P1 - Course Overview
Well, hi, everybody. This is John Jay Singleton, And I want to do an overview of the type of types of services that I provide to people.
I know that when people hear my interviews, they call me, and we discuss their specific situation.
And then the conversation usually leads into the question of, what is it that you do, because they don’t have titles next to my name. I’m not a bar member, I’m not an accountant, but I can speak the language. And I can use some of the information to solve people’s problems. So, I’ll just tell you from the beginning.
Um, I started doing this work, which I’ll describe as best as I can In the early nineties, in college.
And I was just looking for a business to get into.
And I had, while I was in college, I had developed a game strategy, a game series for, that I could use to teach fourth graders, high school algebra, And my, my professor challenged me to actually produce the material and make it into something that would be, that I could go into production with.
So, I did that, and I went to the schools, and I taught the fourth graders, High school algebra, And the teachers were surprised. And it was pretty clever trick.
And then I did some more research too, see if it was worth getting into. And I decided not to do that, that time, because I felt like there was too much competition I didn’t want to. I didn’t wanna get into that market, although probably would have done well. I just, just wasn’t the thing I wanted to do. I wasn’t passionate about it.
And then I started looking at consumer debt.
Um, and, of course, I had, No, I had, at that time, no legal training.
I have, still, no formal legal training, But, what I was able to do, was read.
So, I would go in, uh, look at consumer debt cases in no other place. But what, the court system, right, so I would go into the Court, and I would sit there and listen to attorneys, argue over cases.
And I realized there were some, a big gap in consumers responding to complaints to lawsuits. So, people that had credit card debt would just not show up.
And I thought, Wow, if they would just do a couple of things, because I got myself a copy of the rules, and I read them, and I thought, Well, if they could just do a couple of things.
Or if they just knew a couple of things that would be so much easier, they could probably get themselves out of a lot of the, A lot of the cases, a lot of the situations make it better.
And as I did more research, I discovered that there was a huge industry profiting from People being in debt, and I thought, well, that’s really just exploiting people, like I does.
I just didn’t think of it as a big system.
I just thought it was consumers He couldn’t pay and then they had a problem And then I realized the whole system was designed to create consumer debt push down on people, make it convenient, make it palatable so to speak, long term debt, lifetime debt, and then exploit people.
So anyways, I reverse engineered the collection process. I got the books. I studied the law. I said the collection procedures and more importantly, it’s not about really the law. It’s about what the system will do It’s about what people will do.
For example, people believe that filing a bankruptcy is going to solve their consumer debt problems.
And really, what bankruptcy has come out to be in the last 15 or 20 years is nothing but a payment plan.
So, anyways, we’ll get into that.
So my focus has been on, in the very beginning, back in the early nineties, it was on consumer debt, and I started out with IRS cases. That was, I got, I got the worst kinds of cases. My first case was, you know, I had to travel to the client’s house, and we spent a few days over there.
And I, it took me about a month, and we finally got the IRS to agree that there was no debt actually. And they had, in the meantime they had before, that they had taken all this property.
That’s why that’s why we were called and uh, anyways, we got all the property back and this sort of thing.
And I learned so much in that case, and I realized there were some really sinister things going on in consumer debt. I mean, it just got so much more involved than I originally had believed.
And so, so I went from consumer debt to small business debt.
So I started working with people that had S type corporations, Subchapter S, things like this. And a lot of them were being destroyed by the IRS or too much debt.
And so, what I would do is organize a way where the company, or the individual could restructure the way he receives this future cash flow.
So, as paycheck or business income or something, Something like that, where it would be unattach goal, and that was my thinking. So, in my early days, when I was looking at IRS situations, I used to write letters to the IRS and make legal arguments, and things like this to try and solve a person’s situation.
And I realized that the iris didn’t really care, that there’s no one there that’s really, you know, even understand a lot of these things.
They’re just there to push some buttons and send letters out, So what I figured is that, it, the client, would be protected as, if he didn’t have anything.
