Does your Accountant understand your VA business?

Hi, I'm not sure I understand your question (LOL ) or, the purpose of the question, that is. If I had more context I think I could offer you a better answer, but I'm going to say that I work with a CPA, we're an LLP - and as far as I can tell he and his associates understand my business from the angle that they need to, with the goal of saving us money on our taxes.

If you're asking do they understand what a virtual assistant is and does, perhaps not - I've not spent much time educating them beyond the initial discussions we had when we first hired them and maybe here and there in pieces when I had questions about 1099s or similar.

I think it's an interesting question, really curious now to know why you asked it!

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Hello there,

My business partner and I can actually relate to this questions. We met with an accountant who ended up getting us confused about a tax ID number. She said we needed to call the state to get one, but we thought our EIN number was our tax ID number.

I guess to make sure, does our EIN number count as a tax ID number or is there something separate we need to file for through the state?

Originally Posted by VaVaVirtual

does our EIN number count as a tax ID number or is there something separate we need to file for through the state?

Your EIN is your Federal tax id number. If you are a solo or llc, you will usually use your social security number for the State tax id number. If you are a corporation and/or have employees, you will need to apply to the State for a State tax id number.

Check your State Dept of Revenue office for your State's particular rules. You should also check with your City and your County for their tax id information and tax filing requirements.

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"