0:12
Hi everybody. This John Jay Thanks for joining today's the second to the last column going to do for this year on Thursdays. It's scheduled. I might do something that's not scheduled and I will announce that through ace of coins So I'll do in this evening it'll be about a half-hour. It's going to be Q and A I don't really have a topic but I wanted to open it if you guys have any questions on certain things are working on I can I can now answer those questions. And then next week, last Thursday of the month, will be the last call that scheduled, and then just stay tuned on on, Telegram, and if I have anything coming up, I'll let you know, OK. So, with that, by the way, I still will be producing new content, I've got some interesting content, I'm going to keep adding that to the video membership area, so that is just just like, you know, regular regular process.
0:58
So, what I can do now is, um, if you would just go ahead and come up with a question that you want to cover, there's something that you're working on, that you may want to discuss on this call. You can eliminate as much as your private information as you want. You can also change your name on this participant's list here.
1:16
I believe you just click on your name, and you can ask to on the ellipses symbol, I think you can change your name.
1:21
So, However you want to do it?
1:28
All right.
1:28
So I'm trying to follow chat, and I'm going to look and see if anybody's raising his or her hand, or there's a lane, so Elaine and drain in seconds, so what do you gotta lane?
1:40
OK, I need to know whether you will be available for an appointment. Monday or Tuesday night. Yes, yes?
1:48
Yeah, yeah, OK. Yeah, we can do that. Sure, let's talk on Telegram, and we'll we'll set that up. He said Monday or Tuesday.
1:53
Well, he didn't ask him for Tuesday, but I had problems with my printer, and a couple of other things have not been able to get him all the stuff I need to get him. And we actually never had a chance to talk about all the stuff that I'm submitting to in. So I'd rather do that.
2:10
Like, I made a 25 minute appointment with you on Monday at 4 30, OK, and by that time, I should have the vast majority of everything I need over to him, OK. And hopefully, I can get a Tuesday appointment with him, so that he has a chance to look at this stuff.
2:31
I do have time, I will definitely make time that I have time, so we'll definitely, like mornings, but we'll work out. What are we have to? Yeah.
2:39
All right, OK, brand-new. What's going on?
2:46
Hey, John.
2:47
Hey, I want to know if there's a way that you could laid out, or if there's, you know, it's easy to understand what creates a tax liability on expenses coming from an LLC.
2:59
Expenses, what do you mean?
3:01
Like fine for like dinner for the crew?
3:06
Like work crew, like what?
3:08
What sort of things are not included?
3:12
OK, look at it from your living expenses, your normal usual, expected living expenses for where you live in the country.
3:22
Yeah, so so that is reasonably what your gross income should be.
3:26
Now for expenses, like for example, if you're paying for something, the LLC is paying for a business function, that is not your income.
3:35
So your LLC pays for a lunch, for business lunch, That's not your income.
3:40
Now you can claim it, if you want.
3:41
I don't know why you do that, Right. So it's just things that, any, anytime you get an exclusively personal use of the LLC money, that is completely part of your gross income.
3:51
Outside of that, it's not, OK.
3:54
Also, I mean, you want to, you want to be clear with that pretty well. But you can kinda mess up and not have a problem because you're the one that's making the record and it's not going to be says there's a substantial amount of money.
4:06
The direction is going to care and even if they did care, here's the worst-case scenario.
4:11
Some in some crazy way, maybe you got audited right?
4:15
And or maybe it didn't, maybe your maybe your records were pulled for an examination interview on an examination.
4:25
So, they might just send you an examination changes notice or they might see you underreported.
4:32
That's it and I don't hardly ever see those. So I wouldn't be so concerned about it. Just try to tell the truth.
4:38
Yeah, OK, I have another question if that's OK. Yeah, sure.
4:42
If I plan on opening another LLC for like crypto, investments and trading, should I use the same sort of, I went through, like, an online service for my first one?
4:56
I didn't really know where I started typing them online, OK, like big file or something like that. Yeah, they're fine. I see them, yeah, until I started writing my own operating agreements, but you can do it, you can start out that way, and then as you learn and see what you want to accomplish, and you want to come up with your own operating agreement and your own understanding of how to use it, but yeah, I would do a separate LLC for investing, especially in crypto coins.
5:19
Are precious metals or stock make that separate from a business, are separate from real estate, in some cases.
5:27
Yeah, I like opening and in a different bank as well, Or can I use the same bank for that?
5:35
I would choose it just like I would choose a restaurant, Whichever you prefer, there's nothing special. Thanks for that question. And your wrist and keeping everything in like one way.
5:45
Yeah. There's There's a systemic risk. It's unlike anything we've ever seen before, and we're kinda have to just deal with it, You know, And so, that just means, don't keep, a lot of cash in. The bank, don't rely on the banks for a lot of things. I never use safety deposit boxes. I don't keep a lot of cash, and I keep it in a vault. I think it's safer in, my pocket that, it's in the bank.
6:04
If I create an LLC for my investments, can I effectively link just, that LLC now on my crypto wallets, or do I need to know, you only use the LLC when third parties involved? So your LLC is gonna be the title holder to a bank account. A crypto wallet that's like at Coinbase, for example.
6:23
But it has nothing to do with your ledger that doesn't do anything for you Like who's gonna know that.
6:29
Just like who's gonna know about the gold in your sock drawer, who cares if you say the LLC owns it?
6:36
Now, if your goal, is that evolved, right? A third party that's like a bank account, then you would want to add your LLC there, if you'd like to interact with the boat in that way.
6:44
The ball surface, I use like meta mask or something like a hot wallet, that's not going to matter, that's not really a third party or seasoned software.
6:56
They're not gonna report, I knew that I did, I know of, right, they're not doing it, right, OK, great, thank you.
7:04
Alright, Preciate that all right, and see, Mike, I'm trying to go into order.
7:10
Hey, John, how are you? OK.
7:11
All right, hey, I've got a couple of questions here.
7:15
First of all, I got this letter, So their employer, North Carolina Department of Commerce, as a mandatory survey, survey, is mandatory according to Employment Security Law of North Carolina.
7:28
I'm thinking I don't want to give them your information. Is there something that's who's this letter for? This is for my company Mike Palmer Homes from the United States Department of Labor and North Carolina Department of Commerce, Labor and Economic Analysis Division every three years, North Carolina Department of Commerce. In the US. Bureau. Of Labor Statistics Requesting, you compete an Annual Refilling survey to verify or provide general business information about your firm.
7:55
Your co-operation is essential So that we're able to produce data that are complete, tying your enact, timely, and accurate, and I feel like we want as much information tonight as well, in case we want to. That's right.
8:08
And people will just go along with it because it's a form, I'd like to see the form. But no, I wouldn't answer that.
8:13
It doesn't mean that they can say mandatory all they want.
8:16
Yes.
8:17
It is mandatory in accordance with the employment security law in North Carolina, which ended the law OK, it says GS 96 for that one is authorized by 2009 US. Code Section two.
8:34
This is, this law authorizes the seller. So, to ask questions, is there a penalty statute?
8:41
Probably not.
8:43
So, there's nothing specific that you need to do, is it's not part of the annual reporting.
8:47
You're going to keep your chartering good standing.
8:52
This is just a survey data collection census participation that I never participate in the census either. But you're talking about something that has to do business, is not pertaining to any specific business activity. They just want to collect information. Yeah, I would not answer that.
9:04
They want me to give voluntary information and it says, It's mandatory.
9:10
Yeah, well, it's mandatory that you go jump in the lake. Volunteer. Yeah, it's just not. So yeah, your first suspicion was right. It's a waste of your, OK.
9:21
Well, since I've got exposed to your work, I look at all these things through a different lens. Like that. Yeah, yes. Question everything.
9:28
Oh, yeah, And I did, Did I tell you? I've noted myself, So you can refer to me, Sir, Mike. Because I did it with my authority and very well, sir bike.
9:36
I had my personal unum. then.
9:41
Anyway, another thing is to, I don't know if you know about this, I had a visit by the Fire Marshal.
9:46
Yeah. And they walk into your business and they don't knock, and they start poking around, which is fine. I don't want the place to burn down and I want to buy fire safety thing.
9:56
But the guy started getting into, getting, Kinda went to one of my tenants, and he started, you said, you gotta fix this, this, and this, and there was some stuff that I really would like, you know, like, electrical boxes with no cover, like, Mickey. Again, you got to do that. But he was just starting to get bossy and aggressive.
10:12
No, OK.
10:13
And it's really starting to **** me off that, like, you just barge in here, but, but that's, but I'm gonna do this stuff.
10:19
I don't want a job, or the fire marshal and I want fire safety, you know, for insurance and all that, but the Forum come, they come uninvited, and then they hand you a bill that said this.
10:28
This cost $75 for what?
