Anderson Business Advisors
Rental Property Investor · Los Angeles, CA · Member since 2015 · 30 posts · 56 votes
Anderson Business Advisors
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Developer · Boise, ID · Member since 2009 · 168 posts · 112 votes
10yKen - I haven't hired those guys but I'd argue a couple things:
1) Too many attorneys in the REI space $ell fear that you need this or that structure in order to protect your assets.
2) Too many investors get scared off by what appears to be something complex -- forming a holding company (whether LLC, LLP, C or S-corp). It's not that complex.
3) Too many investors are under-insured and fail to frequently review their insurance policies.
Bottom line is this:
1) Find a competent attorney that will give you the holding company structure of your choice (talk to your CPA, not your attorney about what is best for you) documents in a word format. It's all broiler plate anyway. You should be able to reuse your docs for each deal you do without having to go back to the attorney for a new op agreement etc.
2) Forming a LLC etc is easy. Don't get scared by the legalese or the crazy attorneys trying to sell something. A LLC is just a bucket for carrying something around. In our case, it's a piece of property. At the same time, USE your holding companies. Make sure you shift an asset into it. I'm frequently shocked by the number of people who maintain rentals in their personal name. Don't forget to run separate books and bank accounts for your holding companies and have an annual meeting.
3) Review your insurance policies frequently. Make sure you have enough insurance personally (umbrella plus good underlying liability in relationship to your net worth) and corporately (same thing - umbrella plus underlying coverage). This is your first line of defense. Your Wyoming/Nevada/Delaware LLC won't do crap for you if a tenant slips and falls. It just hides the fact that you are the owner.
Anyway, final disclaimer: I'm not an attorney or a CPA. I don't pretend to be one even on the internet. This is my advice based on what's worked for me. Don't get scared off by some attorney. Get out there, write offers and do deals.
193 Replies
- Real Estate Investor · Westlake Village, CA · Member since 2012 · 3 posts · 4 votes5y
Anderson has been ramping up advertising campaigns via Facebook lately and I've enjoyed their presentations immensely. It seems their recommended strategy hasn't really changed and aligns pretty closely with what I read in Stephen Fishman's book "Every Airbnb Host's Tax Guide," that is to set up a Wyoming LLC that holds an LLC in the state where property owned (or another vehicle in CA where LLCs are so pricey) and hold it as a partnership.
I am considering purchasing their platinum package (it's $3K plus $39/month) and wonder if there are any updated recommendations on this company. They advertise unlimited attorney attention with no hourly charges but that seems somewhat dubious based on older yelp reviews. What are the experiences in this group with services like this? Thanks in advance!
- Member since 2019 · 11 posts · 13 votes5y
I have been with Anderson Business since starting my business in 2019. when you join you are assigned a team. Tax coordinator , Account manager and a Advisor. The service is not cheap. I have the platinum package. As far as structure implementation they are very good. Turn around time on creating LLC'S are good. I use there tax team for my personal and business taxes. They can also do your bookkeeping. Anything you need for asset protection they are top notch. They have lawyers to review document if needed.
The negative I have is that they are now too big. The business has grown in volume and the respond time is poor. Sometimes it can be a few days before you get an reply back whether its email or phone call. If you need a lawyer's advice it usually takes 7-10 days unless you pay for expedited service which is $250-up depending. Mainly because your assign team also has other clients and overwhelmed. I'm looking to leave for these reasons. I have missed out on opportunities because it has taken them to long to respond.
- Investor · Sacramento, CA · Member since 2020 · 105 posts · 48 votes5y
@Robert Walker that's great feedback. Your using their service exactly how I would and if you're missing out on deals because they are too slow then that's a big deal. What's plan B for you?
- Member since 2019 · 11 posts · 13 votes5y
@Jason Rhodewalt My plan B is looking for firms that can provide me with similar service that is local to where I reside. Especially for contract review and taxes. I can do my own entity providing if I have the time based on my flexibility from my day job. I speaking with a firm next week to see if its a good fit.
- Real Estate Investor · Westlake Village, CA · Member since 2012 · 3 posts · 4 votes5y
@Robert Walker would you please let us know how your search goes, how much cheaper/faster the local firm you find is for the same services and how things are going? I would love to find a firm in Southern California that offers similar services with a better turnaround time and lower cost.
