clarksville, TN · Member since 2016 · 21 posts · 3 votes
is NCH a scam. ive read a lot of bad reviews about it. they charged me 1400$ for the formation of an llc in kentucky or tennessee
Now i need to establish a s corp just need a better cheaper way to do it though. not this 1400$ bull crap. although i hear they offer more liabilty protection and harder to get sued than most! Dont know if its true though
@Tim Speer Not sure about that company specifically, but I have created several LLC's in Kentucky through the Secretary of State & IRS (getting a EIN), doing it yourself costs around $40.00 I think the last one I set up was. I have an S-Corp as well that an attorney here in Kentucky set up and it was $500.00, even with these legal protections there is something called "piercing the corporate veil" that would allow a director/member/owner potentially liable. You should likely call up an attorney and just ask directly, S-Corp is a little more paperwork.
@Tim Speer Not sure about that company specifically, but I have created several LLC's in Kentucky through the Secretary of State & IRS (getting a EIN), doing it yourself costs around $40.00 I think the last one I set up was. I have an S-Corp as well that an attorney here in Kentucky set up and it was $500.00, even with these legal protections there is something called "piercing the corporate veil" that would allow a director/member/owner potentially liable. You should likely call up an attorney and just ask directly, S-Corp is a little more paperwork.
Thanks ill definitely contact a attorney. See i wasnt aware they could do the paperwork. I thought they just gave legal advice.
I actually just had a conversation with them today. In a nutshell the sales pitch is (and I haven't vetted that yet) if a lawyer wants to sue you because of a tenant issue it is so easy now to do a research and find out how much exactly you own and what kind of equity you got in your real estate and make things uncomfortable for you. What they basically do (via establishing trusts) is they make it very difficult and expensive to search for you and it's not worth their time to pursue you as there are lower hanging fruit. That's the entire premise. Basically about $3K for the LLC and trust set ups then about $700 for every property after that then about $500/year moving forward. I haven't vetted any of this but just relaying what I just heard about 3 hours ago. Hope this helps.
They key takeaway here is this is not a mask if you are doing something illegal and there is no protection from that. It is just a few layers to make things difficult for these lawyers who want to come after your equity and give a client money due to an issue in your rental property.