10:32
For them to come out and and and inspect all your files, just tell me they've already been paid.
10:37
You gave it the office I offer for a contract.
10:43
OK, it's like if I came in there and I came into your business and I plopped down some item on the counter and I said, Give me 10 bucks for that.
10:50
They would just laugh, right?
10:52
Well, that's what I've got enough of, what you're offering. I don't want anymore. There's that. But the fire marshal has a legal duty, OK. And, to come in, your business is one thing. But, if he wants to, I'm gonna kinda person. Like you are, I'm like, OK, you can, you can kind of push push your way around here. I'll be OK with that. But at some point, I'm going to say, Hey, I respect you guys. But, I'm the, I'm the person who's responsible for this, premises, and unless I smell smoke, or see a fire, you're going to have to step back a little bit.
11:21
If you want something special for me, let me know, but you can't come in here and act in this way, and I think you're a little out of control.
11:27
And you can have that conversation very privately.
11:30
You have every right to do that, and they're not responding to an emergency and that's the key. That's the difference there. If the fire marshal whomever's responding to emergency that's different. You gotta shut up and get out of the way.
11:40
I'm sorry, you know? and kind of have to let them do.
11:45
But if I have this, this bill and I don't pay it.
11:48
And I say, Well, I, I, I'd never agree to this contract, so, I'm not going to pay it. That's what I, What could they do? to send me nasty letters? Or, Yeah, probably.
11:57
I don't know.
11:58
I would have to know, Under what authority there, They're billing you. What was the agreement?
12:02
What is the What is the quid pro quo?
12:06
It's just like anything as a service. Look, the fire department is a private membership association, so as the court Yeah, OK, so, just because it's the fire people doesn't Why did they get to have what force you into a contract of some kind?
12:20
Did you ask for the service?
12:23
No. They have a legal duty, also.
12:25
You know what that is, But, to come in there, and then do the things. I don't know. I mean, I'd have to see, what legal authority we're talking about, there's got, there's a fire safety code in your area, You can look that up.
12:36
Yeah.
12:38
But now we're going to comply with everything. I'm going to update our fire extinguishers, I'll do everything you asked. But for you, to charge me, $75 is I got to see where I agree to that.
12:48
Yeah, My parents something, nothing, You don't want to support them, but why would you double pay, you know, and and who they, I mean, how do they, who are the disability you like? That, it's kinda like pushing you around and there's every likelihood, it's not legally binding, anyways.
13:03
Yeah, and I think they're PayPal or something You can always ask.
13:07
Yeah, very interesting.
13:09
OK, now, 1 1, 1 last question here, I am trying to diversify getting some extra residencies in other countries, just as a, yeah, OK, So, for my adult children, I need accounts for six months with approximately $48,000 in there.
13:30
So I was going to open two accounts just no storage vaults for gold for my hour two adult children.
13:39
The money I wanted to use there is in my LLC.
13:42
My LL say that I set up that's owned by a PMA.
13:46
Sure. So if I were to move money, purchase gold, and transfer it into their accounts, and transfer it back, am I set myself up for?
13:55
Are them up for tax liability, your children's accounts?
13:59
Yes, the country is going to look at the children's accounts only, not yours.
14:05
Yeah, they just want to see, They're good.
14:08
There are 21 and 22, they're not gonna have a problem, unless you have a current debt collection going on. You shouldn't have any problem at all to put the money there and leave it, get your statement, and then take it out.
14:20
OK, so everybody does that a technologist borrowing money from the LLC and putting it back.
14:27
You can call it what you want to, but they just put the money from there.
14:30
To there, there's no change in beneficial interests, right. You still care about the money, and it's your children.
14:37
So, it doesn't matter what you call it, it doesn't have to be alone. And, no, transfer it in and transfer it out. We're not selling it, so there's no triggered 10, 9 on them or anything like that. No, no, no.
14:48
It's your company is going to report that.
14:51
Yeah, Well, I mean, the people, that, the company that has the vault, storage, the metals, Yeah. All right. But if I transfer money in and transfer it out, they haven't sold anything. All right, They haven't set any any cash.
15:07
I don't, so that triggers a reporting situation. Nothing was so OK.
15:11
Yeah, It's just, like, putting stuff in a Safe deposit box and taking it out. Sure.
15:15
OK, there's a transaction. It's only when you sell to the Vault server. So you're going to have a situation like that.
15:21
OK, so, All right, so we can buy and their accounts, or I combine my own account and just transfer. Yeah, and even if your LLC was the one getting the tenant, that's the whole point of it. You insulate yourself from those problems.
15:34
Yeah. I want that, I want the Yeah. I want to say to get there.
15:38
Yeah. If there is one, but there wouldn't be one in that case that you described.
15:42
Yeah. No, it's owned by a PMA. Anyway, I'm just the authorized signatory. Yeah, some Smart smart guy. Set me up with that.
15:49
Yeah. Some crazy mania.
15:53
Yeah.
15:53
Now I looked at another Yes.
15:57
Consultation seminar put out by Mark Moss, and he talked about his whole journey to pay less taxes that they're living in California. moving to Puerto Rico.
16:06
Then in Puerto Rico he encountered a lot of billionaires and then he realized, You know, what? He learned. I don't have to move to Puerto Rico. Of course, I can say And their program was They have, you know, You have yourself.
16:20
And then above you have an LLC, which is like your workhorse corporation that does business or your LLC or whatever.
16:26
Your business and then they have a business trust and they said You set up the business dress, right. It can.
16:32
It can operate.
16:33
It can operate tax deferred and it can you can take income out by like loaning it to yourself.
16:39
It too complicated but yeah, that'll work.
16:42
OK, I just wanted to get your take on that, but, but they said, OK, With a loan, you have to have two things, and it's just rate and a term.
16:49
But if I'm a loan, yeah, but what if, I mean mine, I'm just taking money out of my LLC into my business to have working capital and putting it back?
16:57
That's right. And then the rule is, what is the change in beneficial interest? If it's nothing.
17:02
If you're moving the money around within your family members, then you same household will then, there's no change in beneficial interest.
17:10
If you still care about the money that you're moving around and there's no change, therefore, there's no tax liability, OK?
17:15
But if I actually take cash and start spending it.
17:21
The kids, if they sold the gold and took the cash, then that would be: Are they, are they in your household or are they on their own?
17:31
one is on her own and the other one is, he's in college, but he's still in the household.
17:36
It will technically, if they're outside your household, there is a change in beneficial interests, but again, no one cares and no one's going to analyze it in that way. So yeah, you can kind of be sloppy and do what you want.
17:49
OK, yeah, they'll have Accounts because.
17:52
Yeah, yeah, and so, like, for example, My children don't have SSNs, so they can kind of be really slow, but they don't have to it. Doesn't matter if they get a 10 99.
18:00
Nothing will happen to them.
18:02
They're totally out. Um.
18:04
The other thing is notice how this person who was telling you, you know, lots of billionaires in Puerto Rico or whatever.
18:09
You don't have to do that, you'd have to change your residency or citizenship, and notice how his thing that he was liking was his LLC, and the trust and all that stuff. That was the thing.
18:19
That gave them the protection because it changed the property rights of what he cared about, Not his statuses, no citizenship, that didn't matter, no, no.
18:32
He didn't make the point that The biggest tax shelter in the world is the United States.
18:37
It is the Panama Papers and all that stuff. And they said he didn't have to do all this foreign stuff. OK, he said, he didn't have to go to Puerto Rico and his kids hated Puerto Rico and then they brought the stuff down there. So it was like, OK, now I feel like I'm in California again, Batman. Yeah and I closed all the stores. But he said when he went back, he learned that.
18:58
you can be in the United States and this is like a lot of foreigners love the United States for for because if you set it up, right you can you can tack shells right anyway. You got it. But, you're just, in your, your first real reflection here, is that your way is just simpler than that. Because I like to keep it real simple, and, Because Lots of times, I set something up with only two conversations with the client. So, if I keep it simple, I know I saw, like 98% as possible problems, So, then I can build on it, because we're going to talk more.
19:30
Why should I, why should I package everything in such an elaborate way and say, this is the way it has to be?
19:35
I like to do it a little bit differently for each client based on what he needs.
19:39
So, yeah, it sounds like what you described is going to handle it. There's nothing wrong with that.
19:45
Complexity there, OK?
19:49
Well, the thing was, he said, if you pay over, He said, We can. We can probably help you if you pay over, like, $80,000 a year in taxes.
19:57
But I guess if you pay, but you can help me regardless of what I paid, it doesn't matter, and I didn't want to know what you pay. Yeah, so, I really like privacy, so If I don't have to know what I'm not gonna need it from.
20:09
Got it well, I'm doing a presentation Saturday on named non KYC Bitcoin.
