What CPAs Typically Handle - And What They Don’t
FACT: CPAs are Not automatically responsible for state compliance filings.
CPAs are licensed to prepare and advise on TAX matters. They are not automatically engaged to handle:
Secretary of State filings
Entity status monitoring
Annual/Biennial Statements of Information
Business license renewals
Registered Agent changes
Unless explicitly stated in an engagement letter, those filings remain the business owner’s responsibility.
2. FACT: What CPAs typically Do file.
Most CPAs handle:
Federal tax returns (1040, 1065, 1120, 1120-S)
State tax returns
Payroll tax filings (if engaged)
Sales/use tax filings (if engaged)
Tax elections (S-corp election via Form 2553, if requested)
These are tax authority filings (IRS?FTB), not Secretary of State filings.
3. FACT: What CPAs typically Do NOT files (unless seperately contracted).
These are non-tax, administrative compliance flings:
Statement of Information (CA SoS)
Annual/Biennial Reports (other states)
Entity amendments (address, management, ownership)
DBA filings (county-level)
Buiness license renewals
BOI/FinCen filings (many CPAs are explicitly declining this)
Many CPA firms intentionally exclude these to avoid:
Liability
Administrative workload
Monitoring obligations
This is not negligence - it’s scope control
4. FACT: Why business owners Think CPAs do everything
Because
No one explains the difference between tax compliance and entity compliance
Platforms blur the lines
Business owners assume “CPA = business handled”
But legally and preactically:
Taxes is not equal to entity compliance
Two different systems: Two different authorities.
5. FACT: Who is ultimately responsible?
The business owner. Always!
Even if:
You hired a CPA
You used other automated platforms
You paid a formation service
The state holds the entity, not the advisor, responsible.
That straight reality!
Does My CPA Handle My Business Filings? Here’s the Actual Answer
Many small business owners believe their CPA is handling all of their business filings.
In reality, CPAs are priimarily engaged to handle tax compliance, not state entity compliance, unless their engagement agreement specifially includes it.
Tax filings are sumbitted to the IRS and state tax agencies. Entity compliance filings - such as Statement of Information, annual reports, and ammendments - are submitted to the Secretary of State or local agencies.
These are two separate systems: Most CPA engagement letters limit their scope to tax preparation and tax advisory services. Administrative filings ar often excluded unless the client erquests them and agrees to additional fees. This is why many business owners are surprosed to learn their entity is not in good standing - even though their raes were filed on time.
The responsibility ultimately rests with the business owner to:
understand what filings apply
confirm who is handling them
Monitor entity status regularly
Clarity doesn’t come from assuming. It comes from separating taxes from compliance.