- Member since 2019 · 11 posts · 13 votes5y
@Dave L In my research and calls I found out that most firms varies in service do not provide the everything you get at Anderson. you have to pin point the part of your business you will need the most help with. I need legal and tax guidance. Prices for entities are found were around the same price. Lawyers service is paid by the hour which varies by the firm. I told Anderson I was taking my business elsewhere due to the poor customer service. I have a meeting scheduled next week with an account manager to discuss. I'm still looking. I will keep you posted
- Member since 2021 · 1 post · 2 votes5y
Hi all!
I am also trying to figure out if anyone used Anderson, they are quoting me a lot and I honestly don't make enough for this pricing.
This feels excessive for wanting a passthrough corporation out of Wyoming and a local llc in Illinois where I work and produce income as self employed. All I really want are the initial setup of documents to allow my company to write off more items. I hate that I feel overwhelmed and almost like they are taking me for everything.
If anyone can provide me with direction, guidance or help, I would truly appreciate it.
_________________________________________________________________________________________________
Package Price:- Platinum Membership - $1,000 Initial fee (discounted for this package) plus $35 per month.- Document draft of existing LLC and file S election - $1,000- WY LLC Holding Co. - $1,500- WY LLC (Rental Partnership) - $1,500 plus state fees and registered agent fees- Land Trust - $600- WY LLC Trustee - $1,500 plus state fee and registered agent feeTotal: $7,100
PLATINUM INCLUDES: - One-time fee of $2,500 then $35.00 per month
- Access to the Anderson System- Receive Two Complimentary Tickets Each quarter to attend our educational workshops in Las Vegas- 2 Year Tax Review- Unlimited Attorney Strategy Sessions- Unlimited Questions with Tax Team (through email / online portal in Platinum)- email / online portal in Platinum- Access To Monthly Tax Webinar- Tax Q & A Database- Access to Video Training Library- Extensive Legal Forms Library- E-Newsletter- Attorney Document Reviews (LIMITED TO 2 each month)- Exclusive Product & Workshop Discounts.
Note: Once you purchase Platinum we charge $1,500 for each LLC or Corporation plus filing fees and registered agent fees as opposed to our regular price of $2,750 for each plus filing fees and registered agent fees.
COMPANY ASSISTANCE PROGRAM:- Platinum Pricing of $1500.00 initial fee and $795.00 annual renewal fee.
- Verifiable Corporate Headquarters*- Entity Maintenance Support* (anything related to the ongoing compliance and operation of the entity, ie conversions, domestications, binder restatements, redrafts, and dissolutions** for Nevada & Wyoming)- Mail Forwarding - Reconstruction of Missed Entity Records (We have found that in most cases clients have neglected most if not all of their corporate documentation. We will create meeting minutes based on the information clients provide for meetings that were not formerly documented)- Annual Corporate Compliance (annual shareholder and director meeting)
- Annual LLC Compliance (annual member meeting or manager meeting if the LLC is conducting an active business)
- Phone answering service (702.871.8535)
- 10% discount on executive retreat, upon qualification
NOTE: - Corporate Assistance Program covers all entities, it isn't on a per entity basis.- *Entity must be formed or binder docs drafted by Anderson and Anderson is required to be listed as the Registered Agent.- **Excludes dissolutions outside of Nevada & Wyoming, as well as any state filing fees or shipping costs. - Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes5y
I use them 😁 but... 95% of CPA's are the run of mill take the least past of resistance crowd. Perhaps a reason why they still have a day job. Of the good ones or should I say even a good one will not be able to give you full financial planning advice such as how much to pull out of retirement accounts or what deals to go into. Think about it... its unfair for them because 1) They don't know the deal risk profiles nor the operators, 2) They don't know your future deployment plans to account for your estimated Adjusted Gross Income (effective tax rate) for the next few years, and 3) they don't know how much depreciation is going from the plethora of investments you look to go into. This is where I tell my investors that it is your job to understand what you can and cannot do and lead your professionals who JOB is to complete the technical paper work. CPA/Lawyers are Contractors but you need to be or outsource someone to be your Architect. In other words, I don't advocate to working for a good CPA and trusting them to do it... their job is to fill in the right forms but you need to be in control as the owner and not let the consultant dictate the scope of work. You as the investor need to be empowered to be your own architect and connected directly with the rolodex of able professionals
- 5yBasit SiddiqiBusiness MemberAccountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
Originally posted by @Ri Prasad:
Hi all!
I am also trying to figure out if anyone used Anderson, they are quoting me a lot and I honestly don't make enough for this pricing.
