All Forum Posts by: Sylvia Castellanos

I am fairly new to this.  How much does an appraisal cost?

This is a tax question.

There are a couple of vacant lots I own that I am thinking of donating to a non-profit, such as the land bank in the county where the properties are located. In deducting this from my taxes, I know I can deduct its “fair market value.” How is this defined? Is it acceptable to deduct its assessed value?

I am sure I will be talking to my accountant about it, but I would like to have some idea in the meantime.

That is very helpful, Clint. Thank you very much

 The fact that I was seeking privacy for these properties is something I just mentioned incidentally. It is irrelevant to my question, which I will repeat. Because I am new, I like the idea of having a company that supplies me with a business address and telephone number, a registered agent and knows what forms need to be filled out and how to do them. I realize, though, that I may need them for additional things, and having a registered agent that I mostly can’t use is a problem. Does anyone know of companies out there that offer a more complete service?

I am new to all this, so any information you can provide me on this specific point will be greatly appreciated. I will welcome people’s thoughts being expressed in the courteous tone we all expect in our exchanges on Bigger Pockets.

I would like the thoughts of people on this forum who have more experience than what I have.

Let me set up my question. I own two properties for which I wanted privacy. I looked up online companies that provide the service of setting up llcs and s corps, and I finally picked Wyoming LLC Lawyer. I had it set up a holding company in Wyoming, then an llc in PA that was a subsidiary of the holding company. The idea is for me to transfer the two properties from my personal name to the subsiadiary llc, which is under the holding company.

For what seemed like very reasonable payment Wyoming LLC Lawyer set up these two entities and provided me with articles of incorporation. For a small monthly fee it gives me a mailing address to use and a registered agent. This agent take s care of doing the filings with the government that are needed in the course of the year. I was assuming that they would give me the name and phone number of the agent so I could coordinate with him. The agent turned out to be not a person but an entity named Sage Agents. When I asked them, they said this was a division of Wyoming LLC Lawyer. The phone number they gave me to give out as being my office number is just their customer service number.

Then I saw how limited the service was. When I prepared the deed to transfer the properties to the llc, there was one place for the grantee to sign. I called Wyoming LLC Lawyer and said I needed to coordinate for the agent to sign. To my surprise, she said they signed only documents that they created, like the various reports to the government. They flatly refused to sign anything I might send them. So I was going to have to sign the document, although the whole point was to leave my name out of it.

On the one hand, I am new to managing an llc, so having an organization let me know what documents I need to file and what should go on them is very valuable. On the other hand, my experience got me thinking that many situations can arise where if I have a registered agent I will need to confer with him, and even have him sign things. I am beginning to see that the service Wyoming LLC Lawyer is providing is going to be very inadequate.

So this sets up my question. I am wondering if people have experience with other online companies that offer a more comprehensive service. Going beyond that, what options exist for such a service outside the category of online services, although perhaps they cost more. I would like the input of my more experienced colleagues.

Please explain how you manage to pay no income tax on a $50-plus income.

I am leaning very strongly toward shortly creating an entity that will let me be taxed as an s corp. It could be an actual s corp, or—option two-- I could create an LLC and ask that it be taxed as an s corp. I would like for the participants with experience in this area to give me their thoughts.

I would like to have a clearer idea of what aspects of s corp regulations kick in if I ask for my llc to be taxed as an s corp. Having something that will always be a one-person business, I hated the thought of needing to have a board of directors, and even having periodic meetings. I am told that with option two there is no requirement to have a board.

With an s corp I need to have a payroll, issuing myself checks, deducting taxes, and sending them to the state and federal government. Am I correct in assuming that with option two, this wold be one of my obligations?

The only feature of the s corp is the tax savings it makes possible. It allows me to pay myself a “reasonable” amount as salary, but transfer to myself the balance as “distribution” and pay no personal payroll tax (medicare, social security) on this balance.

So I would like your feedback, based on your experience, on what other aspects of s corp rules and compliance would kick in if I opt for an llc taxed as an s corp.

Yes, I am open, but if you would like to discuss this farther, please send me a private message.

Quote from @Savannah Wallace:

Unfortunately, scams like this are quite common. Companies can make very convincing flyers stating that you are required to pay and file something. When my clients send me these, the first thing I look for is a statement, usually towards the bottom, that states "this is not a government entity". If I don't see that, then I look for the address for which to send payments to and the name of who to make the check out to. If it's not the SOS address or the check isn't being made out to a government entity, then I know that this is not a legitimate filing requirement. Unfortunately, scams of this nature are regrettably common. Companies often distribute official-looking flyers that falsely assert you have an obligation to make a payment or file specific documentation. When my clients forward such notices to me, my initial step is to search for a disclaimer, typically located towards the bottom, which explicitly states "this is not a government entity." If this disclaimer is absent, I then examine the provided address for payments and the name of the payee. Should the address differ from the Secretary of State's office or the payee not be a recognized government entity, I can usually conclude that the filing requirement is illegitimate.

Furthermore, these deceptive flyers may employ other tactics to appear credible. They might incorporate official-looking seals or logos, reference legitimate government agencies or regulations, or even include threatening language about potential penalties for non-compliance. Apart from initial filing fees and annual filing, generally, the government is not going to be asking for additional fees for services, and the request can be ignored.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, or financial advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Savannah, thank you for your very detailed reply about how you detect that mailings are fraudulent.  

You know, I think of myself as being pretty good about detecting scams.  The reason I fell for this one is that I don't put it past the government to insist that I pay them $100 for a sign posting my policies when I am the only person in the company.

Chris, it is thanks to this forum that I discovered this was a scam. Great service!