I was referred to THE TAX CLUB last week. Their closer, H*d*, thought he was very slick, but he was so far from reality that it was almost hilarious. We are trying to set up a LLC small business and he told us we needed an S-Corp. Not true, not even close. He tried to tell us that, under an S-Corp we could "Live the corporate lifestyle, letting the business pay for everything," and charge our household expenses to the company and write them off as business expenses. In H*d*'s words, the write-offs included groceries, movie tickets, vacations, you name it. I already knew groceries wasn't right, so I questioned him about movie tickets. His response was that "You discuss the business!!" At the movies? Come on...! I know I'm sometimes slow...but!!!
He went on the tell us that we could give ourselves bonuses and NOT have to "...pay taxes on bonuses!!" By then, what tiny bit of credibility H*d* had left was washed downstream by his incredible flood of BS!
All we wanted was an LLC set up. The Tax Club's price was $4700+ $50/month, and they don't do much for that. They only do taxes for the first year and after that they aren't even competitive. Oh, yes, they would do our annual minutes (required under an S-Corp) and I think that is one of the reasons they wanted us to be and S-Corp--just to keep us in their "flock." Well, it didn't take long to realize they were escalating things, trying to get more money from us.
It turns out H*d* is NOT a tax consultant, NOT a lawyer; he's JUST a "closer" who doesn't know taxes from ***. Another person giving "advise" was also NOT a lawyer and NOT a tax expert. Wow!
We checked around and found that a business lawyer charges less than $2000 to set up LLCs/S-Corps and there are legitimate business on-line that will do it for about $500.
The next thing The Tax Club did was to set us up with a series of meetings with some of their "associate" companies, six or seven meetings in all. Topics include personal finance (their associate is already trying to get our IRA money), organizational strategies, essential planning, "all access books" (don't have any clue what that is), business progress analysis, and business success. Wow!! Our pie isn't that big. If we had that much money we wouldn't need to set up a business.
After cancelling within the three days allowed, billing promised to give us a full refund within seven days. I'll be looking forward to that $4700+ returned to my bank account next week, but I know I might have to fight for it.
I wonder how much "kickback" the referring company got from The Tax Club. There certainly was enough money to go around. It also makes me wonder why a multi-millionaire would stoop so low and risk his reputation. I started to cancel out of the referring company but decided that the information I need to succeed will come faster than if I simply proceed on my own.
The bottom line is, CAVEAT EMPTOR!! The buyer needs to know what they want before dealing with some of these unsavory businesses.
...and the funny things is...pissedconsumer.com's competition (rhymes with 'gitoffdechord') has gotten IN BED with The Tax Club, giving them AND the referring company a CLEAN BILL OF HEALTH. From my experience, I say BS!! Makes me wonder who is paying whom.
In summary, I'm considering a complaint to the New York State Attorney General...