Wealthy & Wise: Is Your Client Support Lacking? NCH Has You Covered!

About the Video: Wealthy & Wise: Is Your Client Support Lacking? NCH Has You Covered!

You should choose to work with a company that has great client support for several compelling reasons. Firstly, excellent client support ensures that clients receive the assistance they need whenever they encounter challenges or have inquiries. This reliable and timely support can significantly reduce downtime, improve productivity, and enable clients to focus on their core business objectives. Secondly, working with a company that prioritizes client support demonstrates a commitment to customer satisfaction. At NCH, we value our clients and we’re dedicated to providing exceptional service. We look forward to working with you!

Prefer to read? A full transcript is provided below.

Adam:

Welcome to another edition of Wealthy and Wise. I’m your host, Adam Kintigh, and I thought it would be so appropriate if we bring in someone that deals day in and day out with client support. And I have none other than Amber Neubig. Amber, you are a client business specialist here at NCH and you support our clients on a daily basis. How long have you been with NCH?

Amber:

Ten years.

Adam:

Ten years? Ten amazing years.

Amber:

It has been amazing.

Adam:

And I’m sure you learned so much on a daily basis, but give us an overview of your job and kind of what you do when clients call in and need help.

Amber:

Yeah. So, for starters, as soon as they set up their LLC, I’ll go ahead and make my initial welcome call, just introduce myself as their coach. Really, just want to stress the importance that they know I’m there for them. Whether it’s a general question, structuring questions, whatever their next steps are. I just really want to make sure that I’m a good point of contact for them, that they know, hey, there may be 10 or 15 different people that you’re working with between different, you know, startup things that they’re doing, people within our departments. But I’m a good place to start, and if it’s not something I can help with that I can point them in the right direction.

Adam:

Excellent. So, I know you handle questions, a lot of questions that we get on a daily basis have to do with, number one is, a lot of people organize their company under the laws of Nevada, or Wyoming or sometimes even Delaware, and they always have the question, do I have to register with California or whatever state?

Amber:

Their home state, Yeah. Yes, that is something that we do on a daily basis, and it’s very important to register your company in whatever state you’re living in, whatever state you’re doing business in. So, sometimes that can mean that you’re registering in multiple states. You may be a California resident but purchasing property in Texas, Florida, New York, whatever that looks like. We want to make sure that we are taking the Nevada laws, the Wyoming laws, wherever your formation state is, and giving them the authority and the protection to do business in that other state. So, NCH we prepare all the documents. We make it super easy for our clients. And, you know, we let them know once everything’s been finalized and just really important that we take that step because again, we want to make sure we’re giving them the authority and the protection of the home state or the formation state laws in that state that they’re doing business in.

Adam:

And without the foreign filing, they simply are not going to be protected in their home state. They’ve got to register there.

Amber:

Correct, yes.

Adam:

Now, when we register the company, first thing that we always do is we always get the EIN number, the employer Identification number, and you get a lot of questions about that. What’s the biggest question or most common question?

Amber:

Number one question, what address do I put? You’re my registered agent. So, do I put your address or do I put my address? And we always encourage our clients, use your address. We want the EIN number to match with your address, your social, your name, so we don’t have any hiccups when applying for that. Plus, you want to get your tax forms. You know, when it comes to tax filings, all of that information needs to go to you.

Adam:

So, for the most part, most clients we put if they put an address other than their own, can it be fixed? Because I see it all the time where people put registered agent address. The registered agent doesn’t forward documents or doesn’t do it right.

Amber:

Yeah.

Adam:

Or some things can be missed.

Amber:

Yeah. Yeah, we can definitely always, you know, we’re great about that. We can always fix anything. So, there are letters that we can file with the IRS, just update the address and get it done pretty quickly. So…

Adam:

Good. So, I always really press on the fact that if we get a company formed, we do the initial organizational minutes, the operating agreement, we issue membership certificates, make sure they’re registered appropriately with their home state. And as long as they’re signing contracts and agreements properly, do you recommend that clients have resolutions, amendments and meeting minutes?

Amber:

Yes. So very important meeting minutes, number one, very simple but they’re not filed with any state or anything like that. But you do have to hold a meeting every year. We recommend doing it during your renewal period. Our renewal department will reach out, make sure you’re compliant with the states, give you your meeting minutes and answer any questions that you have during that process. Really simple. People get kind of like, what do I do with my meeting minutes? But really just have to hold the meeting, write down the date, you know, who the managers are, write down, you know, if there was any changes in the business or just I’m going to continue doing business the same as I did last year and that’s fine. And then you keep it in your record book because again, if you are sued, they’re going to subpoena that record book and we want to make sure that we’ve been keeping accurate meeting minutes.

Adam:

Okay. So, a few years ago, I was teaching a class and one of the students in the audience was an attorney that actually specializes in piercing the corporate veil.

Amber:

Yes.

Adam:

And he said, if I see one or two or even three people’s name on record, he said, I pierced the veil almost 95% of the time. He said, nobody ever sets these things up right. They never maintain them properly. We have a huge success in veil piercing. The two things that I always do is, that I will subpoena their corporate record book and I will subpoena their bank statements because one or two things either they don’t have their record book or if they do have it, is not up to date. And a simple annual meeting would have sufficed.

Amber:

Yeah.

Adam:

Or, they have co-mingled funds. They’ve used the corporate checkbook to pay for a personal bill. So, what do you tell clients that have screwed those things up where they have used the LLC that maybe to pay for a personal bill that they shouldn’t have? What would you advise them if that happens?

