Podcasts about s corp

On today's episode of the podcast we're creating your end of year game plan for getting the most out of your tax savings. Don't forget, Tuesday, December 13, I'm hosting two free masterclasses titled "7 Legal & Tax Myths: Busting Through the B.S. That's Costing You Money" to help ease your nerves before tax season whether it's the end of year stress around bookkeeping, filing your LLC or S Corp in the New Year, and overall transitioning your business into a new year. This will be the last time you can join ProfitRx until it reopens next year AND I'll be giving away some never-before-seen bonuses. Register to join at www.bradendrake.com/masterclass As always, I want to remind you that the end of the year is NOT the time to start making big purchases and increasing your expenses to get a deduction. If it is a necessary business expense, maybe. But spending to spend is not it because you will not save as much as you spend. I explain this in detail in my latest blog post that was inspired by this episode titled, Your End of Year Action Plan. You also need to consider your tax rate and rate changes before you make any end of year purchases. Will your business grow next year? Will you have additional income sources from you or a spouse? These things all affect your tax bracket. If you are going to go up a tax bracket next year, save your expenses for January. The higher your bracket the more you save with each tax deduction. If you expect an increase in income, spending in December isn't the move. For more steps on getting maximum tax savings, check out the Your End of Year Action Plan blog post.

On today's bonus episode of the podcast I'm talking about the bullshit I see business owners paying for that you don't need to be. Next Tuesday, December 13, I'm hosting two free masterclasses titled "7 Legal & Tax Myths: Busting Through the B.S. That's Costing You Money" to help ease your nerves before tax season whether it's the end of year stress around bookkeeping, filing your LLC or S Corp in the New Year, and overall transitioning your business into a new year. We'll be talking about bad advice, overhyped tax strategies, and common misconceptions. It's a lot of what not to do because oftentimes the "should do list" is actually much simpler than we assume. AND you'll get access to new bonus resources. Register to join at www.bradendrake.com/masterclass 1. A fee from [insert name of well-known company I won't mention here] Helping a client with their bookkeeping I noticed fishy charges on her books. I called the company to ask about the $300 fee and they said it was their Registered Agent Fee. A registered agent is the person who's responsible for receiving service of process if you're ever sued. You can be your own RA if you live in the state where your business is formed and organized, but you have to put your work address (which may be your home office address) on the forms so if you don't feel comfortable doing that or you travel a lot, you might want to hire a RA. You can typically get one in most states for about $50/year. I tried to look, and there didn't seem to be an added benefits for the extra $250 for this company. 2. Similar companies are charging $80 to file your EIN. Like what? It's free. Your EIN stands for Employee Identification Number, it's like a social security number for your business. Any time a form asks for your TIN (Tax Payer Identification Number) they're asking for your EIN or Social Security Number. They ask for your TIN on W9s. You can do this for free on the IRS website by Googling "IRS EIN Application." Go ONLY to the IRS.gov link, you have to do it during IRS business hours despite being online. The questions you ask you may be difficult, but these websites that are charging you are asking you the exact same questions and charging you for nothing that you aren't already answering yourself. 3. Bad contract templates → don't buy ones that aren't for your industry A lot of companies out there are offering very generic templates and you'll end up with like wording for a construction project in your wedding planning contract. You don't need to be paying hundreds of dollars for these templates so maybe don't spend $100-$300 for literally every single contract you need and the issue of going to a local attorney is that they won't know the nuance of your industry to include. This is why we have the Contract Vault which has all the contracts you need for $30. Ethically I could charge $500 for this because there are contracts in there that every business owner needs i.e. a client contract, a contractor agreement and a privacy policy and then we have our cancellation, postponement and release agreements that are good to have on hand. If you need a template, buy my templates then if you want to have it reviewed then you can take it to a local lawyer and spend the money on that instead of more expensive templates. 4. You can form your LLC through the state website. Using an online service has little benefit, like the EIN. Again, paying a third party is silly because they're asking you the same questions your state website will ask. On the flip side, a lot of people think that an LLC formation is like an EIN, that it's just a form online. Yes, true, but it's all the things that go into it after forming an LLC like a new EIN, a new bank account, having an operating agreement, updating your business license, have meeting minutes, etc. These are a handful of the things you need to do. We walked through these steps in episode 257. A third party company should be giving you these resources along with the filing, but I've seen from experience that's not always the case and a lot of it can fall through the cracks. I also don't believe it's the responsibility of the companies to notify you about your annual fees and annual filings, and I've seen students have their LLCs dissolved because they did not keep up with these annual things because these third party companies did not educate them on what they needed to keep up with. Most of the filing steps you can do on your own and for those you can't our ProfitRx membership can walk you through them for $100/month. While we want you to stay for months and months, you could join for one month, form your LLC with our trainings, and then be done. 5. Trademarks → online services are generally a no. For some context, I hired an attorney for my Unf*ck Your Biz. That went through with no issues. I did my own for Profit Rx and had a couple minor hiccups that if I had hired a trademark attorney these would not have happened. I got an Office Action which is a letter you get back that says you have x,y,z issues to be corrected and sent back. Mine were only minor corrections I should be able to correct. Some Office Actions are much harder and would require you to hire an attorney, for example Likelihood of Confusion is a common one and you need to prove why there wouldn't be confusion, an attorney could tell you if this is a red, yellow or green on likelihood of proving this. Major hiccups can cost you major money. What I recommend to my ProfitRx students is that they do a general search for their business name. If they see nothing, you can file on your own but if you see something remotely similar or competitive, I would recommend hiring an attorney. Don't forget to sign up for "7 Legal & Tax Myths: Busting Through the B.S. That's Costing You Money" at www.bradendrake.com/masterclass AND you'll get access to new bonus resources. I'll see you Tuesday, December 13.

Let's dive into another hot year-end topic as we discuss the financial closing checklists to put your year behind you.  People need to care about having their books updated before year-end. It's not for tax reasons, but so that you can clearly see how your business is doing and make strategic decisions for you and your business along the way.  You've got to get your books together. Make sure all of your income and expenses are represented properly. And if you're an S Corp, an LLC S Corp, or a C Corp, make sure you've got reasonable compensation, you're handling all of your benefits properly, and those are properly categorized. You've got to have a few key things nailed down such as income, costs, expenses, the dreaded balance sheet, etc. As we always say, the best work is done when the books are done – and it's for a lot of reasons! Ultimately, the process you'll use is the best process for you. In this episode, you will hear: Getting your books in order Reporting your income and debt service payments properly Understanding your cost of goods and expenses The beauty in a balance sheet Finding the process that works for you Subscribe and Review Have you subscribed to our podcast? We'd love for you to subscribe if you haven't yet We'd love it even more if you could drop a review or 5-star rating over on Apple Podcasts. Simply select “Ratings and Reviews” and “Write a Review” then a quick line with your favorite part of the episode. It only takes a second and it helps spread the word about the podcast. Supporting Resources: Xero Accounting Pocket More Profit Master Class Stress Less Tax Prep Master Class The Bottom Line® Newsletter Episode Credits If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com.  Let them know we sent you.

It is not too late to elect to be taxed as an S Corp for your business for 2022! You can still take the S Corp election right now, as long as you are compliant for 2022. You must already have an LLC or Corporation. You also need to have your books covered for 2022, at professional-grade, and be ready to run payroll. With an S Corp you're required to pay yourself a reasonable salary, so make sure you have the means to pay it before the end of the year. * Find everything you need at www.keepwhatyouearn.com! https://www.keepwhatyouearn.com/ * Questions about this episode? Text me!: https://my.community.com/shannonweinsteincpa * Chat about this episode in the Keep What You Earn Community – http://keepwhatyouearn.circle.so * Related Episodes: 152. Taking Advantage of the Employee Retention Tax Credit with Kristen Engeron 155. Finding the Right Advice with Mike Jesowshek, CPA 160. How to Manage a Business with Multiple Owners with Jeremy Wells, CPA, EA * Hire us: https://www.fitnancialsolutions.com/accounting * Find me on IG @shannonweinstein * Meet me face-to-face on YouTube: https://www.youtube.com/channel/UCMlIuZsrllp1Uc_MlhriLvQ * Featured in Yahoo Finance! Read more here: https://finance.yahoo.com/news/10-bookkeepers-accountants-watch-2021-113800161.html The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.

On today's episode of the podcast I'm revisiting LLCs and business entities. If you're new to the podcast, or need a refresher on LLCs, I'm diving into my small business blueprint during this episode and I've created a timeline of past episodes (listed below) where I dive into specific aspects of LLCs. Be sure to download the copy of my Small Business Blueprint, included at the bottom of these show notes. I was recently talking with my marketing manager, Emily, and she pointed out I haven't had an episode about LLCs recently. I've covered this topic several times, but I know that not everyone listens to the podcast all the time or you may have listened for 6 months to a year and then felt like you had a pretty good grasp of the content I cover. If I'm doing my job correctly, my hope is that at some point you will have fully implemented all of the things I have to teach and your business will be in tip-top shape and maybe you will have hired us for on-going bookkeeping and tax services. Rather than go back and rehash everything I've said in past episodes and make a new, long episode, I made a timeline of these past episodes and the order you should listen to them to essentially create your own free mini course on LLCs. Check them out in the order listed below. 078 - How LLCs are like a magic bubble - You'll learn how LLCs legally protect your personal assets 080 - How LLCs are like science - Like episode 78, these is also an audio version snippet from the LLC chapter in the first copy of my book. 083 - What are the tax benefits of an LLC - Learn what juicy tax benefits come from having an LLC. 116 - Can I Form My Own LLC? - Now that you're sold on LLCs, we'll talk about if you form your LLC on your own. 081 - Starting an LLC & Banking - How to form your LLC and the banking requirements that go along with it. 042 - When is it Time to Form an S Corp - An S Corp is a tax status, not a type of entity. You have an LLC first, then you elect for your LLC to be taxed as an S Corp. 231 - My S Corp Cost Me MORE in Tax Last Year - One of my favorite, most downloaded episodes ever, I talk about how having an S Corp cost me more in taxes for the year. 104 - Is There a Tax Advantage for a Corporation? - Most of you probably don't need to be a C Corporation, but if the thought has ever crossed your mind, this episode will answer your questions. 147 - Answering your tax and business classification questions - A Q&A that wraps up this mini LLC podcast series. Now, onto my Small Business Blueprint, which is featured in Module 2, Lesson 4 in my Profit Rx curriculum. After we decide what your business entity should be, we go through the blueprint, which you can get here.

On today's bonus episode of the podcast I'm sharing how to pay yourself based on your business structure. This episode is for you to get verification that you're paying yourself correctly, discover you're doing it incorrectly and learn how to change your system, or learn how to do it in the first place. Always a bit surprised about this question, but when I think about it, it is confusing and was something myself and my friends chatted about when we started our law firms, because we didn't even know. When I started my business several years ago, I joined an incubator as a solo practice with a group of six of us who passed the Bar exam at the same time and the law school has a faculty member that runs a six week incubator on how to start your legal business. So today, I'm breaking it down. What's the lingo and how does it work? On the next episode of the podcast I'll be going into greater detail about the different types of business entities so if you feel lost during today's episode, check out Thursday's when it comes out then head back here. For tax purposes, LLCs and sole props are taxed the same. We know LLCs and sole props are basically the same. These types of business are based purely on profit - you have income, expenses and profit. All the profit is your money because you and your business are the same and that is what you are taxed on. You pay your taxes on this profit whether or not you pay yourself. So what does that mean? You have income. You have expenses. You have profit. All the profit is your money. You pay taxes on it regardless of whether you pay yourself. Paying yourself isn't a "taxable event." This is why sole props can technically just use personal bank accounts, which we, of course, don't recommend. Instead, you have a personal account and can simply transfer yourself money from your business bank account whenever you want. That's paying yourself. And we love that. It's good to develop a habit of paying yourself because it forces you to be profitable. Paying yourself in a routine way breaks the habit of paying yourself when you need money for groceries or a car payment and helps you budget better when you have a set, routine income coming in. Inside Profit Rx I encourage beginner business owners to pay themselves every Friday because we do a finance Friday routine where we update our bookkeeping, pay ourselves, follow up on any invoices we're owed or payments we need to make, and check our credit score. With partnerships and multi-members LLCs, it's similar. You're taxed on all profits, but paying yourself is ESSENTIAL because otherwise, you have taxable income with no actual income to pay that tax. And yes, you should be paying the taxes personally. Let's say you have a partnership and your business makes $100,000. You have expenses of $40,000. Now let's say you leave that remaining $60,000 in the bank. Assuming you are in a 50-50 partnership, each partner is going to end up reporting $30,000 in profit on your tax return. You get a K1 that reports that. It shows you have $30,000 in profit and $20,000 in expenses. And let's say you have a 20% tax rate, you're going to owe $6,000 in taxes. If your business hasn't paid out any money, you're going to owe $6,000 in taxes but you haven't pulled any money out of the business to pay that tax and you don't want to wait until tax time to pull that money out. Ideally, you should be paying quarterly estimated taxes throughout the year so you want to pay yourself throughout the year as well. When you are in a partnership, the business should not be paying the taxes. A partnership is a pass-through entity meaning your taxes are based on your personal income, like an LLC or sole prop. The example I like to give is if Partner A is single with no other income, their entire income is the $30,000. Let's say Partner B also has a full-time job making $50,000 plus a spouse making $100,000 plus the $30,000 is $180,000 so that's going to put them at a different tax bracket than Partner A which is why the business does not pay the taxes. So it's really important you pay yourself in your partnership. Once you have an S Corp, you are going to pay yourself in two ways. You have to put yourself on a reasonable minimum salary under the law and ideally you want that to be on a routine basis, though legally it can be a lump sum payment. I like to run salary twice a month. I process it in my business on the 15th and the last day of the month and that's when I do it for my employees too. Once you pay yourself, anything left over is your profit and you can transfer additional profit to yourself and we treat that as a profit distribution. Salaries are subject to both income tax and self-employment taxes and your profit distributions is only subject to income tax which is how S Corps save us money. Ideally, you want to pay yourself these distributions on a monthly or quarterly basis though the vast majority of people, including myself, are not doing it in this ideal way. Not ideal, but I pay my personal credit card from my business bank account as the profit distribution. In the New Year, I'm going to be increasing my salary and I won't need to do this anymore. Want more information? Check out Episode 56 of my podcast, Paying Yourself in a Single Member LLC. If you have any questions, post them in my Facebook group, Braden's Besties. I'd love to chat about them.

Today's Tax Tuesday episode answers several listener questions on HSAs, S-Corps vs. LLCs, and reducing your taxes with rental properties. Eliot Thomas hosts, along with Jeff Webb, CFO of Anderson Business Advisors.  Online we have Dana, Dutch, Piao, and Troy - all kinds of resources there to help answer some of your questions. In this episode, you'll hear our advice on the tax benefits gained from being an LLC, S-Corp or C-Corp, and we'll answer a couple questions concerning HSAs - their contribution limits and investing with that HSA money. There are also some questions answered about home offices, ITIN numbers, bitcoin and of course a little bit about short and long-term rental properties and their tax implications. Submit your tax question to taxtuesday@andersonadvisors. Highlights/Topics: "Can you please explain the difference between an LLC, a C-corp, and an S-corp? Can an LLC also be a C- or an S-corp? I understand that C-corps and S-corps are tax elections, but are they also a type of entity?" –LLC is a legal entity, it is not a tax entity. If you want anything else like an S-corporation or C-corporation, you actually have to tell the IRS that, make an election. "Are the limits for contributions a monthly or annual amount? On irs.gov, the limit as listed is $3200 for single and $7200 for family." - the contribution limits are annual amounts. "My accountant thinks I should switch from an S-corp to a Schedule C," that's a sole proprietorship on the 1040, "because my profits are below $80,000–$90,000, and the S-corp is expensive, and I'm just one person, so I do not want to grow any bigger, and I'm happy with the sales. My question is, what is best for me, not the company? What happens if I switch? What is better for retirement and social security as I am 56 years old?" - You are going to pay for a tax return to the S-corporation that you wouldn't have to pay for extra on Schedule C. There's some work to do to put that Schedule C together. Your 1040 may get a little more expensive. If you have a health insurance plan for yourself that you're paying for, that should be paid for by the S-corporation. It will save you a good deal of money. "Can you convert a personal vehicle into a business vehicle if you only use it for business? What if you only own one vehicle? Can you deduct mileage, gas, or anything else?" - You can do that, but you have to actually contribute the vehicle to the business. Because what we don't want is any personal use of this vehicle. The solution is to track your mileage. If you are one who drives a lot, the more you drive, the more mileage, the better this comes out - keeping it in your name as a personal vehicle. "Can I reduce my W-2 taxes for my job by owning rental property?" – If you are materially participating in your short-term rental—it's not really a rental to trade or business—yes, the losses from that could reduce your W-2 income. It's plausible, but you're going to have to be within these parameters, short-term rental, or long-term rental and meet the criteria for it. "I have a C-corp staffing business. Since Covid, I've been using my home office. The home is in mine and my son's name. How can I count for the space used as an office for a tax deduction? “What is your advice for a small business owner on employing people who only have their ITIN number pending the social security number?" -Basically, you're not allowed to have people with an ITIN as employees. They have to have a social security number and be registered in the US to be here. "Can you discuss the step-by-step process of completing a 1031 exchange? - The forward 1031 makes more sense, because keep in mind, you cannot touch the cash. You also need a Qualified Intermediary. Determine if you want to do a forward 1031, a regular 1031, or do you want to do a reverse? "I have a question regarding investing with my HSA. Does an HSA function like a Roth IRA in terms of paying UBITs (unrelated business income tax)? In other words, if I invest my HSA in crowdfunding or syndication, for example, will I have to pay UBIT?" - You need to be very careful with the investments that you're going into. To your question, yes, it's subject to your HSA, it's subject to UBIT. If you invest in a real estate syndication, those typically run for four to five years. That money's going to be locked up in a hard asset that you can't get to. "Can I write off a loss selling my bitcoin with a $10,000 loss? I bought it at $26,000 and bought it right back at $16,000." - It's not allowed for you to recognize a loss on that. You've got to wait 30 days. "My understanding from a tax perspective, an LLC taxed as a C-corp and a traditional C-corp receive the same benefits such as medical reimbursement, administrative office, retirement plan, et cetera. (1) Can you explain the positions of the LLC taxed as a C-corp? Do I still need a president, vice-president, treasurer, secretary, or just member managed? - Those positions are usually required by state law. It has nothing to do with how they're taxed. It has to do with how they're formed. (2) Why would anybody form an LLC taxed as a C-corp over a regular C-corp? If there is no plan to take it public, why choose one over the other? Cost to maintain, paperwork required, et cetera?" - Yeah, easier form, less criteria behind it, a C-corp is required to have certain meetings, et cetera. You don't necessarily have that with the LLC. "Is it best to start an Airbnb business now or wait until the beginning of the next year for tax purposes? What do you think the best options are?" – You don't need to do cost segregation. It's not going to help you, unless you're renting this property out for a lot of money, like it's a beachfront property and a primary or something like that, and you're getting $10,000 a week for it. I would conserve it or save that cost seg for potentially 2023. Check out our events coming up later this month. Resources: Email us at Tax Tuesday taxtuesday@andersonadvisors.com Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/ Anderson Advisors https://andersonadvisors.com/ Anderson Advisors on YouTube https://www.youtube.com/channel/UCaL-wApuVYi2Va5dWzyTYVw

