I recently spoke with another accountant who we’ve worked with for years, Lloyd Sreden of Stern, Kory, Sreden & Morgan. He uses Formation Solutions for all his clients’ new LLCs and corporations.
I asked him what he tells his clients about us when he’s recommending that they use our service.
I tell them that they can try to go the cheapo route, with big online filing companies with fancy TV ads like [we won't name it here]. But, you’re never going to get the service you get from Formation Solutions.
I tell them that you [Formation Solutions] have the most complete and helpful package I’ve seen, right down to little “sign here” tabs and instructions that walk them through how to operate the business.
I tell my clients that you’re always available to them for calls and questions. And that they’re going to get the same person each time; someone who understands your business. This is huge.
Does it cost a little more than the bare bones online service? Sure. But I tell them to think of this as additional insurance on your business. Get it done right.
He went on
You know, I’ve seen about 20 formations from [he named a well-known company], and there weren’t more than 3 or 4 that were done right. The thing is, people just don’t know what services they need, and those sites have pick-and-choose add-ons, and people don’t know which are required.
I’ll elaborate on the last part. We know that the process of forming a new corporation or LLC can be intimidating. And we feel that advertising one low price, and then selling you on lots of ”optional” add-ons that cost more is problematic for two reasons:
- it buries the true cost of the complete service, and we’d rather be up front
- since people don’t know which services they really need, they may end up missing things that are absolutely required. And that could cause a big mess.
There are many steps, many filings, and lots of nuance in the whole process. We feel that it’s important to talk to our clients, and help them understand which filings are needed for their unique situation.
One more quote from the CPA:
Sure, I have an example for you. We recently got an IRS audit project handed over to us from another CPA we know. We asked the client to show us all their corporate info. To our horror, the book was pretty much blank.
They’d had it set up by [he named a well-known company], and there was no stock issued, no capitalization, no minutes, no nothing.
It was a really scary thought that they’d been going about their business for years, thinking they were a corporation, but officially, there was not really a corporation at all.
We had to clean it all up before the audit. It ended up fine, but it cost them a lot of money, and it could have been way worse.