You place great people. Nobody is watching what the placements do to your taxes.

Placement fees are ordinary business income. A sole proprietor or single-member LLC reports them on Schedule C, and an S-corp reports them on its own return. Timing depends on your accounting method: on a cash basis the fee counts when it is received, so a fee that clears in January belongs to next year. We confirm your method before the first fee lands.

Most startup costs, such as job-board and software subscriptions, website, legal and formation fees, and licensing research, can be deducted up to $5,000 in the first year, with the rest amortized over 15 years. Expenses you paid personally before the business bank account existed count too, as long as they are documented, so we ask for those statements at the start.

It depends on how much control you have over their hours, methods and tools. If the relationship looks like employment, the IRS and Maryland can treat it that way. We model the real cost difference, including payroll tax and benefits, against what your cash forecast can support, and we flag misclassification risk before you commit.

Placing candidates or working with clients across state lines can create filing obligations in those states. We review where your clients and candidates are located, which states may require registration or returns, and how that affects your estimated payments.

Usually once net profit is steady enough that the self-employment tax savings outweigh the added cost of payroll and a separate business return. For a first-year firm with low profit it is often too early, so we revisit it each quarter as placements come in.

Licensing rules vary by state and by whether you only place candidates or also employ them. We are not a law firm, so we point you to the right agency for the license itself. What changes on our side is the accounting: if you start employing temporary staff, you take on payroll, payroll tax deposits, workers' compensation and much larger working-capital needs, and we plan for that before you sign the first contract.

Yes. Our clients include HR consulting firms that serve nonprofits and larger organizations, and a staffing business that places licensed professionals with home health agencies. You work directly with Doyin Ogunbajo, CPA, on every engagement.