Boutique CPA Firm · Glendale · Burbank · Pasadena · Los Angeles Serving clients in all 50 states

T: 818-570-0071 info@gttaxcpa.com
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Accountant for Professional Service Firms

Tax and accounting for law firms, consulting practices, talent agencies, insurance brokers, engineering firms across Los Angeles.

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A Strategic Tax Advisor for Your Firm

Partner compensation, distributions, quarterly cash discipline: that is what drives a firm selling expertise and time. We handle tax work, accounting, payroll for law firms, consulting practices, engineering practices, talent agencies, insurance brokers throughout Glendale, Burbank, Pasadena, Los Angeles.

We work with your firm year-round on lowering tax obligations, on entity framework decisions, on the reporting partners need to read the practice.

Our Business Services Include:

  • Full-service accounting
  • Quarterly financial statement preparation
  • Tax planning & preparation
  • Payroll processing & reporting
  • Tax structuring & entity framework guidance

Rethinking the partnership structure? Start with entity analysis and formation. For monthly visibility, add business accounting, so partner draws and quarterly estimates come from real numbers instead of a year-end reconstruction.

Professional Firm Tax Questions

How are partners in a law or consulting firm taxed?
A partnership or LLP pays no income tax itself. Each partner reports their share of the firm's profit on a Schedule K-1, whether or not the cash was distributed, and pays self-employment tax on it. Partners cannot be paid as W-2 employees of their own partnership, so nothing is withheld during the year. Quarterly estimated payments take the place of withholding.

Can a California law firm or other licensed practice be an LLC?
No. California does not allow licensed professionals such as attorneys, accountants, or physicians to practice through an LLC. The usual choices are a professional corporation, often taxed as an S corporation, or a registered limited liability partnership. Each one changes how owner compensation, payroll taxes, and retirement contributions work. We model both before the firm files.

Why do quarterly estimates cause so much trouble for professional firms?
Owner income arrives without withholding, and in a good year the April balance plus the first-quarter estimate land in the same month. Underpayment penalties follow when the estimates were based on last year's numbers in a year that grew. We set each quarter's payment from current-year projections drawn from the monthly books, then adjust as the year develops.

Get in Touch with Our Tax Experts

Prefer to talk? Call 818-570-0071 or email info@gttaxcpa.com.