This feels excessive for wanting a passthrough corporation out of Wyoming and a local llc in Illinois where I work and produce income as self employed. All I really want are the initial setup of documents to allow my company to write off more items. I hate that I feel overwhelmed and almost like they are taking me for everything.
If anyone can provide me with direction, guidance or help, I would truly appreciate it.
_________________________________________________________________________________________________
Package Price:- Platinum Membership - $1,000 Initial fee (discounted for this package) plus $35 per month.- Document draft of existing LLC and file S election - $1,000- WY LLC Holding Co. - $1,500- WY LLC (Rental Partnership) - $1,500 plus state fees and registered agent fees- Land Trust - $600- WY LLC Trustee - $1,500 plus state fee and registered agent feeTotal: $7,100
PLATINUM INCLUDES: - One-time fee of $2,500 then $35.00 per month
- Access to the Anderson System- Receive Two Complimentary Tickets Each quarter to attend our educational workshops in Las Vegas- 2 Year Tax Review- Unlimited Attorney Strategy Sessions- Unlimited Questions with Tax Team (through email / online portal in Platinum)- email / online portal in Platinum- Access To Monthly Tax Webinar- Tax Q & A Database- Access to Video Training Library- Extensive Legal Forms Library- E-Newsletter- Attorney Document Reviews (LIMITED TO 2 each month)- Exclusive Product & Workshop Discounts.
Note: Once you purchase Platinum we charge $1,500 for each LLC or Corporation plus filing fees and registered agent fees as opposed to our regular price of $2,750 for each plus filing fees and registered agent fees.
COMPANY ASSISTANCE PROGRAM:- Platinum Pricing of $1500.00 initial fee and $795.00 annual renewal fee.
- Verifiable Corporate Headquarters*- Entity Maintenance Support* (anything related to the ongoing compliance and operation of the entity, ie conversions, domestications, binder restatements, redrafts, and dissolutions** for Nevada & Wyoming)- Mail Forwarding - Reconstruction of Missed Entity Records (We have found that in most cases clients have neglected most if not all of their corporate documentation. We will create meeting minutes based on the information clients provide for meetings that were not formerly documented)- Annual Corporate Compliance (annual shareholder and director meeting)
- Annual LLC Compliance (annual member meeting or manager meeting if the LLC is conducting an active business)
- Phone answering service (702.871.8535)
- 10% discount on executive retreat, upon qualification
NOTE: - Corporate Assistance Program covers all entities, it isn't on a per entity basis.- *Entity must be formed or binder docs drafted by Anderson and Anderson is required to be listed as the Registered Agent.- **Excludes dissolutions outside of Nevada & Wyoming, as well as any state filing fees or shipping costs.If your goal is to have more 'write-offs', then the solution isn't necessarily to have an entity. Having an entity does not convert payments that are non-deductible and then makes them deductible.
You want to work with a CPA who understands the deductions eligible to real estate investors(and agents since your profile mentions that you are an agent).
The strategy that they suggest with the Wyoming entity / Illinois entity appears to give you asset protection and anonymity.
Basit Siddiqi CPA4.979 Reviews - Investor · Baltimore, MD · Member since 2021 · 5 posts · 1 vote5y
Originally posted by @Robert Walker:
Did you stay with the company or leave?
- 5yJuan F. SaaPro MemberInvestor · Ashburn, VA · Member since 2019 · 14 posts · 6 votes
@Jason Rhodewalt, I am sorry I missed this question. I paid $2,997 for the Business Essentials package which includes: Platinum Program (a custom-drafted entity (LLC, Corporation, or QRP), Company Assistance Program (verifiable corporate address, entity maintenance support, mail forwarding, reconstruction of missing entity records, annual corporate compliance, phone answering service), tax toolbox, and virtual bookkeeping for 1 year. I haven't used several of these to the full extent yet after 5 months, though.
- Rental Property Investor · Portland, OR · Member since 2009 · 82 posts · 30 votes5y
I personally do not recommend Anderson Advisors. I believe their strategy and reasoning behind asset protection is good, but their team's execution of the plan has been long and complicated. They give you lots of resources with links to you tube videos, open office hours and online Q and A's, which are good, but I can't get the answers to the questions without attending these events. I just wanted to hire someone and have them take care of it. Still in process of converting entities and getting paperwork straight 10 months down the road.
