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Should I use a CPA from year one?
Reviewed by Editorial Team

Entity choice and tax election — sole prop vs LLC vs S-corp election timing depends on projected net income; the wrong election costs thousands. Payroll tax — Federal 941, FUTA, state SUI, W-2s, 1099s. Missed deadlines compound; the IRS Trust Fund Recovery Penalty for unpaid withholding is personal. Sales tax across jurisdictions — even with software, registration, filing cadence, and audit support benefit from CPA review. Depreciation — Section 179 and bonus depreciation on a truck and equipment can shift large deductions into year one; the IRS code on this is dense. Year-end planning — Q4 conversations about estimated tax true-up, retirement contributions, and equipment purchases convert tax dollars into savings. Audit defense — a CPA who prepared your return can respond to IRS or state notices. Annual fees commonly $1,500-$4,000 for a small operation, more for monthly bookkeeping. A licensed CPA or attorney in your state should review your specific situation.

Common mistakes
  • Hiring a CPA who does not know food service — they will miss food-specific deductions.
  • Waiting until April to engage one for prior-year filing only.
  • Skipping monthly bookkeeping; year-end cleanup costs more than monthly service.
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