Real Estate Agent · Central Coast, CA · Member since 2022 · 110 posts · 58 votes
Hi There -
I just got what feels like an exorbitantly high quote ($13K) to set up a Wyoming Holding company and two LLC's (California) from Anderson Advisors. That is separate of the $800 each to operate the LLC's and then $1,400 annually to manage all of those.
I'm always happy to pay for professional services and believe in investing in my business, especially in order to ensure it is set up and managed properly.
Am I crazy that this is at the very top end of the market on costs? Can anyone recommend an alternative service?
Yes Id say its definitely pricey. $5000 seems like the best value for money I've received in this area. In the end I used Legal Zoom and have been just fine doing the annual part with a combination of the Real Estate Attorney and CPA. Definitely get more quotes.
Yes Id say its definitely pricey. $5000 seems like the best value for money I've received in this area. In the end I used Legal Zoom and have been just fine doing the annual part with a combination of the Real Estate Attorney and CPA. Definitely get more quotes.
@Scott Mac they did provide a breakdown, and that was the sum (just under $13K). It was $1,500 each for the LLC formation, which just feels SO EXPENSIVE to me! I created two online for free, but of course know that the bylaws and structure have to be particular in order to ensure the asset protection. I'm willing to pay for that sort of expertise, but just couldn't fight the feeling that it was more than others who are equally qualified might cost.
If this fellow defends his own workmanship in court cases, you might want to also ask the cost of that, and the cost to (for lack of a better term) be personally released from the case when they serve you personally (which sometimes they do despite the LLC(s)).
Is he the guy you want defending you, or would you rather it be a cut rate law firm (???)
[OR] Will you need to retain local California counsel and local Wyoming counsel in case of lawsuit, will your formation guy act as a paid consultant in that case--how much will that cost.
Having all of this written protection without the cash in hand to pay for legal protection in a court case is not complete protection.
You might also want to look into the yearly cost to have tax returns filed for the LLC's if they are multi-member LLC's.
$13k for three LLCs seems high, but $1500 per LLC is not. Were you getting eight LLCs created? LLC formation can get quite complex depending on how you're structured and how many partners you have.
I used Corporate Direct back in January. I set up LLC's in Wyoming (holding company), Indiana, and Alabama. $700 per LLC. I spoke with Anderson as well, but couldn't justify the cost (especially since I just started investing last year). I was very please with Corproate Direct's service. DM me and I can give you my contact's info if you'd like.
$13k for three LLCs seems high, but $1500 per LLC is not. Were you getting eight LLCs created? LLC formation can get quite complex depending on how you're structured and how many partners you have.
It was $3K for the WY trust and $1,500 per LLC - each of which is only single member. All were in CA and were to be owned by the WY holding company.
I too have set up four or five entities through corporate direct. I feel the price was very reasonable and the process was not difficult. They do have customer service but if someone needs a lot of handholding and direction they may not be the best fit.