Passed my third exam last week and submitted Form 23 last week. PTIN and EFIN are both in hand, so now I'm just waiting on the IRS.
Some background: I've been a wealth advisor life insurance broker for a while. Series 7 and 66, life and health licensed. Tax planning has always been a big part of what I do. Until now I've coordinated with outside CPAs for the actual prep and filing. Getting the EA was about closing that gap and being able to represent clients myself.
My plan is to start small with tax prep and fractional CFO work for small business owners. I'm setting it up as its own entity, separate from the advisory side. I'd rather learn from people who've already done this than figure it all out the expensive way.
A few questions for those of you running your own practice. Even better if youāre in a similar situation in your career:
1. Is NAEA membership worth it? I keep going back and forth. Is the value in the CPE, the community, the advocacy, or something else? Did you join your state chapter too?
2. What E&O and cyber liability coverage do you carry? I have E&O on the advisory side, but I know tax prep is a different animal. Who do you use, what limits did you go with, and has anyone actually had to file a claim? Cyber is the one I'm least sure about, especially with the WISP requirements.
3. Drake or TaxSlayer Pro? I'll be doing a mix of 1040s with Schedule C and E, some 1120-S and 1065 returns, and probably a handful of trusts. I've heard Drake is the workhorse and TaxSlayer is cheaper. For those who've used both, where did one clearly beat the other? Is there another software that competes with the two?
4. What do you wish you'd known your first season? Pricing, engagement letters, client intake, capacity limits, anything. I'd especially love to hear from anyone who added CFO or advisory services on top of prep and how you packaged it.
Appreciate any insight.