This post is part 2 of the series on how I built my cloud accounting firm. If you missed part 1 you can find it here.
I have always been an entrepreneur and a tinkerer at heart. Throughout my childhood I developed a love for technology and over the past decade a deep interest in process and automation. This month I left my stable big firm job to launch AccountFWD, a modern cloud accounting firm. Notes about my back office choices for the new firm and ideas to help you with similar adventures! continued…
Register PLLC with Florida Secretary of State
My first step was to create a legal entity in Florida. I went to sunbiz.org and formed AccountFWD PLLC, filed articles of organization, paid the fee, and waited. In my experience time from submission to filing acceptance usually takes about four business days. My luck would have it that the Florida Department of State started a major project to overhaul their systems and processing time for me was about sixteen (16) days. Disappointing but I built time into my schedule for the unexpected. However, I am happy that Florida is investing in its infrastructure to make this process better for all going forward.
Apply for an Employer Identification Number with IRS
Tax employer identification number commonly known as an (EIN) can often be applied for online with IRS form SS-4 here. Most entities are granted an EIN instantly during business hours. I initially went to apply on a Saturday and had to wait until Monday morning, something to keep in mind.
Bank account
Now that I had both my PLLC registered in Florida and my EIN it was time to move on to banking. Business bank accounts are not the same or as easy to open as personal bank accounts. A few big differences that I found interesting:
Most accounts include transaction limits, for example accounts might include up to 100 transactions per month at no charge but when you exceed this limit you might pay $0.40 for each additional transaction. I opened Chase Total Business Checking account which is their lowest cost offering with plans to move up as I see additional transaction volumes. Similar offerings are available from the other major banking institutions like Bank of America, Wells Fargo, etc.
Capital One looks like they have or had a great small business bank account but when I went to apply they were not accepting new customers. I left them my contact information but it has been a few weeks now without hearing back, I think their offering is no longer available.
Also interesting but not the right fit for me were new online only business banks like Azlo, Axos, Novo. I researched them and while interesting a few things ultimately guided me back to Chase and other traditional banks.
- QuickBooks online (QBO) bank feed integration is a must have. It saves a lot of time.
- Azlo and Axos appears to connect to QBO but Novo only integrates with Xero — a QBO alternative
- These online banks have mixed reviews and limited customer support
- Some report unusual missing features like no checks, ach transfers, or wires for some accounts.
Bank account application for many common entity types (sole proprietorship, LLC, corporations) can be done online but a PLLC like mine required a visit an in person visit to the branch to open the account.
- Documentation and IDs were needed so I went through the list and made sure I was prepared to handle everything on the first try.
- Driver’s license
- Personal information, name, date of birth, social security number, etc
- Tax employer identification number (EIN), see more below
- Proof of registration with secretary of state — Articles of Organization
Paper checks are not included and honestly I hope I do not need checks. My business is rooted in modern systems including payment technologies however I realize there may be times when a paper check is still the best or easiest path forward. I have not ordered checks yet but if I do they will be pre-printed with my company name, routing and account numbers, and will be ready to be printed from my accounting system QuickBooks Online. I found that Costco checks has a good reputation, fair prices, and they will likely earn my business when the time comes. Intuit also offers checks and at lower volumes they can be picked up at a lower overall cost.
I was surprised how much I feared not having the ability to use a paper check or wire with the online only banks. In the end the account a Chase will work well for my needs and I have always liked their website and apps better than Wells Fargo and Bank of America.
Business credit card
There are so many great options for business credit cards and websites that specialize in comparing all of them. For me it was important to get a good size credit limit and a long promotional zero interest period. I have been lucky and for most of my life I have not carried an interest bearing balance on a credit card. To start my firm I plan to do the same and use a promotional twelve month zero interest period to help with cash flow as I get things rolling. All software subscriptions and other firm expenses to the extent possible will be run through the card.
My choice for cards ended with Chase Ink Business Unlimited Card which offered o% for the first twelve months, 1.5% cash back, no annual fee, and when I received my approval it came with a healthy credit limit that will work for what I needed.
Another added benefit of opening the Chase credit card is that I can take a look at my business bank account and credit card with the same website and iOS apps. On a personal note I am a huge fan of Chase’s ultimate reward points and pretty good at redemption with travel partners, more on that here.
Next time
In the next installment I plan to share my notes on the software I deployed to create subscription billing and beautiful engagement letters along with work management software specifically designed for accounting firms.
Have a comment or question? Contact Proseer to learn more.