“Employees pay the highest percentage of taxes. Big business and investors pay the least.” – Robert Kiyosaki   In today's rebroadcast episode, Jason A. Duprat, Entrepreneur, Healthcare Practitioner, and Host of the Healthcare Entrepreneur Academy podcast, sits down with Tom Wheelwright, CPA, and CEO of "WealthAbility." Tom highlights how your business can be the best tax shelter. We also learn how to save more money while increasing your gross income, as well as tax strategies for long-term tax reduction. Tune in to learn more from Robert Kiyosaki's Tax Advisor himself!   3 KEY POINTS: The government wants and supports business owners for the sake of the economy. One beginner mistake is handling taxes yourself without having a financial partner. Instead of asking if it's deductible, the better question is “How do I make it deductible?”   EPISODE HIGHLIGHTS: Tom began his career with Ernst & Young, where he spent seven years. He went on to work for a Fortune 1000 company and has spent 25 years buying and selling CPA firms. Tom was handpicked by Robert Kiyosaki to be one of his Rich Dad advisors. He serves as Robert's tax advisor as well. He's authored two chapters in “The Book of Real Estate” by Robert and contributed to four other books. Most recently, Tom has been touring with Robert providing financial education. Together, they have 50 CPA firms worldwide. Tom left big company accounting because he wanted to work with entrepreneurs. When business owners work from home, they get a tax benefit. However, employees don't so there's massive inequality. You should consider starting a side hustle. It allows you to put extra money in your pocket and offers massive tax savings that can add up. One small business tax strategy is to have a home office. Rather than take a flat deduction, itemize. Also, it's better to claim % of rooms vs % of square footage. If you set up a home office right, not only does it give you a deduction for a portion of the utilities, maintenance, and even the cost of the house, but it even gives you a bigger deduction for your car because it turns your commute into a business expense. Ultimately, you want to evolve into an LLC or S Corp for tax deductions. With an S Corp, only your wages are taxed, not the distribution. An S Corp can cut your taxes in half. Tom cautions against filing as a sole proprietor because it's risky and costly to set up. In addition, 100% of your net income is subject to social security tax. Never plan to be small. Act like a big guy and get big guy benefits! Business owners often overlook the fact that business travel and meals are tax-deductible. Don't intermingle funds. Your business isn't a hobby. You must behave like a real business to reap the best tax benefits and optimize write-offs. Not only is it okay to employ your children, but the government likes you to employ them and they'll give you tax benefits. Children can earn up to $12,000 tax-free, allowing them to save for college more effectively than a 529 Plan. As an entrepreneur, there are three tax planning principles to keep in mind: reduction of taxable income, tax credits, and tax rates. Focus on permanent tax benefits vs postponing paying taxes. Have a team including a tax advisor, attorney, insurance agent, and bookkeeper.   TWEETABLE QUOTES: “If you take your money and you put it back into your business, you don't pay any tax.” – Tom Wheelwright “Employing your children is a great way to teach them how to work and the value of money and investing.” – Tom Wheelwright   CONNECT WITH JASON DUPRAT LinkedIn | Facebook | Instagram | Youtube Email: support@jasonduprat.com Join our Facebook group: https://jasonduprat.com/group   RESOURCES Want to become a Ketamine Therapy provider? Enroll NOW in The Ketamine Academy course: https://ketamineacademy.com/presentation Sign up for one of our free business start-up Masterclasses by heading over to https://jasonduprat.com/freemasterclass Have a healthcare business question? Want to request a podcast topic? Text me at 407-972-0084 and I'll add you to my contacts. Occasionally, I'll share important announcements and answer your questions as well. I'm excited to connect with you! Do you enjoy our podcast? Leave a rating and review: https://lovethepodcast.com/hea Don't want to miss an episode? Subscribe and follow: https://followthepodcast.com/hea   RELATED EPISODES: #248: ERIC MILLER: BUILD BUSINESS PROFITS, ENTERPRISE VALUE & ASSETS AS A PRACTICE OWNER #132: TACTICAL TUESDAY: PROTECT ASSETS & LIMIT LIABILITIES WITH AN LLC #232: TACTICAL TUESDAY: TWO FACTORS THAT IMPACT YOUR EARNINGS AS A BUSINESS OWNER: TAX RATES & RETIREMENT PLANNING   #HealthcareEntrepreneurAcademy #healthcare #HealthcareBoss #entrepreneur #entrepreneurship #podcast #businessgrowth #teamgrowth #digitalbusiness

If you've been thinking about starting your own business, our resident business expert and CPA Jennie Steinmetz is here to tell you everything you need to know. You'll learn about regulations, registration, sales tax, payroll tax, R&D tax credits, B.A.I.L. (not the prison kind), and more. Listen in now!   0:00 Intro   2:18 What laws and regulations should you know about when starting a business? 3:05 What does an S-corp entail? 4:04 Where all do you need to register your new business? 5:10 What is an EIN? 5:41 What are some of the sales tax requirements? 9:34 Sales tax and location, location, location 12:45 What all do businesses pay sales tax on? 14:07 Payroll tax requirements 16:25 R&D tax credits 18:34 What's your top tip for anyone starting a business? 21:53 What's your favorite thing about organized clients? 23:08 Software and starting a business How to choose the right entity for your business (ebook PDF) Should your small business be an S Corp? Does your business need an employer ID number? How to decide on the best business structure to protect your assets Should your e-commerce business be collecting sales tax? How SALT deductions impact your taxes R&D tax credit podcast The IRS's “Starting a Business” kit South Dakota Secretary of State

Hallo zusammen! Das Jahr neigt sich dem Ende, die Tage werden kurz, das Wetter fies und kalt – welch' bessere Zeit gäbe es, sich mit einer dampfenden Tasse niederzulassen und einfach ein wenig zu plaudern. Dafür ist der Kaffeeklatsch ja schließlich da – und in der heutigen Folge legen Michael und Thomas dabei einen großen Schwerpunkt auf Fragen zu konkreten Themen zur Spielpraxis, die sie erreicht haben. Davor gibt es ein paar Themen vor dem Thema, immerhin war der Scorp auf der Dreieich-Con, der Goldene Stephan wurde verliehen und unsere Jahresumfrage steht ebenso bevor wie neues, weihnachtliches Merch. Und selbstredend gibt's dazu die Medienschau, sowie weiterführende Links, Infos und Timecodes unten in den Shownotes. Viele Grüße, eure DORP 00:00:29 Intro 00:01:18 Feedback-Schleife 00:03:49 Der Scorp war auf der Dreieich-Convention 00:07:03 Der Goldene Stephan 2022 wurde vergeben 00:11:34 Die DORP-Jahresumfrage 2022 steht bevor! 00:13:44 Auch dieses Jahr gibt es einen Ugly Christmas Sweater 00:15:13 Medienschau: Drachenlanze – Mord in Tarsis 00:20:07 Medienschau: Actraiser Renaissance 00:28:25 Zu unseren Themen! 00:28:47 Sind Rollenspiel-Blogs noch zeitgemäß? 00:35:35 Orga-Hilfen für die Spielleitung 00:40:09 Nutzten wir Bilder aus Abenteuern am Spieltisch? 00:41:22 Haben wir Etikette-Regeln am Spieltisch? 00:44:45 Was tue ich, wenn meine Gruppe randalierend durchs Land zieht? 00:47:22 It's treason, then – Verrat innerhalb der Gruppe 00:52:53 Sermon 3.6 00:53:45 Adieu 00:54:43 Der Nach-Teil

On today's episode of the podcast I'm serving up some finance hot takes. I start off the episode talking about some wisdom tooth pain I'm having which, unrelated to the podcast topic, led me to my first hot take - The US insurance system is messed up and we should not need to pay separately for dental and eye insurance. Hot Take #1 - Credit is sometimes worth it and debt is not a moral shortcoming. Not all of us have the luxury of having parents pay for our college so we have college loan debt. A lot of us need a vehicle and may need to take on a car payment. Also not a moral shortcoming if you have personal credit card debt, it happens. We live, we learn and we move on. When it comes to debt in business, it comes down to investing and the ROI. I shared on my October Profit Report that I racked up credit card debt last year to get ready to launch Profit Rx, which I was okay with because I knew there was a high likelihood that I would make it all back. I ended up making about $20,000 in the first two months of launching the program so it had a good ROI. I did the same thing again this year with branding and Drag Tax launch. I'm launching Profit Rx again next month and hoping to pay off those credit cards and fingers crossed also build my business savings account and slush fund so I won't need credit card debt in the future. Hot Take #2 - You don't need a bookkeeper right away in your business A lot of bookkeepers might disagree. They might suggest you need a bookkeeper and an accountant right away. I disagree, especially if you're a sole prop or a single member LLC, it doesn't have to be complicated, you don't have to create your own balance sheet, really all you need to do is track your income and expenses to know how much money you're spending and making which for a lot of new business owners you can do on a spreadsheet. Exceptions to this are if you're investing a lot of money into your business, especially if you have a business partner and you're both putting a lot of money in and hoping to make this happen pretty quickly. Examples of this would be a wedding venue or a physical retail location, then it might make sense to have a physical bookkeeper right away because you're dealing with a lot of product as soon as it starts. Hot Take #3 - Paying $0 in taxes isn't it If you're someone who believes that taxation is theft or unconstitutional you can log off and find someone else, that's not my vibe and not what I'm teaching. If your goal is to pay $0 in taxes, if you are running a normal service-based or product-based business, you're only going to pay $0 in taxes if you are not making profit, and who wants to run an unprofitable business? If you spend 100% of the money you have coming in on deductible expenses, you aren't making money from your business and the profit is what helps your personal finances and savings. Are you going to short change yourself thousands to stick it the IRS? Hot Take #4 - Credit card fees are a cost of doing business I get it, they aren't fun, but it's a cost of doing business and we have to stop bitching about it in this modern era of doing business by the books. Unless you're taking cash under the table or doing big contracts over Venmo is not professional. Same thing with contracts - if you're someone who is regularly sending contracts you should be doing it electronically by now. Stop sending the PDFs. If you use a platform that has ACH capability you can tell your clients that you prefer ACH because you don't lose processing fees. If the credit card fees are really eating into your profit that much, it's time to raise your rates. DO NOT pass the credit card processing fees onto your clients. No one wants to be nickel and dimed and it's not legal in some states. Hot Take #5 - Stop being mad at people if they want to 1099 you I got a DM recently from someone who was frustrated that a client was giving them a 1099 and could they go back and charge them more since they hadn't factored paying taxes into the price. I told them no, you already had a contract and in the future if you want to buy a house or show proof of income from something, you'll need tax returns. On the flipside, please stop sending 1099s when you don't need to. The rules are a little complicated but I have a thorough blog post on them here. You don't need to send 1099s if you pay people via PayPal, credit card, debit card, or if you are paying someone who has an S Corp or a C Corp. I get 1099s every year and then I need to print them out and send them to the IRS with a letter explaining why the 1099 is not reflected on my taxes. It's important to understand proper 1099 rules. Hot Take #6 - You need to pay yourself from the beginning Focus on profit from the beginning, at least a little bit. This is part of the philosophy of the Profit First system. Otherwise we get in this habit of allowing our business to not be profitable. Then we start kicking the can and don't get in the habit of paying ourselves. Before S Corps and salaries I encourage people to pay themselves every Friday or every other Friday as part of a finance Friday routine. Profit First is a system that encourages you to have five different bank accounts and separate your money across them. On the surface I like the system but in practice I've found many people use three bank accounts. What I teach in my book, is that I like to have people automate their tax savings into a savings account linked to the bank account. Having five bank accounts complicates your bookkeeping especially if you use something Quickbooks and have to link them all. I've also found a lot of people have trouble sticking to the five bank account system so if you're going to half ass it, it's not a good system for you. Stay tuned because I'll be having bonus episodes for the next three weeks AND the doors to Profit Rx will be reopening (with bonuses) in December.

This week, Kelsey joins me again to chat about the end of year strategies you need to know as an entrepreneur.    Kelsey and I share how you can set up a custom end of year strategy for your business and what you need to look at if you want to make sure your business is ready for the upcoming year.     Join us in this episode to learn how you can get a head start on your strategy before Christmas comes!   In this episode, Danielle also discusses:    How to get things in order from the start 2:06 Giving ourselves bonuses as business owners 5:23 How to know if you're profitable or at a loss 7:20 What to do if you're at a loss 9:42 Becoming an S-Corp 12:06 Retirement plans 13:34 Donating to charity and taxes 14:48 Connect with Danielle: Website | https://www.kickstartaccountinginc.net/ Facebook | https://www.facebook.com/kickstartaccountinginc/ Instagram | https://www.instagram.com/kickstartaccounting  Twitter | https://twitter.com/KickstartAcct   Things Mentioned in Today's Episode:  Book your FREE Discovery call: https://kickstartaccountinginc.com/book-a-call/ Test your Financial Health: https://kickstartaccountinginc.com/checkmyfinancialhealth/   Learn how to pay yourself as a CEO - https://www.kickstartaccountinginc.com/getpaid

This week, Kelsey joins me again to chat about the end of year strategies you need to know as an entrepreneur.    Kelsey and I share how you can set up a custom end of year strategy for your business and what you need to look at if you want to make sure your business is ready for the upcoming year.     Join us in this episode to learn how you can get a head start on your strategy before Christmas comes!   In this episode, Danielle also discusses:    How to get things in order from the start 2:06 Giving ourselves bonuses as business owners 5:23 How to know if you're profitable or at a loss 7:20 What to do if you're at a loss 9:42 Becoming an S-Corp 12:06 Retirement plans 13:34 Donating to charity and taxes 14:48 Connect with Danielle: Website | https://www.kickstartaccountinginc.net/ Facebook | https://www.facebook.com/kickstartaccountinginc/ Instagram | https://www.instagram.com/kickstartaccounting  Twitter | https://twitter.com/KickstartAcct   Things Mentioned in Today's Episode:  Book your FREE Discovery call: https://kickstartaccountinginc.com/book-a-call/ Test your Financial Health: https://kickstartaccountinginc.com/checkmyfinancialhealth/   Learn how to pay yourself as a CEO - https://www.kickstartaccountinginc.com/getpaid

On today's episode of the podcast I'm discussing the topic, “is your bank account leaking money?” I gave a presentation on this topic at Wedding MBA last week titled, “Crunch the Numbers: The New Six Figure Benchmark for Wedding Pros.” I'll be focusing today on one of the pillars from my talk – The Client to Piggy Bank Pipeline. The pipeline is the cash flow process of what happens to your money. You get paid by a client, the money goes into your business bank account, it pays for some of your expenses, it pays you a salary, maybe a distribution (these are all pipes your money goes down), it goes into your personal bank account, it pays some of your personal bills and then maybe it goes into your personal savings account to save for a purchase or pay off debt. You may remember about a year ago I launched my new message and program Profit Rx to shift the brand messaging to focus more on profit. In December I'll be opening the doors to Profit Rx with some exciting bonuses and an open/closed door model instead of an evergreen model so we can offer additional support and more 1:1 services including tax return services for the first time in the business only available to people in the membership or working with us 1:1 so we can help you stay organized all year round to help us help you at tax time. During my talk I discussed the pipeline and dove into what the top of the pipeline looks like and I asked the audience how much revenue they thought they would need at the top of the pipeline to create a life fundable business to have enough money left at the end of the pipeline to pay for all the things you need in your personal life. I like to argue that you should aim for $200,000 at the top of your pipeline, with the caveat that you are single or the only income for your home and have no other revenue coming in. Expenses for a lot of people are about 30% of their revenue (though this can vary widely) and about 20% for taxes leaving you with about 50%. This would leave you with $100,000 which may or may not be what you need based on where you live and what your personal home and travel goals are. When you envision your pipeline, envision it has a few leaks. A burst pipe would be something like a lawsuit against your business and money is flowing out. So what comes first? Focusing on revenue or on the pipeline? I believe the right answer is the pipeline. Getting more money into the pipeline is marketing. I'm focusing on the tax side of things and fixing the pipeline helps you keep money in there. A few ways to fix your pipeline are: Decrease expenses – this will help you lower the revenue at the top and still get the same tax home pay you are looking for. Reduce your taxes – this includes business deductions, making sure you're tracking them so you know what you spent it on and so you're prepared if you're ever audited. I have a bookkeeping template available both in Profit Rx and available on its own for $10 if you don't currently have a bookkeeping solution. Form an S Corp – Once you determine if an S Corp is right for your business, if you form one (making sure it's done correctly) putting yourself on payroll can save you money. This may not make sense for you though if you are a high-income earner outside of your business as you may be maxing out your Medicare and social security in your full-time job. Listen to next week's episode for more information on this. Running your health insurance through your business – this is another big way to save money as an S Corp. This really only works if you qualify for self-employment health insurance deductions which means you can't qualify through any other means like another job or a spouse. Leverage retirement savings through your S Corp – Learn more about that on the Retirement Savings blog post here. Those were some quick tips for fixing your pipeline with tax strategies because taxes are one way that money leaks out. We can also fix it by maximizing profits. This is why I do my monthly profit reports and interview my business owner friends about their profits so we can get a better sense of what this means to different people and different ways to increase profitability. How can you increase your profit? Increase your income – raise your prices and/or increase your marketing to take on more projects Decrease your expenses – stay on top of your bookkeeping so you are always aware of what you are spending your money on. Focus on your time – what offers/services are the most profitable based on the time it takes you to deliver this offer? What makes you the most amount of money with the least amount of work? Review your profit matrix – Compare your hours worked to your revenue and profit. Focus on what it is that you like to do. Think of three tasks in your business - one that you love doing, one that you hate doing and would love to outsource and one that's neutral. An hour of what you love will make you feel more energized than an hour of what you hate. This is profitability based on feeling. Diving into these can help you better understand what is making you the most profit and saving you the most time and then with your leftover time you can do more marketing to increase revenue. Protecting your profit margins is where your legalities come into place. This includes contracts, insurance, trademarks, and layers of protection. If you need contracts, click here. If you are looking to protect your business, start with my blog posts. Need a trademark attorney referral? Click here for the trademark firm I recommend. Prefer to listen? I talk about all of these topics in their own dedicated episodes and you can search podcast episodes here. Optimize your cash flow by segmenting it into the places it needs to go. You do not want it flowing from your client to your personal bank account! Cash flow management helps you get off the WTF Happened to my Money Hamster Wheel. In Profit Rx I teach you Cash Flow 1.0 to save for taxes and manage your income. I also go into 2.0, 3,0, and 4.0 that I recommend at different stages of business. My call to action to you is to start actually thinking about your cash flow in terms of this pipeline. Money comes in from your client. What happens to the money after it goes into your business bank account? Does it just sit there or do you pay your personal bank account regularly? We want our money flowing freely at a set schedule. Don't just pay yourself when you need money for groceries. If you enjoyed this episode, share a screenshot of the episode and give me a tag on Instagram @bradenadamdrake.

