[NYSCPA]

***Editing based on 1st response

*** I work at a business management company, not a CPA firm. My department, the Tax dept, prepares the tax returns for the clients in which the company manages (well known musicians, talk show hosts, etc. people making 7 figures/annum, etc.) My potential clientele would not be these people, I’m looking to target professionals in the condo complex I reside in (over 12k units). Why pay someone at HR Block, etc. $250 to prepare your return when you can pay a CPA with almost a decade of experience to do the same?

Some back story:

During the interview, for the position I now have, my now boss asked “where do you see yourself in 5 years” I answered honestly. I would like to have my own practice (either from scratch or purchase an existing one). However, if once I received my license, my base compensation would increase and I would be allowed to have my own PT gig on the side then I wouldn’t mind staying at my current position. I am not in the position to up and leave a steady W-2 job for the prospect of making it alone (Sch C/1099), I am currently the sole provider for my family, etc.

He politely responded “not everyone would give such an answer, but we understand.”

During my previous two annual reviews, my performance has met and/or exceed expectations and they (boss and manager) are pleased with my work. On both occasions my boss mentioned that he remembers that I want my own place, etc. and that we’d cross that bridge when we got there (when I receive my license)

Now 2 years later I finally received my CPA license and I want to start getting my own practice up and running for the beginning of the 2017 filing season. I just don’t know how or if I should approach my boss.

We are not required to do weekends here and I can work pretty much whatever hours I want to during the week, as long as I do OT during busy season. Therefore, I would like to use the existing infrastructure (tax software, office space, etc.) to start my own firm. I want to retain my current position while being able to make money working weekends/late nights. I have a PTIN, I have a company with an EIN, website (work in progress), FB page (work in progress).

Overall I would like to have a place to potentially meet clients in, have an address to use (don’t want to use my home address on business cards, etc.), utilize existing infrastructure, etc.

How do I approach this? Do I offer a percentage of what I make for use of the infrastructure? Do I not bring it up at all? Thank you in advance for your input.

I like where I am at. I have the potential of going back to a previous employer and being able to do everything I want to do here, but that employer really doesn’t know how to run a business (high turnover rate, is NOT a good thing).

[Birdman]

I would be extremely surprised if your employer allows you to use their tax software, among other things, to directly compete with the firm.

FAR- 74, 78 (10/15)
BEC- 73
REG- 65, 88 (05/16)
AUD- 7/16

[Anonymous]

I'm in agreement with the previous comment regarding use of current employer's facilities or other assets to form a direct competitor. Also may want to see if you have a do not compete clause. My advice: keep it separate, build our own practice and when you're making the determination of leaving or not you know exactly what your firm will be capable of providing. I'd be leery of using the company's facilities as that may be a bit confusing for clients. If you're not sold on the idea of opening your own shop, is a partnership possible?

[NYSCPA]

Please see my edited post. Sorry I did not address this initially. Note: Even my previous employer deals with only High Net work Individuals as well, even though they are a CPA firm I would not be looking to take any of their clients. My targeted clients are very different from both businesses current clients.

[ruggercpa2b]

I think the issue is using their software and their address for your personal business. That would definitely be frowned upon. If you have the intention of starting your own firm then you will probably need to pay for your own software and use a PO Box as the address for your business. Some places that have PO Boxes will have a business address option that you can use if you don't want the PO Box on your business cards.

I have seen a few people on the forum posts about starting their own tax business ask about inexpensive software that they can use for their side business. I just think it would be bad business practice to use your employer's software. I know when I was at Deloitte, you had to ask permission and submit paperwork for any part time side hustle you wanted to do. If it was in the same line of business then it would create a conflict of interest and they would not approve it. Most people just taught. If you did tax on the side no one spoke about it.

But then again your employer could be all for it.

AUD - 73, 72 retake 7/2/2016
BEC - 8/20/2016
REG - TBD
FAR - TBD

I am so ready for this nightmare to be over. Been at this way too long.

[Author]

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