MARIELA RUIZ, CPA, PLLC

Helping Individuals and Businesses Financially Thrive.

Tag: CPA (page 4 of 4)

What is a PLLC and What Do They Do?

Chances are you have seen the letters LLC posted after a company’s name, but do you know what it means? It’s important to first understand what a limited liability company (LLC) is and what it does in order to understand what a professional limited liability company (PLLC) is. Follow along with this blog to find out the difference between the two, who can form these groups, and why they do.

LLC vs PLLC

An LLC is a term used in the U.S. to describe a type of hybrid corporate structure used by some professional companies. These companies are owned by multiple partners, or members, which work to ultimately combine the liability protections of a corporation with the tax benefits of a partnership. The most notable difference here between the two is that unlike a PLLC, virtually anyone can become a member of an LLC.

A PLLC is essentially the same as an LLC but is owned and operated by licensed members of the same profession who will only be performing services specific to their profession. Some states require these professionals to form PLLC’s rather than standard LLC’s because they are licensed specialists. A major difference between these two types of companies is that members of a PLLC are personally liable for their own malpractice, should it occur, but not each other’s.

Who can form a PLLC?

In the states where PLLC’s are required to do business, groups are generally made up of lawyers, doctors, engineers, accountants, and other licensed professionals. This partnership arrangement requires documents to be filed with and approved by the state the business hopes to operate in. Additionally, each of the members will need to have their licenses validated by the state before approval.

Benefits of a PLLC

There are some pretty notable benefits in establishing an LLC or PLLC rather than a corporation. The main benefits of PLLCs are their limits on liability and the tax perks. More specifically, their limitations on liability for owner’s taxation and the availability of pass-through taxation. Pass-through taxation enforces that PLLC’s are the responsible parties at tax time, and not the owners. Additionally, these individuals will not be personally liable for the business’ debts or any lawsuits against the business.

Conclusion

At the end of the day, only licensed professionals of the same profession can establish PLLC’s. Though it’s important to keep in mind that each state has their own list of rules and regulations about PLLC’s and the steps that must be taken to establish and operate one. Ultimately, these two types of companies are much easier and cheaper to form than traditional corporations are.

Deciding if you should choose to do business with a member of a PLLC is a no brainer. Professionals who are members of PLLC’s will most likely be very serious licensed professionals who are supported by a group of other educated professionals. For a top notch certified public accountant who is also a PLLC member, call on the offices of Mariela Ruiz, CPA, PLLC.

How to Find a Reliable Accountant

When it comes to our finances, there is no such thing as too much organization and attention to detail. The notion of having our money taken care of and kept in the right places can do wonders for alleviating our stress and allow us peace of mind. One of the best ways to ensure our financial security is by hiring a professional. The only tricky part of bringing in a certified personal accountant (CPA) is finding one you can trust with your livelihood. Keep reading to learn some tips on how to spot a qualified CPA and help you keep the money rolling in smoothly.

They Are Always Communicating With You:

One of the most vital aspects to a good CPA is their communication skills. If your accountant isn’t keeping you in the loop about what’s going on with your finances, that’s not a great sign it will be a smooth working relationship. The ability to articulate information to you about the state of any aspects of your portfolio, from your assets to your investments or liabilities, is paramount to your future and the reason CPA’s are hired in the first place.

They Plan Your Finances Throughout The Entire Year:

While this statement seems to be a no-brainer, you would be surprised to find out how many accountants struggle to focus on your long term futures and securities as opposed to more immediate financial management strategies. One of the best upsides to having a CPA you can trust should be the knowledge that they are spending time planning your financial strategy throughout the entire fiscal year or even longer, as opposed to advising you on week to week transactions. Keeping an eye on the future while managing the present is always the best way to grow your personal wealth, so finding a CPA that understands that can be crucial.

They Give You Tips On How To Budget:

Hiring a personal accountant that cares more about coming in, doing the basic necessities of their job each day and then clocking out will never bring you the returns that you are looking for. It is often hard to see from the outside if your accountant is going above and beyond or not, but one of the best indicators of this is the advice they give you and the regularity with which they give it. Daily, weekly and monthly budgeting tips, while not a requirement, should be expected from any CPA. The more any client knows about their finances, the better it will work out in the long term. Whether it’s merely calling to advise against a trend of purchases they see you making or providing a helpful way to save money in an area they see you are spending too much, a CPA is your financial lifeline, which means they should always be there to have your back on any financial matter.

They Don’t Mind Explaining Anything To You:

To most people, this seems like a relatively simple and obvious task for a CPA, because it merely requires them to not find your lack of knowledge about intricate financial matter frustrating. However, it is shocking how many CPA’s believe relative autonomy is the way to go when it comes to your money, which is a relatively absurd notion. While it’s true that any CPA should have deeper knowledge of your financial situation, there needs to be a consistent dialogue between them and their client that centers around informing them as much as they can about any financial matter. The more a client knows, the better they can work with their CPA to ensure they flourish when it comes to short-term and long-term financial goals.

Conclusion:

There are so many factors that go into choosing the right CPA for you. It’s important to feel safe and secure leaving your finances in another person’s hands, so why not know you are getting the best person for the job right from the start? With Mariela Ruiz, CPA, there’s nothing more important than the financial success of clients, so schedule a consultation today and take that first step towards a more prosperous future!

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