Being honest with myself, deep down I always knew I would end up here. Predictably, fear of the unknown, imposter syndrome, and financial considerations held me back for many years.

Then, this past July, I lost my corporate job.

Was I surprised? Not exactly. A perfect match we were not. Was I upset? Yes, but a lot less than I thought I would be.

At 45, I was no longer jiving with my career path. I was burned out, feeling invisible, and stressed. The good thing is that for almost two years at that corporate role, I was both learning and earning. For the first time in 21 years of professional life, when my role ended, I was financially poised to venture out on my own.

So I did.

What was burning me out was not the work. Rather, it was the fact that the career opportunities that I had pursued in the past no longer served my values and needs. With that realization, the only way forward was to create a path of my own.

That is how on July 30, 2024, Capitalized Consulting, LLC, was born.

Here’s how I did it.

First Things First: Reach Out to Your Network

I knew absolutely nothing about starting my own firm, so reaching out to people who have been doing it successfully for years was the obvious first step. My “old” partner coach at Plante Moran made two important recommendations:

• Seek the advice of her friend who owns an accounting practice and her own networking group for independent accountants. This friend was quick to welcome me into her group and give me all the tips and tricks of the trade that I needed to get started.
• Join the COCPA Independent Accountants Alliance (IAA) for support and community.

Next: Get Registered!

Getting my firm registered was easy and inexpensive. I could’ve done it on my own, but I opted for hiring a registered agent. Here’s why. Your company’s address and phone number become public information once your business is registered. It’s all there for everyone to see on the Department of State’s website.

Being a solopreneur means that I run my practice from the comfort of my home. For security reasons that we can all guess, I don’t want my personal address and phone number to be out there. Having a registered agent allows me to have a business address without actually having an office lease, while also meeting the IRS’s NO PO BOX rule.

Here’s a list of the initial filing requirements that my registered agent handled for me:

• Business registration
• EIN application
• Initial BOI filing

There’s a fourth filing requirement for those CPAs engaging in tax and attestation services: You must apply for a license to practice as a CPA firm in Colorado. Someone like me, who only offers outsourced accounting/bookkeeping and controller services, probably doesn’t  need to register his or her firm, but I applied anyway. The application-to-approval process takes a while, so it’s best to submit the application right away.

Third: Get Your Financial House in Order

I shouldn’t have to say this, but it’s best to keep your personal and business finances completely separate. To do this, I leverage three important tools:

• A business bank account – There are lots of free options out there. Credit unions, for example, have free checking accounts that don’t require a minimum monthly balance or transaction volume and don’t charge monthly fees.
• A business credit card – The right business credit card will charge 0% interest for the first 12 months and zero annual fee.
• Accounting software – There are popular software options that are free to practitioners. Even if you don’t offer accounting or bookkeeping services as part of your practice, you can still create an accountant profile and reconcile your books on it for free.

Fourth: Manage Your Risk

As a solo practitioner working from home, I’m mainly exposed to two risks: being sued by a client and being the victim of a cyberattack. Managing these risks doesn’t have to be complicated or overly expensive. Simply make sure you have the right tools in place:

• Purchase errors and omissions (E&O) insurance – The COCPA partners with vetted insurance providers, as does the AICPA. Their products are tailored specifically for the accounting profession and often extend special rates to members.
• Sign engagement letters with all your clients – Being designed specifically for accountants, the E&O policies mentioned offer applicable engagement letter templates free of charge. These templates are updated annually and may include provisions that you haven’t seen or thought of before.
• Hire a consultant to manage your IT and cybersecurity – This is a lot less expensive than you’d expect. An expert can guide you through everything from purchasing the right computer equipment to keeping your system secure and updated.

Last But Not Least: Create Your Digital Executive Presence

Our digital world requires that we cultivate our executive presence online. The must haves are:

• Professional headshots
• Domain name
• Branded email address

This is just the beginning of my journey. Stay tuned for more insights on marketing, networking, and building a thriving solo practice.

Melissa Armstrong is a certified public accountant and founder of Capitalized Consulting, LLC. Email her at melissa@capitalizedconsulting.org.

Click here to learn more about the COCPA Independent Accountants Alliance (IAA), which supports the accounting journey of those professionals who choose an entrepreneurial accounting path.