So, it’s kinda tricky because, you know, people have stuff, people have cars, and boats, and land, and houses and jobs, and they’re pension funds and they have entitlements, and stock, and all these things.
So, over the years, I had developed different strategies to solve different problems and basically it works like this, I look at the worst-case scenario.
Looking at Title 26, OK, which is the Internal Revenue Code, Title 26 of the United States Code, there’s a section in there and I’m giving out the sections Because I want you guys to be able to research some of the things I’m telling you. so you can, you can validate what I’m telling you.
So, Section 603, 1 in paragraphs AMB.
Now, everyone ignores paragraph eight.
Get to that, we get to that sometime, but Paragraph B basically says that the IRS can take the property of the taxpayer if he owes money and hasn’t paid.
Or it can take the rights to property.
So, I thought that was really interesting, because the IRS administratively can take someone’s property, and they can take the rights to the has to the property.
So, I thought, well, if I can divest his exclusive rights over the property, then the IRS couldn’t legally take it, even if the IRS could see what was going on. And the way we do it is like this, OK, let me give you an example of how not to do it.
If you’re if you have cash flow, someone’s paying you money, and you would owe the IRS or you’re a creditor. There’s a judgement Lien.
And you owe a third party creditor, but someone’s paying you cash for a job you’re doing, let’s say, the creditor, the IRS, whoever it is, has the right to take the money before it gets paid to you.
There’s different types of, let’s call it levees, these are called levies. There’s different types of levees That can happen. That is different percentages of money that can be taken.
So if I give up my right to receive that money and I and I give it to somebody else, let’s say, my friend, bill, right, I always use Bill Smith as an example.
So I give my money, my rights, to receive the money to Bill.
And now that money’s not being taken anymore because it’s not being paid to me.
The problem is that Bill could also have a similar situation, right?
Bill has similar likelihood of having consumer debt problems and that he mito somebody completely different and that would mix my problems with his problems as you can see.
So what I discovered is that we have some really useful tools of divesting, one’s exclusive rights over Property and its property rights.
So, if, if I were to divest my exclusive right to Bill, we share the problem.
But if Bill and I together form an arrangement, maybe it’s a contract, right, a partnership, let’s call it, or maybe it’s going to be a company.
Let’s say we both on jointly accompany and then we move our property rights and our property titles over to the company and we can still enjoy the property and receive the cash and this sort of thing.
But no longer, would we individually have the exclusive rights to spend the money or sell the property.
That’s the key phrase, if you have the right to spend it or sell it, it can be taken from me, and these are the things I learned early on.
in the in the nineties, after my first few cases, I was like, well, OK, Let’s just go to the solve the problem. Let’s not try and drag, drag it out, and build the client by the hour.
Like, attorneys do, This is not really solving people’s problems, and, yeah, that’s the industry standard, and I think it’s wrong, I think it’s unethical to do that.
So, here’s how you solve the problem.
You take your rights that are now being levied against and you, you devise, divest them you move them over to a group, and the group is another structure. It’s a person.
It’s a legal person so we can create a legal person, we can use a corporation, we can use a trust. we can use. Not all trust do this though, by the way.
What I like to use is a limited liability company, and if you talk to be long enough, you listen to my videos long enough, you gotta figure out that.
It might sound like every solution. I have involves a limited liability company, but it’s a, it’s a very useful tool. I have to say probably 90% of the problems I solve, use limited liability companies. Not always, but, sometimes it’s actually a simple letter. I can write a letter sometimes or a phone call, it’s amazing. I’ll give you a quick example before I get into the actual structure.
Because we’re gonna get into more.
I’m gonna tell you more about the way I approach different problems and the categories of problems.
But I’m gonna give you this little brief story, because I want you to understand my attitude and how I think about things.
So a friend of mine, his, his friend was in the Air Force, and he was up for promotion.
And he’s probably in his twenties, young kid and he was up for promotion and he wasn’t gonna get promoted.