In this Advance Placement Rashad broke down a Financial Planning blueprint, he spoke about S Corps, & he explained Roth IRAs for Kids. #financialplanning #rothira #scorp   Link to EYL University: https://www.eyluniversity.com/join1See omnystudio.com/listener for privacy information.

As the end of the year approaches, it's important to be mindful of potential tax mistakes that could have a negative impact on your finances. As a fitness entrepreneur, you may be especially vulnerable to making these errors. Tune in to find out more! Episode Highlights: 3 Year-End Tax mistakes to Avoid The problem with S-Corps in December Difference between tax preparers & tax advisors Links: Map How Your Money Flows: Map My Money Save Taxes in your business: Free Consultation Follow me: https://www.instagram.com/thepatdarby Weekly Tax Tips & Deadline Reminders: Get Tax Reminders FitPro Business Survey: Take 5-Min Benchmark Survey

Choosing the right business structure can be overwhelming for most business owners. That's mainly because not everyone has a background in accounting or tax law. And it's no surprise that there is often some confusion about what S Corp and C Corp mean, their benefits and disadvantages, and what factors should be considered in choosing which one would work best. Join Matt DiFrancesco and Stuart Sorkin, Founding Member at The Business and Legal Advisors, as they discuss industry insights and the key differences between the two business structures to help entrepreneurs and collision shop owners make an informed decision about which is right for their business. They also talked about: (02:46) How Stuart got involved in planning with automotive collision shops (05:12) What lifestyle practice means (07:17) The biggest challenge in the industry (07:47) How can shop owners overcome the shortage of talent (09:20) The importance of having employees sign a training bonus agreement (13:04) S Corp vs. C Corp (16:22) The biggest problem with S Corporations (18:59) Two drawbacks of becoming a C Corporation (20:57) What goodwill means (25:42) What business owners should consider in choosing a business structure (27:20) The real issue with most entrepreneurs Connect with Stuart Sorkin Email: SSORKIN@SHSPC.COM Websites: https://stuartsorkin.com/ https://businessandlegaladvisors.com/, LinkedIn: https://www.linkedin.com/in/stuart-sorkin-84a528/ Phone: +1 (301) 320-1152 Connect With Matt DiFrancesco: matt@highliftfin.com (814)201-5855 LinkedIn: Matt DiFrancesco LinkedIn: High Lift Financial Facebook: High Lift Financial About Our Guest: Stuart Sorkin is the founder of The Business and Legal Advisors, a consulting firm specializing in the financial and legal protection of business owners, executives, and entrepreneurs throughout the United States and overseas at every stage of their business life cycle. As a former entrepreneur, CPA, and attorney with more than 30 years of experience, he possesses a unique set of capabilities to assist a business owner with the challenges of growing and/or exiting a business. He works with startups and small to mid-size business owners to integrate their personal financial and estate planning goals with the development and implementation of growth and/or succession or exit strategy for their business. Stuart is also the co-author of "Expensive Mistakes When Buying & Selling Companies...and How to Avoid Them in Your Deals." Stuart Sorkin has been interviewed by the Wall Street Journal, Time Magazine, USA Today, Money Magazine, and BankRate.com on a wide range of tax matters. He is also a frequent lecturer on exit strategies, estate planning, and asset protection to various professional and small business organizations and associations. DISCLAIMER The information compiled and posted here solely represents the opinions and views of the guest. It might not be similar to the opinions and views of High Lift Financial. It is not a substitute for tax or legal advice or professional investment. Always consult your financial advisor with any personal or business planning queries. DiFrancesco Financial Concierge, LLC. d/b/a High Lift Financial is a Registered Investment Advisor registered with the State of Pennsylvania and subject to the State of Pennsylvania's regulatory oversight.

Today's Tax Tuesday episode answers several listener questions on S-Corps vs. LLCs. Eliot Thomas hosts with special guest Jeff Webb, CFO of Anderson Business Advisors.  Online we have some of the staff from Anderson – Dana, Dutch, Ian, Piao, and Troy here answering live chat questions. In this episode, you'll hear our advice on several scenarios regarding potentially switching from an LLC to an S-Corp and the likely tax benefits, along with several questions about purchasing property for your children to live in while they are attending school or just getting on their feet. Submit your tax question to taxtuesday@andersonadvisors. Highlights/Topics: “I have an LLC now for a small business, and I'm wondering what the benefits are of switching to an S-Corp and what the tax deduction benefits might be?”--- If it's an LLC, it's got liability protection. If it's not making a lot of money, (under $50K) – probably don't go the S-Corp route. “Can cost segregation depreciation be done on a property purchased one or two years earlier? If so, is it state-specific? Would it be a great option if that was a possibility with REP status?” You can go back in time and do the cost segregation. Let's say you bought the property in 2020. It's now 2022. You could do cost segregation. That depreciation from the cost segregation would appear on your 2022 return. If you do not have REP status or can't get REP status, normally cost segregation is not a great idea. “Is there a way to convert from a 401(k) to an IUL (Indexed Universal Life) or Roth without having to pay the high tax burden, or at least minimize the tax hit?” The problem is you are going to get a tax hit if you take 401(k) money and put it in an IUL. Anything you take out the 401(k), money's going to be taxed at ordinary rates. And if you're not 59½, you could be hit with a 10% penalty on top of it. “I'm a member of WREIN. I purchased a house and a condo in the past few months that two of my children currently live in. There is a mortgage and my soon-to-be daughter-in-law is on that with me. I pay the mortgage on the living costs, including tuition. Should I claim this home as a rental?” You can't just write a check or gift it and say, now I'm going to have them pay me rent back. The IRS has seen through that. That's a gift. It doesn't sound like they're paying anything so I see no rental here. “My son is 26 and in his second year of post-secondary education. The condo doesn't have a mortgage. I purchased it with funds from a private money lender in April that I have paid off with a HELOC from my primary residence. What would be the most advantageous way for me to claim this home, rent, and the best strategy? We've created a problem with our second home because we now have more than two private residences. Once again, I would probably deduct the HELOC as investment interest. Whichever one has the higher mortgage should be your second home. The next one would just be investment interest on an investment you own (the condo). And again, you can deduct the taxes on as many properties as you own. But again, you still have that $10,000 cap for state and local taxes. “Due to having two W-2s, I cannot qualify for real estate professional status nor can my partner. What is the best solution to minimize the tax bill coming at the end of the year? By the way, with both W-2s, I will be moving to a higher tax bracket that neither W-2 knows about. I will owe more taxes than they take out at the end of the year, unless I find some way to get my passive losses from depreciation available to lower my W-2 bill.” If you make $50,000 in each job, you're going to have a whole lot more taxes and probably going to be under-withheld because it's based on $50,000 on each job. REP status doesn't work. You could do a short-term rental. Be sure to adjust your W4s for two jobs/withholding. “I just moved to Arkansas and sold and purchased properties here in Arkansas through a 1031. How do we get taxed on the remaining amount that was not used as a 1031 replacement property? I reserved some of the money from the sale as I don't know what my tax bracket here is for taxation, and how much. I would be paying income tax. Can you give me an answer using the percentage of the sale?” Every dollar that you held back from the 1031 exchange is going to be taxed. And the first tax is going to be depreciation recapture, at a max of 25%. And the rest is capital gain at around 15%. “I'm interested in using an accountable plan. Can you differentiate between a home office deduction,” which is on Schedule A, I believe, “and requires an exclusive home office use, versus the administrative home office which appears not to need the exclusive use?” ‘Unreimbursed employee expenses' was eliminated at the end of 2017, so that doesn't work anymore. Your only choice (especially in an S-Corporation) is a reimbursement. “I'm not qualified as a REP (real estate professional) but with passive losses. Is there any way I can reduce my income with these losses and what can I do before this year is completed?” The only thing you can do with passive losses is offset them with a passive income, which effectively means you're not using your passive losses to reduce your income. Short-term rentals are not rental activity. “We have mainly W-2 income and also some investment properties passive. Our W-2 is too high to get tax deductions from its loss besides doing a short-term rental Airbnb. What are other ways we can deduct our W-2 income tax?” Max out those retirement contributions. Oil and gas is another still popular investment. There you have to have a working interest—that's very important—but it is a write-off that's substantially all of your investment for the most part. “We are about to apply for a HELOC. We do not own our home yet. My husband is the only moneymaker right now. We want to buy my daughter a mobile home. It's approximately $47,000. Our credit score is over 800.” I don't think this is a business, and I think wrapping an LLC around this property is a bad idea. But the daughter would have to be paying market rent. You would have to run it as a real business. Check out our events coming up later this month. Resources: Email us at Tax Tuesday taxtuesday@andersonadvisors.com Tax and Asset Protection Events https://andersonadvisors.com/real-estate-asset-protection-workshop-training/ Anderson Advisors https://andersonadvisors.com/ Anderson Advisors on YouTube https://www.youtube.com/channel/UCaL-wApuVYi2Va5dWzyTYVw

When it comes to Social Security - there are many approaches. If you are a small business should you become an S-Corp or make a W-2 Wage that you can put a higher percentage into a SEP IRA?Did any of that make sense or have your eyes glossed over? Let me explain it to you, walk along  side you and teach you what you need to Retire Confidently.Find out more about the Retire Confidently ProgramPurchase The Secure Solution: Creating a High-Quality Retirement in a Low-Interest-Rate World Telton W Hall, CFP® is a husband, father, retirement planning expert, small-town-boy at heart, nationally published author, sought-after speaker, former college basketball player, founder/owner/team member of Utah based Advanced Financial Planning LLC, hiking enthusiast, Jesus follower, business leader, team builder, and to the core Telton is an educator. 

Do you know what to do to ensure your business is Tax Compliant? As a small business owner we focus heavily on revenue and profit, afterall, that's what's going to keep the doors open, but what the heck do we need to know when it comes around to tax time? Our guest today, Charles Reed from Get Payroll, walks us through how to ensure our business is compliant with tax regulations, from how to set your books up correctly to walking us through the difference between being a Sole Proprietor, LLC's, S-Corp and LLC.  If you're ready to tackle your taxes, drive into this episode! To get in touch with Charles - Website: HERE Email: HERE LinkedIn: HERE Facebook: HERE Instagram: HERE To get in touch with Rochelle  The form link to book a call with Rochelle is here What type of networker are you? Take the quiz! 9-5 or Be Your Own Boss Quiz  Additional Resources: Instagram: HERE Facebook: HERE What type of networker are you? Take this QUIZ now!  Free resource to boost your networking: 5 Minute Networking Exercises  Ready to take the leap from your 9-5 to start your own biz Not sure? Take the quiz HERE Free networking training video here HERE

There is a lot of confusion around the need for Business Owners to form LLCs or S-Corps. So I have invited Tyrone Gregory, The Self Employment Guy, to talk about what business owners should consider when deciding to form a LLC or an S-Corp.

Ep.#11 [THEME FIVE] As we continue down this ESOP mini-series, we want to do some serious myth-busting by diving even deeper into the technical details on how ESOPs work. This two-part episode is all about deal structures, 1042 tax deferrals (similar to 1031 exchanges), seller’s potential to capture future equity growth via the form of warrants (similar to rolled equity), how to handle key executive compensation plans, and the shareholder benefits of transforming a company into an ESOP. In this episode, you will learn how an ESOP offers great tax benefits and how you can prepare to maximize your tax deductions before switching to an ESOP. Also in this episode, you will learn about the interview process from a trustee’s standpoint and about warrant options to ensure that the best interest of the employees are at the forefront of the deal without screwing over the primary seller. In part one of this episode, Keith Apton, the managing director of UBS’s ESOP Capital Group, talks about some false narratives with ESOPs, such as, “If I sell to an ESOP, I won’t get as much cash for my business.” He then talks about the 1042 tax code and discusses how converting the business from an S Corp to a C Corp could defer the gains at the time of the transaction and potentially indefinitely through estate planning. Keith tees up the topic of warrants and how they act as a form of rolled equity that can be as lucrative as the rolled equity in a private equity sale–except in an ESOP sale, the owner still has control over the direction of the company. Keith finishes this segment of the episode by sharing a story of what he thinks would change if S Corps had the same tax benefits as C Corps. In part two of this episode, Miguel Paredes, president of Prudent Fiduciary Services, is a trustee and shares stories about how a trustee keeps the employees’ best interests in mind without screwing over the seller, and even more so, being a partner that can help everyone get what they want out of the business during the transaction, and most importantly, in the future. Miguel goes deep into the mechanics of how warrants and SARs (stock appreciation rights) plans can be used to reward key executives with additional future equity based on the value they help create. He explains how exponential growth can happen when warrants for the seller are combined with SAR plans of the key executives and aligned with all the employees' incentives to grow the equity value of the company for their ESOP account. // WATCH THE INTERVIEW ON YOUTUBE: Intentional Growth™ Podcast What You Will Learn Part 1: How ESOP valuations compare to a strategic buyer. Various deal structures where an ESOP could potentially put more net proceeds into your bank account over the buyout period compared to a strategic buyer. How the 1042 tax code works, why it is similar to a 1031 exchange, and when it can be used. Why changing from an S Corp to a C Corp could potentially def

Calling ALL Women of Color!!! Listen up; we need to chat. Real-estate investing is a topic that is not only HUGELY important but one that I am passionate about. Why? Because I believe that Real Estate is one of the FASTEST and most POWERFUL wealth-building strategies. And I want to see more Women of Color taking advantage of it! Women are often told they're not good investors, but that's not true! Women are excellent investors when they understand the required steps and feel safe asking questions. Real estate can be an excellent investment for women because it offers the potential for significant returns and is a relatively safe investment. However, before investing in real estate, it's essential to understand the steps involved. In this episode of Women, Wealth, and Impact, I walk you through the steps to invest in real estate so that you can build wealth and take your financial future into your own hands. _____________________________________________________________________________________ Episode Highlights: Here is what's on the other side of that play button: [00:01:58] Have you fallen for the #fakenews that buying your first rental property is some complicated equation that YOU COULD NEVER figure out? Listen as I share the first thing you need to do to shift that "stinking thinking." [00:02:28] Where is your money going? Do you know? To become a confident real estate investor, you need to not only face your finances but become proficient in the language of money. I'll share some ways you can do that in this episode. [00:03:30] What's the difference between a sole proprietorship, an LLC, and an S-Corp? And which one is the best for real estate investing? I'm NOT a tax attorney, but I can share a few things you must consider before setting up your real-estate-rental business. [00:03:37] Ever heard the saying that the world is divided between two types of people: those who say, "wait to see what happens," and those who say, "I'll make it happen"? Learn how to become "a make it happen" woman by learning the systems and processes multi-million dollar investors use to source properties. [00:06:29] Are you a doer or a talker? In this episode, I'll give you the roadmap to implementation and holding yourself accountable so you can take action and achieve your real estate investing goals. [ 00:06:44] What is the #1 secret to building wealth through real estate investing? HINT: it's not what you think. Learn what it is by listening to this episode. Don't forget to rate, comment, and leave a review! Resources: Download The FREE 90-Day Rental Property Checklist Apply For The Road To Real-Estate Investing Join The Real Estate Investing 5-Day Challenge Join The Wealthy Woman Circle FREE Facebook Group _____________________________________________________________________________________About Jasmine Williams is a Real-Estate Investment Coach, Womanpreneur, and the driving force behind The Green Everything Community. With over 15 years of combined experience, Jasmine provides tips, strategies, and practical advice for wealth building through Real-Estate Investing. Connect with Jasmine Join Jasmine every Monday on Instagram Live as she shares proven savings, budgeting, and Real-Estate Investing Strategies. When you join the text community, don't miss exclusive content, prizes, and VIP Wealthy-Women Masterminds. Want more wealth-building resources? Join the Green Everything Facebook Community for more in-depth discussions about building wealth as black women. Are you ready to build wealth? Download your FREE 90-Day Rental Property Business Plan Checklist

Original Air Date: UnknownHost: Andrew RhynesShow: The Cisco KidPhone: (707) 98 OTRDW (6-8739) Stars:• Jack Mather (Cisco)• Mel Blanc (Poncho) Exit music from: Roundup on the Prairie by Aaron Kenny https://bit.ly/3kTj0kK

Original Air Date: UnknownHost: Andrew RhynesShow: The Cisco KidPhone: (707) 98 OTRDW (6-8739) Stars:• Jack Mather (Cisco)• Mel Blanc (Poncho) Exit music from: Roundup on the Prairie by Aaron Kenny https://bit.ly/3kTj0kK

