U42 – July 28, 2021, Thur Eve with John Jay Open Discussion
0:03
Hello everyone, this is John Jay, today’s July 29th, Thursday evening.
0:07
Appreciate you joining.
0:08
I see, there’s just got a few people here, and I wanted to open, have an open call somewhat, so we can do an open discussion.
0:16
If you guys want to, me to go into some detail on something, Please let me know.
0:20
But, um, I know there are a lot of questions on, um, dealing with exchanges. Opening an LLC accounts with different states, and comparing the states. Why would I choose one state over another to register, and things like that.
0:31
Um, but if you guys want to do that, maybe prompt me, or I can just start talking about stuff. But I thought I’d just leave it open.
0:40
That’s what you guys want to do.
0:44
And we’ll recorded, of course. we did this. We did this a few months ago, and it worked out really well. You guys have some really excellent questions.
0:52
So anyone’s, welcome to do it.
0:54
Let me go see here where I’m gonna go look at the o’hagan. Yes.
0:59
Hi, John.
1:00
I went to a bank today with my LLC information, yeah. They refused to open my account. They sent the documents down to Legal.
1:12
And they came back, and they said They didn’t like the PMA, and they said, You know, what? Is it?
1:20
And I said it’s You know, it’s an unregistered entity and their legal department said they wouldn’t they don’t deal with unregistered entities?
1:29
OK, what Bank was that, Bank of America, OK. It’s interesting. We usually get Accounts open anywhere. I guess it depends on who you’re talking to.
1:39
Was it did you walk into the bank yes. And is the company registered in that State that you were in now?
1:46
Well, that’s the reason then.
1:48
Because the company is not registered in that state where you walked into the bank. That is the reason. It’s not because of the PMA.
1:54
Because what do you suggest? I do?
1:56
Well, just open the account that you want over the Internet.
2:00
With Bank of America, if you want yeah, I’m yeah, I didn’t know you could do that.
2:06
I was under the impression you had to walk in, know you could do it with the internet. We’ve been doing this from 2009.
2:12
And the reason being is if your LLC’s registered in one state and you reside in some other state, and in the state where you reside, you walk in the bank and open your account for an LLC that’s registered in another state.
2:25
The Bank will tell you to domesticate it.
2:28
if they’ll tell you that. In your case. What you’re telling me is, you know, that they wouldn’t open the account. it’s not the PMA.
2:33
It’s the fact that the LLC was in another State, but they’re going to require my ID anyways. Which is which which is going to show I’m in a different State cell? Is that not going to matter?
2:44
That won’t matter, on the Internet, and I can’t explain why, but, like I said, we did it for about 12, 13 years now over the Internet. And just, you just go open a business banking account, and I think Chase Bank has been the most amenable to everyone.
2:58
Bank of America. We haven’t had one. Last year.
3:00
We had one or a year before, like year and a half maybe This one client opened up, she went to open an account at Bank of America over the phone, Internet, and it wouldn’t work over the Internet for some reason.
3:11
Maybe, I don’t know what the deal was, but she had a column, and she got the same office on the phone, And the person asked her, I don’t know where this came from. This is the only time I heard this. Bank of America astro like 70 questions, ridiculous questions, and she was patient enough to answer them. And then, at the very end of the questions, the person says, I can’t help you.
3:31
So, you know, you can imagine how exhausting that is. So she calls me up and she was so kind about it.
3:35
She’s like, no, I did all this stuff, and they still wouldn’t do it.
3:38
I said, Yeah, I hate to tell you this, but just call tomorrow, and I believe you’re gonna get a different person, and you’ll get the account opened, and sure enough, it was five minutes in the account was opened, the next. OK, so it’s not like I’m going to be on their radar, they’re already going to have me in their system saying, We denied her, now, it’s not like that. I have not yet seen the banks do that. I just I do see people that are not well informed, and so that’s why I had those documents the way I have them. And sometimes we have to work a little harder.
4:08
But I believe that it was out and out of State issue, OK? Because they told they told me that they wanted officers from the PMA.
4:16
They wanted, you know, they wanted information about the PMA, and they just kept going down that road.
4:22
It’s given that’s what the Articles are for.
4:25
That’s the answer. Here are your articles. Here’s a copy of the.
4:28
Here’s an unofficial copy of the copy and they don’t even ask for the certified copy of the articles anymore.
4:35
So, that’s, again, you’re just not talking to the right people.
4:39
I don’t know who was even, was it an attorney at the bank, or was it just someone else like someone’s boss, Either they had, they had to scan the documents down to what I assumed was their legal department.
4:49
And then, you know, she had to wait for 20 minutes on hold, and then they reviewed the documents and then they came back and said, Nope.
4:58
OK, now what’s interesting is, um, Bank of America is a is a private association.
5:03
It’s a National association.
5:05
OK, well, I think Bank of America is not a registered entity. Yes, That is very interesting. Now they do have registered corporations, you can find there are many, many hundreds of corporations, but I mean ultimately it’s an unincorporated association, OK. Yeah. I guess I’ll try Chase, then. Yeah, I’m sorry, It takes effort, but it’s worth it.
5:28
I mean, sometimes, every once in awhile, we just, we just tell the bank that the signer is the single member manager, and they take it, We don’t even amend the articles, but the article, say, The …, the owner, or there’s two owners, you know, two members.
5:42
So, it’s really a hit or miss sometimes, OK? All right. Thank you, John: OK.
5:49
That’s a good question. I think a lot of people can relate to that.
5:52
Anybody out there trying to open accounts at exchanges, that’s even worse. Once you get past the banks, OK, the banks, I think, are easier.
6:01
You’ve got a question for this mm.