His, his commanding officer would promote him because he made all the criteria, I mean, this guy worked really hard.
He was in the, you know, he had taken all these tests and all had gotten all these certifications, but he wasn’t gonna get the promotion because he didn’t have stellar credit, personal credit.
So, I pulled this file. I said, Let me see your your credit file.
So, I pulled this file, and I saw that he had acquired, like, most of the deaths he had were student loans, and I asked him, What do you get the student loans for?
And he explained that he went and got paid first courses, and whatever it is further.
His certifications that he was getting to further his career, so the student loans and the deaths he was acquiring wasn’t to buy TVs and cars, and things like that, it was to further his career. He was a serious guy. He wanted to be a certain rank in the in the Air Force in the US. Air Force.
So I said, Well, this is easy. Let me just write a letter. I wrote a letter to his commanding officer and I explain this. I said, Yeah, he’s got all these debts and he’s going to pay them. And he’s going to use his his profession in the military to pay off these debts. And most of them, as you can see, have been acquired for the purpose of furthering his career.
And I said it’s ironic that he could be penalized for furthering his career simply because of the way he’s gone about funding.
it or financing the method of furthering his career.
And I’d say that’s even more ironic that book, both of you are employed by the biggest debtor in human history the United States, and how can he be penalized for also having debts for the benefit he’s acting in the benefit of the United States.
And I think that was enough.
And he, coming back, a couple of days later, when we sent that letter off, and he said, Wow, he has the commanding officer called me, and he said, You’re good to go?
You’re, you’re promoted, congratulations. So, so there’s different ways of solving problems is not always structuring things, and I always, I always caution people just, because someone has a fancy name for an item.
Know, a piece of paper with words on it, is, what I call it, a legal structure that’s not going to solve your problem.
What’s going to solve the problem, hopefully, is thinking things through and changing your habits and looking at things analytically.
OK, there is no silver bullet, right?
So, a lot of the different types of problems people come to me with, I always come down to this issue of having a property rights, and also disclosing too much information, or not having the right types of privacy.
So, there, that’s the corner of a lot of these problems.
So, one of the things I recommend is that people stop using so much personal credit. Don’t get into long term debt.
Don’t get into 30 year mortgages 30 a 30 year mortgage should be fraud just on its face There’s no reason to get into a 30 year mortgage because the only reason we haven’t really is not for people. It’s for corporations in countries.
The 30 year mortgage just exploits people. And it also it subsidizes the price of housing. It causes housing prices to go to go up.
So really that the cost of real estate should be.
Maybe this is naive for me to say, but I think after looking at so many cases, I think this is part of the problem. The price of real estate should be materials and labor and a premium and the premium is just like anything else. If I buy a high-end product with a unique brand name, like Toyota, I might pay more money than if I bought off brand type, you know, car or other product.
So, the Price of Real Estate should be more about, you know, labor and materials, and a premium based on who the builders.
At the same time, I am an Advocate of Business Credit.
I think it’s a great idea to have business credit.
You should have a structure for which you acquire credit debts and but not be the personal guarantor.
So really, I’m just against personal credit, and a lot of the remedies I’ve come up with over the years are really I try to get people into using business credit. Not specifically business credit, but the thinking around using so much personal credit in addition to solving the problem. Yeah. I can fix credit. That’s easy, In fact, I do that for free a lot of times, because I think, again, I think it’s, it’s really wrong it too, I mean, I know it takes time, and there’s a value to the service. but I just think that people are exploited by companies that charge money specifically to fix your credit when actually that should be part of a bigger plan.
Fixture credit, But yeah, but let’s figure out how we’re going to supplement your pension income, because you don’t have any retirement income except your Social Security, So there’s gotta be a way to supplement that, and we can, we can work that out. So, that’s what I’d like to show people.
I do, I do like to replace a lot of personal banking habits with businesses or trust organizations, specifically, to manage personal cashflow.
