The JofA talked to 10 sole proprietors, most of whom are also sole practitioners. Some have been on their own for years; others got started just before the pandemic hit. One has retired after 30 years as a solo, while another is working on earning her CPA.

A sole practitioner can hire employees; however, the sole practitioner maintains full responsibility for the debts and losses of the business. They must then determine the appropriate legal structure, often opting for a sole proprietorship due 2019 volunteer mileage rates and irs reimbursement guidelines to its simplicity. The individual can choose to operate under their name or register a business name, adhering to local regulations. To become a solo practitioner, an individual should first select the type of business or professional service they wish to offer.

Examples of professions in which sole practitioners are common are architecture, auditing, law, and medicine. Given the specialized nature of many of these jobs, state governments frequently require that sole practitioners obtain a certification and insurance before going into business. She and her husband, Jon, became partners in her father’s small-town accounting firm in 2005, which her father retired from a few years later. Her husband passed away in 2013, and Chapman rebranded and transformed the firm a year later into Shaynaco LLC. She now employs three people and is focused on serving businesses with fewer than 50 employees in her rural farming community. Shayna Chapman, CPA/CITP, CGMA, never thought she’d be a sole proprietor after seeing her father working hard as he ran a small accounting firm in Gallipolis, Ohio.

Kirkland relishes the chance to do work he enjoys without spending time on the business management chores he had to deal with in previous firms. “There is still some administrative work to be done, even for a sole practitioner, but it does not have to become distracting,” he said. During his first tax season, he benefited from a local regional firm’s decision to focus on bigger businesses. Holtsman also received referrals from several investment advisers who had clients in need of a CPA.

What Tax Form Does an S Corp Fill Out?

Clients provide informed consent to share their data with Chambers Ltd for administrative purposes. A, B and C set up a joint website, but the website makes it clear that the services are provided by each of them as individual solicitors. Over time, she has incorporated technology into Shaynaco, from going paperless in 2007 to being fully on the cloud today, and brought her small business clients along with her to incorporate technology into their accounting operations. She learned how to network by joining groups such as Business Network International (BNI) and her local chamber of commerce. She used the networking skills to connect with other CPAs, bankers, and attorneys. “The training and referrals from that program have been key to my success over the last 30 years,” Brann said.

1. Fulfillment also comes from partnering with others in her rural community to help their local economy thrive.
2. Due to their simplicity, solo practitioners are popular among sole owners of businesses, freelancers, and consultants.
3. Whenever one person engages in business for profit, he operates as a sole proprietor unless he takes steps to create a formal business entity.
4. Four years after launching her practice, Nguyen has built a team of five at her Orange County, Calif.-based firm and serves a wide range of clients, including many who focus on mindfulness and financial freedom.
5. “I realized the CPA designation would give me an advantage in competing for clients,” she said.
6. (not the big city she had envisioned) when her husband became ill, and they realized they needed to be closer to family in Ohio.

Becoming an entrepreneur meant a lot of work and sacrifice in the early years, but it has provided Whittley the opportunity to earn more money while also being present for his wife, Melissa, and their young daughters, Harley, 3, and Rio, 1. Four years later, after plenty of pivots and lessons learned, Healthy Coin focuses on serving therapists, psychologists, and counselors in the mental health space.

Further guidance

A business entity does not offer protection against malpractice claims, though the owner can take out a malpractice insurance policy. As the business grows, it may be beneficial to change the business structure, especially if the solo practitioner wants to take on a partner. Choosing a business entity requires a careful analysis of the relevant facts and circumstances. A Sole Practitioner, or solo practitioner in business or professional contexts, is an individual who independently operates and manages a business or professional practice without partners. The purpose of being a solo practitioner is to have complete autonomy and control over the operations, decision-making, profits, and overall direction of the venture. A sole practitioner conducts his business as a solo practice rather than a group practice.