20:16
Yeah, buying it, but then at the end I might say. Yeah, But why do you need to? Exactly, Exactly. KYC is not a problem until they get to biometrics. I have a problem with that.
20:28
Yeah, that's, that's it. Yeah, that's another, another conversation. But, yeah.
20:35
Thanks, Mike. Good questions.
20:37
I'm gonna, I'm gonna call the way next, but I don't want to miss my somebody else. What does this German new Medicine? What does all that can hold? OK, I just wanted to share that, because the guy who developed this system was a doctor who worked in a cancer facility cancer hospital and he developed testicular cancer while he was working there. And it happened a few months after he lost his son in a terrible accident.
21:05
And made him start to question, which is something I think we all know deep down inside the emotional connection between cancer and an emotional emotional trauma. And what was really interesting about his work is that he actually did studies where he was able, he started interviewing his patients where he was interviewing, Did you have any traumatic event recently, and your life, and every single one of them did turn every single one.
21:37
And, so, anyway, oops, sorry, He used, and I'm not sure what kind of a scan it was, when he could pinpoint in the brain, the area of the brain that controls these different types of cancer.
21:54
And, like, um, breast cancer, there's two types. There's one that's in the tissue and one that's in the duct.
22:04
In the one that's in, I'm not saying this right there.
22:06
It's in the tissue is associated with that, we want to get through this because I want to stick OK. Anyway, guys, you guys should just take a look at this introduction because It's amazing.
22:19
And the other thing I wanted to share quickly was I'm hitting great results with my eyes with this protocol, cataract, saint Clair and IMHO. My vision, he has improved a little bit to the point where I accidentally I'm using a lower diameter to read things. Let's go, Yeah. Yeah. So this is if you know anybody that's got problems with cataracts or Florida or anything like that. They're from England. And they don't have an irritating preservative in the Religious Jews, colloidal silver.
22:51
And the other thing, if you want to talk to me on Monday morning, let me know when for the only appointment that was left, OK, Well, that's good. Because I put your name at the very top of the day and I also put it at 4 30, So tell me, tell me when you want me to call you. Or morning 9 0 AM.
23:09
Like that's perfect.
23:12
All right, so, when you're setting up a new LLC, someone's asking the articles are, a few facts about the LLC and articles include the name, who the agent is, the registered agent, who the organizer is.
23:25
It's going to include at least the name of an LLC, it's, you only need one person to format, So it's going to be the member, member manager, or is it non member manage to answer that question.
23:35
And then its principal place of business, which can be the same as it's place of getting mail PO Box. But then when it comes to the registered agent has to be a physical address. So, there's a few items of information.
23:48
Maybe 6 or 8 or 9, depends on what state you're in. And you pay a fee, like In New. Mexico is $50 in, Florida is $125 every state's a little bit different. And that's all you're doing. You're paying this data attacks for indemnification.
24:00
And you're going to tell it what it is you're operating through. And that's what allows your company to be recognized as a legal entity, because you're using the state to announce its existence.
24:11
Now, if we use this date, we could use the public system of announcing things, which would be like shouting it out and in the public square, which we don't do today.
24:22
Or we could publish it in a periodical. Since the printing press. We can just put something in the newspaper. So that is all you're doing is announcing the existence. We don't need to give up the operating agreement. We don't even need an operating agreement, is just the bank, It's really nosey, so they wanna see it, They shouldn't really be asking for that, but this is where we are today. So that's why I give you what I call an abstract or a fake phone.
24:44
A copy of an operating agreements to the bank will stop asking, OK, So that's what we do.
24:49
Yeah, the articles, you want everybody to see em, you want people to see.
24:53
Because you want, you want to show your relationship to the property of the company, so that others, that may want to try to connect your liability to the company, can see there's a separation there. Because if you don't show the articles, someone's just gonna say, hey, that looks like the other guy, Sole proprietorship, 100% owner. And I'm gonna go through the process of trying to take the property from the company, for this guy is dead, and then you have to undo that, which is expensive.
25:16
So, you want everyone to see the relationship, and that's why I like the articles.
25:20
I don't like states that, like, I don't like to use anonymous names or states that don't show the articles. In fact, some states and my client wants to use it, and it's not showing the membership the way I want.
25:30
I will upload, but a version of the articles to show what I want anyone to see, especially if the client's going through a lot of collection problems. I hope that answers your question there.
25:40
And then, where can I see the recording? OK, I've got the other two ones I haven't uploaded yet.
25:45
I'm gonna put those on YouTube privately and I'm going to send you the link and I will post that An ace of coins, also do that for this call, Then yeah, some of them. I, I make them public on YouTube. It depends on the subject matter, YouTube, you know, sometimes I see things and then YouTube sensor me interested in knowing they have to deal with that. Can my own LLC and give me a credit card refinance loan?
26:10
There's no need for that.
26:12
That's not a real loan, I mean that's not an arm's length transaction. You want to have a loan, you want to get a loan, You're not trying to structure something for tax, Something, anything to do cautious. Yeah, there's no need for that.
26:22
If you need alone, get a loan, Get it from a third party, you're not really lending yourself money.
26:28
I mean, that's not really no, it has to be a separate, interested party in the loan transaction.
26:35
I guess, really, the answer is, you can use your LLC to do that.
26:40
In 30 years of doing this work.
26:42
I'm maybe I've done that twice.
26:44
I don't need to do that YouTube YouTube. So, the YouTube channels called Privacy Fight.
26:51
I didn't come up with that.
26:53
It's just the name that developed privacy fight.
26:57
He did search on it and let me try and give you guys the link here. I know. I always have it bookmarked. I'm sorry I always have it up on my computer here, while we're talking. Let me see if I can.
27:07
Yeah, OK. two monitors here.
27:10
Yes, OK.
27:16
Some reason it takes me a little bit, OK.
27:26
Try this link for privacy, fight.
27:31
I'm going to put it in the chat here.
27:36
See if that works.
27:38
Now, you don't register, OK, so you register an LLC, that's fine.
27:42
Um, then registering an LLC, do you pick member manage.
27:47
I like member managed because non member brings in the questions from the bank of who is designated as managing this company. That's not an owner, It makes it a big problem when you go open bank accounts and deal with the ... application and all kinds of nonsense like that. I just do one the other day.
28:03
I did one for a family member, and I had to wait to get the EIN in the mail, It didn't care, but still, it just kinda surprised me. So I go with member managed. I mean, there's no reason to have non member.
28:15
Then someone's saying a lot of tax wise here from selling stock.
28:18
Yeah, well, borrow to pay for the tax, like if you have a large tax debt with the IRS, your best bet is to me, I mean lots of times you to legitimately OK.
28:28
So let's say it's a, for most people, 100,000 would be a lot of money that you owe the IRS from last year in taxes. Let's just say, so who, who needs to pay that?
28:37
You don't need to pay that if you don't pay the IRS and you file your return.
28:41
You owe the IRS $100,000 and you don't have, they're gonna say, Hey, what about us? Send us the money, you say, Look, guys, it's a lot of money. I don't have it all right now. Would you take payments and that's how I deal with the IRS.
28:55
Now, in the meantime, all this conversation is taking place over a period of about three months.
29:00
When it comes to that moment where you actually do owe the IRS because the return was filed and then the IRS says Hey, we didn't get the money.
29:07
It takes months to get to a position where the IRS would try to just take it from you.
29:14
So, my recommendation for nearly every client I've ever worked with is, let him take it.
29:19
Most of the time, I try to let them come and get it. Because in the meantime, I'm going to strip my client of any things that the IRS could take.
29:27
I'm going to re-organize the way he's using money, cash, flow, property, property rights, things like that. I can do that in a short period of time. Nothing wrong with that. I want to make Uncollectable and so I've got, I've said this before.
29:38
I've got knowing our clients that legitimately owe the IRS, some of them, upwards hundreds of thousands of dollars, some close to a million dollars.
29:46
And the IRS cannot collect legally.
29:49
They still whoa.
29:51
And they're approaching, some of them are approaching the expiration date of the 10 year statute of limitations.
29:56
OK, so what if you have the stomach for it. I mean unless you're gonna lose sleep at night or something or suffer from a gore a phobia or something for not paying the IRS. It doesn't mean just because you own it you gotta pay him right now.
30:08
Make them wait, they can be your creditor.
30:12
All right.
30:13
And if you already paid him, you borrow money to pay him. So all you did was you took a debt and made it a different kind of get probably, was made an unsecured debt.
30:23
I wish I hadn't done that.
30:26
No, you can't get it back unless you amend your tax return.
30:29
And I don't know how you would justify getting that back. All right.
30:34
Sorry about that.
30:39
See, and I'll ask if there's somebody's asking about turnaround on an LLC, so I will check with my assistant on that ...
30:45
or follow up Then, yeah, there's YouTube. OK, so I hope I got everybody there. I'm going to wait, I'm sorry, Wayne. Thanks for your patience.
