Wylie, TX · Member since 2016 · 78 posts · 11 votes
I'm using LegalZoom.com to create my LLC, going through the process now, they offer a service called "Affordable Tax Service" Free for 1 month, then its $320 for the year, so roughly $30/ month. It doesnt seem too much to pay for peace of mind when it comes to taxes. My LLC will mostly be used for Wholesaling, Assigning Contracts, Putting houses under contract, etc. I dont forsee any major purchases or taxable income. The only real attractive selling-point is where they say with this service you can "Potentially save substantially by minimizing tax from the very beginning, along with help in recovering set-up costs"
I'm not sure if anyone has any Horror-Stories, like "I wish I would have set my LLC up with the Affordable Tax Service, then I wouldn't have had to worry about....."
Is $26.67/ month worth it?
Any input?
I would just work with a good CPA. Not sure what this service does but it doesn't seem to be that much cheaper if you are a beginning investor.
Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.
I would just work with a good CPA. Not sure what this service does but it doesn't seem to be that much cheaper if you are a beginning investor.
Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.
Tax CPA · Charlotte, NC · Member since 2014 · 215 posts · 186 votes
8y
@Joshua Dees For a single member you could look at the state's website and set up the LLC yourself. Make sure to get your EIN from the IRS after your LLC is created. For multi-member or if your time is more valuable elsewhere, I'd coordinate with your CPA and lawyer to set-up your entity.
I once read an article called titled "From Zoom to Doom" about the supposed perils of Legal Zoom. While that article was published by an attorney-affiliated organization - who have fought and lost many legal battles with Legal Zoom - there's definitely a grain of truth to what they point out. Following is some of what I've observed working with many clients:
There is more than one way to set up an LLC and you may as well get it done the best way possible - from both a legal and tax perspective. Of course, if it's a single-member LLC everything is much simpler. The thing about the LLC formation (like many other financial and legal tools) is that you don't get sued by tenants or have disagreements with your partners the day you form your LLC (in fact, those things may never happen), so you many only find out how effective it is many years from now. It's worth getting it done right and forgetting about it, rather than doing it less-than-right and forgetting about it and experiencing unintended consequences if-and-when the LLC is needed.
If Legal Zoom was this great cost-saving solution, there would be merit to using them. Ironically, Legal Zoom's application and decision-tree is full of cross-selling and up-selling that by the time your done you may be paying more than you would have to get it done by a professional. Of course, even with "professionals" beware of upsells (e.g., if your just getting started you don't need complex asset-protection schemes - and even your not just getting started some of those are of dubious merit).
For taxes, I would highly encourage you do find a CPA that's matched to your industry and financial profile. You may not pay too much more and the guidance, strategy, and peace-of-mind will be priceless. @Daniel Hyman may be ideal for you.