These types of scams target those who are starting home-based businesses. These companies claim to be able to increase a business’ profitability through the purchase of products and services, and while some of these companies are legitimate, business owners must exercise extreme caution.
The FTC and New York and Florida Attorney General filed charges on the Tax Club. The alleged con club settled, agreeing to surrender $15 million in assets and refrain from selling business development services or work from home type opportunities. Although this particular company is prohibited from conning start ups, this does not mean there are not several others out there just like it performing a similar con. Always trust your gut and conduct a thorough review of any person or company you’re considering doing business with.
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