30:57
For organizing Like to start the meeting. Can you do me a favor? Then?
31:02
Kind of go over of coins website as opposed to the private and five and also the Yeah, Tolerably Well, on eastern queens dot com, at the very bottom is a link to this column. I don't. I don't send messages out.
31:25
I think I did for you. So what I had to do is I went into Zoom, and I grab the link, and I e-mailed to you. So I manually did that. Just, you know. But yeah, normally it's the same link every week. Privacy Fight is a member video membership where I have a lot of this content. Sometimes.
31:39
I just make up some content based on what I'm seeing as a trend, and I just put the very technical in the privacy fight membership, OK. That's the difference there.
31:51
Every week. We silo front of it, just get the link once, and then that's it.
31:55
Just get the link once. I'm not going to change it. Deliberately don't change it. But you can go to ... of coins if I happen to change it. It will be up on these coins, It's static.
32:02
I don't go out and send it out I don't like to know. There's so much from edwardsville, clicked on the link to the selection.
32:11
John a consultation wanting to know what our funded By curly 1, 9 to 5 minutes is not unlikely to be talking about. That is like, yes. Yeah!
32:25
Like, so much, because you guys are So I've talked to LLCs and ..., There's a time. Are you aware of a way to step outside county?
32:33
Yes. I can understand how chemicals are binding on private property. County COEs are not binding on private property, but they think they are because everyone's been acting as if, right?
32:43
That's why, that's the problem we're dealing with right now.
32:45
So, there, there is, OK, so here's the question is whether or not the county has a compelling interest.
32:52
There's a lot of things that gives a can give the county a compelling interest, so by default, the county has a compelling interest, I have to say. But you can back yourself out of it, I'd have to know more specifics.
33:03
Um, there is a safety issue, but sure we can get around all that.
33:08
No, I just took. I just took my land out of the out of the property tax records.
33:12
It's not a taxable parcel anymore, um, and so that begs the question about permitting So I know I can get out of the permitting in the same effort. I believe I'm out of that but the problem is when I get a professional on there who's gonna want to get, you know, he's going to want to put a mechanic's lien is. Kinda wanna get it. You're going to want to pull permits because his insurance works off of ACL's system is I got this going so I get to I'm not there yet. I'm gonna work through that but if I know specifics, sometimes there are things we can do.
33:45
The PMA, yeah, OK. That alone is not enough. You have to do certain things.
33:52
Some of the things that give the county compelling interest is easement rights.
33:57
See, it has nothing to do with the title holder.
34:00
Remember, the title holder is not going to be your ..., anyways. It's going to be an LLC, by the way.
34:04
The land I got I registered an Inc corporation for the PMA, and I made the PMA the owner of it, and I use the ink to get the title policy and to deal with the government.
34:18
And it's still that way I'm gonna leave it that way for awhile. I don't need it that way.
34:21
But I'm just saying, you know, these corporations are a tool.
34:27
My property is off the tax records. And unless I'm going to launch rockets out of there, you know, make methane or, I mean, what do you call it, methamphetamines.
34:38
They're gonna leave me alone, right?
34:40
Or if I start a forest fire, only me alone.
34:43
So you have an LLC, hotel property, sell your assets, and $1, the dollars within your business, right?
34:51
So you have an asset. And so you have whatever it is, It can be, stock, house, gold. And you trade that for dollars, right?
35:01
In other words, you sell the thing for the dollars, and you'll want to have some of the dollars. Well, you can take the dollars.
35:07
So, let's see, Take $5000 out and you go on vacation. Well, it's kinda hard to say $5000 is you know, the company money and whatever you want to vacation. So that 5000 is your money is part of your income, It's reportable if you're gonna file a tax return, but let's say you want a nice new car and hypothetical example, I'm going to pay cash for it.
35:24
My LLC just got, you know, $50,000 or something or half a million dollars, and I just want to pay cash for a car. Which is not a great idea. But anyways, I can, I can go to the dealer, and make my deal, and take the money out of the LLC, and buy the car, and I can do 1 or 2 things. I can tailor the car in my name.
35:43
Now, if I leave it that way, and the LLC paid for it, and the LLC is not on the tax grid, let's say.
35:50
After a certain period of time, it's my car, and that $50,000, is my income, as part of my income, and I should report it, And I'm gonna say within 30 days, so reasonably within 30 days, I should have a lien on the title. So here's how I do it. If I intend to put that card, my name, and the LLC is going to pay for it, I would tell the dealer, hey, here's my certified check for $50,000. Or, I just wired. I had my company wire the money.
36:13
I've done it both ways, by the way, I've had my company wire the money and I sit there at the Dealers table, and I tell him this is loan money, and that's my lender, and I give them all the information for the company, that ...
36:26
the address, and the dealer will write up all the documentation, and he will put a lien on the title. This is what you want. So you're the title holder, but there's a lien on it. Your company is the holder.
36:38
Then he's gonna send the lien documents to whatever address you tell the dealer, send it to see how easy that is. If you want to be named on the title, which my car is not pay cash for my car, and it was a very old use card, so I didn't have a problem with that, So that's how I did that one.
36:51
Now, my daughter do one, and she did something like this, where she made the company, the lender, or something like that. I forget exactly how she did it.
36:58
But basically, the other way to do it, is you make the company, either the company that's paying for the car, the owner of the car, or you make the trust a trust, or a new LLC, the owner of the car.
37:14
It doesn't matter where the money is coming from.
37:16
At that point, there's nothing more to do, because you're just moving money from one company to another. I don't have to create a lien loan record.
37:25
Does that make sense?
37:26
This is how you spend money from an LLC without creating a tax liability, OK? You're just moving money around yourself. This is what I do.
37:34
Whenever I want stuff, I never get stuff, but my company does, and then I get to use it.
37:39
Then sometimes I have to title a certain way, it depends on how I get it.
37:43
All right. It's just like this. Let me give an example. I know I've said this before.
37:46
Let's say I would like to I would like to drive in a really, really nice cars, like a Rolls Royce or something, one of these really nice cars and I wouldn't like to drive the car. I would probably have a Chauffeur.
37:57
But, what I would do is, if I wanted to Rolls Royce, I would bye Limousin Company.
38:06
It already has maintenance contracts, the proper insurance, competent people to understand how to manage those, their assets really, in that case that business.
38:15
And, I would rely upon that asset to then acquire the Rolls Royce, the luxury vehicle that I would like to enjoy, then I would book that vehicle the same way. I would book any old Limousin with that company. It's just that now I might own the company.
38:31
That's the difference. That's how I would handle it. So, maybe that might go in with what you're saying, how do I move money from my LLC around? Well, maybe you might want to buy an asset.
38:42
Have that asset then acquire the liability, for example, that you want.
38:47
I know it sounds convoluted, but really, I think this is this is really how super rich people do things. They don't own anything.
38:54
You have assets paid for liabilities, OK?
38:59
All right, Glad you liked the call. All right, yeah. Thanks for the health information, and then what is the Toronto cases? There's that, sorry.
39:07
Sure, OK.
39:09
Scroll back up.
39:14
I had a meeting with me, I'm sorry about that. I called somebody who immediately on the 17th of Phi That I'm sorry about that. And I called, and there was no response shot over an e-mail, I have to tell you, I send an e-mail about, so I'm not sure if there's a missing letter or something like that, and I do copy and paste from my schedule. And so I'm not sure if I don't think I typed it wrong, So that shoot me back an e-mail, and I'll see if we can co-ordinate another time. No problem there.
39:38
All right.
39:39
Then, if the IRS claims you owe money, does it affect your credit?
39:42
OK, depends on how that works out, so they could send you a letter saying you have to report, or wherever, if it goes to the third stage of IRS interaction, I call it. So there's the first stage with the audit examination, period. And then, you have your tax court phase. And then, you have your collection phase.
39:59
So, once you get into the collection phase, the answer is yes, the item that the IRS claims may appear on your credit, personal credit.
40:08
Additionally, it may appear in your county records, so we can get the thing off your credit.
40:14
We just can't get off the county records as long as it gets out there, but there are some situations where, let's say, for example, it's illegal and de lima's preventing you from dealing with the IRS.
40:24
We can ask that the lean be released, in order to make the deal go through, that can happen.
40:29
So, there are things, but, yeah, it does affect your credit, but we can, we can remove the item, even if it's still valid. All right.
40:38
Get a Property in the, in the middle of the City, out of the city's jurisdiction. Yes, it is. I've never done it.
40:43
I believe it's possible I'm starting to see that there are I'm starting to see now how it is possible.
40:50
It's just like, you could do it a couple of ways you can, you can have that perpetual lien on the property if it's land in the middle of the city, like a strip mall or something, our residents, you can take it off the tax rolls, I know that I've just done, I've just done that for the first time ever.