Why profitability is the ultimate anti-vanity metric that will give you a quick read on the health of your business.How to start thinking about your time as part of your profit equation.One way to value your business that will rewire how you think about its profitability. The thrills of desire-based planning—and learning to consider and manage opportunity cost.Quotables“It's so easy to get wrapped up in ‘Oh, my podcast downloads are increasing', or ‘My mailing list is growing dramatically', or ‘My website traffic is going up'. None of that matters if you're not increasing your profitability steadily over time.”—JS“It's really tempting to just think that as soloists, we don't have any real costs so we don't have to think about profitability.”—RM“The thing I do like about an S Corp is it is financially separated—the business and your personal money is separated. You have to run payroll, you have to pay FICA, you have to do all that stuff.”—JS“You know how much leverage you have when you try to sell or even think about selling a business. What is this actually worth if I'm not here?”—RM“So you can take your $245 million and put it where the sun don't shine because you are wrong and I'm not gonna do what you're asking me to do, which is bad work.”—JS“It's what I think of as desire-based planning. You ask what do I want? What is my desire? Who do I want to serve? What revolution do I want to lead? What new thing do I want to learn?”—RM“Given that constraint of not the entire full tube of toothpaste, you get creative about how you're gonna get that last bit out.”—JS“The thing that always makes me sad for people is when I see them not making decisions because they don't know what to do—so they do nothing.”—RM

Is your company an LLC? If so then you might be paying SIGNIFICANTLY more taxes than you should be! Simply switching your business to an S-Corp can potentially save you heaps of cash you never knew you were throwing away, but time is running out to act. Why? Find out on today's Taxes Made Simple! JOIN THE TAX FREE WEALTH CHALLENGE TODAY! https://www.thetaxfreewealthchallenge... HOW TO WORK WITH ME

On today's episode of the podcast we talk about the times throughout the year you should be hearing from your tax professional (if not, you'll want to reach out to them). Have you gotten your free trial of the Profit Rx VIP Tier? You'll get a 1:1 with me, bookkeeping help, office hours and so much more, all part of the free trial, a $100 value, free for 30 days. 1. At the close of every tax season We file our taxes (hopefully on time) in April and review them with your tax preparer. If your tax preparer isn't reviewing your taxes with you, red flag

Health care matters not just for you but also for your business. In this episode, we examine how employers can set up medical plans based on their business structure and what strategies to apply to save on taxes.[01:28] Self-Employed Health Insurance DeductionIf you're self-employed, you will always get a business deduction for the health insurance costs that you incurFor Sole Proprietorship or Single Member LLC: deduct self-employed health insurance premiums on Schedule 1 of your personal tax return (1040)For S Corporation Owner: Have the S Corp pay for the insuranceAdd it to your W2 payroll as S Corp owner self-employed health insurance. Your payroll provider should know how to handle this.Deduct on your personal tax return (Schedule 1) If you are providing health insurance for non-owner employees, include those on their W2, in Box 12 with code DD[04:21] Options Available to Business Owners With High Medical CostsYou can utilize a Section 105 plan to turn personal medical expenses into a business deduction and be able to reimburse employees for medical costs incurred[06:16] Options are Available for Small Businesses With EmployeesSome options are: group health insurance, increased wages, HRA or QSEHRAFor small businesses with less than 50 full-time  employees that don't offer a group health insurance policy:With a QSEHRA, employers reimburse employees tax-free for medical expensesYou can offer yearly allowances of up to $5,450 for single employees and $11,050 for employees with a family[10:27] What Is An HSA and How Do They Work?If you contribute to an HSA, withdrawals are tax-free when used for qualified medical expenses and interest or earnings are NOT taxed The maximum you can contribute to an HSA for 2022 is $3,650 for self-only or $7,300 for familiesAn HSA is a great savings vehicle because there is no tax on the interest or gains earned within it[13:00] Final ThoughtsStart thinking about these health insurance options and be on top of tax planningKey Quotes“Taking care of your health is so important, and oftentimes as a busy professional, that's something that gets put to the side. And so there's also tax planning that comes into play when we talk about various aspects of health.” - Mike Jesowshek“I was afraid to bring employees simply because of this little piece of medical. I was afraid would cost too much. But there are options out there.” - Mike JesowshekResources MentionedBlog Posts:https://www.taxsavingspodcast.com/blog/what-health-related-tax-strategies-should-i-consider-for-2022 https://www.taxsavingspodcast.com/blog/how-does-the-deduction-for-self-employed-health-insurance-work --------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/taxIncSight Packages: https://incsight.net/pricing/Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/--------To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

Do I need to incorporate my side business? Which type of incorporation, S Corp, C Corp, LLC, is the right choice for me and my business? What are the advantages and disadvantages of each? These are just a few of the many questions Lori Vajda and Nola Boea had for special guest and business attorney Tanya Bower, a director with law firm Tripp Scott. From protecting your assets to establishing credibility, there's more to know about incorporating your small business than which corporation to choose. This was our most popular episode in 2021, so we're offering this encore because it's just that good.   Thanks for Listening!You can subscribe to Lori and Nola's show, (we love you and want to make it easy) on Apple Podcasts, Spotify, Google Podcasts, Stitcher, or wherever you listen to podcasts.We love hearing from you! Leave or speak your message hereIf you haven't already, please connect with us on Facebook! Would you like to be a featured guest or have your question, comment or review mentioned? Ask Muse!Sticky Brand LabIncome growth strategies are in the works. Come have a listen!In This Episode You'll LearnWhen incorporating your business may not be the right choice. What a prenup is in the world of entrepreneurship and why you need one.The main, and maybe even the most important reason, for incorporating your business.Why choosing the wrong type of incorporation could cost you personally and financially.While incorporating your side gig may reduce personal liability, there's another important reason to do so, as Nola and Lori found out, tax saving. That's right. Are you a musician on the side? Well, you musical instruments could earn a tax deduction. Photographer, hairstyle or yoga instructor? Yep, your equipment may all be deductible. Of course you should consult with an accountant or business lawyer before filing your taxes. As attorney Tanya Bower explained, knowledge about incorporation is power, and that power is the ability to know the best way to protect yourself and the future of your business.(4:45.17) The single biggest mistake entrepreneurs make when starting a business.(6:58.62) These missed opportunities could cost you more than just revenue. (7:39.66) This type of corporation allows you to control whether revenue is paid to you in a salary or in dividends. Knowing the difference can save you money.(11:58.60) The four main pathways for structuring your side hustle or small business.(24:29.62) Thinking of starting a cause related business? You'll want to know about this incorporation designation.Resources Subscribe to Lori and Nola's show, (we love you and want to make it easy) on Apple Podcasts, Spotify, Audible, Google Podcasts, Stitcher, or wherever you listen to podcasts.ConvertKit: Our #1 Favorite Email Marketing Platform   (This is an affiliate link)

How to Maximize Your Tax Benefits When Investing in Real Estate On this episode of the Investor Financing Podcast, Beau interviews Mark Perlberg, Real Estate & Business Tax Strategy at Mark Perlberg CPA PLLC and the host of The Mark Perlberg CPA Podcast, as they do a breakdown of the top real estate investing tax benefits. They also talked about the advantages of depreciation, tax advice, and flips and long-term rental holds. Timestamps [01:02] Beau welcomes Mark onto the show and opens up about the exciting topics that they will be discussing on this episode of the Investor Financing Podcast and shares his credentials specifically as a CPA. [04:00] What are the advantages of depreciation for business opportunities [04:28] Different ways to use and maximize depreciation [06:05] Cost segregation [07:20] From passive bucket to a non-passive bucket to use [07:43] An amazing strategy in tax savings [08:47] Getting the down payment back into the form of a refund [09:20] Entities for people who are flipping properties versus long-term rental holds [09:56] Mark's high level advice about entities [11:05] The only value you get in an S Corp from a tax perspective [12:16] Federal taxes, state taxes and self-employment taxes [13:25] How to get big savings by not paying your self-employment taxes [13:53] The big challenge of the people who are not getting the support they need from their advisors [16:13] The greatest challenge with entrepreneurs [16:30] Advantages of hiring a bookkeeper [19:48] Certain concerns about the series of LLC [20:30] Major tax changes [20:56] The last year with bonus depreciation being 100% [21:26] Other ways and opportunities to maximize bonus depreciation [22:11] How does the big multi-millionaires pay no taxes [23:09] Planning for the depreciation being phased out [23:49] How much do you pay in taxes? [24:06] Keeping a good strategist to keep more money [25:20] Amortize and write off organizational costs [27:15] The beauty of taxes and the ways to structure it [29:15] Where to go to find out more about Mark [30:20] Advance college planning services

Ep.#9 [THEME FIVE] Today we’re kicking off a new four-part miniseries on ESOPs to support Employee Ownership Month. Why are we spending four episodes diving into ESOPs? After over 400 Intentional Growth™ training sessions with entrepreneurs, ESOPs have repeatedly been a hot topic people are hungry for more in-depth details about. We end up answering the same questions over and over (which we love!), so we wanted to capture the answers to the most frequently asked questions around ESOPs–with the right experts–in a fun miniseries that can act as an ESOP 101 and 201 for all the people who want to know more. In this ESOP miniseries, Ryan has a co-host, Steve Storkan, the executive director of The Employee Ownership Exchange Network (EOX). EOX is a national organization that works to expand employee ownership across the U.S. by creating and supporting a network of non-profit state centers for employee ownership. Today Ryan and Steve interview Dave Diehl, the CEO of Prairie Capital Advisors, about the ins and outs of the transaction and what it takes to turn into an ESOP. This episode lays the groundwork for the next three episodes. Dave covers how ESOPs are valued, the process of selling to an ESOP, the unique tax breaks and how they work, the deal structure, when and how the seller (owner) gets their money, the role of the trustee, and how employees can begin to earn equity in the company they work for. Our goal in this episode is to give you the foundation–and context–you need to level up your understanding on how ESOPs work, what it’s like to run a company once it is an ESOP, and introduce the different topics we’ll be diving into in the next few weeks. Enjoy! // WATCH THE INTERVIEW ON YOUTUBE: Intentional Growth™ Podcast What You Will Learn The typical criteria needed to make sense for a business to become an ESOP. What the process looks like–and which advisors are needed–to sell your company to an ESOP. Why the seller gives the first offer in the negotiation process (usually this is the opposite when selling to a third party). Typical ways an ESOP sale is structured (cash up front, seller’s note, warrants, etc.) Why the crown jewel to an ESOP is to also be an S-Corp. Why the company doesn’t pay federal or state income taxes when it turns into an ESOP. The similarities of an ESOP to a 401(k). The role of a trustee in the transaction and how to spot a good or bad one. Why you get to interview and pick the trustee. The characteristics and attributes of a strong ESOP. How a business owner should start with an ESOP. The business owners get to interview their buyer (the trustee).

CHANGING THE GAME Through Real Estate ep: 37#taxloopholes #irsaudits #shorttermrentalloopholeFEATURING: Grant DoughertyHOST: Tyler WynnIn this episode Grant shares what happens when you get audited, how to beat a audit, how the irs works, roth ira advantages, dissadvantages with 401k, cost segregation, depreciation, loopholes for short term rentalsWEBSITE: https://linktr.ee/Wynningteam757SUBSCRIBE TO OUR YOUTUBE: https://www.youtube.com/channel/UCVXXL1caJQMdyhzonp7fwJQINSTAGRAM: https://www.instagram.com/wynningteam757/?hl=enSPOTIFY: https://open.spotify.com/show/1TI7GrjdhC0yiLDq4CIDRZRUMBLE: https://rumble.com/search/video?q=wynningteam757APPLE PODCAST: https://podcasts.apple.com/us/podcast/changing-the-game-podcast/id1574057279LINKEDLN: https://www.linkedin.com/company/changingthegamepodcast/RESOLVE MEETUP: https://www.facebook.com/groups/2084280358418039*****DISCLAIMER****I AM NOT A CPA, ATTORNEY, INSURANCE, CONTRACTOR, LENDER, OR FINANCIAL ADVISOR. THE CONTENT IN THESE  VIDEOS SHALL NOT BE CONSTRUED AS TAX, LEGAL,INSURANCE, CONSTRUCTION, ENGINEERING, HEALTH OR SAFETY, ELECTRICAL, FINANCIAL ADVICE, OR OTHER AND MAY BE OUTDATED OR INACCURATE; IT IS YOUR RESPONSIBILITY TO VERIFY ALL INFORMATION YOURSELF. THIS IS A PODCAST AND YOUTUBE VIDEO FOR ENTERTAINMENT PURPOSES ONLYLETS CONNECT!! TEXT (757) 367-8767

In today's episode, Brandon Hall & Thomas Castelli discuss year-end tax strategies and considerations including, the STR Loophole, best practices for tracking time, S-Corp reasonable salaries, timing cost segregation studies, and more! Get a 14-day free Landlord Studio trial by visiting www.landlordstudio.com/realestatecpa Enroll in the Year-End Tax Bootcamp for 60% with the code INSIDERS using this link: https://bootcamp.taxsmartinvestors.com/ Use the code INSIDERS for 60% off! Subscribe to our YouTube channel: www.youtube.com/c/therealestatecpa Join our Facebook group, the one-stop-shop for real estate investors to learn about tax strategy and stay up to date on changing tax laws: www.facebook.com/groups/taxsmartinvestors Enroll in the STR Tax Course today and learn how to save 5-6 figures in taxes using the STR Loophole: courses.taxsmartinvestors.com/ For an initial consultation from Hall CPA, PLLC visit www.therealestatecpa.com/become-client Follow Brandon on Twitter: @bhallcpa Follow Thomas on Twitter: @thomascastelli_ The Tax Smart Real Estate Investors podcast is for general information purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Information on the podcast may not constitute the most up-to-date legal or other information. No reader, user, or listener of this podcast should act or refrain from acting on the basis of information on this podcast without first seeking legal and tax advice from counsel in the relevant jurisdiction. Only your individual attorney and tax advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this podcast or any of the links or resources contained or mentioned within the podcast show and show notes do not create a relationship between the reader, user, or listener and podcast hosts, contributors, or guests.

Business owners use a huge chunk of their resources to buying, fixing, and growing their ventures. However, only a handful does their due diligence the right way. Just because you earn the revenue you want does not mean you have a pass to completely ignore compliance. Joining Michelle Seiler Tucker is Aaron Young, the CEO of Laughlin Associates, to discuss how to avoid getting stuck in your due diligence. He explains the differences between sole proprietorship, S-Corps, C-Corps, and LLC in terms of returns and compliance. Aaron discusses how to protect your assets from all risks, the importance of running a board and hiring a broker, and the best strategies for building a thriving business instead of a glorified job.Love the show? Subscribe, rate, review, and share! https://www.seilertucker.com/podcast