- Investor · Fortuna, CA · Member since 2016 · 4 posts · 6 votes4y
They are the worst!!
- Real Estate Broker · Clearwater, FL · Member since 2018 · 28 posts · 11 votes4y
@Nicole Norton Why though? Why are they so awful?
From my own experience, I ended up not going with them because they sucked with the follow through, etc. I kept playing phone tag with one guy and had a consultation, then more phone tag. Ended up setting things up myself because I needed to get **** done, learning the hard way I suppose, and it just seemed like a waste of time and money to deal with them. If they're inefficient on that end, as a potential client, it doesn't give me the warm and fuzzy's about working with them...
- Investor · Fortuna, CA · Member since 2016 · 4 posts · 6 votes4y
@KerryAnn Fuller Rainey to make a long story short, in February of 2020 I contracted with them to do all of my taxes. Paid them $5500 for taxes and another Service. I didn’t hear anything from them again until I called them after extensions were due to ask if they were filed. My advisor told me he forgot about me and didn’t file my extensions. I hired another accountant so I didn’t end up using them for taxes. Fast forward to now.. I have received an $11,000 bill from the IRS for my extension not being filed. I have been calling them for the last 6 months asking them if they can help with this bill. They have told me it’s not their responsibility. I should have filed my own extensions. They gave me half of my money back but won’t return the rest. They won’t even talk to me on the phone. I have not gotten one phone call back from a manager in that department. They will only send emails. I’m not great at reading or writing emails when I’m so angry, so I have not gotten anywhere with this. I now have a federal lean on my properties because of this. I can’t get through to the IRS to find out who to pay. It’s sooooo frustrating. I don’t even know what to do about it now.
- NY · Member since 2021 · 143 posts · 45 votes4y
Quote from @Nicole Norton:
@KerryAnn Fuller Rainey to make a long story short, in February of 2020 I contracted with them to do all of my taxes. Paid them $5500 for taxes and another Service. I didn’t hear anything from them again until I called them after extensions were due to ask if they were filed. My advisor told me he forgot about me and didn’t file my extensions. I hired another accountant so I didn’t end up using them for taxes. Fast forward to now.. I have received an $11,000 bill from the IRS for my extension not being filed. I have been calling them for the last 6 months asking them if they can help with this bill. They have told me it’s not their responsibility. I should have filed my own extensions. They gave me half of my money back but won’t return the rest. They won’t even talk to me on the phone. I have not gotten one phone call back from a manager in that department. They will only send emails. I’m not great at reading or writing emails when I’m so angry, so I have not gotten anywhere with this. I now have a federal lean on my properties because of this. I can’t get through to the IRS to find out who to pay. It’s sooooo frustrating. I don’t even know what to do about it now.
Has the bill with the IRS been resolved at least? This is the bill for the 2019 tax return that was later late filed later in the year of 2020? Paying the IRS if not through the tax software should just be simply going to their website?
- Investor · Fortuna, CA · Member since 2016 · 4 posts · 6 votes4y
@Eddie L. it has not. I learned about it in late November, so In December after I had battled with Anderson, I wrote the IRS a certified letter asking them if there was anything I could do about it and if there was any kind of forgiveness for a first time offense. March 16th a letter was sent back to me telling me there was nothing I could do about it. It had to be paid by the 24th or there was going to be a lean on my property. On the 9th of March, They had already filed the lean. I received notice of it yesterday. I have tried to call them for 2 days now and it won’t go through. The lean was filed through Sacramento, it has my county on it, but all the phone numbers are the IRS. I’m not sure if I pay my county or the IRS. I’ll be able to make more phone calls again tomorrow to figure it out.
- NY · Member since 2021 · 143 posts · 45 votes4y
@Nicole Norton
yea I heard they're pretty short staffed at this time and backlogged with returns at the IRS. Try checking the website I sent. You should see balances if any you owe to the IRS there and be able to pay. May have to create an account if you don't have one. Useful though because once you have an account you can even access your previously filed tax returns' data from their website if you ever need to look back.
