What's a reasonable cost for tax / corporation structure advice?

[Jason Long]

Hi Everyone - Looking to crowdsource some info on what typical costs are for these types of services... some background info: I'm an aspiring investor and have recently moved into a new primary for my wife and I to live, while keeping our previous home and are in the process of turning that into a rental (our first rental property). Our plan is to add additional properties over time to build wealth, reduce our tax burden, and ultimately enable an early retirement. I listened to BP episode 569 with Tom Wheelright discussing tax strategies and after, I reached out to his firm, Wealthability, to get an understanding of their services and a quote. They will assign a team of tax experts to design an entity structure (for example, set up an S corporation in X state), they will deliver this blueprint to me, provide ongoing tax advice during the year, and do my taxes this year as part of their up front fee. The fee is $12,750 for this blueprint to be delivered and for tax prep this year, but then no recurring fee moving forward. I can pay them each year to do my taxes which would be separate. I would need to go out and actually implement the strategy which would incur additional costs. Their value prop is that they will deliver a multiple ROI in tax savings over time if these strategies are implemented, which I don't doubt, but it's a big up front cost that could be put to use elsewhere.

Question is: what's a reasonable fee to pay for something like this? Is this actually a good deal, way too high, somewhere in the middle?

Thank you!

[Sergey A. Petrov]

You don’t need any of that with one rental. If you really really really want to form LLCs and make it super complicated, pay an attorney a couple hundred bucks and a CPA another couple hundred bucks, then call your insurance broker and they’ll sell you a new insurance policy. Should be all done in under $1k, filing fees included