"new office"

[MAMalody]

I have come to the point that I have too many clients and therefore am putting on another preparer that will be located a couple of hundred miles from me. Remember my business is all internet based with no face-to-face meetings. I will provide the ATX program, feed her new people, preform QR function and ERO functions. She will use my price list. All monies will come to me. I will keep a percent and she will get the remainder. She will get a larger percent of any clients she secures than those I send her. Ideas on what I should watch out for? Do not assume I have thought it all the way through, because I have not and please do not overlook what is obvious to you because it may not be to me. Thanks.

[jasdlm]

Have her sign a confidentiality agreement. What happens if it doesn't work out? Who takes the clients? Does she have her own liability insurance? How does it dovetail with yours? Are you going to do any review or spot-checking of her work?

(Just throwing things off the top of my head, here.)

[Jack from Ohio]

She will need an EFIN number that is address specific to her work location. We tried this, and ATX would not allow the creation of E-files on the remote office machine without the second EFIN. Plenty of time to get it before season.

[jainen]

>>putting on another preparer<<

Have a good heart-to-heart talk with your E&O insurance agent. Now.

[MAMalody]

On the ATX 1040 EF Info form, do I need to put anything in the box labeled "if non-paid preparer." ATX only gives IRS options.

I understand that the paid preparer information, if not me, would be entered in the paid preparer portion of the form. I assume that both paid preparer and ERO infor can be entered via the preparer manager. I can't quite see how to have them both automatically entered. I have never done this so thought I would ask.

[Jack from Ohio]

On the ATX 1040 EF Info form, do I need to put anything in the box labeled "if non-paid preparer." ATX only gives IRS options.

I understand that the paid preparer information, if not me, would be entered in the paid preparer portion of the form. I assume that both paid preparer and ERO infor can be entered via the preparer manager. I can't quite see how to have them both automatically entered. I have never done this so thought I would ask.

In the return manager, under preferences. You can have both installed as default.

[zeke]

>> I will keep a percent and she will get the remainder. She will get a larger percent of any clients she secures than those I send her. Ideas on what I should watch out for?<<

So, everything is cool and 2009 filing goes perfectly and you are both happy in June, 2010. She now has names & addresses & fees from your database & she can undercut in 2010 and leave you in the cold??

Z

[kcjenkins]

Mike, we all hope this arrangement works well for you. But be sure that you have your agreement IN WRITING, and that it spells out in detail what happens if either of you decide, after however long, that you are going to split up and go separate ways. This is often omitted at the start as "being too negative", but right now is the right time to discuss this. Because you are both in harmony now, you think, but maybe your 'assumed' assumptions are different than the other person's. For example, what happens to 'new clients' taken on during the partnership? If you split, does she keep hers and you keep yours? If so, SPELL THAT OUT IN WRITING IN THE AGREEMENT.

[MAMalody]

I am in the process of codifying the agreement. I appreciate all the input that has been made. Keep it coming and thank you.