Complaints

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• Initial Complaint

  Date:08/31/2023

  Type:Customer Service Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  A request for services and advance payment to convert my business to an SCorp was made in June 2023. Attempts to reach Harry H**** from the initiation of service for status updates went unanswered. In July I finally got a hold of him at which point he said the process he initially said would be 30-45 days would take only 3 more days. The process wasn’t completed as he stated and has gone on since then with no deliverable. To date all correspondences have been by my initiation. I l****ed that Mr. H**** outsourced the work to a large organization in California called *******. In addition Mr. H**** missed key signatory information on the IRS form that is necessary to file the conversion which would render the application for conversion null. He lied about the turnaround time and that it was in motion and held my payment and the initiation of work for one month (from June to July) before starting citing staff changes. The work has not been completed to date and payment for the service has not been refunded. The IRS has no record of the form being filed. Mr. H**** refuses to give me the contact information for the firm he contracted in California and claims that they have said the documents are being “held up with the State”. The conversion does not require any state involvement. The few responses I have received from Mr. H**** have conflicting information and he has disappeared several times throughout the process refusing to answer calls or return messages with requests for call back. He blames the company he contracted however refuses to allow contact with them.

  Business Response

  Date: 09/18/2023

  
  Ms. ************** scheduled a Zoom meeting for June
  5, 2023. In that meeting she stated that she was paying to much in taxes. She
  also wanted to have someone provide bookkeeping services. I suggested to her that
  having her company taxed as an S-Corp would save her money. I advised her that
  she could file a form with the IRS and be treated as an S-Corp. Her other
  option was to do a full conversion to a corporation that would provide her with
  stock certificates in the name of her company. I also advised her that she
  would need to start running payroll to be in compliance under the rules of the
  S-Corp.
  A secure portal was set up for her and a bookkeeping
  /payroll agreement was uploaded to the portal for her to review.
  On June 7, 2023, Ms. ************** returned the
  signed agreement, she was scheduled to pay a set-up fee, and make begin making
  monthly payments beginning on June 12, 2023
  Ms. ************** requested to have her LLC fully converted
  to an S-Corp and to have stock certificates printed for her company.  She was informed at the time of her request
  that this service would be outsourced.
  On June 12, 2023, Ms. ************** paid the set-up
  fee but neglected to pay the monthly fee. She also paid the Full Conversion
  fee.
  She did not provide access to her books, nor did she
  pay the agreed upon monthly fee. On July 11, 2023, the initial setup fee was
  refunded to her.
  Form 2553 had been prepared and uploaded to the portal
  for her signature in 2 places. This was needed to have the IRS treat her
  company for tax purposes as an S-Corp. Ms. ************** only signed in one
  (1) of the two (2) places required and as a result the form is not acceptable to
  the IRS. She has refused to sign the second signature space. She has been
  informed that the IRS will not accept the form with just one signature.
  This form was prepared to help facilitate the
  conversion at the IRS level while the State of Maryland processed the
  application for the full conversion.
  The State of Maryland requires notification and
  approves a full conversion to a Corporation (S or C).
  The conversion of the LLC to a S-Corporation at the State
  of Maryland was outsourced to *******. ******* collected the processing fee provided
  by Ms. **************. This fee included the fees charged by the State of
  Maryland. ******* prepared the paperwork for the conversion and submitted the
  paperwork to the State of Maryland. The State of Maryland has not completed the
  processing of the paperwork.
   Ms. **************
  was provided the third-party information, ******* and the ******* representative
  even tried to explain to her on the phone that she was going through a full conversion,
  and they were waiting on the State of Maryland to process the application. Neither
  ******* nor Harry C H****, Inc. can control the processing speed of the State
  of Maryland.
  As of August 30, 2023, the State of Maryland still had
  not completed the processing of the application for conversion. Ms. **************
  requested the process be halted and requested a refund. She was informed that
  the fees had been paid to ******* and through them the State of Maryland the
  fees associated with the application for the conversion. The fees at this point
  are non-refundable.
  

  Recap:
  Harry C. H****, Inc, and through the third-party
  outsourcing did prepare the requested and required documents to fulfill Ms.
  ************** request. The required documents were submitted to the State of
  Maryland along with the fees required by the State of Maryland for processing.
  Ms. ************** requested a Full conversion that
  requires the State of Maryland to approve. 
  She did not choose just the tax treatment option.
  Ms. ************** received documents that she did not
  fully execute that would allow for her company to be treated for tax purposes
  as an S-Corp. She has refused to fully execute the document.
  Ms. ************** requested that all progress be
  stopped on August 30, 2023.
  Ms. ************** has received a full refund for the
  fees that were not related to the conversion.

  
  

  Customer Answer

  Date: 09/19/2023

  
  
  Complaint: ********
  
  
  
  I am rejecting this response because:

  There are a number of incorrect details, miscategorizations of intent, as well as areas missing context in the business’ response thus painting an inaccurate and false picture of this being a neglectful transaction on the part of the consumer. There is also no acknowledgement of the lack of response to many phone calls requesting explanation of the process and status of the work and no accountability for the fact that there was never a request nor a requirement for a monthly fee for the service in question. There was also accountability on the part of Mr. H**** that it was his lack of responsibility and missed quality assurance to not have caught the accidental missing signature. As a consumer who was not familiar with the process of conversion at the outset of this and only with the intent to covert, it would be ridiculous to assume I would neglect to sign the very document providing the service I requested. Most significantly, I was never given authorization to contact ******* by their client, Harry H****. The alleged explanation the business documented of such interaction never took place. The only record of any correspondence that I had with ******* was on August 8 due to my own investigation of who that third party was and subsequent discovery. They informed me then that they had no authorization to release any information of any kind to me as Mr. H**** would have to allow it. It is their policy to only speak to their direct clients and in this case it’s him. Mr. H**** is also falsely stating that he revealed who the third party was. He clearly stated in July 2023 that he would and could not reveal that as a general practice unless it warranted the need. My last correspondence with Mr. H**** was on August 30, 2023 at 11:26am where he assured me that he would contact ******* and call me back to discuss the matter at length. As of September 19, 2023, I have received no such call and no written correspondence on the matter. 

  
  
  
  Sincerely,
  
  
  
  ****** **************l