Brian T. Bradley, Esq. is a nationally recognized Asset Protection Attorney. He has been interviewed and a featured guest on many top shows such as: Bigger Pockets Rookie, Flipping America Podcast with Roger Blankenship the “Flipping America Guy” and member of the Forbes Magazine Real Estate Council. Brian was selected to the Best Attorney's of America's List 2020, Lawyers of Distinction List three years in a row (2018, 2019, 2020,) Super Lawyers Rising Star List 2015, nominated to America's Top 100 High Stake Litigators List, nominated to the 2017 Law Firm 500 Award. Brian also writes on high-end asset protection. Ownership of real estate has many benefits from an investment and tax standpoint. There is downside risk, however, since the value of real estate holdings may be significant and can be used to cover damages awarded in a lawsuit. Therefore, it's important to consider asset protection strategies relating to real estate holdings in order to minimize such risk. In today's episode, Brian lays out how asset protection really works from a legal standpoint and dispels some common myths that are thrown around in the industry. Episode Link: https://btblegal.com/ --- Transcript Before we jump into the episode, here's a quick disclaimer about our content. The Remote Real Estate Investor podcast is for informational purposes only, and is not intended as investment advice. The views, opinions and strategies of both the hosts and the guests are their own and should not be considered as guidance from Roofstock. Make sure to always run your own numbers, make your own independent decisions and seek investment advice from licensed professionals.   Michael: What's going on everyone? Welcome to another episode of the Remote Real Estate Investor. I'm Michael Albaum and today I'm joined by Brian Bradley, asset protection attorney and he's going to be dropping some knowledge about all the things we should be aware of as real estate investors when it comes to protecting our assets. So let's get into it.   Brian, what's going on, man? Thanks so much for taking the time to hang out with me today. I really appreciate it.   Brian: No, absolutely Michael, thanks for having me on. It's going to be an important topic, a fun topic, I'm gonna try to keep it fun and not legally dense and you know, just like I'm not anyone's, you know, Attorney here legal guru. So we're just gonna be talking generalities, right? We're gonna learn a lot in this, you know, it's gonna be a lot of fun and as you're building scale and making more money, you know, you're getting a bigger red button on you and so like this world of where we're gonna be talking about asset protection is kind of a big deal. There's just a lot of ways to skin a cat, different layers, different strategies for where you're at in your life. So, you know, I think as we break these down, hopefully I can, you know, make this will make a little bit more sense for you and your listeners.   Michael: Yes, it will. Thank you. I am super excited to learn a lot because before we hit record here, you and I were chatting about some of the topics that we'll be covering today and I was like, what is that totally brand new. So I'm really excited from a self-serving perspective. So give everyone that quick and dirty background who doesn't know Brian Bradley, who you are, where you come from, and what is it you're doing in real estate today?   Brian: Yeah, absolutely. So, you know, I'm an asset protection attorney, you know, we're talking about it off recording, like from Lake Tahoe, so you know, big snowboard ski, you know, ski bum, you know, Lake bum, I got into asset protection from the litigation side of the law, I was selected to America's best attorney list 2021-2020 Super Lawyers rising star 2021-2015.   Michael: My guess is that no, that's not like an online survey, you filled out to get that…   Brian: Oh, no, and another do with me, that's really just people that you work their butt up in court, and then they recommend you or judges recommend you and I have nothing to do with it and it's actually pretty, you know, I appreciate even just the nomination, let alone winning it, you know, to where I think they only say 1% of all attorneys in the nation even get nominated for those awards, let alone then, you know, 1% of those even gets picked to as a as a winner and so…   Michael: Congratulations…   Brian: Thanks, yeah and for me getting into, you know, asset protection, which will define what that is, you know, in a minute, like, that'll be like our think our base starting point. I just, I just got into this weird area of law, because when I like money, I like investing, I like, you know, not paying as much taxes as you know, as I can and as you grow, you got to be smart with your money, right and who can take it from you and so as a trial lawyer starting out, I just had so many clients who were being sued and their lives just turned completely upside down coming to me after they're already being sued and at that point, you know, you're just too far down the rabbit hole, you know, it's like going to get a car insurance after you already got in an accident or, you know, home insurance after your house already, you know, caught on fire, it's just, it's not gonna happen and so I see a lot of people thinking that they don't need to do anything is another misconception. You know, it's kind of human nature, right? You know, like, I'm just gonna ride lady luck. I'll deal with it when I when, you know, it hits me later on and that's just not how anything that needs to be proactive in the legal sense is going to work like insurance or asset protection. Wishful thinking is not a protection tool. You know, that's how everything you know, like, go to Vegas, go to breaks and hit the roulette table and see how long your wishful thinking is gonna last for you, right? You know or, you know, as you're leveling up, people forget about this. Like, as your wealth is leveling up, you're leveling up, you don't level up your protection, you don't level up your insurance. Yeah, people go buy an umbrella policy, but they don't realize what an umbrella policy is just like everything else, right? You know, it just provides more access and money to, you know, for coverage, but it doesn't, it's not the same escape clauses, you know, like, there's no insurance in the world that's gonna say, okay, hey, if I go punch you in the face, are you gonna cover it for me? No, like, they don't cover you for intentional wrongdoings or allegations of fraud and intentional wrongs and so that's how they have their escape clauses out especially for very big cases. You know, if you're talking about like a million dollar or more lawsuit. A couple other big misconceptions that we need to address as we lay this landscape is just, you know, the revocable living trust, if people think like, oh, yeah, I have a trust, right, that you know, they don't realize trust. There's a lot of different types of trust. Your family estate plan, your revocable living trust are not designed to protect you while you're living in they don't have the lead have teeth to be able to. So once you pass, they're only designed to avoid probate not protect you while you're living from lawsuits and then over the last five years, I've noticed this massive misconception about the use of limited liability companies. LLCs and they just think that they're like, you know, Silver Bullet Dracula slayers and you guys miss, like, first word first letter, like limited, I tell you. Whereas, whereas this happened, where's this come from? Like, they're not hiding the fact they tell you like they titled it telling you limited liability. So like, now we have to reeducate people on this, like, yeah, don't put everything in the world under one LLC. Otherwise, if it gets pierced, you're gonna lose it on like, What are you talking about, which we'll break that down, you know, in a little bit. And then the sad thing is like, and I think it's worth explaining is this, if you just look around, and you look at, you know, our legal system and the world we live in, it's just broken, it's a broken system, you know, and we're so happy nirvana and just to like, kind of lay this framework down a little bit more. We're no longer about justice. We're about redistributing wealth from the haves, which is you, your listeners, people trying to grow and accumulate more to the have nots and over the last 40-50 years, things that didn't happen in the past, or that weren't allowed to happen in the past like contingency fee lawyers or law from advertising their common place. and then this created a cultural shift of a predatory legal system that's no longer about justice. So it's about profits now and then when you get on the road of high net worth, in affluent families and wealth, this level of protection, now we have to deal with taking a macroeconomic, more of like a global look about what's going on and the big picture here is really that we have a global financial system that has structurally deep rooted issues. You know, we have government backed fiat currencies that are now in question. This is also including the US dollar. So don't think like, just because we're in the US, we're exempt from all of this, you know, monetary policy today, you know, the one that exists is, you know, inflate or die and then you got governments looking for a deep and accessible pools of financing and meaning our money, you know, the hard workers, the people who are investing, along with financial repression, monetary economic manipulation. So this just adds all the challenges that we have to deal with when we're looking to protect your assets and so asset protection is that modern best bet to level this playing field by using a lot of the tools and the combination of the tools that we're going to talk about today to make it very hard for you to be collected on and so what this is really about is just like a talk about giving you peace of mind, lifestyle preservation, and you know, really just how collectible are you at the end of the day…   Michael: Love it. But well, I am all about doing things to help peace of mind and insulate ourselves from the world at large. This you happy world at large. So help us understand Brian, like, what are some of the things when someone says asset protection to you like, Brian, I gotta protect my assets? What does that mean to you? What alarm bells are going off in your head?   Brian: Yeah, absolutely. One is like, do you understand the difference between tax mitigation and asset protection and I've been getting this a lot, you know, especially this last year, obviously, as we see what's going on, you know, within inflation, taxes and everything right now, asset protection is not tax mitigation, like that's your CPE and wealth managers job. If creating an asset protection plan or an asset protection, trust or going offshore, you know, where to create tax havens like one that's illegal, it's fraud, you know, so system won't work, and then you go to jail for that type of stuff.   Michael: So don't do that is what you're saying.   Brian: That's not what this is about. So people always like, oh, I want to protect my assets and I don't want to pay taxes, completely two different things. The asset protection plan is to protect your assets from predatory lawsuits and litigation, not saying I want to not pay taxes, that's tax mitigation, talk to your CPA and wealth managers. First, lock down your assets from lawsuits because if you get sued and lose everything, what's your miracle working CPA going to be able to do for you if you have nothing for them to work on, so order of operation, protect your assets, then let them work through the system that's created to actually like mitigate, you know, forced depreciation, all those wonderful things that they do cost segue analysis…   Michael: Yeah but Brian, to that, to that point, really quick. I'm just curious, like, do you work with a lot of CPAs because I can see, I can envision a scenario in which the legal side of things is super buttoned up super tight, but maybe isn't very tax efficient and so my guess is there's probably a happy medium, or some input that a CPA or wealth manager can inject into the situation to help make both things as tight as possible.   Brian: Correct. You got to, you know, the issue generally is people don't involve their lawyers until later on down the line and it creates a lot of problems. So for example, a lot of CPAs will set up S Corps for investors, especially real estate investors for some reason, and great for tax purposes, horrible for litigation and I get this call a lot, you know, and most of my clients are calling with like 50 $100 million of real estate all stuffed in one S Corp. Okay, great again, for tax mitigation, horrible for let's say you get sued and now you're S Corp and all the shares get frozen and cease, there is nothing I can do for you. At that point, I can't move assets out and then even if I want it and you realize like, oh my god, I have so many pieces of property under one corporation like this is very risky, I need to start diversifying and employing these assets out, you're stuck, you're not going to be able to and I just had this call yesterday with a potential client. The reason is, when you're all the benefits of the S Corp, right? You know, deferred taxation and all this stuff, you're kicking the can down the road, once you start taking the assets out, you have to pay the money back and so people don't generally have millions of dollars sitting in their bank account saying like, okay, hey, I feel like you know, taking all the assets out of my S Corp now and now I'm going to go and pay the piper and the IRS. So because you don't have that money sitting around to pay the IRS and the taxes, we can move the assets for you and I'm not going to force you to go, you know, and have the IRS coming after you to collect on you and move the assets out anyways, because now you're just creating a bad situation for the client. So the lesson here to learn is if you're thinking of investing, you need to talk to both the lawyer and the CPA, because a lot of CPAs, they shouldn't be giving you legal advice. They're not lawyers, and they're not going to understand the aspect of what happens actually in court with s corpse and C corpse, when it comes to litigation, and why we don't want to use those to protect your assets. So we have to all talk together. The problem is I get this all I get the mess after the fact right, and then I have to start supporting afterwards and so when done, right, really, the modern, you know, estate planning is asset protection, what we're doing is creating legal barriers between your assets, and your potential creditor, the person suing you, the person trying to come after your money before it's needed and that's it, you know, it's like a safe for your gold or your guns or your valuables. Anything of value, you know, you want to put behind the legal barrier and out of your personal name so that it's not easily attached with a lien or reached and so I just like the rich, I really liked the Tony Robbins saying success leaves clues. The rich don't own things in their personal names their businesses do their trust, do they just get the beneficial use and enjoyment out of them while separating out that legal liability and we do that through just like different tools and mechanisms that we have kind of like key concepts and roadmaps like LLC is limited partnerships and trust.   Michael: Got it. Okay and so when real estate investor comes to you, they're just getting started. They are moist clay, you can totally mold them, they don't already have a bunch of issues. What is your go to, like ideal scenario for asset protection?   Brian: Yeah, so there, I mean, you're just starting out your green horn, like really just going to be an LLC and insurance and that's where you're gonna go, okay and as you think about how to use these systems and how to grow within them, okay, I want you and your listeners to think about winter, okay, like we were talking about this before we started recording like I'm from Lake Tahoe, snow, cold snowboarding skiing, I lived in Michigan, freezing cold arctic, you know, minus 40 degree weather for a while, well, I'm in Portland damp cold, you got to really layer you and so the first entry layer is as your base layer, when you're getting dressed, it's going to sit on your skin. This is the equivalent of an LLC and insurance. This is you know, when you're just starting out investing in you have zero to three units, or you know, zero to three properties, you're exposed net worth generally is like 250,000, net or below and then as you grow, and you add more assets, and you hit around that four unit or four property mark, you could be starting to invest in a couple different states as well, you know, you have now around like 500, to 700,000 exposed nets, what you need is a mid-layer, which is usually a little bit thicker, that's going to be made out of like a merino wool sweater, or for you ladies a car and again, this is your management company, like a limited partnership and I can break down that later on if we have time and then when you hit around that 1 million net worth mark, you know, you're gonna want to water shell waterproof layer. This keeps you nice and dry and warm when the weather's really bad. You know, this is your doomsday lawsuit protection layer is going to be an asset protection trust and specifically for our clients, we use a hybrid trust, which is combining an offshore trust and domesticating it through the IRS. So when a client comes to me, I receive it I realistically, you want four things you know, you want you're going to want an effective plan to have, you're going to want to control your plan. Three, you want a reasonable and sustainable cost, you know, depending on what layer you're at, is going to be individual for the for the client profile and then four you want a plan that's going to be easy to maintain compliance on what the IRS like I can create the strongest thing in the world for you. But if you're not going to be maintaining it and you don't want to do the IRS compliance with it, eventually you're just going to stop doing it and the whole system falls apart. So as you go through the valuation process and you're talking to different attorneys and you're vetting the process, just remember the acronym ECCC effectiveness, control cost and compliance and as long as you can start checking off all those boxes, you know you're gonna have a really good system. If you want to I can break down the first layer if you want to Trying to kinda go there like LLCs, or just really wherever you feel like directing this.   Michael: Yeah, so I think our listeners probably have a good handle on LLCs. But I would love if you would walk us through what this hybrid trust is because it's not something that I'm familiar with, I've never heard of before.     Brian: So yeah, and I think the reason why is like not many people focus on asset protection at a high level, you know, I think events like insurance, a lot of people wonder not only purely asset protection attorneys, right, they're generally business attorneys who do some asset protection or their real estate, you know, attorneys who do a little bit and they take continuing legal education course, learn about LLCs, and the kind of stops there and like insurance, they kind of tried to cast a large net nationwide, what was one thing you can cast nationwide and LLC and so I kind of think that's why like, the base layer, knowledge kind of stops there, because not many people just focus on, you know, very, very strong protection. This comes with the asset protection trust. So it's this final layer, the bad weather, you know, the outer shell waterproof layer, is this asset protection trust, it's going to be really the heart and soul of the system, especially when you have over 1 million exposed and that wealth and what I mean exposed is like your 401 K is exempt. So I don't include that in a net worth evaluation, because it's already a reset protecting some states, like if you're a Florida resident, we have a very strong homestead exemption of 100% of your of your primary residence. So I will take that out of the equation too, depending on the state you're in and the homestead. So what we're looking at is exposed unprotected, and that, you know, equity and wealth, all right. The great thing about trust is that they can be sculpted, to fit how you need them and they can morph as you need them without dealing with funding issues that you're going to fall into an LLC and other business entities that get their protection pierced, meaning now you're going to be held personally liable. So I just love trust and having a trust at the very top of the planning is very powerful and this is where picking the proper jurisdiction for a trust really comes into play. The standard 101 trust that I'm sure like everybody's familiar with, you know, kind of started in the 60s is the family revocable living trust. So you know, like when trust, you know, trust don't die. So then when you do, you act, and you fund your trust, which a lot of people forget to do, like, oh, I created my estate plan, and then they never transfer title into it. Remember, fund that fund the trust, if it's just, you know, your revocable living trust, the benefit of it is when you pass you don't have to go through probate, you can just skip the court system and probate and it changed the landscape of estate planning. Then you have what are called land trusts for real estate, you know, you hold your land, and then you connect them to an LLC. But land trusts don't have any protection in and of themselves. They're only as strong as the LLC that they're connected to, you know, so they're just a privacy mechanism, not a protection mechanism. Okay from there, you have higher levels of trust. They're called asset protection trust and I really want to spend the time, you know, with this and break down the three different types, you know, and after this, I think you and probably 99% of your listeners are going to know more than 99% of all the attorneys out there about asset protection, trust, they came, yeah, they came about in the early 1980s. You know, and so an asset protection trust is what's called a self-settled spendthrift trust. All sell settled means is that you created it for yourself, you know, they're for you, by you, as your own beneficiary, and they have very important spendthrift provisions in them. So this lets you protect your assets while you're actually living, you know, from creditors trying to sue you from not having to relinquish control of your assets. The difference is that they allow you to protect your assets, not just for your grandkids, but for yourself, which you weren't allowed to do in the past and then like I said, you're probably familiar with another type of self-settled trust the revocable living trust. They're the same and that they're self-settled created for you by you. The difference is that with an asset protection version of this trust, it includes these critical provisions called spendthrift provisions and what spendthrift provisions are is they are provisions that allow you to protect your assets from the creditors, they're the actual teeth behind it and for those to work, the trust them has to be not revocable, but it will revocable. So it's a very different type of trust, you know, just like chocolate or vanilla, both ice cream, just different types of ice cream.   Michael: Yeah…   Brian: You know, this is where the fun really starts to actually happen. There's two major school of thoughts here you can go international meaning offshore, another country jurisdiction, you know, you hear about Cook Islands, Cayman Islands, Belize, in the Bahamas, or domestically here in the US, you know, Nevada, Delaware, Wyoming, Texas, um, so you can set them up here in the United States and you know, if you don't mind, I think a great way to talk about it, just kind of talking about it through historical context, because I think if you understand the foundations of both offshore and domestic then you understand the principles of how we combine them together and why you want to   Michael: Yeah, let's do it.   Brian: Alright, cool. So again, you really have these three options, right, you can establish them offshore, you're going establish them domestically, and then we can hybrid them out like a hybrid car, take the best of both worlds put them together. So from the historical concept, the offshore trust actually came first, in 1984, when the famous Cook Islands, they created the first asset protection trust. I like and choose the Cook Islands if and when it's applicable, just because it literally offers the best home court advantage and why it's the best is because asset protection is just what these trusts in the Cook Islands were specifically drafted for and the power here is they have this wonderful word called statutory non recognition of any other jurisdictional court orders in the world, including the United States and so what this means is that if you have a judgment against you, in the United States, and you took it down to the Cook Islands, your US judgment is literally worthless, it literally has no value whatsoever. statutorily the Cook Islands they prohibited from recognizing it even from their own constitution and so if somebody wants to sue your trust, and it has a Cook Islands, you know, clause in it. So as a Cook Islands trust, they will have to start their case all over from scratch, the person who's suing you, they're going to have to prove their case beyond the reasonable doubt. This is the murder standard, the highest legal standard in the world that 99% sure standard. Not that you know, 51%, preponderance of the evidence, I'm not sure we don't know what happened. But we don't like the way they look right now. So let's just let's just give it to them. You know, you can't get a contingency fee attorney to represent you, because they're just not allowed down there. It's an ethical in the Cook Islands, just like it used to be unethical here in the United States. But then that got changed in the 60s, the claim meaning the lawsuit, you know, it's not amendable. So what this means is that it can't be changed or amended after the discovery process starts like we can do here in the United States. Like we can literally just say, okay, I'm suing you for this, dig around start discovery, then completely change what We're suing you for, because we started using as a fishing expedition. The person suing you, yeah, no, I mean, this is just like standard trial tactics is like, okay, hey, let me just flood you with discovery and like, start poking around and say, oh, hey, we didn't even know this was right here. Now I'm gonna add this to the complaint and sue you now, for this looks like a better cause of action anyways, I can't do that down there. But we can do it here all the time in the US.   Michael: So it sounds like I need to go move to the Cook Islands.   Brian: Now. Well, here and maybe not right, because you know, there's, there's cons to things, we'll get to the cons in a minute. So the person suing you, they're gonna have to front the entire court costs by the judge from New Zealand and if you lose your pay, you know, and I honestly think this is one of the worst things that we don't have here in the United States, though, like the loser doesn't need to pay the legal fees and the cost of the winner. So if you get sued for something completely bogus, I mean, a frivolous lawsuit, and you spend $200,000, defending yourself on legal fees, then the judge finally is like, this is ridiculous. I'm throwing this case out, you're still out 200,000 bucks, you know, the person who sued you, they're not going to be getting the bill for that because our legal system in the United States, they just that will discourage lawsuits and our legal system is run by trial lawyers who don't want to discourage lawsuits and there's only a one year statute of limitations. So if you go back to those four things I mentioned, right, remember, like effectiveness, cost, control, compliance, I mean, effectiveness, five out of five stars, nothing really nothing beats statutory nonrecognition. So what about the other ones, right, you know, control costs and compliance. This is kind of his kryptonite, you know, these are the drawbacks. If you're going to be purely foreign, like a purely foreign trust, you have a lot more IRS reporting, compliance and disclosure. So you have these things called IRS forms 3520 3520 A's. What this is, is a full balance sheet disclosure of everything that trust owns, and sometimes even the entire trust agreement to be disclosed and submitted to the IRS and it is expensive for this IRS forms to be done every year. Also, you're going to have factor compliance, because you're going to have a foreign bank account at that time.   And of course, we're these trusts to work, you're going to be out of control of the trust. That's why they work so good. That's why they're the creme de la crème and clients are just not comfortable with this. So while we literally have the most effective trust in the world, by far, it's not something that I generally start with, I probably only say like 1% of my clients, I will go to a purely foreign trust with which then brings us right to the second option. Okay, we're not going to be going forward and what about these domestic trust? Yeah, they came about 10 years later down the road of all places, Alaska started it out and then not to be outdone, obviously, you're gonna be like, Well, hey, we're Wyoming and Nevada and Delaware like this is what we're known for. So we're jumping on the gravy train, right and then now about 19 other states now have created some form of asset protection, self-settled trust statutes. So we're seeing as a state starting to jump on board seeing yeah, our legal system is a threat and things have to get done to protect your assets and so as to protection the United States is very is very important to understand this ballot on It's just the concepts like how you go about doing it is very important. The issue with a purely foreign under the purely domestic asset protection trust is that, you know, we live in the United States of America, we have a Constitution, Article four section one for Faith and Credit Clause. What this provides and means is that every state has to grant the full faith and credit to the judicial proceedings of every other state. What this is means what it's telling you is that, for example, Nevada can pass and has passed an asset protection statute, okay, but it cannot ignore a California or Washington or like another states court orders. So where the Cook Islands can literally just throw that California judgment in the trash. Nevada can't do that. Nevada has to respect it constitutionally and even litigate it and then you have courts that are just simply ignoring the choice of law clause. So I mean, like literally, like bait levers more dissent in re Hubber, cucumber Steelman, Dover still all great facts, all great cases, they should have one of those cases, and judges literally just use their superpower public policy, we're ignoring the you know, choice of law clause, trust is breach means loss of assets, that's just completely unacceptable and so because of the case law that we're seeing, I'm not a big fan of a purely domestic asset protection, trust or anything purely domestic without something offshore built into it. This is why I prefer the hybrid version called like, we just call it a bridge trust, but it's really just like a hybrid, hybrid trust, think of them like a hybrid cars, okay? What we're doing just combining the best of both, and then making a better product and so these trusts have been around for almost three decades. So they're not, you know, the new lady to the dance, they've been around for about 30 years now and at the end of the day, what you're doing is taking a fully registered foreign Cook Island, offshore asset protection, trust, what all that for two years of solid case law, again, so it's fully registered offshore from the day we created with the offshore trustee, they're there in standby just in case you need them and then we build a bridge back to the IRS for IRS classification. So the IRS is literally taking this foreign trust and then they're classifying it as a domestic US trust, by complying with USC Section 7701. It's called the court test control test and so because of that bridge, as long as we have our compliance in place, we stay classified domestically and what this does is that the trust is now going to be cheaper to create. So generally, a purely foreign trust is going to cost like 4550, even $60,000 plus $12,000, a year to maintain very expensive, a hybrid trust is going to be cheaper, you're generally gonna be talking about, you know, 23 to 30,000, to set up a hybrid trust, plus no IRS tax filings whatsoever, while you're domestic because it's classified as a domestic US grantor trust, so you have no more IRS tax filings, unless God forbid, we have to break that bridge and now you also get the power of the offshore trust. If and when we need it. It's in our toolbox now, just like a contractor who says like, okay, hey, I don't need to use all my tools today. But I'm going to need them possibly at some point. So now I can use them as I need them. Versus coming to me later on after the fact oh, my God, Brian, I mow somebody over with my car, like, can you help me? You know, like, I want that foreign trust? Well, no, sorry, it's after the fact I can't do it now. But if we have the hybrid, I could have engaged it. So that would be like during the State of duress, we would break the bridge, stop being an IRS compliance, you are what you are a foreign trust. Until that point, you want to be classified domestically. So that hybrid trust is very, very effective, you may control of your assets, you may take control the trust, right up until that doomsday scenario where you don't want to be in control of it anymore. You know, maintenance and compliance with the IRS. Very simple. So at that point, you've now checked off all the boxes, effectiveness, cost control and compliance check, check, check, check, check and so this is where you know, for our clients, we generally are starting with these hybrid trust.   Michael: Wow, this is wild, is super cool and so are you thinking that most folks that are in that kind of million dollars of expose net worth, this is where that starts to make sense.   Brian: That's exactly like, so our main client profile that comes in you would think they'd be like, you know, 10s of millions of dollars for us, like realistically, I would say 75% of our clients generally around that 1.2 million, exposing that. Some high risk, probably like a doctor or surgeon lawyer, or just straight real estate investors. I have some of my favorite clients, nurses, firefighters, cops who self-funded their retirement through cash flowing properties, and now they're about to retire and they realize like, I can't lose all of this now because this is literally my nest egg and my legacy. Yeah, they need to lock it down and so you generally see the average client profiles like 1.2 to 2 million of exposed net with some risk, and it makes sense at that point. Yeah, get the LLC get the limited partnership get the trust for like 30,000 dollars locked down a million plus, and then sleep well at night. That's when the investment kind of makes sense for this type of protection.   Michael: Yeah, that makes total sense and what would you say because I would imagine, after listening to this folks might go to other attorneys they work with mentioned this type of hybrid trust and they might be told now you don't need an LLC is good enough. I mean, what's the I know, we've talked about kind of a counter argument, but how does that conversation get ahead?   Brian: Most of the time, I was, say, like the one the estate planning attorney, they will know about this, because their knowledge base, you know, is just not going to be around, let alone foreign trust. I mean, there's not that many people who even know like that much detail about how a foreign trust works, let alone using the incorrect domestic asset protection trust, you know, how many times I have California residents, using the Nevada asset protection trust, and the person who set it up for them, like the lawyer has no idea like, okay, what about this case? We're still in 2012, California case that said, hey, you're a California resident, we don't recognize asset protection trust, because we don't have the statutes here. So your Nevada asset protection, trust, and sorry, it's worthless, it's not gonna it's not gonna work, you know, so unless you go to an actual specialist and say, hey, here's the case law, here's what's going to happen down the run. Most people don't have that level of education, because they're not in that world. They don't exist in in it. So I feel bad for the clients because where's the knowledge come from? You think you're going to an attorney who was specialized in this, but you're not taught this in law school, you're not taught this for the bar exam, so how you develop this level of knowledge is really just did you get into the right group of people and were you passionate about it enough to like transition your practice into it… That's why I do these talks is just to educate people and you know, just the base thing, like, why not just an LLC, they're disregarded entities for tax purposes. So they're disregarded for taxes. That means it's disregarded to you for lawsuits and liability, meaning you're pierced. If you're using them for real estate. They're not businesses, they're holding companies, which means the number one argument that will win and pierce that every time is well, Your Honor, this is an actual business. It's an extension of Michael is just a holding company. Boom, you're pierced funding issues, bad accounting systems, like there's four ways to pierce that veil right there and I don't even have to think part about it. Charging, charging order protection mean, like what state do I go set these things up in? You know, how many times I hear people like, oh, just go create a Wyoming LLC? Are you a resident of Wyoming? Is the asset in Wyoming and the answer is no to either one of those, you just tried to buy another state's jurisdiction, that you have no connection to try bringing another state's laws to like California and other state that you're not connected to, and there's no reason to, you're gonna get laughed out of court. Like, it's just you can't go by other states more beneficial laws and bring them, you know, to another state that, you know, that has no jurisdictional connection to it and anonymity is the other like, really, like, flavor of the last like, two years is like, oh, create this anonymous, Delaware or Wyoming? Trust and Ghost the lawsuits, right? Yeah, well, that's not how these that's not how it works but that's how it's being sold by, you know, law firm salesmen and promoters. Yeah, create this and get a really crazy operating agreement and then next thing, you know, like, you're never gonna have to show up in court. I'm sorry, you have a personal agent of service for these out of state law firms their sole job, like, let's say, Mike here is my, you know, personal agent of service, he's gonna get my service and he's gonna say, hey, Brian, here's your service. That's why dude, you just…   Michael: Got to show up in court…   Brian: Court now and amenities done at that point. So the only way that an amenity works is you show up the court, a judge is gonna say, Hey, you're getting sued for a million bucks. Here's your you know, asset disclosure list. Tell me everything that you own, because we didn't know what can be collected on or not, at that point, and amenity or a quote, unquote, air quotes, Secrecy is now up to you. So you're gonna decide, am I gonna lie under oath and hope to god, I don't get you know, my operating agreement will hold up and commit perjury in court, or do I just disclose it. So like, you're the weak link at that point and then if you lie and commit perjury, under oath, you're going to jail on top of losing your assets. So it makes more sense just to say, hey, create a proper asset protection plan, LLC in the state that is layered up into a management company, once you hit the net worth put in the trust, and then sleep well at night because at the end of the day, I don't care if you lose your lawsuit. I care about it for your collectible or not, you know, like you can lose the 10 $50 million case. I just if the asset protection trusts setup strong and in the right jurisdictions with a proper exit strategies, does it mean that you can be collected on and then it lets me settle a case for pennies on the dollar…   Michael: Dang this is nuts, Brian… This is like or this is earth shattering stuff. We got to have you back on to talk more about this. But I want to be very respectful of your time get you out here for people that have a similar response and you're like, holy crap, I gotta call this guy Brian, immediately. Learn more about this, reach out for your services. What's the best way for folks to get in touch get a hold of you?   Brian: Yeah, one great resources, jump on my website, www.btbegal.com , I use it more as an educational resource with a lot of case law client studies. I just want you to be educated at the end of the day like, listen this here's the case law. Like, that's what lawyers should know about, especially trial lawyers. That's why I'm a good trial lawyer. I tell stories through case law and then another great way is through my email, you know, Brian: B R A I N @btblegal.com. I do you know, free 30 minute consultation, whether we're a great fit or not, like we'll figure that out over the phone. I would just rather how people have an educated decision, and then they can like go shop around.   Michael: Love it, love it. Well, hey, man, thanks again for coming on. Really appreciate the time and we'll definitely be in touch.   Brian: Yeah, for sure. Thanks brother…   Michael: All right, everyone. That was our episode, a big thank you to Brian for coming on talking about a lot of things that we've never heard before on the show and definitely bring up some excellent counterpoints to be thinking about as always, if you enjoyed the episode, feel free to leave us a rating or review wherever it is to get your episodes and we look forward to seeing the next one. Happy investing…

