U10 – Acct Access, Taking LLC Profits & the PMA
0:02
Hi, everybody, this is John Jay, and today, I wanted to cover briefly, um, how to manage access to your account. And I’m going to be specific here. I’m talking about the limited liability company that we normally use, and third party accounts, like bank accounts, exchanges.
0:21
There are other considerations when you’re dealing with property rights like real estate, that are outside of a third party exchange, that you have control over, but they appear on the public records.
0:31
But let’s start with the basics here.
0:34
Many people want to add a spouse to a limited liability company.
0:39
I like to write these so that there’s only one signer for the group, or for whoever would have an interest because really, the access to the account doesn’t need to be expressed only in whoever’s name appears on the articles, and you do lose some privacy.
0:58
Um, it’s not a problem, but it’s, it’s not necessary.
1:04
So Let’s just look at a simple Step here.
1:08
So the first thing is, you can use the account without change, for example, uh, Let’s say my wife is always using the account and let’s say it’s a corporate account, It’s for even for my business, maybe.
1:23
I have a couple of partners and My wife has no interest in the company, but she’s signing on it. Nobody cares because there’s no risk there.
1:33
In some cases, where it needs to be a stranger, that person can be bonded, We don’t need to get into that subject, but basically, if she no longer could use the account, let’s say she disappeared, and I couldn’t find her if she was lost at sea or something, then I could simply go to a file, which I know where to go, and I could obtain her account credentials. And I can login to that account on the internet, because mostly that’s how she’s going to use it. Anyways, I would have access to the debit card, I would know the pin, or that information, Maybe I don’t know it.
2:05
In some cases, you don’t want to give out the information until it’s needed. But either way, I can go get the access. We just have to know ahead of time. How are we going to set that up.
2:15
It’s not complicated.
2:17
Instead of, instead of my wife sitting here at the keyboard, typing in information to access the account, it would be me.
2:24
And instead of her using the debit card, whether or not her names on there, it doesn’t matter. It could be me or anyone else who’s given permission access to that account.
2:34
I could send a Family member to the store to go use the debit card. OK, I can just hand it to him in there, and there you go.
2:42
Putting a name of someone who’s going to use the account or the asset on the records is not necessary.
2:51
And it creates a situation where you’re going to rely on attorneys or the court.
2:55
two, agree that a person Hazzard maybe disagree that a person doesn’t have access and it gets expensive.
3:02
And so that’s why I have a habit of not adding other people.
3:05
Because if you have a tendency to rely on the court system and attorneys to resolve disputes, then you’re just going to usually lose out.
3:13
And I think if you just have a couple of different habits, you can do quite well.
3:17
I’ve never had a problem with having access to other, you know, to access to property, real estate, banking, third party vault services. I’ve never had a problem. Sure, you could have problems.
3:30
But let’s go over another, Another method here.
3:33
Obviously online access, like I just explained, you’re not going if you’re not a signer on the account let’s say it’s a bank account if you’re not a signer, you’re not going to be able to go in the bank and wire money out of that account anywhere.
3:46
Of course, obviously, you can be added as an authorized user.
3:50
But just the same the way things are today, you could login to the account over the Internet.
3:55
And if you have the cry and the credentials you could issue of wire transfer.
4:00
OK, I did have a scenario recently.
4:05
Where I actually had, for a long time ago, a lifetime ago, maybe 15 years ago I had my mother-in-law sign on, one of my company accounts. She was using it, or something, and then we started using it. How we do things to and we’re sending money out of it, wiring small amounts, it wasn’t a lot of money.
4:24
But on the third transfer, the bank froze the transfer and wanted us to come in and explain that it was intended to be wired. So, we had had to call it my mother-in-law, and, you know, we made a day of it, right? She came over to visit, and we took our lunch. And so, she just walked in the bank and said, Yeah, I want to do that thing, we told her what to say.