41:06
And it was easier than I imagined.
41:08
So, I think the answer is, yes, it's just that it's not something that's in my forte.
41:12
I'm starting learn. So Joe's fictional car that's been registered for a year and a risk and driving. Now, there's no risk. I mean, OK, yeah, you know, the risk is driver behind you. I mean, right now, look at it this way.
41:25
The cops are preoccupied for one. Then you've got the cameras and all the intersections, right?
41:32
So why are they out there?
41:35
Checking to see if people run red lights, when they got systems doing that. So if you're in those types of areas, you have less police watching for people that haven't expired tag, right?
41:44
Now there may be some police in your area where in certain areas like a school zone there might be washing. So just be careful about that. I've done that before at a convenience, I just won't.
41:54
I just want, I just will do it. I'll keep driving my car. Now, if you're really paranoid about it, remember registration, play on the back of your car, your license evidence, or receipt for the payment of attacks. Now, I haven't tried this, but I know that according to the case law, I know this, correct?
42:11
If you were to find out what the tax was to get your registration, you send that into the DMV, with proof of money order or whatever. And you have a documented, and you get a receipt, or you receive the money order, and you keep that with your other documents. If the cop stop you and he asked about, why is your registration expires, Say it's expired but I sent in the payment to renew it, here's my receipt.
42:34
That should get you off the hook if that helps you. All right.
42:39
All right.
42:40
Yeah.
42:42
Yeah, so I'm in the process now.
42:45
I will share notes.
42:50
Yeah, in my e-mail. I mean it's it's a similar interests at proton mail dot com Singleton, P R, SS at proton mail dot com.
43:05
I don't know about the State Department of Agriculture.
43:10
Regarding stop you from purchasing vegetation, due to pets, I'd have to look more.
43:19
I'd have to see more of what you're dealing with, and it really helps me to see written communication.
43:23
Um, know, a lot of times, we get snagged into aldis regulatory gobbledygook because of we're behaving, normally, put it that way.
43:36
Like, for my children, they don't have SSNs, because I knew at the hospital as soon as you give out the name. Everybody tells everybody else what the name is. And the Department of Health Agent comes in there and gets the name and then applies for an SSN, for your child.
43:52
So, here's how you solve that problem, you just don't give them the name, then you tell them that you haven't decided.
43:59
Right. So, I have to just see more, what's going on, I love this problem, By the way. I'm sorry, you're in those. But if you have a situation like that send me, you know what you're dealing with. If you got some records or whatever, I like to look at that. If you can send it as a PDF file, and I'm sorry, if it takes me a while to respond and I have no problem. If you want to send it to me like three times in a row. Sometimes that gets my attention.
44:21
OK.
44:24
I'm not gonna look at that for your license plate, right? Yeah. I don't know what that is.
44:32
Go ahead and now let's see, I'm gonna, I'm going to do a couple more questions here.
44:36
H R, E H?
44:41
I am.
44:43
Hi, that's me.
44:47
Can you hear me? Yes, I can.
44:50
Um, so hi.
44:53
I really appreciate all that you do.
44:57
Just this is really very helpful. And just wanted no question.
45:02
I just wanted to let you know I have submitted to your service for the LLC PMA, OK, and I did that last Friday.
45:14
OK, I can check and see where she is on that?
45:17
Yeah, and I look forward to you guys.
45:21
Definitely appreciate your comments, yeah, That's it for me, thank you, OK, sure thing.
45:28
A straight what's going on?
45:30
Hey! How are you doing? All right, good.
45:32
OK, so, I'd been reading through your book a lot.
45:38
Sorry, it's repeating what I'm saying, I'm not sure.
45:42
I don't know how to I don't know. Yeah. OK.
45:46
Anyway, so, I was looking through the, the signature, like protecting, I forget. It's called like, checking your signature property. Yeah!
45:56
And stuff like that.
45:57
Yeah, and so, the other thing was, I was trying to get in with ku Coin for cryptocurrency stuff because I'm a beginner to it and I feel like Kevin down as much more like bigger volume futuristic kind of stuff.
46:13
But for the institutional verification, they want my signature on on some things.
46:20
And so even though the authorized signature for the PMA and stuff for the LLC, I was wondering if this signature, Like that little format you gave us, that's in there? If that would work, do you think I should do that for each one of those? Yeah, You can do that. I don't. And I haven't tried that, because there are more sophisticated things coming. I wrote that a few years ago. And I think, I think we're better things, which I'm going to address that later, but here's what I just do, is I just sign things. And if you want, you can put, you know, I don't know if you have the ability to, but you can put, you know, with reservation over your signature, or something like that. But the fact is, you just only have to notice somebody about that property.
46:56
You just have to put them on notice later. So when they retain your records, you can claim a right over those records in that data, just by a notice.
47:05
It's not so necessary that you identify with your signature that way.
47:08
Oh, OK. Is that what you meant, you said, that there's a specific time like end date for each of those records?
47:16
Yeah, it's property. And so you haven't identified it as that yet. So you just go ahead and execute the document, and then later on, you can claim property rights over that.
47:24
And one of that, part of that is to ask for the data retention policy of that, that other party who's getting your information, Right. And find out where you're starting from.
47:35
What they're doing with your property, Get that.
47:39
But the additional signature code thing with it, Yeah, I wouldn't even use that. I wouldn't even use that coding yet. I'm not even sure I just put that in there, just as catalysts called a placeholder, because I still want to revisit this. There's so many things that have changed in the last five years or so.
47:54
OK, it sounds like you get the idea, but you can always claim property rights over something that's yours.
48:00
And you can always determine the liability of the other party that collects that information by its data retention policy, and if it doesn't have one, then state law controls, And then also, what you notice that third party on, also, it creates a liability.
48:17
Oh, yes. We can talk more detail if you have some specific, but I wouldn't make too much of a big deal about it. Right now. I just want to make the point that we have property rights and we just don't even realize it.
48:27
Right? Yeah.
48:28
Yeah, I didn't want to be like like later on not have that ability to exclaim the property rights because they're yours, right?
48:36
The signature is the nature of your sign, OK, OK. So, what if I was getting renewing my driver's license? Would?
48:46
you say potentially then or here's an interesting thing, so I've had different conception that over the years. And so, lately, where I'm thinking is, my children are about ready to get licenses, So they get a driver's license sign it, just like anything else. Nothing fancy.
49:02
Nothing special of your signature, and then publish a disclaimer of liability regarding the entire motor vehicle code in the public records, OK, so, if the signature creates a liability, then you back you back out of it with a disclaimer of liability.
49:21
You file the public records, so that now that goes with your driver's license. You don't need to have something on your signature.
49:27
I'm probably gonna upset.
49:29
Yeah, I haven't done that yet, but I'm gonna probably do it this year, I'll share.
49:36
All right, thank you.
49:39
Bobby, what do you have?
49:42
Yeah.
49:43
Hey, John, Real quick, I just had one tactical question for you. All right. In terms of crypto paying for a good or service that, does that, create a taxable event?
49:58
Or is there a way to prevent that taxable event?
50:02
Mostly, it does not because it can't be seen. ... does not because it can't be seen for a second.
50:13
If I know specifically the transaction, but but mostly, it's not going to be seen. What are you paying for? Or can you say, is it an egg for, Or can you said, yeah, no, I can totally.
50:23
So, this will be like a real estate transaction.
50:27
So one property to property, I wouldn't have an issue with.
50:33
I don't think that's going to be an issue, but let's say I paid for some maintenance on the property or property management, some some surface related to the property.
50:46
Can I do that in a non taxable manner?
50:50
Well, it's not taxable anyways, so the LLC, the LLC owns the property.
50:58
Correct, correct.
51:01
So it's an asset. for expenses.
51:08
That's it.
51:09
Never trigger a tax law, then if they, if they, in turn, convert that into currency, at that, at that point, it does create a taxable event. Is that correct? OK, let's say you bought.
51:26
OK, let's say you bought real estate with Bitcoin Clear Undone.
51:31
It's even in the contract, notice, even mentioned dollars, and then you take the title, which means you're going to record this in public records, and it still says Bitcoin. The Iris sees that.
51:42
I'm gonna just gonna, I'm gonna say I agree with them. I can't I'm not gonna I'm not gonna agree with that. I can't get it.
51:47
I'm not gonna look at the date of the trends that are going to say that transaction that was valued at that if you didn't report it and they they didn't report it, and they say you underreported. Because it's such a big ticket item. Purchase an item that's fair. Method of looking at are there must be reported in dollars. That's a even though one thousand dollars. They would probably wasn't, it's barter or traveling.
52:16
Say we're going to see it as ours, and we're going to sell at a reported.
52:19
same thing, that's another reason to use an LLC for that transaction.
52:28
Because then it doesn't matter.
