Can a CPA Start an LLC for a Client?
Can a CPA set up an LLC for a client? Learn what accountants can and can't do in LLC formation — from filing paperwork to applying for an EIN — and where their role ends.
Bizee Editorial Staff
Editorial Team
Introduction
A CPA can help with many parts of forming an LLC — things like applying for an Employer Identification Number (EIN), advising on tax structure, and handling accounting setup. But CPAs can't provide legal advice or draft legal documents like an operating agreement unless they're also a licensed attorney. Most states don't require an attorney for LLC formation, so a CPA's role depends on what you actually need.
What a CPA can do when forming an LLC
Yes, a CPA can help a client form an LLC — within limits. Most states don't require an attorney for LLC formation, so a CPA can assist with the administrative and financial side of the process. What they can't do is provide legal advice or draft legal documents, which is a meaningful distinction once you get into the details.
The areas where a CPA adds real value during LLC formation include tax planning, EIN applications, and accounting setup. A CPA can apply for an EIN on your behalf using IRS Form SS-4 — they're recognized by the IRS as authorized representatives who can act for clients in tax matters. There's no fee to get an EIN from the IRS, and a CPA can handle the application online, by mail, or by fax.
- Apply for an EIN using IRS Form SS-4 on your behalf
- Advise on tax classification — sole proprietorship, partnership, or S Corporation election
- Help you understand the tax implications of your ownership structure before you file
- Set up your chart of accounts and bookkeeping system after formation
- Assist with DBA (doing business as) registration in states that allow it
- Prepare and file business tax returns once your LLC is up and running
What a CPA can't do in LLC formation
A CPA can't provide legal advice or draft legal documents as part of LLC formation — doing so crosses into the unauthorized practice of law, which carries real professional and legal consequences for the CPA. This matters most when it comes to 2 specific documents: the Articles of Organization and the operating agreement.
The Articles of Organization is the document you file with the state to officially form your LLC. While the form itself is straightforward in most states, a CPA advising on its legal implications — things like liability protection, member rights, or how the structure affects future ownership changes — is providing legal counsel, not accounting services. The operating agreement is even more clearly a legal document: it governs how your LLC runs, how profits are split, and what happens if a member leaves. A CPA can explain the tax consequences of different structures, but drafting the agreement itself is attorney territory.
The practical takeaway: if your LLC formation is straightforward — single member, no complex ownership arrangements, no outside investors — a CPA's help may be enough for the financial and tax side. If your situation is more complex, you'll want an attorney involved for the legal documents.
How a CPA and attorney work together
For most LLC formations, a CPA and an attorney cover different ground — and the two roles complement each other rather than overlap. Understanding which professional handles what helps you avoid paying for services you don't need and gaps you didn't expect.
What the CPA handles
A CPA's focus is the financial and tax side of your LLC. They'll help you choose the right tax classification, apply for your EIN, set up your accounting system, and make sure your business is structured in a way that minimizes your tax burden from day one. Many CPAs who work with small businesses have seen enough formations to flag common mistakes before they happen — that experience is worth paying for.
What the attorney handles
An attorney handles the legal documents: the Articles of Organization, the operating agreement, and any contracts your LLC needs. If your LLC has multiple members, outside investors, or a complex ownership structure, an attorney's involvement in drafting those documents protects everyone involved. For a single-member LLC with no unusual arrangements, many business owners skip the attorney and use a formation platform to file the paperwork — then bring in a CPA for the tax setup.
What a CPA charges to help form an LLC
CPA fees for LLC formation assistance typically run $500 to $1,500, depending on the complexity of your situation and what services are included. That range usually covers tax planning advice, EIN application, and initial accounting setup — not the state filing fee, which you pay directly to the state regardless of who helps you file. If your CPA is also handling your operating agreement or other legal documents, that's a red flag: those services belong to an attorney.
FAQ
Yes, with limits. An accountant can help with the financial and tax side of forming an LLC — things like applying for an EIN, advising on tax classification, and setting up your books. What an accountant can't do is provide legal advice or draft legal documents like an operating agreement. Those tasks require a licensed attorney.
Yes, but only for the non-legal parts. A CPA can apply for an EIN on a client's behalf using IRS Form SS-4, advise on tax structure, and handle accounting setup after formation. They can't draft the Articles of Organization with legal guidance or prepare an operating agreement — those cross into legal services, which require an attorney's license.
Yes. A CPA can help with the tax and financial setup that goes alongside LLC formation — choosing a tax classification, applying for an EIN, and building out your accounting system. For straightforward single-member LLCs, many business owners handle the state filing themselves or through a formation platform, then bring in a CPA for the tax side.
It depends on the state. Many states allow CPA firms to operate as LLCs or professional LLCs (PLLCs), but some states require CPA practices to be structured as professional corporations or partnerships. State licensing boards set the rules for how CPA firms can be organized, so check your state's requirements before choosing an entity type for an accounting practice.
A CPA who specializes in small business or tax planning is the right fit for coordinating the tax side of entity formation. They'll advise on whether to elect S Corporation status, apply for your EIN, and set up your accounting structure. For the legal formation documents, you'll still need an attorney or a formation platform to handle the state filing.
Generally, no. Most states don't require an attorney to form an LLC. Business owners can file the Articles of Organization directly with the state or use a formation platform to handle the paperwork. An attorney becomes more important when your LLC has multiple members, outside investors, or a complex ownership structure that needs a carefully drafted operating agreement.
