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Updated over 2 years ago on . Most recent reply

What's a reasonable cost for tax / corporation structure advice?
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!
Most Popular Reply

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