Ghent, NY asked in Business Formation and Business Law for New York

Q: How should I figure out the best way to set up bookeeping/taxes for my PLLC providing psychotherapy? Too many options!

It took the state a year and a half to process the PLLC paperwork. Meanwhile, to pay the bills, I did contract work (1099) through other businesses. Now that's the bulk of my income. Since that's already taxed, it's hard to know how to set up bookeeping.

2 Lawyer Answers
Jack Mevorach
Jack Mevorach
  • Cedarhurst, NY
  • Licensed in New York

A: Talk with two or three CPAs, get some options, and then speak with an attorney. You should be able to obtain all thus in free consultations.


James L. Arrasmith
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›

A: When setting up bookkeeping and tax structures for your PLLC providing psychotherapy, it's beneficial to consult with a certified public accountant (CPA) who is experienced with healthcare professionals and small business accounting. They can provide tailored advice on how to integrate your 1099 income and your PLLC earnings. The CPA can assist with setting up an accounting system that tracks all of your financial transactions accurately, which is crucial for tax reporting and for the management of your business finances. Since your contract work is already taxed, a CPA can advise you on how to take advantage of business deductions, manage your estimated tax payments for the PLLC income, and prepare for year-end tax obligations. Additionally, consider using bookkeeping software that can simplify the process by categorizing expenses and income, which will make it easier to see your financial picture at a glance. Keep in mind, meticulous record-keeping is key, so maintaining separate accounts for personal and business finances is recommended to streamline your bookkeeping process.

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