Legal
Books and taxes for business formation attorneys.
Flat fees for simple formations, hourly work for multi-founder deals, state filing fees passed through, and annual maintenance work that comes back every year. Gus sorts it, an accountant checks every transaction, and you get one number a month.
- From $197 a month
- An accountant on every transaction
- Cancel whenever
October came in at $8,500. Three clients renewed their annual maintenance retainer, so I kept that steady income apart from the new formation fees this month.
- Single-member LLC formationFlat fee formations
- Founders agreement negotiationHourly billing
- Annual maintenance retainerMaintenance retainers
- State filing fee, DelawareState filing pass-through
- Registered agent renewalRegistered agent pass-through
Why your books are different
Business formation books go wrong in the same few places.
A generalist sees a filing fee and calls it done. Your business is a flat fee for a simple entity, real hourly work when founders start negotiating equity splits, and a maintenance relationship that quietly renews every single year.
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1
State filing and registered agent fees look like the firm's fee
A client often pays the state's filing fee and a registered agent's annual fee alongside the firm's own flat fee in one payment, and if those government and vendor costs are not split out, the firm's income looks bigger than what it actually earned.
What we doBooks state filing and registered agent costs as pass-throughs, separate from the firm's own fee, so income reflects only what the practice actually kept. -
2
A multi-founder deal takes hourly work a flat fee never covers
A single-owner LLC formation is a quick flat fee job, but a multi-founder startup negotiating equity splits, vesting, and an operating agreement can take real hourly time that a standard formation fee was never priced to cover.
What we doKeeps negotiated hourly work in its own line, separate from flat fee formations, so complex deals are never hiding inside a simple-formation price. -
3
Annual maintenance work gets lost after the formation closes
Many clients come back every year for annual meeting minutes, registered agent renewals, or amendment filings, and if that recurring work is not tracked as its own category, it is easy to undercharge for it or lose track of who is actually due for it.
What we doKeeps maintenance retainer income in its own line, separate from new formation fees, so recurring revenue stays visible and easy to track year to year. -
4
S corp election paperwork gets bundled into the formation fee
A client electing S corp status needs separate paperwork and a deadline the entity formation itself does not carry, and if that work is priced into a flat formation fee without being tracked, it is easy to lose sight of whether it is actually worth offering at that price.
What we doFlags election-related work as its own line so the firm can see what that extra step actually costs to deliver. -
5
Referral sources blend into one client list
Clients sent by accountants, business brokers, or other attorneys often get treated the same as walk-in clients, which makes it hard to see which relationships are actually bringing in new formation work.
What we doKeeps new client income visible month to month so the firm can see whether formation volume is growing, without ever handling referral payments to non-attorneys.
Your categories
The categories Gus keeps for a business formation practice.
Set up once for how formations get paid and what recurs every year. You never pick a category. He does, and an accountant checks it.
Money in
- Flat fee formationsLLC, corporation, and partnership formation packages billed at a set price.
- Hourly billingFounder negotiations, cap table work, and other complex formation matters.
- Maintenance retainersRecurring annual work such as meeting minutes and registered agent renewals.
- Consultation feesPaid initial meetings, when charged separately from the formation fee.
Money out
- State filing pass-throughSecretary of state filing fees paid on a client's behalf.
- Registered agent pass-throughAnnual registered agent service fees passed through to the client.
- Document drafting softwareEntity formation and operating agreement drafting tools.
- Staff and paralegal wagesThe people who prepare filings and track renewal deadlines.
- Legal research subscriptionsBusiness law research services and general legal databases.
- Malpractice insuranceAnnual or quarterly professional liability premiums.
What we watch for you
- Pass-through share
How much of each deposit is state and registered agent fees versus the firm's own earnings.
- Formation to negotiation mix
How often a formation turns into real hourly negotiation work, worth knowing when quoting the next flat fee.
- Maintenance renewal rate
How many past clients are actually renewing annual maintenance work each year.
- The set-aside
What the firm will owe, tracked every month, so tax season is a number you already know.
Ask Gus
Things business formation attorneys ask Gus.
Text him like you would text anybody. He answers in plain English, and when a question is above his pay grade, an accountant looks and gets back to you.
I book the state fee and the registered agent fee as pass-throughs, and only the rest counts as the firm's own income. That way the numbers show what the practice actually earned.
Yes, I keep that hourly negotiation work in its own line, apart from flat fee formations, so you can see it is a different kind of job with a different cost to deliver.
If you paid them $2,000 or more this year and they are not on your payroll, that is a 1099-NEC due January 31, and I have had them on the list since the first filing they helped with.
The tax side
The tax side of a business formation practice.
Most of what goes wrong here is treating a state fee like it is the firm's income, or losing track of which clients actually come back for maintenance work each year.
