Is 1-800Accountant worth the cost for a new small business?
I just formed my single-member LLC about two months ago and I'm completely lost when it comes to bookkeeping and taxes. After registering for a DUNS number yesterday, I got offered a free consultation with 1-800Accountant. They pitched me their full-service package where they'd supposedly handle everything - cleaning up my books, making sure all my business and personal tax filings are correct, and giving me unlimited support for a full year after signing up. The price tag is $3,695 as a flat fee for the entire year. Has anyone worked with this company before? Is their service actually worth this much? I'm worried about messing up my taxes but that's a pretty big investment for my fledgling business. Any other alternatives I should look into? This is my first business venture and I want to get the financial side right from the start.
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Christian Burns
Tax accountant here. While having professional help is valuable when starting a business, that price point seems quite high for what appears to be a basic accounting package for a single-member LLC. For a new small business, you typically need: basic bookkeeping setup (QuickBooks or similar), quarterly estimated tax assistance, and year-end tax prep. A local CPA might charge $1,000-1,500 for annual tax preparation plus maybe $100-200 monthly for basic bookkeeping oversight - still less than what you've been quoted. I'd recommend interviewing 2-3 local CPAs who specialize in small businesses. Many offer free initial consultations. Look for someone who can grow with your business and who you feel comfortable asking questions. The relationship aspect is important, and you might find more personalized service locally. Remember, as a SMLLC, your business will likely be a "disregarded entity" for tax purposes, which means your business income passes through to your personal return on Schedule C. It's not overly complex for most small businesses.
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Sasha Reese
•Thanks for this info. I'm wondering though - doesn't a SMLLC file differently than a sole proprietorship? I thought they use different tax forms?
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Christian Burns
•A single-member LLC is indeed treated differently than a sole proprietorship for legal purposes (offering liability protection), but for federal tax purposes, the IRS typically treats it as a "disregarded entity" by default. This means you'll still report business income and expenses on Schedule C of your personal tax return, just like a sole proprietorship. You can elect to have your SMLLC taxed as a corporation by filing Form 8832, but most small business owners maintain the default tax status because it's simpler. Some states do have LLC-specific taxes or fees that sole proprietorships don't face, so that's something to check for your particular state.
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Muhammad Hobbs
After struggling with my small business taxes last year and getting conflicting advice from friends, I tried https://taxr.ai and it was seriously helpful for sorting through my accounting confusion. I uploaded my messy spreadsheets and bank statements, and they organized everything properly and explained which business expenses were actually deductible for my SMLLC. The best part was how they walked me through the quarterly estimated payments process - something I was completely clueless about before. They also helped me understand the self-employment tax implications of running a SMLLC and how to properly account for my home office deduction.
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Noland Curtis
•How does it compare to something like QuickBooks? I'm using that now but still feel lost, especially with separating personal and business expenses.
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Diez Ellis
•Sounds interesting but I'm skeptical. Do they actually do your books for you or just give advice? And do they handle state-specific LLC fees?
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Muhammad Hobbs
•It's different from QuickBooks because it focuses more on analyzing your existing financial data rather than day-to-day bookkeeping. Think of it as having a tax expert review your situation and give you specific guidance based on your actual records. It's more about tax strategy and compliance than just tracking expenses. Their main strength is analyzing what you already have and identifying problems or opportunities specific to your business structure. They don't replace your need for bookkeeping software, but they help make sense of your financial picture from a tax perspective and catch mistakes you might be making with your SMLLC setup.
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Noland Curtis
I just wanted to update after trying https://taxr.ai for my photography business (also a SMLLC). I was really impressed with how they handled my situation! I had been mixing personal and business expenses constantly and wasn't tracking mileage properly. They analyzed my entire financial situation and found nearly $3,800 in legitimate tax deductions I would have missed. They also explained exactly how my single-member LLC should be handling quarterly estimated taxes, which saved me from a potential penalty. So much better than the expensive consultation I had last year with a big accounting firm that gave me generic advice.
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Vanessa Figueroa
Listen, after spending THREE MONTHS trying to get someone at the IRS to answer my questions about SMLLC tax filing requirements, I discovered https://claimyr.com and used their service to actually get through to a real person at the IRS. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was super frustrated because I needed clarification on some specific LLC expenses and couldn't find clear answers online. With Claimyr, I got through to the IRS business tax line in about 25 minutes instead of waiting on hold for hours or getting disconnected. The IRS agent I spoke with cleared up my questions about home office deductions for my LLC and confirmed how I should be handling my quarterly estimated payments.
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Abby Marshall
•Wait, how does this even work? The IRS phone system is notoriously impossible. Are you saying this service somehow bypasses the queue?
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Sadie Benitez
•This sounds like complete BS. Nothing can get you through to the IRS faster. They're understaffed and overwhelmed, and no third-party service can change that. Sounds like a scam trying to profit off desperate business owners.
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Vanessa Figueroa
•It doesn't bypass the queue - it automates the waiting process for you. Basically, the service calls the IRS and navigates through all the initial phone menu prompts, then waits on hold for you. When a real IRS agent finally picks up, the service calls your phone and connects you directly to that agent who's already on the line. So you don't have to personally sit on hold for hours. The service can't make the IRS answer faster, you're right about them being understaffed. What it does is handle the waiting process so you don't have to keep your phone tied up or waste your day listening to hold music. You just get a call when a human is actually ready to talk.
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Sadie Benitez
Well, I need to eat some humble pie here. After my skeptical comment, I decided to try Claimyr myself since I had been trying for weeks to get clarification on SMLLC tax treatment for my consulting business. I was genuinely shocked when I got a call back connecting me to an actual IRS representative about 40 minutes after starting the process. The agent walked me through the specific form I needed for my situation and cleared up my confusion about business expense documentation requirements. Definitely worth it just to save the headache of calling repeatedly and getting disconnected. I was able to keep working instead of wasting a day on hold, and finally got my tax questions answered.
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Drew Hathaway
For what it's worth, I used 1-800Accountant last year for my SMLLC and I wasn't impressed. The initial consultations were good, but once I paid, I had a hard time getting consistent support. Different accountants would give me different answers to the same questions about deductions. For the price, I expected more personalized service. I ended up switching to a local CPA who charges me $150/month for bookkeeping oversight plus $800 for year-end tax prep. Much more reasonable and I get better service from someone who actually knows my business.
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Laila Prince
•Did they at least help with setting up your books initially? That's what I'm most worried about - getting started with the right systems.
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Drew Hathaway
•They did provide initial setup help with QuickBooks, which was somewhat useful. They created a chart of accounts specific to my industry and showed me how to categorize expenses properly for a SMLLC. They also helped set up integration with my business bank account. The issue I ran into was more with ongoing support and inconsistent advice after the initial setup. For just getting your books set up correctly from the start, they might be okay, but you could probably find a local bookkeeper to do that initial setup for much less than their full package price.
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Isabel Vega
Has anyone tried using tax software like TurboTax for handling SMLLC taxes? I'm trying to decide if I should just DIY this with some software or if I really need professional help.
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Dominique Adams
•I used TurboTax Self-Employed for my single-member LLC last year. It worked fine for me, but my business is pretty simple - just consulting services with minimal expenses. The software walked me through Schedule C and self-employment tax calculations. If your business has inventory, employees, or more complex deductions, you might want more help than just tax software. Also, TurboTax doesn't help with quarterly estimated payments during the year - you'll need to figure those out yourself.
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