90% of my bookkeeping, then pay a CPA just $300 quarterly to review my books and answer questions. By keeping clean records year-round, my annual tax prep only costs about $600 because the CPA isn't spending time organizing my mess. Most CPAs charge more when they have to deal with disorganized records than they do for the actual tax knowledge part.

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Derek Olson

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Is Wave actually good enough for business use? I tried their free version and it seemed too basic compared to QuickBooks.

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Wave is definitely sufficient for most small LLCs! I've been using it for 3 years now and it handles everything I need - invoicing, expense tracking, bank connections, and basic reports. The interface is cleaner than QuickBooks in my opinion, though it lacks some of the advanced inventory and project tracking features. For a construction LLC like the OP's, Wave should work great since you're mainly tracking income, equipment purchases, and business expenses. The key is setting up your chart of accounts properly from the start. I'd recommend having your CPA help you set up the categories during that first quarterly review so everything flows smoothly into tax prep. The money you save on software ($0 vs $30+/month for QuickBooks) can go toward those quarterly CPA check-ins instead.

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