4:44
So, if that doesn’t appeal to you, then you’re not gonna like some of these methods, but I haven’t had a problem. If it’s partners, I’m not going to involve my family and things like that. It depends on my partners, too. So you can work that out.
5:00
Obviously, you know, whoever has the debit card. And as long as he doesn’t have to show his ID, then you’re in good shape. You can also get a debit card on an account. You can get two cards, I believe.
5:10
Sometimes the bank will issue a card with someone else’s name on there if you ask them even if that person is not a signer. So just ask.
5:20
Same, another, another method is to use a check Literally if, let’s say, my business partner had exclusive rights to an account that I needed to get access to, and I didn’t normally have access to it for whatever reason, it was normal for us to do it that way. And he just disappeared, or whatever happened to him. And I don’t expect him to come back anytime soon. What I would simply do is I would, of course have to make this arrangement in advance. I would have a check.
5:49
If I don’t have a paper check, I could probably issue a check on an online application, But let’s say I needed a paper check.
5:57
Let’s say I didn’t have one. I can actually go print some checks up.
6:00
I can go issue a check, I can go African, never printer, make one for me, and get a VISTA print, and print up checks.
6:06
But to make it convenient, we would have a set of checks available in that event, So I would just get the check and write out what I needed if I just would simply just move the money to another account. Maybe I was over there at a separate account, for some reason.
6:21
And then I would just write a check to our main company account, move it, move the funds over, OK, now you’re probably thinking to yourself, yeah, but what if you’re not a signer, OK?
6:31
Again, if I’ve already had an arrangement with my partner to do this, I could literally sign his name or sign anything. In fact, I could probably sign my name, and the bank would authorize the transaction. It wouldn’t be a problem, OK? It’s not a forgery, because I had permission to do that.
6:47
Alright, so I can move the money just by simply writing a check. You can do that with your family members. You can do that with the business partner. I, again, I like to avoid situations where I’m not gonna involve an attorney or third party or a court or resolving disputes through third parties. I want to handle things myself.
7:05
Another little more sophisticated thing you can do is have a signature stamp on my signature stamps.
7:12
The more important thing is that the person is signing it.
7:15
Who’s allowing you to use his signature stamp is going to trust you, so it have to be that type of trust relationship.
7:22
I think anyways, just the same, I like to have a hand-written agreement and I have specific terms that I like to use.
7:29
But, I have a hand-written agreement that’s written in blue ink on a piece of paper. It’s kept in a vault that explains the purpose and the authority for which that stamp can be used. The reason why I do that, is, if someone stole that stamp and used it for something that wasn’t authorized.
7:44
The people that had the stamp, the signer, and whoever else whose custody it was in, wouldn’t be held liable for any wrongdoing that a thief had committed using that signature stamp.
7:57
Because the intended purposes that had already been written down, and the document is self authenticating because it’s in the seiners handwriting and it’s in blue ink, its original, I can be authenticated, it’s self authenticating, so I have a method of doing that. I rarely do that. If you guys want to talk about that, I’ll show you how to do, it’s very simple.
8:14
It take you maybe a week to set that up because you gotta order the signature stamp.
8:19
Same thing with property titles. I mean, you can have those signed ahead of time. You can have a quitclaim deed or a car transfer title. You can have that executed and kept in a vault somewhere.
8:30
In fact, you can even keep it in a trust relationship with a third party where under certain conditions, the document will be executed and filed or recorded and the transaction that conveyance will take place. That’s a little more complicated.
8:43
But there are many ways of doing this.
8:44
Now, um, if you really just want to add a signer to the account, I know I’m telling you all this stuff, and you’re still going to say, I still want to add a sign or fine, go to your banking abstract documents. Now, there are other ways of doing this.
8:58
I’m just saying from my example how I set up clients, These are the tools I give you. OK?
9:03
So for the banking abstract document, you’re going to find, in the eight pages, I believe we have now, when it’s called the banking resolution, this is a resolution of the people and the, and the company, and the LLC that have the authority to designate who’s going to sign for the company.