A business also is good for managing business cash flow, but I also use them for managing personal cash flow.
And then I do things like the Equity Stripping.
That’s a big subject, If you want to check that out.
An equity stripping is done by a special group of asset protection type attorneys.
I have some strategies that I use specifically to solve specific problems. That’s not always the solution.
But it is an aspect of what I call risk management.
So I look at consumer debt, small business debt, other types of risks. And the strategies I have are a way to manage those risks. Sometimes I can make the risk away completely, and sometimes I can make it to where it doesn’t value that much.
The basic concept is, I’m sure you’ve heard before, is own nothing and control everything.
The technical way to explain that is, you want to make a list of all the things that you have the right to spend, all right, money, cash, and all the property that you have, the right to sell.
If you have the exclusive rights to sell, then it’s a risk.
So if you have personal debts, possibly, or you might get sued, maybe you’re in a profession. Your credits perfect, but you’re in a profession, or some activity that may result in you being sued is suddenly think about.
Another consideration I have is not so much your ability to pay.
If you’re sued and lose, it’s the practice of avoiding the need to get involved in litigation.
So I know that I talked to someone last week, and he was talking about having insurance for litigation insurance.
It seemed like, as his net worth went up, he had more of a need for that when he was getting advice from attorneys.
And, of course, they’re going to tell people that My recommendation is cut off the liability and not you won’t need the ability to pay a creditor just if the creditor can’t collect.
He can’t collect, work it out. Harvey can, but don’t leave. Things that are important to you at risk. Don’t leave property. At risk cashflow at risk. That’s so easy to protect. You don’t need insurance, you don’t need to pay for litigation. You don’t need to pay attorney fees for litigation in most cases. Sometimes you do.
I do like to show people how to use Business Credit, so, you know, Dun and Bradstreet is a credit reporting service for businesses.
It is not the goto. It’s a nice tool.
I do like specializing and joint ventures, though.
For myself, I like bootstrapping.
So what that means is, I show people, once I’ve eliminated most of the liability or all the liability, I see the there. They’re smart, and they have the person I’m working with. They have resources, But they’re not using them properly.
So what I like to show people is how to start making more money with what they’re already doing. Not getting a second job, but not creating a whole new career.
But maybe spending a couple of hours a week, focused on something, and then make another 1 or 2, or three, or 10 or $20,000 a month.
Doing a few things a little bit differently. And I call that bootstrapping bootstrapping basically means I’m going to start a business from nothing.
It’s done all the time. You guys have seen surer examples of that. I will caution you on this though, Bootstrapping is hard.
Uh, even though I like it, it’s difficult.
And I think, maybe this goes to lack of experience, but I think it kinda restrains the business in the future. So at a point, you get it. You need funding.
And sometimes that, it takes more time to get things going with bootstrapping.
But in any case, I like to show people how to do joint venturing.
So I will spend time with the client after I’ve get rid of all the liability that I could, I spent time with him to see what he could do, what he has proficiency in, based on his career, and also what he really likes to do. And from that information, we, we dial in a couple of ideas, and then I help them build that out.
So, for example, let’s say, I’m working with somebody who’s promoting a non-profit and doesn’t know how to get on TV, does know how to get on the radio. I show people how to do that. In most cases, I can do it for almost no cost. And which, you know, I’ve had a couple of those examples in the last few months.
So that’s kinda fun. So those are the other things I get into.
I do use tools like, crowdfunding and seller financing.
If I do equity stripping for a client for a specific problem, I do try to consider the fact that he may need funding in some point in the future.
So I structure the equity stripping strategies in a way where he could have some liquidity from what I’ve created for him.
And I don’t like to create such a complex situation for people, so that they need me forever.
It’s nice to be needed. It’s nice to earn money doing this work, but I do, like the people who have our autonomy and have some level of learning after I’m working with them.
I don’t want them to be dependent on me for a form, for example. So, if I create a system, it might take me six months to get you going on something.