52:32
That's why we do it that way, that help.
52:37
I have immediate, yes, I was trying to mitigate the echo. Yeah, so that that helps.
52:43
So there's no way to prove to prevent that, they're just going to look at it as, I'm sure, in that case, they will.
52:49
Yeah, It's a big ticket item. If you're paying your babies that are not going to see that if you're paying, the, you know, let's say, by your neighbor's Mo, and he loves Bitcoin, You give them 100 bucks in Bitcoin, it gives you the more. I mean, nobody cares.
53:01
I mean, even if it's one thousand dollars, nobody cares.
53:03
But something that's recorded in a registered is going to probably be be a thing because the IRS may look at that, OK, and would they overvalued or undervalued how would they go about valuing the property? At that point, they actually published method. It's in their circular, it's like, shoot 5, 10 a year. So, Mike, that, I forget, what the number is, 500 and any disposition of Assets.
53:28
That's what you wanna look at, and it's going to be was considered current market value. CMB, current market value is what they call it.
53:36
That's the IRS Standard, OK, so, yeah, I mean, they can go back and look at the date of the transaction.
53:43
If you, if you try to call it Bitcoin, I mean, they would just look at that date of the transaction, and they would determine a fair market value. It's either current market value or fair market value.
53:56
They do have a way of figuring out ways to make it. What do you need for me, I'm on the phone. I'm sorry. I'm sorry. Sorry, John.
54:04
Yeah, so, OK, let me follow up then, next question.
54:08
If, OK, if they use that method, how would that affect something like property tax?
54:16
Um.
54:19
OK, so there, because there's not really a dollar amount recorded how we'd like the state of Kentucky or Indiana valuable property.
54:28
They do, They value of property more or less than an ad hoc way, now they would disagree with me, but there's a millage rate applied to the value of the property.
54:41
At.
54:42
it's not with the IRS does. It's completely separate.
54:45
So your property appraiser is going to follow a specific set of methods to establish a fair market value on which it would place attacks.
54:56
I mean you can guess what that is like the copse, OK.
55:00
Cause maybe there's an index. It's following. I don't know what they do.
55:03
But it's different than the federal income tax.
55:09
Yeah, OK. Well, like I said, I was trying to see if there was some advantage to doing it.
55:13
That would kind of, guys, reduce that burden for that liability, so that's how we use the LLC, Let them report however they want, or let it be determined. However, someone wants it to be in it, who cares the liability is being managed in a deferred way?
55:29
If it's a tax liability, you know, it's being managed in a way that doesn't create a real liability for you.
55:38
Yeah. Yeah. All right, Thanks for your time, John. Appreciate your. good question.
55:42
And then on the on the driver's license, I'm thinking by signing without prejudice, you're going to be better off publishing a disclaimer. I still liability, and we can talk about that sometime. Does LLC with undivided interest?
55:54
And, oh, my, live on a live on in perpetuity, like a trust us.
55:58
Yeah, an LLC, it's charter the relationship between the owners of an LLC, even if it's a single owner. The state recognizes this is continuous. Now, the charter can be revoked by the state for not renewing annual reports. Some states don't require it then.
56:19
Whoever wants to interact with the LLC, even if the charter has expired, does so.
56:24
at his own decision, OK, meaning if the LLC is revoked by the state, it doesn't preclude someone from entering into a contract with the LLC and that contract is still going to be valid, just so you know.
56:37
I don't know that it matters if the LLC is owned by, you know, a PM, and that really doesn't matter, but a trust can exist in perpetuity. It also depends on the provisions of the trust because some trusts are dissolved at some point, under certain criteria, or expire, right? But, yeah, there are trusts like, The East India Trading Company is a business, trust has been operating for centuries.
57:00
In fact, I believe it's a franchise of the United States. It is the United States is a franchise of the East India Trading Company. All right, so Lynn, what do you have there?
57:12
Hi. Can you hear me?
57:13
Yes. Hi, John. Just quick question. I submit an order for on the 15 admitted to the assistant and I haven't heard anything. OK, I'll ask her.
57:24
I'll ask you what's going on. Yep, you set up are the same. the e-mail address, it's in there, Right?
57:30
Yes, yes. I just also want to know if I should go ahead and book a 25 minute consult with you or should I wait for confirmation? Find your system. What you want to do is tell her. You want to, you want to schedule with me and see. See if there's time on the calendar and if you don't see it, let her know and she will get with me and and I can reach out to you and set up a time.
57:49
OK, great, I tried to make it to where, I didn't have Thursdays on November, December and I kinda messed up the calendar, so it may not be available at this moment.
57:57
So, yeah, yeah, definitely, and she'll, she'll, but she's good about following up, so, yep, No problem.
58:07
And, um, Chris, which he got.
58:13
Hi, Hi John. We have spoken a long time ago, like my fears about, anyway, I'm in the process of finding another job right now. I was laid off two weeks ago, so I kinda have to make a decision about how to set stuff up and you had, you had suggested LLC owned by FEMA.
58:36
Is there any benefit to do an LLC owned by a business trust?
58:44
It's the same thing.
58:46
Same thing. It's the same thing it just depends on how you use it. If you use it for that purpose, it'll work just fine.
58:50
A PMA is a trust, OK, and the, um, when it comes to tax, any tax liability, only tax liability I would be incurring would just be or to be smart I would say is to minimize my tax one, my personal tax liability as an employee by 10 99, right under the LLC.
59:17
No, you're confusing, tend to dealing with employee. They're two different things. You're not both.
59:23
So, if you're running a business, and you're, you're running it through the LLC, so I would be a contractor.
59:31
Sure. You can do it that way, IT contractor just by my fellow. Very good. Use an LLC, then to manage the cash flow, and then you can, you can claim all the money from the LLC as your personal income. But if it's way more money than you need, there's no, there's no reason for that. So let's say it makes a million dollars, but you only need 100,000, You just report 100,000 on your 10 40, Just make sure that you don't spend the 900,000 on something personal men don't tell the IRS. So make sure that the 900,000 in the LLC stays outside of your name.
1:00:00
That's probably the best way to explain it.
1:00:02
Right?
1:00:03
And it would like would you like funneling into a PMA, but then the PMA has no, no.
1:00:10
The PMA just owns your LLC period. That's it.
1:00:14
You don't funnel anything anywhere.
1:00:15
It's you're not doing anything wrong and you're not trying to hide anything, I didn't know how to say like OK. You're just, you're just changing the way, you're your tax treatment.
1:00:25
OK, so what I'm saying if, who, who, would own the 900 kit?
1:00:28
The LLC OK, so how are you changing, your hatchery and now you're giving the LLC. what?
1:00:37
Tax rate of 35% versus my own personal yeah, that's a tax rate, but the tax liability doesn't, doesn't happen until the LLC files a tax return.
1:00:46
Which is not required to do, you just never. Got it. That's the case. Right? So then your tax treatment if you want to call it that is tax deferred because you haven't chosen this funds aren't settled, so they're just sitting out in the LLC. So the tax liability is not when the money is received. The tax liabilities, not when something gets an EIN. The tax liability is when you file a statement of financial statement with the IRS, That creates, that's actually the assessment.
1:01:15
But doesn't my LLC have to file some sort of tax document with the state to pay me?
1:01:22
No.
1:01:25
You just use the money, or pay yourself individually, if you want to do it that way.
1:01:29
Well, when I when I finally went, when, at the end of the year, let's say it's now, 2020, oh.
1:01:36
Anyway, when I file my taxes for the following year, and I show 100 K under the LLC, or that came from the LLC to me as an employee of the LLC, How does the how does the IRS do any reconciliation that? Yeah. That's all I would, That's all I should owe upon 100 K and not more, OK?
1:01:57
You're not an employee of your own LLC, in that situation, you don't need to classify it that way.
1:02:05
So you're going to report income just like you were painting houses and people giving you cash.
1:02:12
So it's either other income or something else that's not connected to the LLC, The Irish doesn't even need to see that.
1:02:18
All of it, all it needs to know is you got X dollars from somewhere, it could be from 550,000 places or two.
1:02:25
It doesn't need to know that, just claim that on your 10, 40, lots of times people are reporting this other income.
1:02:31
So if they audit me, what are they going to check my check my bank account for how much money came in that year?
1:02:38
Does it all match up? It'll just match with that, OK?
1:02:41
Yeah the reconciliation comes when you file A tax return and then there's a third party payor report and so the 1099 is reconciled against a tax return.
1:02:53
But if it's if a thing and a taxpayer, an LLC gets a 1099, for example, that's where it ends.
1:03:00
Because there's nothing to reconcile because there's no, there's no financial statement regarding income tax return.
1:03:09
So 10 ninety nine's all day long, no problem. But as soon as you file a tax return, now, there's a need to reconcile.