What your return has to get right
Your accountant signs it, so it gets done right the first time.
- State and registered agent fees are never the firm's incomeA state filing fee or a registered agent's annual charge collected from a client and passed along is not revenue, and should never be counted as something the firm earned or owes tax on.
- A strong formation year can hit the deduction ceilingMost owners can deduct up to 20 percent of business profit, but law counts as a specified service trade, so a busy year of formations and negotiated deals can push taxable income above $201,750 single or $403,500 joint, where the deduction begins to shrink.
- 1099s for filing helpA contract paralegal who preps formation paperwork, paid $2,000 or more in 2026 and not on payroll, gets a 1099-NEC by January 31.
- S corp election deadline for your own firmIf the firm itself is organized as an S corporation for the current calendar year, the election needs to be filed by March 15, though late relief exists in some cases.
Deductions business formation attorneys miss
Your bookkeeper knows what to look for in your statements. You never have to.
- Bar dues and CLE
- Malpractice insurance
- Document drafting software
- Legal research subscriptions
- State filing fees on the firm's own matters
- Mileage to client meetings
- Payment processing fees
- Office rent and utilities
- Case management software
- Networking and referral event costs
- Answering or intake service fees
- Printing and binding for signed documents
General information about 2026 federal rules, not advice for your business. Your accountant looks at your actual numbers before anything gets filed.
All year, not just April
A business formation year, kept every month.
New entities form all year, and maintenance work renews on its own clock. Gus keeps the set-aside steady through both. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.
- January
Plan the year
Last year's return gets started, the 1099 list for contract help is ready, and a monthly set-aside is planned around new formations and maintenance renewals.
- April
Filed, formations and renewals both
Your return is filed and signed, whatever mix of new formations and maintenance renewals the year brought. No surprise bill, because the set-aside has been running since January.
- July
Halfway check
Where the firm stands, how maintenance renewals are trending, and whether the set-aside still fits.
- October
Before year end
A look at any software worth buying before December, and a check on which clients are due for annual maintenance work.
What you get
What you pay depends on what your business needs, and it does not move after that, busy season or slow. No hourly bills, no surprise invoices, no setup fee.
Book a call- Monthly bookkeeping
Every transaction sorted into categories set up for business formation attorneys. You never categorize a thing.
- An accountant checks every transaction
Real review, every month, before your books close. Not a spot check.
- Your business tax return, filed
Prepared, reviewed, and signed by that same accountant every year.
- The monthly number
What you made, what you spent, what to set aside for taxes.
- Your own bookkeeper
A real person assigned to your business, in the app whenever you need them. No hold music.
- On your books all year
Every month, not just in April. Your team speaks up whenever something is worth your attention.
- Cancel any time
No contract. No cancellation call. Your books are yours.
Straight answers
Questions business formation attorneys ask first.
How does Gus separate our fee from the state filing fee in the same payment?
He books the state's portion as a pass-through and only the rest as the firm's own earned fee, so the return reflects what the practice actually kept, not the government's share.
We offer an annual maintenance retainer. Does that get tracked differently than a new formation?
Yes. Maintenance retainer income stays in its own line, separate from new formation fees, so you can see how much of the month is recurring work versus brand new clients.
A multi-founder deal turned into weeks of negotiation. Can Gus flag that?
Yes. Hourly negotiation work gets kept apart from flat fee formations, so a complex deal never hides inside what looks like a simple-formation price.
We get a lot of referrals from accountants and business brokers. Can Gus track those relationships?
Gus tracks the income from new clients each month, which shows whether formation volume is growing. He does not handle any payments to non-attorney referral sources.
My formation volume is uneven month to month. Does that hurt my taxes?
No. The set-aside is built around what actually lands each month, so a slow stretch between new formations does not leave the firm short when April comes.
Can Gus show me whether new formations or maintenance renewals are actually driving revenue?
Yes. The two stay in separate lines, so over a few months you can see whether new client formations or returning maintenance clients are actually carrying the practice.
Is a real accountant checking my books?
Yes. You get your own bookkeeper, Gus does the first pass on every transaction, and an accountant checks every one before your month closes. That same accountant prepares, signs, and files your business return. Goatkeeper is not a CPA firm, and we never pretend a person looked when they did not.
What does it cost, and can I cancel?
It starts at $197 a month, depending on what your business needs. No setup fee, no hourly bills, no contract. Cancel any time from the app, and your books go with you.
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What makes a bookkeeper worth paying for Every business we keep books for
Book a call
Pick a time. That's the whole signup.
Fifteen minutes with a real person on our team. They look at where your books are, tell you straight what it takes to get caught up, and get you set up on the spot if it fits.
- $197 a month to start
- An accountant on every transaction
- Cancel whenever