And then, maybe a couple of years from now, if I’m no longer around, which I’ve been doing this for 25 years. So I think I’ll be here for awhile, but if I’m no longer around, I disappear.
What I’ve created for people, most people is simple enough to where you could go to any professional. Someone who’s an attorney who specializes in companies or structures, and he, he or she can help you, and say that we’re not left trying to, having to rebuild everything from scratch. I do work with people that are high net worth. I do, Most of my clients are not high net worth.
But I do recommend a couple of things, people that are high net worth, and that have the ability to to pay for assets. I do always recommend still using financing.
So even whether or not you get it in the beginning or not, something to consider.
So, I do talk about cash flow and the value of cash flow.
Because you’re gonna, you’re gonna lose some value if you’re gonna pay for an asset with cash upfront, if you don’t get your financing pretty soon after that. So, we talk about that, too.
Um, another interesting thing that a lot of people are finding.
They’re really fed up with the car insurance industry. And I’m not saying this is a solution for everyone. It does work for me, it does work with some, for some of my clients.
I do show people how to setup a way to cover their personal auto insurance needs without using a third party.
So you can use a company that’s your own company, and you can use it to meet your insurance needs, and you control, and you can write the deal however you want.
You can completely get out of that industry. It’s just a different set of considerations that you have to have.
I’ll give you a quick example.
I carry my own car insurance. It’s my own company. I read the policy. I make the decisions. I also cover my wife.
As it turns out, I taught her how to drive for my mother-in-law for her mom.
I chose not to cover her. No hard feelings. She’s OK with that. Everybody laughs when I tell them this, but I just don’t like the way she drives. It’s that simple. So you really have to make those decisions. It has to be pragmatic, OK. Just because you have this new system, doesn’t mean you can lump everybody in there if you have an Irresponsible brother. You probably don’t want to have him covered under your policy. He can do what he wants, for example, OK?
Just because he’s family doesn’t mean you have to cover them, So it is a different world, but there is a way to have your own insurance Without paying a third party.
Like I said before, another thing is people come to me where, you know, I can solve their problem, but a lot of times it’s just flat out they just need more cash flow, and it’s sometimes it’s right in front of them, They just can’t see how to get it.
So I show them what to do, I might, it might mean, I set them up with a meeting, with the person they need to talk to, or it might be they just need, they need a press release, for example.
Or they need a phone call from somebody who’s going to get them on the radio, OK? And so I can show things like that.
I can show them how to take a product that they already have, that they don’t even know they have, and they can put it on e-bay and sell it.
I can show them how to build a product, and sell it, or I can show how to do a joint venture with someone else who’s already doing it, and create their own little niche, and start making some cashflow within 30 days, 90 days.
So, I like doing that for people, it gives them some freedom, and gives them some peace of mind.
Like I said, more money is not always solving problems, a lot more money.
Usually, has a different set of problems that don’t think having a lot more money is a great thing.
It is a great thing, but it’s not exactly what you think.
Also, just another note that I run into.
People think, having money, people who have a lot of debt, let’s say thinking, having a lot of money would be great to use to pay off the old debt.
But what happens is, that person doesn’t change his habits because he got the easy way he just got a windfall and paid off his old debt.
So what I recommend is people that are earning new money, receiving new money going forward.
Consider using that new money. instead of paying off old debts. Consider learning how to acquire a new asset or increase your cash flow.
Then use that cash flow. If you still want to pay off the debt. Go right ahead. Do that. But choose your new asset to do that.
And the reason I mention that is because many people I’m talking with today are involved in cryptographic currency. And they are dealing with these exchanges, and they want structures that will get them around all this reporting.
In this garbage and the presumptions that that’s your, that you have a tax consequence when you didn’t sell your kryptos, things like that. So the companies I structure are designed to protect people against those things.
So that’s why, actually, that’s why I’m doing this videos, because a lot of people want to know about that. I’ll just tell you real quick.
