This weekend there was a question posted on Facebook asking this very question. Can accounting professionals, like CPAs or staff accountants, help their clients file LLC formation documents? Is this considered “practicing law” or is it part of a firm’s standard accounting services?
Here is the Original Question
Here is an answer from a group member:
This woman hits the answer spot-on.
Since this is such a great question, I believe it deserves exposure outside of Facebook so I wanted to cover it on our blog as well.
Here was my answer inside of the Facebook group:
Hi all! Just wanted to jump in here. As some of you know, I run CorpNet where we assist with incorporation and LLC filings across all 50 states. I have been in the industry since 1997 so have been a player in the space for quite a while and have been part of these discussions in the past so thought I’d lend some insight.
There are absolutely boundaries of responsibility between a CPA and lawyer, or any other type of professional who might be inadvertently practicing law without a license. With that being said, it is not considered the practice of law when you are taking information from an individual and transferring it to the state within required incorporation documents. You are merely acting as a scribe.
A CPA, Accountant, or other financial professional should not necessarily comment in regards to the potential risk or liabilities of conducting business among the various forms of entities BUT you can let your clients know about the tax projections which may flow from a decision to incorporate compared to forming an LLC, partnership or other entity.
A few members in the thread mentioned they work closely with my team through our partner program to offer such services to their clients. I don’t want to be promotional here – but just wanted to show that offering these services can be a great way to add an extra revenue stream to your business and by partnering with us over a competitor you can get a commission back from each sale.
Hopefully, that helps clarify here a bit. Feel free to PM me with any questions and I would love to continue the conversation!
My Question for You
How can I help you help your clients?
If you are a bookkeeper, accountant, or CPA CorpNet can help you deliver additional value to your clients. You can learn more about our affiliate and partner programs or watch a replay of a recent webinar we presented on the subject.
If you have questions, my team and I would be happy to help get those questions answered. Just call us at 888.223.0311 and let us know how we can help.