Which business entity is right for you? Tune in to find out!    Episode Introduction:  In this week's episode of Law Chat with Girija, we're talking about four different business “entities” and how each of them differs from one another as well as how to determine the right one for your business.   Episode Summary:  Girija Patel walks us through the differences between a Sole Proprietorship, an LLC, a DBA, and an S-Corp. Evaluate as you listen along to find the best fit for your company.   Main Takeaways: Sole Proprietorship:  It is the default setting when you start a new business. It has very little paperwork needs. There's a huge exposure to personal liability. It isn't classified as an entity per se.   Limited Liability Company (LLC): It is classified as a legal entity. An LLC can be filed online. A basic name search is done while filing.   Doing Business As (DBA): Also known as “Assumed Name”. It is to be filed in your county of business.   S-Corp: It is a tax classification. It isn't classified as a business entity. An LLC can register to be an S-Corp too.   Resources:  Sole Proprietor vs. LLC Free Downloadable: https://yourcontractbuddy.com/5-day-free-legal-audit-challenge/   Learn How to do a FREE Name Search Online: https://youtu.be/YovEBj7hXbk   Help us mentor other entrepreneurs through the power of storytelling by rating us and leaving a positive review on Apple Podcasts: https://podcasts.apple.com/us/podcast/law-chat-with-girija/id1528580730   Get the FREE Five-Day Legal Audit: https://yourcontractbuddy.com/5-day-free-legal-audit-challenge/   Join Law Chat for Entrepreneurs Free Facebook Community: https://www.facebook.com/groups/lawchat/   Get the visual experience, watch the videocast for this episode: https://youtu.be/dqDQhE7A2ek   Connect With Girija: Website: https://www.gbplaw.com/ Instagram: https://www.instagram.com/gbplaw/ Facebook: https://www.facebook.com/GBPLaw/   Get Ready To Use Contract Templates At: https://yourcontractbuddy.com/

On today's episode of the podcast I speak with Rachel Greiman, Founder + CEO of Green Chair Stories, about her P&L statement and how she started her own copywriting business. A copywriter for photographers, Rachel started a family photography business in 2014 and from there, she started helping other photographers with their copy and formalized her process in 2016. In 2020, Rachel hired a second writer for her team which helped her workload at the same time she had a baby. Offering a productized service, Rachel offers website copy for photographers with a standard 5 pages of copy – home, about, contact, and usually experience and pricing. Every project starts with a call on a Monday. Coming into this call, the writer has already interviewed 2-3 of your past clients, they've looked at all of your social media captions, they've read your reviews, they know why you've come to us, and the team has reviewed the 40 question questionnaire. After this meeting Rachel's writers write the first draft by Thursday night and Rachel reviews them on Friday by end of the day and deliver it by the following Monday. They have five business days to edit with the writer (one writer takes on only one project per week). Every 6 – 12 months Rachel's company raises their rates as the industry prices raise, typically attracting clients that are shooting $5,000 weddings for example. Rachel recommends DIYing if you are a newer photographer, and she sells a DIY guide and an email template guide, bringing in an average of $3,000 a month. A lot of this is coming from podcast press, Google rankings from photographer template guides, social media inquiries and it's just not time for them to pay for Rachel's service, or her ~2,000 person email list. When doing her monthly financial review, Rachel likes to look at her income and figure out why it's low or high that month and what she did differently and what the expenses are and how it's impacting profit margin to make sure that she's appropriately spending. YTD Rachel is at $219,000 for 8.5 months, coming in just below her $26,000/month goal. Reviewing the numbers, February and March were pretty high due to peak photography season. These clients typically booked in December and pay 50% up front and 50% later unless they've asked for a four-part payment plan. Slightly down in August, it's a slower month due to it being photography season and Rachel slowing down that month for the sake of her and her team. Rachel is very focused on having $10,000 profit months. 10% of revenue is donated, and Rachel pays herself about $7,000 a month, the highest it's been in her 8 year business. The donation money comes out of Rachel's $7,000 because as an S Corp, Rachel makes her donation through herself to get an itemized deduction since only C Corps can get business deductions for charitable donations. Rachel separates her contractor payments from expenses to get a better visual, however contractor costs are also expenses. TYD it breaks down to about $45,000 in expenses, $85,000 to contractors, and $85,000 in profit. Rachel charges $4,500 for a website and the contractor gets $2,100. The opportunity to make more is if they write an additional page or edit another writer's work. Rachel also has an hourly VA and a monthly Pinterest manager. Rachel pays her contractors through Zelle since she has an accountant. Braden recommends Gusto for when you run your own payroll. While Rachel could make more money by taking on more of her own clients (she had 5 this year), with a two year old and a four year old at home, for the sake of her work-life balance and ability to create the output she desires as well as the longevity of the business being able to run without her being so hands on, she chooses to make the amount that she's making because it works for her and her family. She focuses on selling high-quality products that are in demand and is not looking to just grow a buck. Her current goal is to work less and maintain the revenue. One of Rachel's monthly expenses is cookies. She sends Levain cookies as a client gift because cookies hold a special memory for her growing up. Rachel also pays for each of her clients to take the Enneagram assessment. Get in Touch with Our Guest Rachel Greiman, Founder + CEO of Green Chair Stories Follow Rachel on Instagram @GreenChairStories Check out her website for eight years' worth of free blog content and advice greenchairstories.com/

With Justin Breen, who has 20+ years in the media business, was a former journalist now a CEO of the global PR firm BrEpic Communications and premium connectivity platform BrEpic Network. He is also the author of the No. 1 International Best-Selling Book, Epic Business, and his second book, Epic Life, which features a foreword from Dr. Peter Diamandis that will debut this summer. Justin is an extremely active member of Strategic Coach 10x and Abundance 360 Summit. He is hard-wired to seek out and create viral, thought-provoking stories that the media craves, and he finds the best stories when he networks with visionary entrepreneurs and executives who understand the value of investing in themselves and their businesses. Join us for this fun and enjoyable conversation as Justin shares some tips on how to create a successful global company, and how your mindset can help you lead to success. He also shares how successful entrepreneurs overcome bankruptcy, depression, high-level anxiety and traumatic experiences. You will also enjoy listening to Justin as he talks about the Kolbe Index and how he uses it with his clients. To get access to our show notes, visit us at legalwebsitewarrior.com/podcast

In this episode of Anderson Business Advisors, Toby Mathis speaks with Jeff Mason and Chris Hammond about cash balance pension plans for business owners.  This is not a 401(k), it's not an IRA, it's a way to defer and even reduce a portion of the taxes you might need to pay and set yourself up with an annual income when you retire - if you are a business owner. This is for all business entities. True pass-throughs, S Corps, sole proprietorships, and partnerships work best in this savings scenario.  Many people that have even heard of defined benefit plans, or cash balance plans, might think you can't start contributing until later in life, and that used to be true, but now people like Chris and Jeff are designing plans for people in their 30s.  Jeff and Chris will go over what the benefits, timelines, and rules are regarding these plans, give you some sample scenarios with actual clients they have helped, and also answer some specific questions that Toby has about their validity, value and future potential for participants. Highlights/Topics: The basics - How business owners can set up an income for themselves at retirement, the requirements to contribute, how much you can put in, how much you can take out and the tax implications Some examples of Jeff's clients and the actual numbers they are working with Deadlines and potential increases in contribution limits from the IRS Are Jeff and Chris going to try to “sell you” stuff if you go to them for help? No- the retirement community is very small, everyone would know if you were operating in an unethical way. We want more referrals, not less, so everything is highly ethical and we don't take advantage of people Get in touch with Jeff and Chris - there's no cost for your initial consultation and even developing a sample plan - they just want to see if their services can help you! Resources: Email Jeff Mason jmason@redwoodrs.com Call Jeff Mason 815-516-0560 Anderson Advisors https://andersonadvisors.com/ Anderson Advisors on YouTube https://www.youtube.com/channel/UCaL-wApuVYi2Va5dWzyTYVw

