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Corporate Tax Network - Anyone Here Ever Use Them?

Discussion in 'Business & Tax Advice' started by J1218, Feb 13, 2013.

  1. J1218

    J1218 Power Member

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    I just setup my LLC through Legal Zoom a couple months ago, and I received a call from a company called Corporate Tax Network not too long after. They did a free webinar and then wanted me to sign up for their services, which on the surface, seem like a pretty good deal.

    Basically for around $1,700 for the whole year, they would setup my LLC as an Entity Classification Election which would greatly reduce my taxes due to no longer being subject to self-employment taxes. They would also handle all of my filings for the year, give me unlimited access to a CPA throughout the whole year so I can call whenever I have questions, and basically walk me through every step to save as much money as possible on my taxes.

    I am sure the $1,700 would easily pay itself off if everything went as planned, but I am hesitant for a few reasons. For one, I can't find much info about them online and most of the reviews seem to be fake. They have even went so low as to join forums where people have asked about them, make a brand new account, and post fake reviews that look like they are coming from real people. In my opinion if you need to go around making fake reviews for your company, something is up.

    Then the few real reviews I did find weren't positive at all, but 2-3 people really isn't a big enough sample size for me to go off of to say a company isn't legit.

    So have any of you guys ever dealt with Corporate Tax Network, and if so, what were your experiences?

    Are there any other similar companies out there you would recommend instead? My main goal right now is getting everything in order for my new LLC so that I can make sure I'm taking advantage of all the benefits I can. I used a local CPA last year but he didn't really provide a lot of helpful information or anything, so I'm looking for something else.
     
  2. MrE

    MrE Executive VIP Jr. VIP Premium Member

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    It sounds like you already answered your own question regarding these guys. You should be able to find someone locally who is talented, but it might be slightly more expensive. (Most will be fine with answering the odd question via email outside of regular consultations/sitdowns)
     
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  3. bryanon

    bryanon Executive VIP Premium Member

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    This sample size is quite enough to make a decision.

    If it was 2 negative reviews out of 10+ (legitimate) positive reviews then sure - it could be that the 2-3 people just got extremely unlucky or expected too much. But if the few negative reviews is all you can find then stay away from the company.

    Like MrE said, try finding someone locally. When doing tax planning your jurisdiction also matters a lot - strategies that work for say UK citizens/residents don't necessarily work for US citizens and may get you into quite a bit of trouble. For this reason it is advisable to not let "international" companies give you tax advice.
     
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  4. J1218

    J1218 Power Member

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    Thanks for the responses. Been a while since I've talked to you guys - good to hear from you both again.

    And yeah I see what you're saying. I just try not to be too quick to judge a company based on a couple negative reviews as sometimes they are the ones that just had a bad experience for whatever reason, and quite possibly the company is good after all. But yeah the fact that I can't find anything positive that isn't fake is indeed a red flag. I was kinda just hoping my initial concerns were wrong because it is a good deal they are offering.

    Thanks again.
     
  5. mikeprice80

    mikeprice80 Newbie

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    I haven't used them, but after a quick Google search, they look shady to me. I've dealt with shady people in the past...sometimes you can't quite put your finger on what's wrong, but you know that something is. That's the feeling I get with these guys. Be careful if you decide to move forward with them.
     
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  6. J1218

    J1218 Power Member

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    Not at the moment but eventually I am yeah. You have some good resources for it?

    Yeah I've decided I'm not going to move forward with them. I see what you mean though. The lack of any real positive reviews combined with the fact that they have people going on forums and adding fake positive reviews is a huge turn off for me.
     
  7. PlatinumPi4u

    PlatinumPi4u Junior Member

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    Thats a boiler room operation which makes money off of legalzoom newbies. Don't fall for it, considering 9 out of 10 corps close shop in the first year, it would be 1700 down the drain, not to mention the 1000 monthly state fee for LLCs, etc.
     
  8. alonso2904

    alonso2904 Newbie

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    [FONT=&quot]I would like to tell you a little bit about myself before I give you advice if that is okay. I own my own marketing and business consulting business. I built my business the old fashion way, meeting people, networking, building relationships and word of mouth. In fact, I just put up my website last week and I am in the process of setting up twitter, Facebook etc.. Some of my bigger client's include USAA, Verizon, and H & R Block and IBM; mostly for business consulting and training.

    We also have a program called "first year experience". This was designed to help start-ups gain the proper foundation for corporate success. I It is similar to that of Corporate Tax Network's program, but at a fraction of the cost, with an unconditional money back guarantee. Why should a client have to take the risk to do business with someone they do not know, have no relationship with, and is forced to rely on reviews on the internet to make a decision? We don't think that is the right way to do business.

    I hope I do not get in trouble with what I just said because I am still learning the ropes in this forum and I do not want to upset anyone or ruin my reputation by coming off like I am trying to sell you my services. I just wanted to let you get a clear picture that my advice comes with years of experience, so hopefully you see that.

    Let's help you out:

    Unfortunately, some of my customers had poor experiences with Corporate Tax Network which is who I think you are referring too. Whomever you choose make sure they are reputable, will be there when you need them and are not afraid to back up what they preach with sometime of unconditional money back guarantee.

    That aside, make sure all your by-laws, minutes, and other corporate business functions are well documented. Over the years I've had client's come to us after they received a letter from the IRS asking them to explain their deductions. At that point, it?s too late for us to help them.

    Become familiar with your marginal and effective tax rates.

    You must act like a corporation or the IRS will see it as a sole-proprietor, you will lose some if not all your deductions, and be hit with back taxes.

    Try and make everything you do a business expense i.e vacations (I mean board meetings in places where some might consider a nice vacation spot). This is where keeping minutes are so important.

    Hire children and other family members (make sure to document time and work performed and keep it under $5,800 (for 2012) this way you do not need to pay Payroll taxes. side tip, if you are making a brochure, hire your kids for the shoot. Just make sure to call around and ask what the going rate is for kid models (ask for an estimate and keep the documents on file).

    Mileage is always a tough one. If this company is a part-time business and you use the vehicle to get to work (full-time job) then you must keep the A to B to C rule in mind. Simply put, if you use your car to go to work, then you drive from there to your place of business and finally home. The only part that is deductible is C to A. There are some ways around it, but this is where most people get in trouble when the IRS audits them.

    These tax advantages are just the tip of the iceberg. However, please make sure to document, document and keep your receipts. Remember, the IRS does not define what a REASONABLE BUSINESS EXPENSE IS. My staff and I keep a daily journal of all my business expenses and at the end of each week our staff puts everything together and files it away. Yes, there is plenty of paper work that needs to be done, but when you reduce your before tax by x amount; you will be smiling all the way to the bank. Also, keep in mind, tax strategies start January 1 and end December 31; unless you choose a fiscal year calendar. I have lost track of how many client's come to us in the new tax cycle and they want us to implement tax strategies for prior year; don't be one of them.

    If you have any further questions, just post it here and I will be happy to answer them. I wish you the best on all your future endeavors. [/FONT]


    alonso2904

     
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  9. alonso2904

    alonso2904 Newbie

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    sorry for the post font being so small, I tried to change it, but because I am a newbie it would not allow me too.

    alonso2904
     
  10. burnett4congress

    burnett4congress Jr. VIP Jr. VIP Premium Member

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    OP,

    $1700 is pretty overpriced for such a service.
     
  11. kideze

    kideze Elite Member

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    And what your company name? site?

     
  12. MiLiTARYiV

    MiLiTARYiV Senior Member

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    Seems shady to me