Changing from being a sole practitioner to an SRA regulated freelance solicitor

In addition to tax preparation, he offers business advisory and accounting services. After working for larger regional firms, Renee Prince, CPA, CGMA, wanted to try running her own accounting practice. After moving back to the United States, he initially worked as an auditor and consultant for a regional firm. Following a few relocations, he took a job as international tax manager with the mining company that had employed his father and grandfather, and the company assigned him to Peru. In the early 1990s, accounts receivable definition Peru experienced a period of unrest and Hurley decided it was time to go out on his own.

Another pivot is in the works for Yogi CPA to add more financial advising work to its traditional CPA tax offerings. Nguyen is particularly interested in capitalizing on what is being called the Great Wealth Transfer, where wealth will flow from Baby Boomers to Gen Z and Millennials over the next 20 years. “We feel like we’re partnering with the right people and indirectly having a positive impact on the hearts and minds of the world,” Whittley said.

When she launched her firm after eight years in public practice, Kathryn Horton, CPA, quickly learned the perils and potential of flying solo. If you need or want to get your business authorised, please see our ‘Can my business be authorised’ checklist for all the requirements. Deciding to run your own business is a serious commitment in any profession or trade, but it is especially so in the legal arena, where your clients may be dependent on you for some of the most significant events in their lives. D has been contacted by a former client company and decides to get back into work by carrying out ad hoc work for them. They arrange professional indemnity insurance that covers them each individually. If you are unsure if you are subject to the MLR 2017, or what additional requirements apply to your practice under the regulations, please read our guidance.

If you are eligible to operate as an freelance solicitor, and intend to do so, you must notify us and specify whether you intend to deliver reserved legal services. You must get your practice authorised if you provide immigration, claims management (including employment claims) or regulated financial services and are not regulated by another suitable regulator. Hurley, CPA/PFS (retired), a former member of the AICPA PFP Executive Committee and chair of its PFP Champions subcommittee, says that financial planning is his passion. However, because he didn’t want to sell products or manage money, he worked with clients’ overall financial ecosystem, including taxes, retirement, and other planning, as well as accounting and management consulting for their businesses. Clients working with a solo practitioner often experience more personalized attention and direct communication. They may benefit from a closer client-lawyer relationship, quicker decision-making, and lower costs due to reduced overhead.

That can often mean letting some of those early clients go, a process that can be difficult but one that frees up space to bring on higher-paying clients. “This is a lifestyle firm where you can support the lifestyle that you want to have, and you can grow to whatever type of firm you want to be,” she said. When Hurley retired in 2021, some of his clients had been with him for 30 years. He grew up in Mexico City, where his father and grandfather, both metallurgists, worked for a mining company. Playing Little League baseball with the children of other American expats, he met the people who would become his two best clients. Their stories showcase the diversity of purpose, services, and experiences of those who have dared to go it on their own.

When Zunie Nguyen, CPA/PFS, founded her firm, Yogi CPA, she did it to honor the yoga practice she depended on to give her perspective during a stressful period of life as a young professional. D has more than three-years practice experience and decides to operate under the conditions of regulation 10.2(b) of the Authorisation of Individuals Regulations. Next year’s dates are set for the biggest event in the accounting profession, AICPA & CIMA ENGAGE 25, to be held at the ARIA in Las Vegas. Anita Dennis and Sarah Ovaska are freelance writers based in New Jersey and North Carolina, respectively.

Chapman envisioned living in a big city, working in a corner office doing exciting things in a corporate environment. At the start of her accounting career, she was working at a regional firm in Charleston, W.Va. (not the big city she had envisioned) when her husband became ill, and they realized they needed to be closer to family in Ohio.

With her educational background from the University of Texas at Austin and technical training as a former auditor at a Big Four firm, she got herself up to speed on the program and soon found herself busy with more than a few grateful clients. Letters (including client care and engagement letters) go out in the individual name of A, B or C as appropriate and not in the name of Chambers Ltd. Bills are also sent out in their individual names, and costs are payable into accounts held in their individual names. They do not hold client money, except payment on account of costs and disbursements for which they are liable.