When it comes to choosing an advisor to assist with your Employee Retention Tax Credit, not all companies are created equal. As with anything that involves your business and money, it’s critical to do your research. There are many companies out there that claim to be “the best,” but not all of them are scrupulous. So how can you tell if a company is legitimate or not? Look for red flags.

The company does not have a history of tax credits.

This is a huge red flag. If the company you’re considering does not have a record of tax credits, it’s likely because they are not experienced or knowledgeable in the area. Companies without a proven track record will not maximize your credit.

The company charges an hourly rate in addition to a contingency fee.

This is another red flag. A company that charges its hourly rate in addition to a contingency fee is likely not confident in its ability to succeed. They are essentially charging you an extra fee for taking on the risk of losing.

The company asks for an upfront payment to determine your eligibility.

While companies will need a lot of sensitive information about your company and its employees, no legitimate company will ask for payment upfront to determine your eligibility.

The company requests a “success fee” before your credit arrives.

This is a definite red flag. As the saying goes: don’t count your chickens before they hatch. A success fee is only ever charged after you have received your tax credit, not before. Asking for a success fee upfront is just another way of trying to get money from you before doing the work.

The company refuses to provide references.

This is a major red flag. A legitimate company will have no problem providing references from past clients. If the company you’re considering refuses to provide references, it’s likely because they have something to hide.

When it comes to choosing an ERC advisor, be sure to watch out for these red flags. Doing your research upfront can save you a lot of headaches and heartache down the road. At Miami CFO, we have helped numerous business owners collect millions of dollars, and we can do the same for you. Use this link to schedule a meeting: https://calendly.com/miami-cfo/.