Tax · 6 min read
When Should a Freelancer Hire a CPA?
Most freelancers can self-file early on. There's a clear set of trigger events where a CPA pays for themselves many times over — here's the list.
Income and entity triggers
- Net profit consistently above ~$50K (S-Corp election conversation)
- Already an S-Corp — payroll, reasonable comp, and an 1120-S are involved
- Multi-member LLC or partnership (Form 1065)
- Multiple income streams across W-2 and 1099
Situational triggers
- Multi-state work — clients or contractors in states with nexus rules
- International clients, foreign income, or foreign accounts
- Equity comp, RSUs, ISOs, or significant investment activity
- Buying or selling a business, or merging practices
- First audit notice or IRS correspondence
