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Updated over 5 years ago, 05/30/2019

User Stats

5
Posts
1
Votes
Preston Smedley
  • Flipper/Rehabber
  • Redlands, CA
1
Votes |
5
Posts

LLC Costs - How much? Is this a good deal?

Preston Smedley
  • Flipper/Rehabber
  • Redlands, CA
Posted

I'm a new investor and looking to start out with a couple flips a year to generate cash to fund purchases on rentals and duplexes. I live in California and have owned one rental property in Texas a few years. I think I would likely invest in other states for the rentals and duplexes due to the prices in California. 

I have been listening to some of the podcasts and I thought from most I have listened to that the initial business set up costs a few thousand $'s.  I was offered by a group  an initial set up of $2,560. They would help me create and do quarterly filing on up to 5 business LLCs. They also offer unlimited consulting and access to their tax/legal group. Then after 2 years starting 2021 they would charge $150 for personal returns and $250 per business return annually. 

In conjunction with the LLC and tax saving they also offered a funding and business credit line service. It is a software and education tool that supposedly builds my business credit and paydex score to 80-85 within 3-5 months so I can use the business instead of my personal guarantee. Plus I should get loans and line of credit rates using the business and I don't have to worry as much for debt to income ratios. This service they offered for a one time membership fee for $2495.

With both services its about $5K plus my state filings. Do you think this is worth it? I know I can try to do my own on legal zoom cheaper. But I'd rather have everything correct so I make sure I take advantage of any business expenses and deductions with an LLC. And since I'm new, if I'm getting unlimited consultation from attorneys or CPA for a couple years starting out that sounds like it would be helpful.

What are your thoughts? Thanks for your help

Preston

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