No, an LLC is generally not legally required to hire a bookkeeper. But an LLC is required to keep accurate records, and the way you keep them affects your taxes and the liability protection you formed the LLC to get.
Is a bookkeeper legally required for an LLC?
Generally no. You can keep your own books, but you do need records that support every number on your tax return, and you need to be able to produce them if the IRS or your state asks.
Rules vary by state and by how the LLC is taxed, so confirm specifics with your CPA. What does not vary is that sloppy records are your problem either way.
Why do clean books matter more for an LLC?
An LLC's liability protection depends partly on treating the business as separate from you. Running personal expenses through the business account, or the reverse, weakens that separation and creates a mess at tax time.
A bookkeeper keeps owner draws, contributions, and business expenses properly separated, so the line between you and the company is visible on paper.
When does an LLC owner need a bookkeeper?
The usual triggers are payroll, more than one bank or card account, sales tax, or reaching the point where you no longer know your monthly profit. Another trigger is a lender, investor, or buyer asking for financial statements.
A solo LLC with a handful of transactions can reasonably self-manage. Once books slip a month or two behind, getting help is cheaper than the cleanup that follows.
What does Evolv Bookkeeping offer LLCs?
Ongoing bookkeeping is $199/month flat: accounts reconciled, transactions categorized, and a P&L and Balance Sheet delivered by day 2 of the following month. No contracts, cancel anytime.
If your LLC's books are behind, cleanup is $199 for each month behind, done within 2 days and guaranteed in writing. Get an instant quote on the homepage.