9:19
That means signing a car title, buying and selling a vehicle vessel, opening a bank account, engaging in banking transactions, right? So, let’s say a partner in a business is a signer for the company. There’s three people in the company.
9:34
And he just wants to for convenience, wants to add another partner.
9:39
Well, all you do is go to the bank, abstract documents that I’ve given you, and copy the page.
9:45
You literally opened the document on the computer, and you copy that page and paste it into another file.
9:51
And you replaced the name of the original sinar with the new additional signer you want to add.
9:58
You print that out, you sign it.
10:01
Then you take that to the bank with your all your KYC information, your ID, your documents, and whatever. And you just tell the bank, you want to add an authorized user to the account, or a new seiner, or however you want to do it.
10:13
It could be authorized user. However, you guys want to set that up, but that is literally what you need. You just need to show some document. That’s going to authorize you to be signing in behalf of the account holder, which is your LLC. Now, it’s not so much that the bank.
10:28
nice to see that that person has permission. That is part of it.
10:31
But really, once you’ve provided a document showing that you have permission, the bank is going to accept that at face value, because now the bank is not liable for whatever happens afterwards, because it has, it has the right to rely upon your written authorization, presumably that was issued with the authority from your company, right. So you would think, Gosh, it’s so simple, I just write up a document and give it to the bank.
10:55
Yeah, because now, the bank is indemnified for anything that’s whacky, that’s not supposed to happen on that account.
11:01
You You’ve already expressed the authority was given.
11:04
So, it’s on you now, OK, it’s pretty simple.
11:09
Here’s another way.
11:11
These are getting a bit more sophisticated We’re going to end here with the PMA, and everybody was talking about that. I’m gonna talk a little bit about taking profits too, but we’re gonna, We’re going to do some more videos as well on the profits.
11:21
But you can use A I’m going to call it a third party black box.
11:27
Now there are many variations of this.
11:29
I can literally take a black box.
11:32
Maybe it’s a shoe box. Maybe it’s a vault.
11:34
I don’t like to use a vault because it’s too conspicuous, right?
11:39
People get curious. It’s evolved, right?
11:42
I’d rather use a shoe box, or a box that can be sealed, and then it can be sealed with a plastic seal, but is tamper proof or self tamper? it’s called Tamper Evident, OK?
11:54
There are those types of seals, sea UCLA, black box, and you can take it, too, a law firm.
12:01
Now, I’m not saying I like to use law firms for two things: third party Custodian custody of valuables, third party custody of information and attorney client privileges.
12:14
I don’t, I don’t like to use them as, as much as I can avoid it, OK.
12:19
If I take my black box and I’ve sealed it, I document all that, and I delivered to a law firm and have a contract with the law firm. Now, not all will do this.
12:27
The contract says, basically, If certain conditions are met, and a person shows up, or this one of these two people appear or contact you, and they ask you for this box, and they give you this certain information, you are to give the box to them.
12:42
That’s it. They don’t need to know what’s in there. It could be an envelope too.
12:47
Um, then, in that box, may be access to the combination to a safe or there may be a key in there or something. You can use your imagination.
12:57
This is another way to get access, where, again, we’re not trying to use the court system directly and put everything in writing, it doesn’t always have to be in writing, it just could just be an arrangement, OK.
13:12
Let’s say. All right, so let’s talk about real quick And I will go into some detail later, but let’s talk about taking profits.
13:18
Let’s say I want to take some money out, um, of my, my company and I want to buy something for myself, but I don’t want the tax liability, so I’m going to take out $50,000 and buy a car. I literally would go make sure my LLC has $50,000 in there. I don’t care how it got there. Maybe I sold some coins, right?
13:36
I would literally go to the dealer and do like I always do, talk to the dealer and make my price and then I would just tell the dealer. 1 of 2 things I could say.