I’ve been using these structures for over 20 years, so. I’ve been doing this for about 25 years, and it took me a few years to figure this out. So for about 20 something years, I’ve been using these types of structures.
And in over the over the years, it’s been about people that had windfalls, or lots of debt, or they wanted to handle the sale of real estate, commercial real estate as a matter of residential. Or they had to handle a stock account or an inheritance, And they just needed a way to do it in a way that was going to serve their interests. So I structured things for that. Now, cryptographic currency comes along. It just happens to be just another asset class, OK?
It’s just another asset class. It has its own set of risks. There’s a few nuances that I’ve come up with in the last year, or so, and we can get, we’ll get into that.
But I want to give you a general idea of what I like to focus on, alright?
So, that’s going to be, I think, enough to introduce who I am.
Like I said, I don’t have any professional memberships. I’m not.
I’m not a member of the bar, I’m not an accountant, but I do rely on some of those services.
So, if your situation might require it, then we can, we can set that up properly.
Now, I’m going to go into specific details because I think a lot of people that are going to watch this video want to know about kryptos, right?
So And the application of what I’m talking about as far as kryptos, go, we’re not talking about post windfall we’re just talking about what do I do right now to maintain my ability to manage my crypto account and stop this 10 99 Garbage in the question?
Do I have a tax consequences because I treated litecoin, litecoin for bitcoin, and this sort of thing.
So you can look at my website. You can read my articles. You can do your own research. You can see that there’s no gain when you’re trading between cryptographic currency.
OK, there’s some legislation in Wyoming where it’s becoming friendlier to pay taxes using cryptographic currency.
This is not a good thing, in my opinion.
It’s tricking people into thinking that it’s that it’s a good thing because what they want to do is make it acceptable, influence public policy to where people believe that kryptos are taxable and then it becomes easy to get them to pay.
Get them to pay taxes in the kryptos.
Cryptographic currency is kind of a safe haven.
It’s like gold and silver, as long as you’re not selling it for dollars, it’s not subject to the tax.
So to make it even easier.
Um, we can use a structure with your cryptographic exchange provider, like Coinbase, for example, or Gemini.
If we use a limited liability company, we can use it as a pass through. It doesn’t have to file a tax return.
As long as you account for any money you take out for personal use, you’re fine as long as you.
You can move the, You can sell kryptos, for example, put it in your LLC, account at the exchange, and you can spend it back into some other asset. You can even buy a house. And there’s different ways of doing that. You can buy a house and pay tax on the windfall. Or, you can buy a house and do it in a way that doesn’t create a new tax consequences. You can move money from one asset to another, This is not a 1031 exchange.
That doesn’t even apply, OK. I know people talk about, it’s not a, like, or, like kind exchange, and that’s irrelevant.
So, we’re just taking one asset and moving it to another, but we’re doing it through.
This is not the right.
This is not the right phrase to use, but we’re doing it through an escrow, like service.
OK, the LLC that I show people how to use is much like a disqualified escrow account.
Now, sometimes we use something called qualified escrowed to actually really move the value of the currency into a new asset.
So if you took the value of your Bitcoin, whether it’s in dollars a Bitcoin at the time, I can go through qualified escrow and I can buy an apartment complex with it and then later on, I can get my financing.
Or vice versa.
I can do whatever I want at that point, and I, I’ve had, I had the game pass through me, but I don’t have the game, I can use it, I can use the LLC as a tool for that purpose.
So let me get into that here.
I’m going to cover this more. OK?
So again, this is an introduction to what I do.
And this is also, specifically on cryptographic currency. We can talk for days on all kinds of other subjects. But I just wanted to cover this, because I know a lot of you want to hear about cryptographic currency.
So we set up, we set up an account with a limited liability company, So I register it, and in a state, that’s convenient for you. If I can, If you’re in California or Illinois or Texas, I recommend not registering that company in those states.
It’s pretty easy to get around.
We usually have to get an address in another state, like New Mexico or Ohio, if I’m an Illinois. I like to use Ohio.