Garrett Sutton is a corporate attorney, asset protection expert and best selling author who has sold more than a million books to guide entrepreneurs and investors. For more than 30 years, Garrett Sutton has run his practice assisting entrepreneurs and real estate investors in protecting their assets and maximizing their financial goals through sound management and asset protection strategies. The companies he founded, Corporate Direct and Sutton Law Center, currently help more than 13,000 clients protect their assets and incorporate their businesses. Garrett also serves as a member of the elite group of “Rich Dad Advisors” for bestselling author Robert Kiyosaki. A number of the books Garrett Sutton has authored are part of the bestselling Rich Dad, Poor Dad wealth-building book series. There are three types of entities most commonly used to own real estate: Limited Liability Company, S Corporation and Limited Partnership. Tune in for todays episode where Garrett provides a quick summary of the best entities for real estate investment. Episode Link: https://corporatedirect.com/contact/ --- Transcript Before we jump into the episode, here's a quick disclaimer about our content. The Remote Real Estate Investor podcast is for informational purposes only, and is not intended as investment advice. The views, opinions and strategies of both the hosts and the guests are their own and should not be considered as guidance from Roofstock. Make sure to always run your own numbers, make your own independent decisions and seek investment advice from licensed professionals.   Michael: Hey, everyone, welcome to another episode of the Remote Real Estate Investor. I'm Michael Albaum and today I'm joined by Garrett Sutton, who is an attorney, investor and author with over 1 million copies of his book sold and today Garrett is gonna be talking to us about all the different entity structures we should be aware of as real estate investors, as well as wherever we might want to think about forming those entities because it plays a big role. So let's get into it.   Garrett, thank you so much for joining me on the show today. I really appreciate you taking the time.   Garrett: Thanks, Michael. It's a pleasure to be with you today.   Michael: No, no, the pleasure is all mine ad I'm super excited to chat with you. I know a little bit about your background and what you do kind of on a day to day basis. But I would love if you could share with our listeners who you are, where you come from, and what is it that you're doing in real estate today?   Garrett: Well, I grew up in the San Francisco Bay Area like you and I moved to Reno in 1989 and Nevada is a great state for setting up LLCs and corporations along with Wyoming. So I practiced corporate law since 1978, and became associated with Robert Kiyosaki and have written a number of books in the rich dad advisor series and you know, have enjoyed talking to people around the country around the world about how to protect your assets. As you start investing in real estate, you need to think about how you're going to protect that real estate because we live in a very litigious society, people sue each other all the time and unfortunately, they don't teach this in school, you have to get this information on your own and so that's what we provide is the information you need and then we offer a service to help you protect your real estate and brokerage and other assets.   Michael: Love it and just right off the bat, I read one of your books for our Roofstock Academy book club, it was a great read, so I can definitely vouch for it. But what are the books that you've written and then what talk to us about your most recent book?   Garrett: Well, I've written a number of books in the rich dad advisor series, including start your own corporation, that's kind of a foundational one, and then run your own corporation, a lot of my clients and I set up a corporation now what do I do, and you have to run it properly. Then I also did loopholes of real estate, which is kind of the tax and legal strategies for investing in real estate and then the newest book is veil not failed and that deals with the corporate veil, you set up an LLC or a corporation to be protected and too many people do this themselves, Michael, they just set it up online, and they don't realize that there are additional steps you have to take to stay protected and so if you don't want your veil to be pierced where someone can sue the company, there are no assets there. They can go through the veil of the company and get it your personal assets, if you don't want that to happen and that's why you set up an LLC.   Michael: That's the point, yeah…   Garrett: It's that you don't want it to happen. You need to follow these corporate formalities and so that's what the book veil not fail is about kind of stories, horror stories of people who didn't follow the rules and then in the latter part of the book, it shows you how to follow the rules so you can stay protected.   Michael: Yeah, great. and where can people find out if they're interested in picking up a copy?   Garrett: Amazon has it the veil not fail. It was supposed to be out in April, but we have this thing called supply chain problems.   Michael: I've heard of that.   Garrett: Not enough paper out there. So it's not out until November but you can go ahead and preorder it.   Michael: Fantastic. Garrett, let's talk about I think a pretty hotly contested and debated topic in the real estate space and that's LLC versus no LLC, I think and it's tough because we're I'm California based. A lot of our listeners are California based and so to have an LLC in California, you're paying at minimum 800 bucks a year and with today's cash flow based on some real estate investments that can eat in to your investment pretty significantly and so I've heard folks say, you know, forget the LLC, go get umbrella policy, go get high liability limit insurance and call it a day. Don't worry about it. What are some risks pros cons associated with doing that, that you've seen folks run into?   Garrett: You know, there's a whole area of law called Bad Faith litigation, and that's when insurance companies collect the premiums and then find a way not to cover you. All right, the insurance companies have acted in bad faith over the years. errors in collecting the premiums and then having exclusions, that little tiny print that you never read and so, you know, the insurance companies, let's face it, they have an economic incentive to not cover every claim and so they're going to find reasons not to cover you and so I always recommend that people have insurance. That's the first line of defense but these LLCs are the second line of defense, in case the insurance company doesn't cover you, or what about a situation where your insurance is, say 2 million, but the judgment is 4 million, right? I mean, you're personally responsible for that extra 2 million. If the property is in an LLC, they can get what's inside the LLC. But if you've done it, right, if you if your veil is strong, they're not going to be able to reach your personal assets for that extra 2 million. So the idea that you're just going to rely on insurance is, in my opinion, quite naive.   Michael: Yeah. Okay, I love it. I'm of the same opinion. I always, I never like to play my hand, though but I love hearing that because I come from the insurance world. So I know how bad things can go and I also have seen how they're supposed to work. But I think you're totally right, there's totally an economic incentive to not pay claims and the insurance industry as a whole gets kind of wrapped in with the folks that are doing the latter, not the former. So I think it makes a ton of sense. But Garrett talked to me about I've heard this concept, and this idea that, okay, there's this, you can be over insured, there is such a point. Now, if I go get a $10 million umbrella, because I really want to be protected. Does that then put a target on my back for a claim or a plaintiff to say, well, hey, he's got a pretty a pretty massive insurance policy, you know, I was only going to sue him for a million, but let's go after the full 10.   Garrett: Well, I mean, there are a number of factors there. I mean, having enough insurance is not a bad thing. If the claim is a million, it doesn't give the attorney the right to try and collect 10 million, you know, I mean, the claim is a million. So you know, the fact that you have extra insurance isn't a bad thing. The attorneys, you know, what we like to do, what we tell our clients is you want to have enough insurance to cover any claim and so you want to have insurance on the property fire casualty, right? You want to have a personal umbrella policy of insurance covering your home and your autos because I think that's the biggest risk out there is a horrific car wreck, right. Do you need that umbrella policy, a commercial umbrella policy over your various rental properties, maybe I had a part such a policy for a while but here in Reno, it got pretty expensive and so I just have regular insurance on the properties. I have regular insurance for my home and autos and I have an umbrella policy for me personally and so you get in that horrific car wreck. There's enough insurance money for the attorneys to get at. They know how to get at insurance monies, they get a percentage of what they collect and then if everything else is held in LLCs you know you'll have a an LLC if you own a property in Oregon, you have an Oregon LLC on title, you own a property in Utah, you'll have a Utah LLC and tie on title and then those two LLCs are owned by one Wyoming LLC. That's how we like to structure things and the attorneys are going to have a tough time collecting from a Wyoming LLC and so they leave you alone on the LLC. Do you have enough insurance to pay the claim and they'll leave you alone on the LLC is that's how we recommend our clients structure things.   Michael: Okay, and why Wyoming LLC because I know you made a very deliberate point of saying where is formed, what's the point?   Garrett: There are three really good states out there and they compete against each other to be the best which is good for us. Instead of having one federal law that applies to every single state. After the American Revolution, each state wanted their own corporate law and so now we have each state with their own corporate law in Delaware, Wyoming and Nevada compete against each other to be the best. You know, the filing fees every year that come in are pretty good. It helps fund the government. So the reason I like Wyoming over Nevada and Delaware is all three protect the owner of the LLC the charging order is the exclusive remedy and all three, but in Nevada and Delaware the annual fee is $350 a year and in Nevada they list your name on the state website. In Wyoming the annual fee is $62 a year and your name does not show up on the State web site. So Wyoming offers lower cost, better privacy and equal protection. So a lot of our clients set up Wyoming LLCs.   Michael: Yeah, okay, well, I'm sold. So being a California guy, though, this is what I've heard and would love your insights. So I've been told that California they want their piece of the pie. So I've got to register any LLC that I own. In California, because I'm a resident here, I live here, even if it has not doing business, because the way California defines doing business is basically me living here. So if I do I own property in Oregon, I own it with an Oregon LLC, that LLC is owned by the Wyoming LLC, but then I gotta register both of those here in California?   Garrett: No, you raise a very good question. So in our example, we had an Oregon LLC and a Utah LLC and if those were owned by you, as a California resident, we'd have to pay 800, twice, once for Oregon, once for Utah, by having the Wyoming parent there, the Wyoming LLC, and we qualify that one to do business in the State of California. You don't have to pay the 800 for Utah, or Oregon. So that's a way to save the $800 for all the title holding LLCs yes, one of them has to pay right $800 to the state of California and you know, California has gotten a little bit looser, you don't have to pay the 800 the first year, that $800 is a credit on the first $50,000 in profits. So it's not like it's wasted. So, you know, I've had people move from California to Nevada, because of that $800 fee. It's just infuriates people. But there is if you love living in California, there's a way to work it so you have protection, and you don't have to pay $800 for every single LLC you own across the country.   Michael: Okay, fantastic and then in going back to that example, if I've got the I've got to register the Wyoming LLC here in California, do I lose out on any of the anonymity that Wyoming affords me because now it's registered here in California?   Garrett: Yeah, you'd have to list your name in California.   Michael: Okay, all right. Yeah, maybe I will think about moving, who knows? All right, Garrett, in your book, and I want to get really nice here for a minute, because I've got you. You talk about quitclaim deeds versus warranty deeds and I think a lot of our listeners out there have utilized this practice, or have heard about this practice because if you go get a conventional loan from a traditional bank, they won't lend to an LLC. So you go get the name the loan in your name, then transfer the property title to an LLC after the fact, right. In the book, you talk about quitclaim deeds versus a warranty deed, can you give us a little bit of insight into what the difference is and why someone should think about using one versus the other?   Garrett: Well, the warranty deed or the grant deed says, I warrant that I own this property and if I don't, if I transfer it to you, and I don't own it, for some reason, you can sue me. All right. So it's a more powerful deed. The grant deed, the quitclaim deed rather, says, I don't know what I own. But I'm transferring whatever I own to you and the title companies go, well, he quit claimed that property and so that severs the title insurance, right because he didn't know what he had and so we're not going to cover him on it on a quitclaim deed and so and too many people pronounce it quick claim.   Michael: I know, I know.   Garrett: You know, and it's the same deed with a couple of different words in it. But you really always want to use the grant deed or the warranty deed because in many cases, you sever the title insurance, when you use a quitclaim deed, okay, and that's….   Michael: Okay and that's even if you're going from yourself as an individual owner to an LLC that you own 100% of?   Garrett: Right, yeah, just ask for the grant deed. Also, if you're buying property from someone, you want to insist on a grant deed or a warranty deed, because if they don't deliver the title that they've promised they are going to deliver, you have the ability to sue them for failure to perform.   Michael: Okay, super good to know, super good to know, Garrett, as people who are just getting started on their investment journey, I mean, what's the appropriate time to set up an entity because I've heard people say, I'll do it later. I'm too small. It's too expensive. You know, what are your thoughts there?   Garrett: Right at the start, you know, it's just not that expensive. We do not charge a lot of money to set up LLCs for people. It's very affordable. It's a business expense, you get to write it off. But I'll give you an example Michael and I I've told this story 1000 times, but I was in San Francisco at an event and I gave a talk about asset protection and this lady comes up to me and she goes, Well, I'd like to transfer title. I just bought a duplex and I'd like to transfer title into the name of an LLC. I go, that's a great idea. I go in California, it's $800 per year per entity and she goes, oh, I can't afford that and so I'm giving a talk in San Francisco again and she comes up to me and says, I've been sued by a tenant, I'd like to set up that LLC now. Well, it's too late, right? You know, the tenant rented from you, in your individual name, UX, they have a claim against you as an individual, and they can reach all of your personal assets as a result and once you've been sued, or even threatened to be sued, it's too late to set up an LLC. I mean, you can't put a seatbelt on after the accident. Yeah, right. So you really want to set this up right at the start and I've heard CPAs say, oh, well, you know, just set it up when you can and that's bad advice. I mean, you know, the joke I tell is that CPA stands for can't protect assets. It's just, you need to set this stuff up right now.   Michael: Yeah, yeah. Okay. I think it makes a ton of sense and I love the seatbelt analogy. I think that really hits home for a lot of folks. So as someone that's getting more sophisticated with their investing strategy, what like tools or strategies should they be aware of as they're starting to scale up and they're investing?   Garrett: Well, I think having that Wyoming, LLC is the parent holding LLC is a good strategy. We talked about an Oregon LLC and a Utah LLC owned by one Wyoming LLC and that Wyoming LLC is passive. It's not going to hold real estate, it's not going to do business with anyone, because if someone sued the Wyoming LLC, they could get at Wyoming at the Oregon and the Utah LLC. That's what the Wyoming LLC owes. So that Wyoming LLC is passive, it doesn't do business with anyone because we don't ever want it to be sued. All right. So that's a key strategy in protection. Now, if your clients are holding brokerage accounts, right, bank accounts, gold and silver stock brokerage accounts, in their individual name, the same rules apply. If they get sued personally, and they have all these assets at a Charles Schwab account in their individual name, someone can very easily get those and so what we do is we set up an LLC for the paper assets for the bullion and if you get sued, and that horrific car wreck, they're in an LLC, it's much different, much more difficult for an attorney to get at those because the exclusive remedy in Nevada and Wyoming is what's called the charging order and that is a lien on distributions in the state of California if you own an LLC that owns a piece of real estate in California, the law in California is that the car wreck victim can go to court and the judge can say yes, you've been injured, you can set forth the sale of the duplex. All right, and that is not good asset protection. So we like Wyoming and Nevada where the court says, okay, you have a claim. But here's the remedy that we offer in our state, you are entitled to distributions that come through the LLC, you can't barge in and force the sale of the real estate, you have to wait for distributions to come and that's not a good use of the attorneys time. You know, monitoring if distributions are made there on a contingency fee, they get paid when they collect on the insurance monies. So their time is better spent going to the next case that has insurance. So that Wyoming LLC that offers the charging order remedy, not where they can barge in and force the sale of the real estate but where they have to wait and monitor distributions that go to you. It's a much better system for protection than choosing a weak state like California, Utah is a really weak state, New York is weak. So we have to understand which states are strong and weak and structure your plan accordingly.   Michael: Yeah, interesting and Garrett, talking through all this kind of makes me beg the question of in our Utah, Oregon, Wyoming, California LLC example where the Wyoming LLC owns the properties. There is a holding company rather, if the tenant in Oregon falls and Sue's sues the owner. I mean how far Is this go and where is the court date held, how does that all work?   Garrett: Well, if you, if the tenant has is renting from the Oregon LLC, that's or they're in contract with, so the claim would be tenant would sue the Oregon LLC, the lawsuit would take place in Oregon, right? That's where the property is. That's where the tenant fell. The action stays within the Oregon LLC, it doesn't give the tenant a right to go down to the Wyoming LLC, which is the parent, it doesn't give the tenant the right to go over to the Utah LLC. That's a separate business entity. So the key here is that if the tenant sues, you want to get notice of that lawsuit as soon as possible, right, you want to turn over this claim to your insurance company, so that they can assist in settling the case. Too many people, Michael have this idea that if they use a land trust, where no one will ever know who the owner is, and no one will ever serve you is just nonsense because you want to get notice of the lawsuit as soon as possible. In the Land Trust scenario, they say, well, geez, no one will ever find out who the owner is. Well, what happens is they go to court and they say, Look, we tried to sue the land trust, we couldn't find out who the owner was and the court says, okay, well published notice in the newspaper. So they published it little two point type in the newspaper that We're suing the Oregon LLC, or the Oregon Land Trust, rather and you don't get notice of that either. They go back to court and say we tried to serve them, we published notice in the newspaper, and no one ever showed up. The court says default judgment, meaning the tenant has won and then when they're trying to collect, you know, you find out that you've been sued, the insurance company can say, Well, look, you should have had notice of this lawsuit, we could have defended you, but we're not covering you now. You didn't give us the proper notice and so this whole idea of a land trust and privacy is just nonsense. You want to get notice of a lawsuit, so you can turn it over to your insurance company.   Michael: Yeah, that makes no sense. I guess it's kind of like the ostrich approach like if I stick my head in the ground, I don't see it. I don't hear about it. It's not a problem.   Garrett: Yeah, it is a problem.   Michael: Interesting, okay and Garrett talked to us about some of the different entity structures that are out there. Because there's the C Corp, the S Corp, the single member LLC, multi member LLC, like should we as real estate investors be thinking about utilizing some of these different corporate structures or is really the LLC that that kind of 45 of structures.   Garrett: Pretty much the LLC is the way to go, if you're going to hold real estate, you in some cases, the limited partnership can work. If you're syndicating real estate and you want to absolute control, the limited partnership can work, you're not going to hold title to real estate in a C Corp or an S Corp or any other kind of corporation, tax wise, it's just not the best way to go. So the LLC is pretty much I mean, 98% of our formations for real estate are LLCs. The other 2% would be LPS for syndication purposes, or, you know, for estate planning purposes where mom and dad with an LP, the general partners, which would be another LLC can own as little as 2% and have absolute control over the property. So mom and dad through their LLC have 2% ownership, the limited partnership has 98% ownership owned by the kids as limited partners, and the kids can't force mom and dad to sell the property. So there are cases where the limited partnership works but in the vast majority of cases, it's the LLC that is on title to the real estate.   Michael: Okay. Good to know, good to know. I had another question for it and it totally escaped my mind.   Garrett: Well, how about fail not fail the new book?   Michael: Yeah…   Garrett: You know, people have these promoters out there just say that most wrongheaded stuff about LLC. I mean, they say that you don't need an operating agreement- wrong. They say that you never have to issue stocks or timber membership interests certificates- wrong. So you you'd need to treat your LLC, like a corporation whereby you have to follow these formalities. You have to have the annual meeting, right and the idea that you never have to have a meeting is when you get into a court of law, you're in front of a judge or a jury. I want you to have a minute book with the minutes of every yearly meeting in it and these promoters say, well, you never have to have a meeting. I want you to walk into court and tell the jury, yeah, I ran this property for 12 years and never had a meeting. It just doesn't work.   Michael: It's not going to fly.   Garrett: It's not going to fly. So you know, the reality is, when you're in a courtroom, the reality is not when you're in office with a promoter telling you don't have to do anything to maintain your LLC. It's just not accurate. Yeah, so that's why I wrote the book, because there's so much misinformation out there about corporate formalities. So with a corporation, you need to follow the corporate formalities and with an LLC, you need to follow the corporate formalities because someone suing can pierce the corporate veil on a corporation, they can pierce the veil on an LLC. It's very, and the rules are not hard to follow. They're really easy. It's just if you don't follow them, they can go through the LLC and reach your personal assets.   Michael: Yeah no, that's such a great point and also, Garrett, I mean, to that point, if someone listening is thinking about reaching out to an attorney for help with forming for entities or restructuring entities, I mean, what are some questions they should be asking and things they should be looking for, with an attorney that they want to put on their team?   Garrett: Well, does the attorney invest in real estate? I mean, I think that's a good question to ask because, you know, I invest in real estate, I've been through the wars and so it just helps you appreciate what the client is going through to have done that yourself. You know, I think some attorneys specialize in personal injury. In contract cases. I mean, you want someone who really knows the ins and outs of LLCs, and appreciates that we have good states and weak states, and that you have to put the combination together to fully protect the client.   Michael: Yeah, that makes total sense and we're recording this, let's see September 2022, what is like the reasonable cost to form an LLC, and then what are any kind of maintenance fees associated with maintaining the LLC?   Garrett: Well, we charge a flat fee of $795, in that, and then the filing fees are on top of that. So Wyoming, for example, is $100. That 795 includes the registered agent for the first year. So you're not paying any extra for that. We also have a system whereby we keep all your documents and if you have lost your operating agreement, we give you a portal where you can go on and download your documents. So we kind of have this backup service for you and then so you pay the 795, the first year, and then the second year, it's already formed, so everything drops down, you only pay 125 to four, the registered agent. Now we give you a book that shows you how to do the minutes because you really should do the minutes every year and even though we give you the book with the forms in it, a lot of people don't do it. So we offer a service where for $150 a year, we'll make sure that your minutes are done and we want to keep you in good standing, we want you to have those annual meeting minutes in your file, just in case you don't want to be in a courtroom and say I never had a meeting.   Michael: Right, it's too late, then like you said, Garrett, this has been super informative and people want to reach out, continue the conversation, take advantage of your services, what's the best way for them to get in touch?   Garrett: Well, they can go to https://corporatedirect.com/schedule/ and set up a free 15 minute consultation with an incorporating specialist that you'll work with this person all the way through the process and they'll give you a quote for what our services entail and you know, just see if there's a fit, we're happy to talk to you and so we set up entities in all 50 states, maybe you're you set up your entity already, it's an LLC, you don't have an operating agreement, you haven't issued the membership certificates. Don't tell anyone but we can clean it up for you. We also offer a registered agent service in all 50 states. So if you've got one company here, one company there we can be your one company to serve as the registered agent in all 50 states. So we'd be happy to help your listeners Michael and you know, have them call corporate direct or go, go visit the website, corporatedirect.com and there's plenty of information and articles there and kind of tells you what we do.   Michael: Amazing. Well, Garrett, thank you so much for that. One final question before I let you out of here. We've said the term a couple times. But for anyone who maybe isn't familiar, can you bring them up to speed on what a Registered Agent is and what the importance is?   Garrett: Well, the Registered Agent is someone in the state where you set up the entity or where you're qualified to do business and the idea is that instead of having someone who's trying to sue you search all over the state of Texas for you, right? The Registered Agent is an address where someone suing, you can go and serve the registered agent with service of process. So it's just it's kind of an efficient way for the justice system to work. It's one place where you can serve an LLC or a corporation, and then they're responsible for forwarding that on to you and so you want to use a reputable registered agent service that knows the importance of a lawsuit, if we get a notice of a service, we're on the phone immediately to our client, because you've only got 30 days to get an attorney and answer that complaint. So you don't want a mom and pop that is going to go out of business or doesn't appreciate the consequences of being served with a lawsuit. So it's an important function and if you fail to pay the Registered Agent, they're going to refuse service a process and then they're, you know, the person suing us is going to go back to court and get, you know, authorization to publish notice in the newspaper, and again, you're not going to get noticed to this cert of the claim. So you want to have that registered agent on your team at all times.   Michael: Yeah, yeah, super great point and the Justice Department looking for efficiencies. That's not something I maybe I've ever heard before. So really exciting stuff.   Garrett: It's something that does exists, so…   Michael: Oh, Garrett, thank you. Again, this was super informative, and I definitely would love to have you back on once your book comes out in November.   Garrett: That sounds great. Thanks, Michael.   Michael: You got it, take care. We'll chat soon.   Garrett: All right.   Michael: All right, everyone, and that was our episode a big thank you to Garrett for coming on. Definitely take advantage of that. 15 minute free consult if you're interested. As always, if you liked the episode, feel free to leave us a rating or review. We'd love to hear from you all and we look forward to seeing on the next one. Happy investing…