13:45
I have a lender, and here’s the Lenders’ name, and here’s the Letter’s tax number and address.
13:52
So here’s, I would go back to the bank. Once they get My, My price, I would get my certified fund check, or I would wire the money to the dealership, I’d come back there, sign the papers.
14:02
And then what the dealer would do is write up the documents to show that my LLC, if I wanted to do it that way, is the lender.
14:08
And whatever contract I workout, I just tell them what the terms alone, or I can just make those up on the fly. That’s not complicated.
14:17
He doesn’t, it doesn’t, he doesn’t care if you’re the owner of the company or you’re signing for the guy. He doesn’t care about all that stuff. All the noses.
14:24
He’s going to sell a car.
14:25
You’ve already told who the lender is. It could be your Uncle Bob for all he cares, alright.
14:30
So he’s going to write up the documents and file it with the DMV.
14:33
Presumably, you’re gonna get the plate. He’s gonna get the plate All registered, and things like that. They’ll file a certificate of title with a lien holder on there.
14:40
And then the company, the LLC will receive the documents at the address you gave the dealer.
14:48
So just make sure that the company can receive mail at the address, you give the dealer, and that’s it. Now the car is in your name.
14:55
Insurance, is all the same. It’s easy, easily done, and you have a lien on the car. That’s alone.
15:00
So you would just make a, keep a record that you’re making those payments.
15:04
The other one, of course, you can do it like this, you can go in there and say, I’m gonna buy a car. I’m gonna pay cash for it.
15:09
And then when you take the title, just tell the dealer how you want the title to be written, So an easy way to do it is to make up the name of a trust and then end that name with the word trust.
15:21
So it could be 52nd Avenue trust.
15:25
I just made that up, OK. It could be Bill Smith Trust, you could do whatever you want. It’s a trust, he might ask you for a trust document, if that’s the case. You can be prepared.
15:35
Basically, it just shows who the trustee is.
15:37
When that trust is formed, you know, just a basic document. A lot of times they don’t care. They’ll they’ll put the name. You can even use a fictitious name. That’s what I usually do is I use a fictitious name. So that’s another way to do it. I just don’t like using cash because it brings in reports extra reports to the IRS and it causes them to scrutinize the transaction and then today everyone’s a suspect and money laundering. So you’d have to answer about that and it’s just hassles sometimes.
16:03
So you can do how you want.
16:05
Those are the two simple versions of buying a car, and, yeah, you can use your LLC, That’s investing in her kryptos or your business or whatever else, and on the other side, when you take the title, decide how you want it to appear. You can structure however you want.
16:20
OK, the other question I get a lot about as, um, when I, when I deliver these documents and we start talking.
16:27
The other question I get is the private membership association that I’ve named as the owner now.
16:34
You may not have exactly that. Some people do, some people don’t. I’m funding a lot of people like that idea but the PMA is something that you’re already part of.
16:41
And it could be a family.
16:43
Your family is an association, and as it turns out, it is a private membership association, just because I couldn’t be a member of your family.
16:52
There’s no way I could do that, right? It’s, it’s a family, because it’s biological. It wasn’t formed, because someone wrote a series of words on some documents, OK.
17:01
So the association exists because you have an association with other people, under certain conditions.
17:10
I just gave it a name, I can call it anything I want.
17:13
I call it John Smith, if I want.
17:15
So a lot of times, I will name the PMA, the client’s name I’m working with, and I’ll just put … after his name.
17:23
So that designation changes the entity, OK? It changes the person.
17:27
It’s a completely different thing, then just John Smith, all right?
17:32
And so the example I give people as the PMA is your family, right? So then we can talk about, like, for example, 1, 1 time I did, one, for recently. It was partners, and I just simply took the partnership agreement they already had, they already had. they were already working on through whatever they were doing. They already agreed on terms, and I said, OK, let’s call that a PMA, and I just incorporate that into there.
17:55
Company and I didn’t really change anything.