There are some other states I avoid, too, but those are those three of the worst. And here’s why, it’s because of the state regulations.
It’s not really taxes or anything like that.
It’s just state regulations.
Because you’re always going to, it’s a pass through it.
So it doesn’t matter that with the tax rules are in your particular state, It’s also the cost of setting it up. And also if there’s a recurring costs, so like in New Mexico, in Pennsylvania, there are no recurring costs.
New Mexico cost, $50, it’s the cheapest you’re gonna find. I think there might be one for $45.
Ohio is like $50, I think. It’s so easy to set those up in those states.
If you’re in a close by state, we just set up an address. And I have different methods of doing that.
Some people can use a relative’s address or a friends, and we can We can work, that work that way.
Write the address that I used for the company, that we set up, doesn’t necessarily need to receive mail.
We can get around the needing to receive mail aspect, We can use e-mail, we can use another address. That’s not part of the official filing.
Alright, so once I file the accompany, this is after I’ve sent you the documents for the company, and you’ve approved them, I registered the company and get a file number. Then we go back and get a tax number for it.
People freak out over that.
You can get a tax number. Yeah, you have to use an SSN.
The applicant has to have an EIN or an SSN in some way. You can do it yourself. It’s so easy to do.
It does not create a tax consequences just because you’re applying for an EIN, in behalf of a company, An, LLC.
So you go up in the account, OK, whoever is going to open the account for you Coinbase or whatever or even your bank they’re gonna go through the know your customer, the KYC rules, the procedures. They’re gonna want to who you are. They gonna wanna see your ID and things like this. They’re going to want to know what your interest in the company is. They’re going to ask you a lot of other questions. I’d make sure you get answers to everything. You’re not going to be left there.
Wondering, what, how to answer these questions?
So, it’s not easy. It’s actually more difficult. with the exchange, but it can, it can be done, They only takes one visit. Sometimes it might take a week of sending documents back and forth maybe 3 or 4 communications and we get the accounts open.
I’ve never had one where someone didn’t open the account of thousands of these, OK?
Um, so, we use this LLC in a special way, it does not become an S corp, although the bank does ask, what does the tax treatment on this will tell the bank anything. It doesn’t matter.
What works is this, when we set up the LLC, we have to file articles, articles with the state.
The articles are what is, or what are binding on the company.
It’s not anything you say.
So if I set up articles that say a specific thing, and the state gives me a phone number and approves my charter. And I go to the bank and say, so tell the bank, whatever else I want to tell the bank, let’s say, I tell the state, I’m going to sell widgets on e-bay.
And then I go tell the bank, I’m going to invest in real estate.
It doesn’t matter.
The banks just gonna give me the account, and it’s never going to follow up and it’s not binding, and I’m not under a contract. It’s just information, the bank is collecting information.
So this is how we do things.
On your exchanges, they’re going to ask you for Whacky information. They’re going to ask you for an organizational chart, things like this. We have responses for this.
Client of mine was nice enough to set up a tutorial and I’ll walk you through the steps to open accounts at crack and Coinbase.
He may do some more. I haven’t asked him.
But that is a pretty good example of the kind of questions you’re gonna see because they’re pretty much all following the same KYC procedures.
Another question I get asked is is there a tax situation if I’m going from wallet to wallet? No, there’s not. Think of.
Think of the way the cryptographic currency has been recently defined Now as defined by the IRS as property and the definition was published in one of its bulletins, an IRS bulletin, that’s enough to make it binding on everybody.
So fortunately, I mean, that’s a good thing, kryptos are property just like gold and silver. So what are the rules for gold and silver? Well, they’re the same rules for cryptographic currency.
And those rules and the case law and everything goes back over 100 years. So this really works well for everybody who’s getting into this, this class of assets.
So if you ever have a question, if kryptos are taxable, look at what happens with the gold coin.
If I take a gold coin and I pass it around to people, it’s a gold coin, I’m passing it around a group of people that’s not taxable.