- Investor · Fortuna, CA · Member since 2016 · 4 posts · 6 votes4y
@Eddie L. Thank you so much. I really appreciate that. 😊
- Member since 2018 · 2 posts · 3 votes4y
Hi all, since this is my first post on this forum, I will just briefly mention about us, for the history. So I apologize for the long one... I became a member of Bigger Pockets when my husband and I were in process of buying our vacation home in 2020, planning to do short term rental when not in use, and ended up using it almost every weekend instead :) But it has been a great educational site for me, learning about real estate and short term rentals in particular, preparing for our future RE activities. We own manufacturing and construction companies, and auto repair shop (major lawsuit attraction, especially in our highly litigious region). I also own niche CPA and bookkeeping firms. As part of our retirement/less active lifestyle planning we are planning to start purchasing STR properties in 2023.
We just signed up with Anderson Advisors for Platinum package plus one LLC set up etc etc (advertised during their webinar) for 2997. @Juan F. Saa description of the package covers it, so I won't repeat. We had our planning call couple of hours ago and it was a real hard attempt to sell us Titanium package. It kind of make sense price wise because of several companies we need to set up, but I think the advisor was unnecessary overcomplicating the structure. I will wait and see how they come thru with what's included in the one I purchased. Really grateful for this thread, all these posts cleared my head and I will wait to jump on the Titanium package. I am sure they will have these "selling" workshops many more times when you are given the opportunity to purchase it at a discount, should I find it necessary.
We are mostly interested in asset protection planning, and I will try out their "ask tax question" feature on Platinum portal, just to evaluate the response time and quality of advice. When signing up, I was hoping for more of a "partner in business" relationship to support our current and future endeavors but after initial call and reading this wonderful thread, I am kind of skeptical. We are supposed to have a follow up call with a senior strategist, because of our requirement for the structure to be set up in a certain way tax wise. Will post our experience here, I am sure somebody will benefit from the information as we benefited from this thread and many others on this forum.
Regarding their tax and bookkeeping services, I don't expect anything of quality per my standards, unfortunately it is extremely hard to find a decent tax CPA. Any good ones expand over time and lack timely response. I see it all the time from my personal experience and my client's as well. And you will have a better luck finding good inexpensive bookkeeper locally, support your local business :)
- Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes4y
@Nicole Norton, if you paid them money to file your taxes, and they took your information and did not get the returns done in time and did not file an extension, in my opinion that is malpractice. Try in good faith to resolve it. If that does not work as a last resort you can file a formal grievance with the Bar association of the state they are doing business in. The Bar Association will look into the allegation and determine if the fault was yours or theirs. My experience is that they are very strict with attorneys. This should be a last resort, as it could mean fines or disciplinary actions.
- Investor · Long Beach, CA · Member since 2019 · 42 posts · 63 votes4y
I agree with @Genna Golden and several others who have had mediocre experiences with them. They have AMAZING online videos and learning resources, but getting a HUMAN on the phone TO ANSWER A BASIC question is impossible. I've been a client for three whiney years. I feel like I'm the cheapskate always questioning every over-priced thing they recommend to me. I learned early on my "strategy advisor" really didn't want to talk w/ me unless I was ready to plop down another $2500 for whatever he was selling that day. Going with them delayed my taking action in RE as i suddenly felt like i needed to get a PhD in asset protection and corporate structure just to get started. I have learned A LOT in the last few years, much of it from their online events and they do have a DAILY 4-5 pm "office hours" where you can ask a question for free of anyone. But when it comes to YOUR STUFF you get relegated to a meeting 30+ days from when you request it. After you are "in" with the $2500 platinum service its $35 / month. They frequently offer learning seminars with partners on a topic or another, but at the end there is ALWAYS a "BUY NOW OR LOSE IT FOREVER" pitch for some spendy program you're not sure is worth it. They do my taxes and this is a laborious process that takes 8+ weeks to get a draft back to you and they are booked out months in advance. And you AGAIN dont get to talk to a human - just "submit your completed form" to them. Every LLC is $1500 and i am always paying $750/ year for I can't figure out what - some corporate structure thing. I'm not a fan. But i went with them initially because everyone in the RAL space (i was looking into assisted living) was SO IN LOVE with them it was crazy. So i thought i was the one with the problem. Anyway, 3 years later and I'm shopping to move!
- Member since 2021 · 95 posts · 30 votes4y
@Megan Bridgette @Ken Weiner @Kumar Paj @Nancy E. @Karen H.
Just looking for some advice on this - I am specifically looking at Anderson Advisors for their "TAX ADVANTAGE program" which includes review of 2 years returns, and preparation of upcoming year. Worried the actual service will be subpar.
@Wendy Stclair I am an investor in Long beach as well! Care to connect?
- Member since 2021 · 95 posts · 30 votes4y
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