1:03:15
So you're using the term kind of out of the way it's supposed to be used. Probably because I was under the impression that my LLC would hire, like, would hire me, or, I mean, pay me as an employee of the LLC. That makes it too complicated, and it creates liabilities. This is where people are getting into liabilities, because they think they have to do these things, that this language is in their brain. I talked to so many people that are really smart about the, the tax code, and they know all these little things that I don't know, and accounting practices, And then, the bottom line is, you don't need to know any of that stuff. We're not supposed to be speaking that language.
1:03:47
And so it feels like we're supposed to be because they're trying to do the right thing, you know, but it's not like that.
1:03:54
So, C is a, it's a holding company, OK, so, but if the LLC has M and other employees, how OK, what are you doing? What kind of business are you doing? Like IT?
1:04:11
Do you have employees?
1:04:13
No, it would just be me, OK. Well, there's the time being.
1:04:17
I might hire my sister though to like does she want wage withholding and does she want to work as an employee?
1:04:24
How else would she work? She created her own LLC and work, she could certainly do it that way. She could work, like, I've had people work with my LLC.
1:04:33
That's how I operate.
1:04:34
But if I've hired 30 people at one time, and they were not my wage, wage earning W two employees, they didn't get 10 Dame get 10 99. But, technically, they are independent contractors. And when it came time to Pam, I wrote amici check.
1:04:47
Then some of them would still ask me even though they knew me and then, you know, they would ask me, John, when do I get a 1099? No, you don't get 1099. You do whatever you want to do.
1:04:56
My company doesn't issue 10.
1:04:57
99, OK?
1:04:59
I know accounts hate that.
1:05:01
They hate me saying that, but they're in this thing. I don't know what it is, but it's not necessary.
1:05:08
OK.
1:05:08
So if I pay them directly, then she just would have to take care of her taxes. Yeah.
1:05:16
It could be here.
1:05:18
She could do whatever. She wants that. she could have the same freedom you have. Now here's where you run into problems. Let's say you hire complete strangers.
1:05:25
And that person is, I'll give an example of running a coffee shop for you and serving customers, right? That's an employee.
1:05:35
I don't care if you call him an independent contractor. The IRS is going to say that's an employee, because he has to show up at a certain time, and he has certain criteria of being a plant and being in employment. You can't call him something else, and make him, not an employee. The IRS is going to say that's an employee and you should have been wage withholding. So that's the scenario.
1:05:53
You may never have a problem, but sometimes employees do crazy things like, they do. They'd start realizing, Hey, this guy should be withholding, FICA.
1:06:03
Or maybe he has a conversation with his Uncle Bob at Thanksgiving dinner. And it's like, oh, Bob says what, you're working for a guy, and he, he doesn't have you sign a W four. That's crazy, you know? And then he gets thinking, oh, you're breaking the law, And then he goes and tells on you, and you're not breaking the law. And that's where the problem comes in.
1:06:21
So what I tell people is, if you actually have employees that would be considered employees, either outsource them and lease them back if you don't want to deal with it. Like, if I were to buy a storage facility, that's what I would do. I wouldn't have employees working with me on a storage facility.
1:06:37
I would, I would have an employee leasing company, and everybody wants to work for me. I would say, guys, go work over here, and I'll contract back for you. And so they're your, their employee, Not mine.
1:06:48
That's what I would do.
1:06:50
Or, you know, do what I did, just pay them, let them deal with their thing. Some people like that.
1:06:56
Kind of the reason why we got into this situation where everybody's you know, locked into this, Debbie forest back in the eighties, Microsoft, In every case law. So this is where it comes from, but basically Microsoft had an office where it had about 25 people, and then they did the same thing. They said, Hey, wait a minute, you should be withholding FICA, and all this nonsense.
1:07:15
And they made a complaint, because they're a bunch of victims.
1:07:19
No, they don't. They don't see it, but, anyways. So, I guess it ended up in a lawsuit or whatever, and the Iris did an audit, and they said NO Microsoft! These people, the way you're interacting with them!
1:07:29
These are your employees because their conduct is consistent with the 20 common law principles of employment that we have adopted, which is another subject we can talk about. So Microsoft had to do back, pay back withholding and they got find all this stuff.
1:07:45
So my clients have always avoided those situations, because I tell them here's what's going to happen. If you have employees.
1:07:52
You kinda lumped into Workman's compensation and all these State regulatory things and even sales tax in some cases, But if it's just you IT specialist, you're going to be in a perfect situation to get independent contractor income, and you should pay to your LLC and then any income you're taking from that LLC.
1:08:10
Should be other income.
1:08:11
At least.
1:08:13
And no tendinitis are involved.
1:08:15
No W twos are involved OK.
1:08:19
All right.
1:08:19
Thank you, OK.
1:08:22
And if they insist on being here, if somebody wants to be a W two, yeah, you can use an, you can just outsource them, if somebody wants to be a W two.
1:08:30
But then, again, I mean, nobody pushed me on it when I did it. And I I literally made it to where they were not employees. They did not meet the criteria for common law employment. I was not trying to cheat anybody. In fact, I was trying to do them a solid, because who wants to be an employee when you don't have to be?
1:08:44
It's just a quagmire of expense. Why do I need to incur all that stuff. Now, this big company, this big company, wants to hire me as their BI manager. Yeah. Oh, well, OK, Then.
1:08:54
I'm asking, Will you please let me come on as a pin 99 corp to court?
1:09:00
They might, if they can, if they could otherwise hire a company to manage a function of the business, like, almost a joint venture, that would work, but they can't cheat. The System manager, who's on site?
1:09:12
Interacting with personnel is going to be an employee.
1:09:14
They, as much as they may want to, they really can't get away with it. And, I have to agree with their accountant on Staff, and that comes to that. Yeah, but if I worked from home and nobody's directing my work. Right.
1:09:25
You should be fine that, that, yeah, that's one of the criteria, is that you're, you're accountable immediately to supervisor, who's looking over your shoulder so to speak? And, or, you have to punch a clock, or you have to, if you don't show up at a certain time, or they're paying for your expenses, things of that nature.
1:09:43
one last question.
1:09:44
Like, what would the differential that you would suggest should be between being a full-time employee versus going well.
1:09:52
Yeah, I mean, you're saving them lots of money.
1:09:54
Like another 30%, 20%, probably, you're really saving them a lot of money. You could, you could get another 30% rate reasonably, and they'll still save money.
1:10:04
I mean, look at the what kind of liability that's not even quantifiable, quantified, what kind of liability is it for you to come on their property and interact with people?
1:10:14
I mean, just that alone.
1:10:16
If you slipped in the cut yourself or something, right? What kind of insurance do they have?
1:10:20
I mean, it's expensive to have employees Yeah, yeah, I mean, that's actually a pretty good counter-offer, if they offer you the job and it's probably pretty good reason to give you a 1099 position.
1:10:31
All right. I think.
1:10:33
Yeah, if you're not using an LLC, I mean, in the company that is paying you is not using a 1099 will then.
1:10:43
That's your good old days in the seventies, right?
1:10:46
Sometimes that's not always the case, but if you're in that situation, I mean, that's what I was doing.
1:10:51
So, yeah. If you can find it, somebody was asking me something, what was I'm? sorry?
1:10:56
I just wanted to know if my LLC picked us, instead it pays me just a check. Do I have to declare that as regular income for?
1:11:05
Yeah. If you just get, it doesn't matter. If it pays you a check and you put in your personal account, or if it spends the money on something you're going to use for personal living.
1:11:13
Either way, it's still part of your income.
1:11:16
OK, so that gets taxed as ordinary income on your 1099, but yes, correct, you're done, totally, just, it was just declared as other income, OK, but do you have your LLC, it doesn't have to take out unemployment insurance, or any of that says correct. Please don't do that with your LLC. That's the whole point of doing this so you can avoid all that nonsense.
1:11:36
So I can do it, but if you get 10 99 income, then that goes under 1040, and it's subject to FICA, and Social Security, and that stuff. If you want to report it that way. Sure, I would recommend against that. But yes, some people like to do that. How it, how would you report? It would be ordinary. Well, I wouldn't do FICA withholding on a 1099. I wouldn't pay that and you can pay it in.
1:11:57
I don't do that. I wouldn't recommend it.
1:12:00
But why?
1:12:00
You could, You could, create, You could take that money and put it somewhere else. You won't you don't need the government programs. You can make more money with your money.
1:12:10
Why? Pay them, Or not? I mean, OK, But, at the end of the year, I mean, they charge, you know, they charge you some Social Security tax on top of that.
1:12:17
The IRS from your other, I know.
1:12:20
I can Now, I don't know. If they do that. I don't know.
1:12:24
I don't know I've never had that issue.
1:12:27
You just declared as other income and let them know because FICA has to do with employment.
