Jose Carrasquel

One of the Venezuelan-American owners of Protax

We had the pleasure to interview Jose Carrasquel, one of the Venezuelan-American owners and operators of Protax, a twenty-year-old, Georgia based, and family-owned accounting firm that specializes in business accounting, taxes, and being able to provide full support for its customers (mostly business owners) whether they speak English or Spanish.

Coming from Venezuela as an eight-year-old boy, and watching his favor find his success in the United States, Jose went into the family business with a unique view of the world.

He shares with us his insights on taxes, memories of Venezuela, and the spirit needed to succeed as a minority business owner in the United States.

What are the flavors of Venezuela?

To me, Venezuela was paradise. Spending my early childhood in the coastal town of Maracaibo, I remember the sounds of the ocean as it mingled with the upbeat salsa and gaita music being performed along the water's edge. Street vendors would sell arepas, tequenos, empanadas, or pastelitos, the delicious smells carried by the salt-filled breeze. Shaved ice vendors handed out condensed milk drizzled cups filled with ice and sugar that tasted like summer. That was the flavor of Venezuela: driving over the Maracaibo bridge, hearing, smelling, and tasting everything that makes Venezuela so unique.

What was your journey to the US like?

My mother, two sisters, grandmother, and I arrived to the US when I was eight years old, in July of 2001, an entire year after my father had first arrived. I couldn't comprehend why we were leaving Venezuela, but I didn't speak any English and neither did my family. On the plane ride over, I remember sitting next to a very kind, older American man who spoke to me the entire flight, so I repeated the only two words I knew, “yes” and “no,” alternating at random. When we finally landed in Georgia, we made our way to Kennesaw where at the time there was hardly a Hispanic community, meaning I was completely immersed in American culture. Luckily, because of this lack of insulation from English, I learned quickly. According to my parents, my teachers told them that I was supposed to be in my ESL program for two years but because of the full-immersion, I was fluent within four months and began going to classes in school that were taught completely in English.

How did Protax get its start?

After having worked various odd jobs, my father was put in contact with a local accounting and tax preparation business in Brookhaven. With his experience as an accountant in Venezuela and willingness to learn, he quickly gained a book of business that encouraged him to go independent. With the help of the clients he was serving, my father opened Protax in December of 2003.

What sets Protax apart from other accounting firms?

This year, 2023, is our 20th anniversary. That in itself shows that we stand apart in that we're here for our clients for the long-term. We also understand the unique challenges Hispanic business owners can face. That said, our target audience is business owners in all industries, from construction to retail to foodservice and beyond. Our ability to provide completely fluent accounting services across multiple industries, in both English and Spanish, sets us apart from most firms.

What advice do you have for new, Hispanic business owners?

I love organization and recommend all business owners to learn to love it too. Have your business strategy created before you begin, including a well-thought out business concept that's been edited by a third-party and strengthened. Create your infrastructure before hiring employees. It's important not to throw a new employee into a random role. Instead, hire with purpose and ensure that all employees are going to have their duties well-defined to avoid confusion and to ensure high morale. This also applies to someone wanting to go into a partnership or work with multiple shareholders. Ensure that both parties are aware of the responsibilities of each owner and that there is a written operating agreement In place.

If you had to make a list of general business or tax tips, what would they be?

· What are your customers' needs and how can you best serve them?

· Always show appreciation for your customers and employees.

· Put everything in writing.

· Have an exit strategy.

· Understand financial documents: P&L, Balance Sheet, statement of cash flows, etc.

· Understand your margins. What are your costs? (Fixed, variable, overhead).

· Can you maintain your desired margins with fluctuating costs?

· Know your sales tax requirements to remain compliant with all regulatory agencies (state and federal) and maintain appropriate records.

· Payroll: Taking on payroll alone can be time consuming, and stressful. Consider hiring a payroll processing company to relieve your workload, and ensure that you're in compliance with relevant tax agencies.

· Labor: Do you need to hire an employee or an independent contractor? Understand the relationship between the company and the employee in order to avoid misclassification issues. An example would be paying an employee as an independent contractor when they should be paid as a W-2 employee.

· Select the best legal structure for the owner(s) needs.

· Which tax classification will be best for the business/owners? How will the owner(s) compensate themselves? How will the selected tax classification impact their personal tax liability?

· Understand the employment requirements for your state. How does overtime work in your state? Rotate workforce in order to stabilize labor costs.

I also think it's important for everyone to remember: just because you're starting out doesn't mean you can't prepare for the future.