Is my CPA charging me fairly?

Question

Hi guys,

I am paying my new CPA in US for about $4500 to register the series LLCs and a $49 monthly fee to be able to reach them for minor questions and updating as I was told. Anything else regarding tax issues was asked for $350 per hour at a 5 hours block rate of 350*5.

New to the business and hoping for serious advice about the issue as I understand how important the CPA means for us as rental property investor!

Thanks in advance and HELP!

Clarence

Basit Siddiqi · Answer

@Clarence GongThere are complications of non-residents/foreigners investing in real estate in the United States.There are various complications with applying for ITIN's, bringing money from overseas, withholding requirements, etc.I agree that the costs you mentioned does seem high. They should have been upfront with the costs prior to you being charged.

Daren Crews · Answer

The price seams high. How ever I dont know what complications are being added cause you’re not a citizen (From what I gather in these post). To register an LLC is a 125 dollars. If you want an actual share holder doc and binder maybe another 100. Anything over 1000 doesn’t seam reasonable.

Clarence Gong · Answer

I definitely will NOT hold them under my name. That’s why I’m registering a Series LLC.

Caleb Heimsoth · Answer

@Clarence Gong can you invest in real estate as a passive investor? Directly owning may not be best option

Caleb Heimsoth · Answer

@Clarence Gong how many properties do you have? This sounds extremely high

Clarence Gong · Answer

Thanks Matthew!

I am currently spending half year in Australia and the other in China. But my 3YO daughter is an US citizen by birth. I’m doing this investment thing mainly for her coz I want her to be educated in US. Tough journey I’ll say.

I am buying SFHs in Cleveland and also looking for other metro areas for Multiplex or commercial properties with lower property tax in order to make good cash flow. These type of properties tend to be very old in Cleveland and I am concerned with exit later.

I have not filled any tax in US yet. I don’t think there will be rental income before Apr, 15. Coz the properties I purchased are in rehab. So I assume there will be plenty time for me to set up my LLC and I have not found my CPA yet little scared to be ripped off again!

Hope the information helps coz I think I mostly like to keep things private. Any help is appreciated and thanks in advance!

Matthew McNeil · Answer

Clarence, where do you live (?) and if you can tell us where you're investing then BP members can provide you with referrals.

Clarence Gong · Answer

Thanks guys. I should have done my due diligence better! I am asking for my full refund. Coz they have not done a thing yet.

The other question is I am investing remotely from half way across the planet. How do I get my LLC accounts open up and how do l manage all the spendings later? I will open another post probably.

Frank Geiger · Answer

Wow. That's a lot of money Clarence. So you have to reserve their time in 5 hour blocks? I would start interviewing other CPAs

Ahad Ali · Answer

I'm in NYC so I've definitely heard of similar pricing, but my client base is local people who want affordable accounting solutions and need business advisory when they're starting out. So, personally, I would not charge such prices, but I do know of CPA firms that do.