A family of CPAs recently came in to our Oakland office to create a Business Formation Package. The father had been practicing in the Bay Area for more than 30 years and both his son and daughter had followed him into the accounting business. It had always been his dream to have his children join his firm, but neither child was interested in joining his/her father right out college.
They joined Big 4 firms and worked long, grueling hours
They learned a lot about accounting, staying on top of new laws and regulations and the need to be bringing in new clients if they wanted to be successful. They learned that tax season never got any easier, and that they needed to put their lives on hold for three-four months every year.
Once the siblings had families of their own, each decided to leave the corporate environment, seeking a more normal lifestyle. The daughter, who had received an MS in Taxation, started her own niche firm as a sole proprietor; her brother had joined a smaller firm as an associate. After much discussion, and to the delight of their father, both siblings agreed to join their father in his firm. They all laughed about the circuitous route they’d taken in getting there—it had taken more than a decade, but they were finally going to have that family CPA firm.
Professional Corporation for licensed professionals
Since all three business partners are licensed CPAs, a Professional Corporation is the appropriate business structure.
A professional corporation restricts ownership of the corporation so that some or all of the shareholders or directors must be members of the profession—doctors, lawyers, CPAs, architects, etc. These business structures help licensed professionals protect their personal assets from lawsuits brought against their practice or against their partners, but generally do not protect the licensed professional from professional malpractice claims.
Are you starting a new business or changing your business structure? Our Business Formation Packages start at just $549. Call one of our three Bay Area offices today to make an appointment.