18:00
Now I don’t have to do that, I can just name a PMA as the owner, and I’m good, because no one gets to investigate who owns the PMA.
18:07
Because for all we know it’s your family, which could be 57 people.
18:12
For all, we know, your association, that you’re describing, that your naming could be everybody who’s right-handed in your neighborhood.
18:21
That could be 150 people, right?
18:23
Who knows.
18:25
So, it’s, it’s for you to decide, and you don’t have to tell people, because of the way we’re using it.
18:30
If you want to use this, to actually get into contracts with third parties, then you’re gonna need to come up with some more documentation. Because that’s just how the world works, OK?
18:41
Usually, it’s going to be like that. So here’s what you do.
18:44
Let’s say you want to have, you want to take this … idea and you want to develop it out a little bit, You’d like the idea that you can manage property inside your family, for example.
18:54
And then, um, maybe you want to document what arrangements you have. Just so there’s no hard feelings, right? Everybody wants to know what’s going on. And I’m not going to forget, OK, and maybe two of us are making these decisions, and then 15 of us are going to be affected by it.
19:09
So let’s write a set of terms or conditions or description as to what we want to happen with the property rights that the PMA owns.
19:18
So that could be stock in your company That could be shares in your LLC because, you know, if the PMA owns your LLC, it owns all the value of the company 100%, right?
19:28
And so I can write up a series of articles as to how that works, how how it would ever be dissolved or sold, or who has what rights, because maybe there’s actually three interested people in that PMA.
19:39
And so the Articles of the PMA would would say, who has what authority to act on behalf of the PMA, It would say, Who has what interests? And this is a document that you don’t give to anybody.
19:50
In fact if you’re asked for it, I would say it doesn’t exist.
19:55
So you could develop this out. So let’s say you didn’t do that. Let’s say I deliver you the final documents and you get your accounts up.
20:00
Everything’s working great, and then a year from now you say to your two family members and your business partner and you’re all kind of working together on something and this is all drawing you together. It’s like this is where you are.
20:13
This is where you’re connected you. You all been using this LLC and the PMA owns it.
20:17
And so you come to me and say, Hey, we would like to develop this PMA out into something a little more formal. We’d like to write out some articles. So yeah, there are some standard articles that you would put in any organization.
20:29
So what I would tell you is this: Let’s, let’s write down your relationship so far for the last year. What have you been doing?
20:38
Who signs the bank account? Who’s the person that deals with the money? Who’s the person that does the accounting?
20:45
Who’s the person that makes purchases? Who’s the person that does that?
20:48
You know, so we have all these things that you have already been doing, so those are the things that should go in your written PMA, So you could let you could let that develop organically just by what you’re doing. You could do that and your family to: you know, everyone in the family has a certain role. Someone does a certain thing, because no one else wants to do it, or whatever. He’s good at it.
21:08
So, if you wanted to develop a PMA into something called an estate plan, or not even really an estate plan, but more like, a plan as to what to do and a certain under certain conditions, right? And you want to put that in writing, because maybe, who knows? You want to put that in writing because you won’t lose your sanity one day. And you’re not gonna remember or you’re gonna get Alzheimer’s or something Right.
21:27
So you put those things in writing and the way where you would start with that is what you’re already doing.
21:33
So, just describe what you’re already doing in writing, keep it simple paragraphs, or write down what you expect to be doing.
21:43
OK, it’s new and I’m going to be thinking ahead and new PM me, I just got this a week ago, I get it, I understand, this year, I’m going to be doing the following thing, OK, and then you would put that in there and you can always change it.
21:57
All right, so that is some basic information, I’m gonna make this available to people that have, you know, ordered a, an LLC for me. And this content is also going to be, of course, part of the membership. It’s not going to be available to everybody. Just want to let you all know that. So, I hope this helps answer a lot of things. If it’s generated some more questions, please ask me. I will definitely be doing more videos on this content. All right.