Owen Beiny (@thepointspartner), better known as The Points Partner is a former CEO that has spent the last 20 years traveling around the world for free by using credit card points, air miles, upgrades and benefits. Owen joins Angela to talk about maximizing credit card benefits and what are the best credit cards to have. Best advice received  Value vs. money Financial literacy and lack thereof Ownes financial education The evolution of credit cards The importance of knowing the benefits of credit cards Insurance Back Security American Express Passive income Top 5 Credit Cards for each individual American Express Rose Gold card Quotes: “don't ever expect anything from anyone, unless you've done something for them first. Giving is absolutely the most important thing you can do.” “Having money won't make you happy. Not having money will make you unhappy”. “Money itself doesn't have the value.” “That is the best attitude to have is to always have your hands open, prepared to give.” “Being a millionaire, won't make you happy, but I'd like to find out the hard way. “ “Why are we teaching kids, how to do algebra and where to put commas in sentence? When they leave school and they enter the real world, what they actually need to know is how do they restore their own credit? How does the credit system work? How does the banking system work? How much taxes should they pay? Should they have an LLC, an S Corp, a C Corp and all of the real estate mortgages, helocs, none of the things that real humans, real adults need to know about, re they teaching.” “There is not a single annual fee of a credit card in America today that is not easily, easily justified. If you understand the benefits of the card,” Mentioned: https://thepointspartner.com/ (Pointspartner.com) https://academy.thepointspartner.com/ (Fly Free Academy) https://www.instagram.com/thepointspartner/?hl=en (Instagram) https://www.tiktok.com/@thepointspartner (TikTok) @thepointspartner Angelas@conquercredit.com https://www.iammusicgroup.com/ (I AM Music Group)

You're alone in the woods with nothing but Lizzy's cracked phone. There's an eager apprentice duckfacing just fifteen miles away. In the other direction there's a meaningful passage from the seminal work "Who Moved My Cheese?". Lizzy gathers insight from experts Sedona Regan and Blake Rosier. And then she seeks counsel from her hilarious dream guests, the cohosts of the amazing podcast Bananas! Listen, start an S Corp, then go to Lizzy's Instagram stories and vote! Learn more about your ad choices. Visit megaphone.fm/adchoices

On today's episode of the podcast, I interview Luisa Alberto, CEO of People First Finance about her profit and loss statement. People First Finance's mission is to ease the financial burden and overwhelm that holds too many ambitious enterprising women back from achieving financial autonomy. Luisa opened a brick-and-mortar juice bar in San Francisco that closed its doors when Luisa had to declare bankruptcy for the business. The business was a partnership and was carrying a lot of debt. Luisa leveraged the lessons she learned from this experience to segue into 1:1 coaching. Going into the business bright-eyed and bushy-tailed, it wasn't until filing for bankruptcy that Luisa and her partner realized they were personal guarantors for the business loans they had taken so it had to be a personal bankruptcy. Before this, Luisa was in an excellent personal finance situation with great credit, which did help applying for a credit card after bankruptcy. Bankruptcy does not have to destroy you and there are options to build back up your credit. A secured credit card (one where you essentially make a down-payment toward the line of credit) is one option to help build credit. There is no one way to structure your own financial journey. You have to focus on what is best for you. Looking back on the juice bar, Luisa shares that she while the location was chosen for the high level of foot traffic (second highest in San Francisco) the space at the food hall was small and did not have the infrastructure that allowed them to produce the amount of revenue needed to not only cover all overhead and debt but have any kind of profit margin. People First Finance offers done-for-you services for agency owners and service providers and advisory services for all kinds of businesses. We dive into People First Finance's profit and loss statement (P&L) for this fiscal year through end of August. They have $161,800 in gross revenue. On the business's P&L there are sublines for sales and for services, the difference being retainer clients versus one-off services. People First Finance is an agency made up of three bookkeepers, one CPA, a subcontracted tax professional, a director of operations and a virtual assistant. People First Finance is an S Corp and Luisa and her accountant are both employees. The rest are contactors with their own businesses with People First Finance being one of their clients and paying them an hourly rate. The team was built through Luisa's networking. For her own business, Luisa uses Collective for her bookkeeping instead of a member of her team to keep a line of separation between her contractors and her own business as well as to get an insight into how their company works and because Luisa knows what questions to ask them. When getting her P&L there are a few things Luisa looks for. First, she looks to make sure revenue is captured properly with nothing double counted. Then, she makes sure all her contractors are organized and that it matches what she spent on billable contractors versus overhead and ops. She also checks the balance sheet for accurate journal entries. Breaking down the Contractor expenses, Luisa has accounting subcontractors, bookkeeping subcontractors and financial specialist. General contractors is an operations expenses and covers the Director of Operations and virtual assistant. Bookkeepers are billable work related to direct costs. The placement of line items on a Profit & Loss can be called a tax net neutral mistake if it is on your P&L accurately but listed in an improper category. At the time of recording, Luisa was approaching her first year in business this week. Starting the business, she pulled in clients she had from her personal coaching and consulting which set the baseline before adding additional clients. Luisa has focused on building a team in the last few months to support doubling revenue over the next year. Currently, Luisa's at about $36,000 in contractor expenses which is about 30%. Her target direct labor cost is 40% or less of gross revenue and 20% or less of gross revenue for operating expenses. Other line items include meals, Luisa's health insurance runs through payroll to save self-employment taxes on health insurance. Luisa went the HSA route for her IRA. When you have an S Corp, your salary comes through the business. The lower it is the more you spend on taxes, but it also needs to be considered reasonable. When looking at P&Ls for clients, Luisa often sees a lot of duplicated accounts where repeated expenses are getting categorized differently when they come in each month. Looking at Luisa's P&L pie chart if we broke it into thirds, her YTD salary goal is $33,300. Looking at the expense total of $142,000 and subtracting $33,000, expenses other than salary would be $109,000 and then profit after salary and expenses is $19,000. Luisa plans to look at profit more strategically next year in a way to increase tax liability and therefore maybe not increasing her salary in order to max out her retirement account instead for example. Different methodologies work for different people, it's not just about profit first and that may not be the one that's best for you. Luisa shares that your finances “don't have to be hard.” What we really need to focus on is the compliance piece. You don't need to get fancy with your cash flow, you just need to know and organize what everything is that is coming in and out of your business. Your business decisions rely on the accuracy of this information being well-documented. Having a business bank account makes this all streamlined and more efficient and easy. Get in Touch with Our Guest Luisa Alberto, CEO of People First FinanceVisit the People First Finance Website Follow and send a DM Instagram at @peoplefirstfinance Connect with Luisa on LinkedIn Join the waitlist experience happening now through October 12th

A little Finance tip for your Friday and why your Intuition is your best friend when it comes to building your business  Timestamps: [7:59] Get an LLC or S-Corp. [11:14] Using intuition in your business. [13:24] We have to recognize when our intuition doesn't make sense. [18:58] Follow your intuition and outsource what you don't want to do. Expansion BundleYour Social Branding--Connect with Danielle!on IG @danielle_onthedailyPodcast: @onthedailypodPlease subscribe, rate, and review our podcast.  As always, thank you for supporting us!On The Daily Podcast

Nii addresses what putting yourself on the payroll for your side-hustle does to your taxes. We have special guest, Eric McGlothen, CPA and Founder of Eric McGlothen, LLC.  Things to expect in this episode:Benefits of putting family members on payroll, including federal tax perksLLC, S Corp, and C Corp strategiesThe false security of W-2 employment401Ks and paying your health insurance through your businessWealth strategies, including retirement savings via payrollGuest Contact Information:Website: https://www.emac-cpa.com/Email: info@ericmcglothenllc.comTwitter: @emaccpaFacebook: https://www.facebook.com/people/Eric-McGlothen-LLC-CPA/100063691114849/Phone: (404) 946-1855Youtube Show: Level Up with Eric McGlothenWE WANT TO HEAR FROM YOU!!!!  FILL OUT THE DOCS OUTSIDE THE BOX PODCAST SURVEY (in partnership w INCROWD)INCROWDMAKE EXTRA MONEY AS A RESIDENT OR ATTENDING - COMPLETE MEDICAL SURVEYS WITH INCROWDWATCH THIS EPISODE ON YOUTUBE!Join our communityText word PODCAST to 833-230-2860Twitter: @drniidarkoInstagram: @drniidarkoEmail: team@drniidarko.comPodcasting Course: www.docswhopodcast.comMerch: https://docs-outside-the-box.creator-spring.comThis episode is edited by: Your Podcast PalThis episode is sponsored by Provider Solutions & Development. Experts in holistic career coaching – check them out HERETwitter: @PSDConnectsFacebook: @PSDConnectsLinkedIN: Provider Solutions & Development

This is part two of a three-part series on how you are taxed as a business owner. I'm going to cover S Corps and C Corps in this episode. These two entities are very different, but I am combining them in order to show the contrast between them and help you understand the differences.   * Questions about this episode? Text me!: https://my.community.com/shannonweinsteincpa * Chat About This Episode in the Keep What You Earn Community – http://keepwhatyouearn.circle.so * Hire us!: https://www.fitnancialsolutions.com/accounting * Find me on IG @shannonweinstein: https://www.instagram.com/shannonkweinstein * Catch me in-person on YouTube: https://www.youtube.com/channel/UCMlIuZsrllp1Uc_MlhriLvQ * Featured in Yahoo Finance! Read more here: https://finance.yahoo.com/news/10-bookkeepers-accountants-watch-2021-113800161.html     The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.

Want to learn how to easily use SEO to turn your website into a six-figure passive revenue stream? Sign up for my FREE webinar 3 Steps to Creating Passive Revenue From Your Blog (and how SEO is the Secret to a 6-Figure Recurring Revenue Stream!). #52: In this episode, I share the top 10 things I'm doing, and that other influencers, content creators, and small biz owners can consider doing to prepare for a recession. This episode is not meant to be fear-based but instead is meant to share ideas on how we can all prepare for what is likely our first recession as Millennial entrepreneurs, so that we can survive and then thrive afterward. If you're a business owner or a content creator who earns their money through affiliate links, sponsorships, etc. and you're worried about how a recession might affect your income, then this is the episode for you! I get into: - The importance of diversifying your revenue streams and my current strategies for this + projects I'm currently working on with an eye for the longterm - How I'm optimizing my money and re-evaluating personal budgets and business expenses - Staying invested and potentially setting aside money to invest in ETF's - Remaining grounded and reminding yourself that everything is cyclical, and how we can find opportunity in a season like this - Making sure your business' financials are working for you (maxing out your Roth IRA, filing taxes as an S-Corp if you're making over ~$80k, etc.) Snap a screenshot of the podcast and tag me @wtfab sharing your thoughts on this episode, so I can reshare it on my Stories too! Make sure you subscribe to the podcast to stay up to date on the latest episodes and interviews. Lastly, please rate and review to support this podcast! Links mentioned in today's episode: Try one of my What The Fab Lightroom Presets for free! Episode 51: Talking Burnout With Ginger Jones: What Actually Causes It, How to Deal With It, and Trusting the Process Episode 49: 10 Things I've Learned From 10 Years of Blogging

Today LoriAnn dropped SO. MUCH. Information… but in the most easy-to-understand and approachable way possible. She covered questions such as: what's the difference between a bookkeeper and an accountant? Which should I hire first? Benefits of being a Sole proprietor vs an LLC vs an S-Corp when it comes to your books and taxes? How to logistically pay yourself as an owner depending on if you're a Sole proprietor and LLC OR if you're an S-Corp (cause YES - you need to do it differently depending on how your business is set up). How much you can hand over to a bookkeeper vs what you should stay on top of as the owner/CEO? How to approach your finances without being intimidated or overwhelmed, how to set up your finances (easily and quickly) to help push your business to success, and the best softwares and apps to keep tabs on your numbers. ----------------------------- Niching Down Freebie: www.theheartuniversity.com/niche ----------------------------- Basecamp: www.basecamp.com/heart And sign up today to start a free 30-day trial! ----------------------------- Athletic Greens: www.athleticgreens.com/HEART ----------------------------- Love and Other Words by Christina Lauren  The E-Myth Revisted by Michael Gerber ----------------------------- Follow along with LoriAnn:  www.instagram.com/loriannkuntz.co www.loriannkuntz.com https://www.loriannkuntz.com/DIY 20% off code: HEART  ----------------------------- If you want to connect with us and other listeners in the Heart and Hustle community join our Facebook group here. ----------------------------- PODCAST10 for 10% off anything from The Shop! www.theheartuniversity.com/shop ----------------------------- Follow along: www.instagram.com/mrslindseyroman www.instagram.com/evierupp www.instagram.com/theheartuniversity  

This episode Dr. Dahle covers a variety of your questions. We talk about when it is worth passing cash through a 529 account and if you should use 529s to fund K-12 educations. We talk about how interest on iBonds works and go into why TIPs have been performing pretty poorly as of late. We dive into the tax implications for S Corps and talk about why it is not a great idea to purchase ETFs after hours. See the full show notes here: https://www.whitecoatinvestor.com/529s-i-bonds-tips-s-corps-etfs-and-403bs-276  Today's episode is brought to us by SoFi, the folks who help you get your money right. They've got exclusive rates and offers to help medical professionals like you when it comes to refinancing your student loans—and that could end up saving you thousands of dollars. Still in residency? SoFi offers low-interest rates and the ability to whittle down your payments to just $100 a month* while you're still in school. Already out of residency? SoFi's got you covered there too, with great rates that could help you save money and get on the road to financial freedom.Check out their payment plans and interest rates at https://www.sofi.com/whitecoatinvestor  SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. Additional terms and conditions may apply. NMLS 696891 The White Coat Investor has been helping doctors with their money since 2011. Our free financial planning resource covers a variety of topics from doctor mortgage loans and refinancing medical school loans to physician disability insurance and malpractice insurance. Learn about loan refinancing or consolidation, explore new investment strategies, and discover loan programs specifically aimed at helping doctors. If you're a high-income professional and ready to get a "fair shake" on Wall Street, The White Coat Investor channel is for you! Main Website: https://www.whitecoatinvestor.com  YouTube: https://www.whitecoatinvestor.com/youtube  Student Loan Advice: https://studentloanadvice.com  Facebook: https://www.facebook.com/thewhitecoatinvestor  Twitter: https://twitter.com/WCInvestor  Instagram: https://www.instagram.com/thewhitecoatinvestor  Subreddit: https://www.reddit.com/r/whitecoatinvestor  Online Courses: https://whitecoatinvestor.teachable.com  Newsletter: https://www.whitecoatinvestor.com/free-monthly-newsletter