Amber:

I think it’s really important to document that expense and then work with your CPA. So, if it was, we’ll show it as a loan. You know, the company loaned you money, you loaned the company money, and we just want to make sure that we’re accurately documenting that, so it doesn’t come back as co-mingling. So again, having a good CPA on your team is so important.

Adam:

Good. And you have a lot of CPAs that you work with.

Amber:

We do. We have a great team here and you know, they’re able to provide tax consulting and strategizing, making sure that you’re just getting the best benefits from your company.

Adam:

Well, so now that we’re talking about taxes, so common questions that we have on taxes. So, a lot of times people will form a company, we get the EIN number and they are a disregarded entity, meaning the IRS is not expecting them to file a separate return. But a lot of people make an S election where they elect to be taxed as an S corp, so they get all the tax benefits of owning a business and operating as an S corp. What is the biggest mistake or problem that you see with people that have made the S election?

Amber:

Number one, they don’t think they have to file a return. They’re like, oh, my business didn’t do anything this year. I got started and I was busy with my education. I was getting, you know, just putting the marketing in place, all these different tasks. But I didn’t make any income this first year, so I assumed I didn’t have to file. And the IRS, if you are an S corp, you have to file a return. Even if it’s a zero-activity return and we can help you with that. But it is so important that you file because if you don’t, there are penalties that you will incur on that. And so that would be the number one mistake.

Adam:

Yeah. How much are the penalties?

Amber:

$200 per month per member. So, it adds up very quickly.

Adam:

So, if you have a husband-and-wife team or you and a partner or even if it’s just you, in a year’s time, that’s 12, $2,400.

Amber:

Per person yeah.

Adam:

Per person.

Amber:

Yeah.

Adam:

Now what if someone listening today, if you forgot you didn’t file, you formed your company last year, you didn’t file a return. What advice do you give them?

Amber:

Call us immediately so we can get you connected with our CPAs. We can file in the first year, but if it’s like the first time we can file an abatement letter, which is very much like a forgiveness letter. Like hey, I didn’t know. Please forgive me, IRS. And we can work on getting rid of those fees and file that first return.

Adam:

So, we can waive the $2,400 fees, perfect. All right. What’s a common CPA question number two?

Amber:

I would say with the S election, just when to file. So, a lot of people think, again, when you’re filing your business that it’s just filed at the same time as your personal return. But businesses do one month before personal. So, really important that we hit that March 15th deadline. So, again, we’re not going into that, into those fees. We can always ask for extensions, which is great. Most people do, you know, we all want to put off paying the IRS. So, as long as we have that in by March 15th, we’re good.

Adam:

Good. And there is a couple of, there’s some nuances to states. For example, we work with a lot of people in New York. And I know that you and I have had a lot of common clients that are in New York. And there’s two things that are way weird about New York. So, you form the company, you register there and then they send you a notice. You have to publish in the newspaper.

Amber:

Correct? Yes.

Adam:

That can be expensive.

Amber:

It can be expensive. It goes off the county that you’re in. Again, you can always contact our office. We can give advice on how to get that completed. It is an additional step for New York. So, we want to make sure that we are doing that publication.

Adam:

Well, I was also thinking about New York and New Jersey with the S election.

Amber:

Yes. Yeah. You have extra documents that you have to file with those states just to let them know that you’re doing business and what the tax election is. So again, we do direct our clients with that. So, if they have any, you know, direct questions, they can always reach out and we can walk them through that process. But an extra step outside of any of the other states, any of the other states.

Adam:

Well, and all these little nuances are things that people just oftentimes they don’t know, nobody tells them. And having someone like you on the team, they can say, oh, don’t forget this.

Amber:

Yeah.

Adam:

I get emails from you with my business. They remind me, hey Adam, don’t forget taxes are due. Adam, you need help with a business plan, little reminders that I get from you which are so helpful for what I do and the businesses that I run. Now, the last piece I want to talk about in client supporting in your job as a business specialist is that you’re directing people down the right path to make sure their company is set up and operating properly. Do you get a lot of questions about estate planning?

Amber:

I do, yes. Estate planning is really important. You know, it’s something that we tend to not want to talk about because no one wants to talk about that. But, you know, we are putting these businesses in place. Most of us have primary homes. A lot of us have children. We want to make sure that, you know, whatever our personal life looks like, everything that we’re working towards, you know, all these goals that we’re putting in place are protected if we pass away. And a lot of clients think, oh, well, I just have a will, and that’s fine. But a lot of people don’t realize that a will goes to probate and probate is really difficult for your family. Anyone can come in and dispute probate. So, you know, you can have a family member you’ve never talked to. Suddenly they’re like, oh, well, I talked to Adam yesterday. He said, I get the house. So, that’s where we advise putting a revocable living trust in place so that you can just make sure that your, that your assets are really protected upon your death and avoid probate court, which is huge.

Adam:

Good for your family.

Amber:

Yeah.

Adam:

So good. Well, I appreciate you being here, Amber. For all of you, be sure to, like, subscribe and share this video. A lot of little important details that when you become a client with NCH, you need help and guidance along the way. We’ve got teams of people like Amber in place that can make sure that you have the right direction, you get the right help that you need and the right reminders as well.

Amber:

Yeah.

Adam:

So, thank you so much for being here.

Amber:

Thank you for having me.

Adam:

And have a great rest of your day!

Amber:

Thank you!

DISCLAIMER: The above material has been prepared for informational purposes only, containing opinions of the provider, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Please consider consulting tax, legal, and accounting advisors before engaging in any transaction.