Starting an Accounting Firm in 2026
Starting a Firm in 2026?
If taking the first step to starting your own accounting / tax / CAS / fractional CFO firm is on your 2026 resolution list, and you don’t know where to start, here are the 5 simple foundational steps to building the foundation of your firm:
In this order (I know this because I did it in the wrong order when I started my firm and had to redo stuff years later):
Register your LLC / PLLC / PC with your Secretary of State
How you need to register your firm, specifically as an accountant or CPA, will be up to the regulations in your state. So do your research! For example, in Idaho, I have to be a PLLC as a licensed professional. In California, I think you need to be a PC. In Texas, I don’t think you can even call yourself an accountant if you’re not a CPA (so if you live there, maybe come up with something clever, like “Master of Money” or “Duchess of Dollars”)
To get started: Google “Secretary of State register a business in [your state]”.
Time commitment: 30 min - 2hrs + research (depending on how complicated your state government makes it)
Get an EIN from the IRS
Once your LLC / PLLC / PC has been approved (it usually takes a few weeks), and not a moment sooner, register for an EIN number. Why not a moment sooner? Because you need to register your EIN under your legal business name. If the state comes back and denies your business name for whatever reason, you now have an EIN for a business name you don’t own.
And no, you don’t technically need an EIN right now if you don’t have employees, but you will if / when you convert to an S-corp or hire employees. If you wait until then, you’ll then have to open up a new bank account under the new EIN, which is a bigger hassle (ask me how I know 🙄). This also keeps your SSN off your firm’s 1099s, which I like.
To get started: https://www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number > scroll halfway down > click the blue “Apply for an EIN” button
Time commitment: 15 min
Get a business checking account
Pick your favorite bank and make an appointment. Credit unions are notoriously bad at syncing with QBO, so I would go with a regional to large bank. Bring your driver’s license, Articles of Organization (from #1) and SS-4 / EIN letter (from #2).
Get business insurance
You’ll want general liability, E&O (errors & omissions), and probably some cyber protection. Check out your current personal insurance provider to see if they have a business arm, AICPA (if you’re member), Hiscox, etc. CAMICO tends to be a favorite among CPAs in this community. If you’re not taking on new clients yet, you can hold on this until you’re ready to onboard.
Pay for the policy premium out of your new business bank account so you can be the poster child of keeping your business and personal expenses separate.
Pick a bookkeeping software for your firm
If it were me, I would pick the software with my future clients in mind. I like living in one software and one software only with my clients (but that’s me and my hyper-efficiency mind).
Or, if you’ve never even seen the inside of QBO / Xero / Freshbooks / Digits, this could be a great time to explore and experiment to see what platform you like. Make sure you sign up as an accountant through their partner program. I think the 4 platforms I’ve mentioned will give you a free subscription (and training) for your own firm.
Is there more to do after that? Totally.
But this is your starting foundation.
Just take it one step at a time and you’ll get there. (Or tuck this email away for when you’re ready later in the year.)
For what it’s worth, I started my 2nd business at the beginning of last year, using these steps in this order, and it worked like a charm. Far smoother than the first time I did it (in the wrong order) for my accounting firm.
That said, the freak-out feeling of registering for an LLC is real, and I know it well. Is this dumb? Will this work? What if it doesn’t? I get it. If you’re planning to start a firm this year, please hit reply to this email and let me know. I’d love to be a cheerleader for you.
Rooting for you,
Erica
Additional Reading (from the Archive):
What’s Happening in Aligned
TaxDome: Demo & Discussion
Google Ads: Roundtable Discussion
**This session was extremely informative**
Ramp: Demo & Discussion
Tue, Jan 13th - 1pm MST > RSVP Here
MeetUp: Offering Advisory & CFO Packages
Wed, Jan 28th - 11am MST > RSVP Here
Question of the Week > What’s one thing you’d like to achieve in Q1 2026? (Firm-wise, personal, or anything in between. Big or small - no rules.)
Current Discussions On > Best practices for writing off invoices in QBO, questions on starting your firm, accounting conferences in 2026, referrals needed for CA and Singapore taxes, someone’s husband just left his job to work at her firm 🥂, and more!
Join the discussion with 170+ like-minded, non-scaling accountants / really cool humans in the link below. $75/mo, no commitment - come and go as you please :o)
Money back guarantee, if you get in there and don’t see the value. No questions asked.
More details in the link above.