Same thing with kryptos, if I put my cryptographic currency on a treasurer or a paper wallet, can I pass it around to other people it’s not taxable if I take a band of $10000 and I pass it around to my friends.
Technically, yeah. They’re each getting $10000.
But in that situation, it’s not going to get reported. And it’s no one’s really getting again, because we’re just passing the money around. It’s kind of a silly example, but if someone has me $10000, I probably should report it, right?
It’s probably going to be a game.
OK, so, these are the general ideas, I give you the bare minimum of what’s needed to open the accounts. I clear the path, so you can open the accounts without a problem.
We have a standard operating agreement, I’ve modified it in such a way where there’s no disbursement schedule. And I can explain in more detail why we do that. But again, everything is for asset protection, everything’s done for risk management and everything’s done so that you don’t have to be stuck with me for the next 10 years. It’s everybody. If anybody can read that document that I’ve done for you, and they can say, OK, I see what was going on here.
Now, when we go to the bank, we don’t give them the actual document. We don’t give them the opening agreement. They can see the articles on the Internet.
They can see the articles. If the bank wants a certified copy, we get that too.
But what we give the bank is what I call an abstract. This is a one page version of a 20 or 30 page operating agreement.
The one page version is enough to give them the information. That’s enough to get the account opened.
We usually open up my single members, even though many times people want to move to a multiple members, LLC, that works out really well.
And then, and then it kind of plays out that way.
So, I’m gonna try to get covered this real quick.
So, we try to stay away from California, Illinois, and Texas.
We can do that pretty easily. It’s easy to set up an address in New Mexico or Wyoming, these are good states, and then sometimes we’ll use Mailbox services. So, if you’re in California, just plan on setting up a mailbox service that you’re going to use on a regular basis. There’s a postal forum we used for that purpose.
Some of the re mailing services we use don’t require postal forms or certain types of disclosures, but we’ll help you with that.
And ironically, the postal form that we used to open up mailbox services asks you, what alias? You want to use an alias? It uses the word trade name, but basically it’s the same thing.
So the Post Office understands that people want to use aliases.
I’m not saying that we’re always going to use an alias, but it’s interesting that the idea, the concept of using an alias, or let’s call it a fake name, it has so much stigma attached to it, that even the Postal Service has a forum that encourages people or provides a way where people can use an alias with their mailbox. So, there are many reasons why somebody would want to do that.
All right, I’m going to end this for now.
I think this is a good introductory video for everybody who wants to know about what I do. And I’ve asked the question of whether or not, what I’m doing can help someone with a cryptographic currency account.
Alright, thanks so much.
1. John Jay Singleton provides services related to personal finance, debt resolution, and privacy.
2. Singleton started his work in the early ’90s and began by looking at consumer debt, realizing it was a systemic problem exploiting individuals.
3. He studied collection procedures and laws, reverse-engineering the collection process to better help individuals navigate the system.
4. He transitioned from consumer debt to small business debt, helping small businesses and individuals restructure their financial situations to avoid financial collapse.
5. Singleton highlights the technicalities of tax laws, like the IRS taking the property of taxpayers who owe them money. His strategies involve legally transferring rights to assets to minimize losses.
6. Singleton believes in solving problems promptly, avoiding dragging out situations that can build more debt. His approach is to divest individuals’ rights being levied against and move them to a group.
7. His advice to people is to avoid long-term personal credit and prioritize creating assets. He believes that managing credit and debt should be part of a broader financial plan.
8. He advises his clients on how to build and manage their assets without risking their cash flow. He recommends using business credit and forming joint ventures as more efficient approaches to financing.
9. Singleton provides resources to his clients for future use, allowing them to navigate their financial situations even in his absence. This includes showing them how to meet their auto insurance needs without using a third party.
10. Singleton also helps his clients leverage the benefits of cryptocurrencies as an asset class, guiding them through the specifics of dealing with such assets to maximize their benefits while mitigating risks.