paid too much?

[rln]

Hi all,

The last time I started a business I tried to do everything myself. The price was right, but I made a lot of mistakes that ended up costing me later. Well, I just started a new business, and I wanted to start things off right. So I hired the accountant who cleaned up my mess last time.

He got me my EIN, got me incorporated, s-corp elected, corporate minute book and seal, set up to pay sales tax, registered for unemployment insurance - everything that I need as an Illinois S-corp doing retail sales. I didn't ask very detailed questions about the cost beforehand. Then I got a bill for nearly $1800. Just one line, for services rendered and fees paid on my behalf.

Is this reasonable? I like the guy, and seem to get helpful advice from him. Also, I wouldn't want to seek out a new accountant this time of year. But I don't know enough to even say whether the amount is within reason. It's a lot more than I expected. So, looking for some opinions from those in the know.

Thanks,
RLN

 

[kirby]

To find out if the amount is reasonable ask for a detail statement that shows fees paid for you and his hours by task times his rate. Going forward anytime you hire someone ask what will be done and their estimate of the cost. Do this whether dealing with the small time folks to the supposed big shots, (cpas, attorneys, consultants). Expect some to whine that that is not how they do things. Thank them for their time and call someone else.

 

[rln]

Thanks for your reply.

 

[bklynboy]

I had an LLC and S Corp established last year and was charged around 2K. I believed this was on the high side as he charges $400 per hour but I have confidence in him and he makes himself available at all times to answer any of my questions and provides me with other tax advice to help minimize my taxes. At the end of the day you want someone who knows what they are doing and makes time for you - this is part of the premium you pay but not an outrageous one in my opinion.

 

[rln]

Makes sense. It seems like I'm in the same situation.

Thanks.