1:12:32
I mean, 10 99 is in me. I didn't, I didn't need pica but in it.
1:12:37
Your self employment tax, you're getting 1099.
1:12:42
Yeah.
1:12:42
I don't know how that works, but, OK, you have control over how you want to report it.
1:12:47
The thing is, you just have to report that you did get it because if you're filing a 10 40, I mean, you have bills.
1:12:54
At least we know the bills got paid. So somehow, that's your income.
1:12:57
Yeah. Gotcha.
1:12:59
Yeah, I'm not, I'm not the accounting person, but, uh, thanks for the post here on a Gap. Haven't seen that one lately. right now, see, Todd, you had it? Thank you for your patience when he got there.
1:13:09
Yeah, I was the one that was asking you about the problems with the Department of Agriculture, OK, so, if I could just let you know real quick, what had happened. I was, I need to pick up some very large trees from Colorado, and I contacted the store, and they said, oh, no, you have to contact the Colorado Department of Agriculture. So, you know, they had me going back and forth between government agencies, and I found out the New Mexico Department of Agriculture said, you can't bring these vegetation across state lines, because of the Japanese beetle.
1:13:42
And I did a little bit of research and it was actually actually complete nonsense. It didn't even affect the trees that I was going to, OK. So how, how does anyone know that you're bringing it across state lines?
1:13:53
Well, what are so large? The trees are so large. I need a commercial trucking company to bring them across, but you've, you've identified that you're doing that. Why don't you say that you're bringing it to another location?
1:14:06
And, then, reship it without unloading, take it.
1:14:10
And whenever they cross the lines, there's waste stations where they evaluate, and they have to have the licensing of bringing those trees across. Yeah, that's true. Yeah, they're gonna check on the way stations. You're right, yeah?
1:14:21
Yeah. And, so, Yeah, you can't hide that.
1:14:25
Yeah, I don't know, I mean, I don't I've, gosh, I'd have to see their individual, I wouldn't know, there are some legitimate regs, it's probably BS, though, she's, like, over here in the eighties or nineties.
1:14:37
They did this with the oranges, nobody has any orange trees anymore because of citrus canker, which is complete BS.
1:14:45
I don't know what to tell you about how many more, how many battles do you want to take, right? I mean, I've taken everybody else on now, this path stupid.
1:14:54
I like to stay focused on immediate financial because that's like the core of everybody's situation, but yeah, I mean, I mean, it's interesting to me.
1:15:02
I would like to see the regulatory issues in there because a lot of times there's some due process issues. And there's some presumptions that you can get around.
1:15:09
I mean, the beetles. Whereas what risk are we talking about here? Come on, yeah.
1:15:14
Well the funny thing is is like, you know, these these beetles, the larvae only reproduce inside sod and they don't even touch conifers.
1:15:25
And that's what I'm trying to bring across. And there's many ways to be able to destroy the grubbs, and I came up with this whole business Plan, actions, to genius idea. I should probably market it, and make money. And I set it to him. And I said, this is what I can do, to make sure that these grubbs aren't going to, know, I guess, take over New Mexico or whatever it is. And they're just like, nope.
1:15:49
If they're in these counties in Colorado, you can't do it.
1:15:53
And so, uh, I call it a couple guys up and they're just like, OK, Todd, just use our truck and trailer and they won't bother you at your property. Just go by and bring them across. You don't need, yeah, that's the thing. I mean, let me just, so I'll share a scenario with you.
1:16:07
I was looking at with some friends in Europe and we were, when we go on vacation, we, we just, we buy, we buy cars, we don't read and we just buy the cars and then we use them for two months and then we sell them.
1:16:18
Because we have people that are, they can do that stuff And we got, we got to thinking, hey, we can get such great deals going through Italy and Spain. And we started getting greedy, we're like, Hey, let's get a fleet of cars. Will sell them in the States And we're gonna, you know, it's a pretty good deal that the problem is, the limiting factor was the, the import fees, the duties, right?
1:16:38
And so the way around that was to buy a car and buy it in Europe, titled an American's name.
1:16:47
So that way when we crossed the border, it's already in American's car.
1:16:52
So it wouldn't be taxable or whichever way we had it going, right?
1:16:55
So that's an example of a scenario where it's not illegal to do that.
1:17:00
But now, when I was an international soccer coach, we weren't able to bring international players to America. So I brought them through Mexico right, now And the last year I had a couple of the gentlemen retired. He had an auto repair shop and it just happened in our consultation. That came up with the sales tax.
1:17:20
and so I set them up in a way where he has, You know, He's completely Like you guys have the LLCs and stuff.
1:17:27
And he says, Well, I still got the sales tax issue, which kinda ties you and everything else.
1:17:31
And he didn't have employees, it was just a little shop.
1:17:34
So I said, Well, this is easy because I've had to deal with this. When I want to buy something from a publisher or printer, a printer this, I'm the publisher, for example, it's gonna sell me my own inventory and collect sales tax unless I just pay the retail cost and it sells it to me as a retail customer, which is no problem, because I don't want to mess it. I don't want to pass it on to my customer, I don't wanna look like Amazon. So, I just skim a flat dollar price. I don't collect sales tax. Why, Because I already paid the sales tax, and so that's how I set up my client.
1:18:03
I paid, I set up to where we canceled his sales tax ID account from the state, and then he went into business under a different company, and everything was fine.
1:18:12
And a year later, he got a notice from the state saying, We think you're involved in retail sales or something like that.
1:18:21
And all we did was fill out the form, and I had to help them because it was kind of tricky. They try to trap you.
1:18:27
So I fill out the form very carefully, and we did exact, I thought, from exactly the way I set it up, to show the state the exact thing we did.
1:18:36
And then they agreed.
1:18:37
So if I can analyze something, I can usually find a way to weave through there no, gauntlett of regs.
1:18:48
That's what I was hoping, but, yeah, I mean, so you can take your best shot to get my attention on that one, if you send me whatever it is to look at.
1:18:57
And hope I can do it by the end of the year, you doubt, because know how that goes, right, Todd? Yeah. I'm a sucker for it. You know, if I have to see it on Saturday morning because I was stupid enough to look at my e-mail.
1:19:10
No, I'm gonna open it.
1:19:13
I can't resist, that's the tricky part, you know, to try to attention, you've gotta kinda twist on, or some kind of, flashing lights or something, because you got so much stuff going on. I mean, I look at my e-mail, and it's like, Whew!
1:19:26
I'm like, Ah, yeah, I guess I'll list them before I let you go.
1:19:32
I don't know if you read the questions, but I've got everything set up. But for that mental evaluation, what nice.
1:19:39
Don't work on that, man. Yeah, it's all set to go, I, in fact, I have some friends that have connections within the capital of New Mexico. And they know a doctor. And there are going to actually try and make this, OK, you can make the affidavit as as having made the diagnosis yourself to start everything out. And when they challenge, you can say, well, if I can't make a diagnosis, why could he?
1:20:02
Yeah, That's better. That's the point. Now, do it? You could do it that way? Now, I talked to doctor Califf went on this. He's one of my clients and and he was he just thinks it's hilarious. Because, man, let me know if I can do that. So.
1:20:17
Doctor Califf and Hill and he said, oh, wow, this. But like, it's funny. Or just to have a layman do it.
1:20:24
Because he's 11, how is he saying everybody has a disease? Oh, yeah. I know.
1:20:28
The whole point, whether they're insane, and like you said, yeah, call, it's absolutely a call call.
1:20:37
Yeah, so, OK, so. so it's better for me to put my name on it to initiate that.
1:20:43
And rather, the way you had it written was, no, I don't want any retribution, so, you know, I'm not I'm not putting my name on it. So I'll go ahead and put my name on it. Problems doing that. I shouldn't You won't have any problem doing that. Yeah. There's just sometimes we're like I just did a brief in DC for the Judge Ross case. And I use John Smith, and I use my same address. But they actually published the brief. So I put an amicus brief. You guys can see it if you want. Like, I got it. I got it, Yeah. Yeah, they already files. So yeah, it's not File, and I just don't want the attention, because if my name shows up too many places, they're gonna make the connection.
1:21:19
I can say hey wait a minute: you're the biggest trouble maker in the whole country. Right now and you're right, I'm right behind you. Thanks Josh. Yeah good workmen. Let me know how that goes.
1:21:32
Do we have more questions?
1:21:33
Linda did you have some me Lynn Ahrens has her hand up it looks like.
1:21:43
Then Chris did we get them all?
1:21:45
You got me. Thank you. Alright, awesome. Appreciate it guys. I appreciate your questions are very good. Hope it helped. I'm gonna end it for tonight. This will be recorded. I am going to give you the links to the last two weeks. Sorry for the delay.
1:21:56
Appreciate you guys, Have a good night, gioia weekend.
1:21:59
Thank you, John.