6:06
So I’m looking into opening an account for a friend.
6:13
I live in New Jersey. I was, I already actually went through this with you.
6:16
I spoke to you a couple of weeks ago, actually, about possibly doing this, but I just had another question about it When I, when I open an account, say, in Pennsylvania, or, I’m sorry, or register, an entity in Pennsylvania and an LLC.
6:31
OK, if I want to register an entity, as a New Jersey resident, I would do, I need to be a Pennsylvania resident. I do have a Pennsylvania Registered Company, Can My Company, which is a non filing LLC for kryptos.
6:47
Can that be the entity that registers the new entity?
6:53
And, I can use an EIN number instead of a social.
6:56
Yeah, you could do that, OK, there’s two parts to that. So, anyone can be the organizer, that’s what you’re doing. Right, the organizer has no liability, It can be anybody.
7:05
It doesn’t really matter. Any name can be used also as the registered agent.
7:08
Just make sure that you’re not using a real person’s name, that would need his gift to give his consent for the registered agent, but when it comes to anyone organizing it, yeah, you could name a company as the organizer.
7:20
And then on the EIN Holder, as the applicant for a New EIN, It used to be allowed, but I think lately in the last year or two, the IRS with its website stopped allowing that.
7:32
I think that’s what’s OK. So, to be clear, what I’m asking is about just the organizing part.
7:38
Hi.
7:39
Will I need to provide a social security number or an EIN number as an organizer? Not at all. When you register, If you’re registering articles with the state, as I was talking about, right?
7:49
If you raise your charter school at the state, know, you can, you can register with a fictitious name, there’s no ID requirements in the states in the 50 states.
7:58
There are, such requirements in other countries, but when when you go to the bank, they’re going to want your ID. So that’s why when you register your company with the state, you should use a name that you can verify later on.
8:10
That’s really the only reason, right. So the so the if I, if I’m the organizer, the owner of the company might be my friends, PMA, we’ll call it, that way. And then, they would have to provide their credentials if they’re going to be the ones opening the account. Yeah, the signer would kinda, like you did, for my company. Whoever the signer is, right? Right, OK. one more real quick question. I had an entity and I brought this up with you a couple of weeks ago, but I just wanted some clarity.
8:37
I have an entity that I had formed before I met you a couple of years back that was basically an income LLC.
8:47
My employment income LLC, I’m self-employed, and I had formed it without a PMA just as a single member.
8:55
And I formed it in Delaware and I downloaded the certificate of Amendment, and I filled that out, sent that in. I’m sure I’ll be getting back.
9:05
The Certificate amendment amendment changing that to a PMA for this company.
9:11
After I get that certificate of amendment, the bank accounts already opened at Bank of America: what do I need to provide them with that change at the at the state level?
9:22
You do not need to provide the bank with that copy that you amended the articles because it is public record.
9:31
So, it’s binding on everybody. That means they all have to kind of follow it. They have to follow it.
9:35
They have to respect it, so that means if, um, it means according to the official articles of association, you’re not the owner of the company, So the bank cannot act like you’re the owner of the company, OK, does, it’s liable.
9:51
Now I don’t know if there’s a defense where, you know, let’s say they honor the levy and you’re not the owner of the company.
9:57
The bank would owe you the money back, OK. That’s how it plays out.
10:01
I don’t, I’ve never seen anyone in that situation before, but just realize that public records are, everyone’s bound to know them to have knowledge.
10:10
And I don’t believe there’s any notice requirements when you do that, make the make that amendment to the articles.
10:16
So almost all the time if someone does that. I just tell the person my client not to bother notifying the bank.
10:23
Because sometimes they’ll just don’t want it re-investigate everything and it disruptive. Right, where they’ll say, open up a new account. Or they’ll say go away. We never want to hear from you again.
10:32
So that’s just, we just kind of have to learn, like, no.
10:36
Like on the street, we don’t know, So the onus is on them to have to just be aware of public record.
10:43
And the reason why I recommend not telling the bank is, so you don’t deal with all the kane’s that go with, you know, they think, Oh, my gosh, he changed the company.
10:51
We have to audit this, it, my money launderer, Yeah, OK, got it. Alright, perfect. Thank you. All right, OK.
11:00
Hey, John, this is Brett from New York. Right?
11:04
Car! All right. Yeah, You’re trying to get out of here.
11:08
So, matter of fact, I have, I’m a lawyer showing up a contract for sale of my home, and, um, if I open the LLC, I don’t know enough about the different states, because I don’t have to do it in the state I live in.
11:26
So I don’t know what the pros and cons are of opening in. I’ve heard Arizona was good, I’ve heard.
11:32
Um.
11:34
What was it? There’s there’s one on the East Coast. Here was a Marylander Delaware, Delaware.
11:39
I was supposed to have good Vail of, a good veil too, to be behind, but I didn’t know what the pros and cons are different states.
11:50
That’s a good question. I’ll run down the list of the way I look at it. Now.
11:53
My, my profession in mind, the demographic, my niche market, for me, I want my client to have the least friction lease problems possible because I just want him to get on with the thing he wanted to do.
12:06
And so, for that, I have a list of states that I prefer, and it’s the reason why I prefer them is because they’re not going to bother my client. They’re not going to send them letters and scare them, and say he has to fill out this form, and the client is going to call me and say, but you said, I didn’t have to do all this. And I’m getting the scary letter, and then I have to explain it.
12:21
And, so, the states, the states, I use, our, New Mexico, Colorado, my top ones, Wyoming and Arizona, really good states. Because they leave you alone.
12:32
Let’s see.
12:33
Florida and Georgia, Pennsylvania, and Ohio, Pennsylvania and New Mexico do not require annual reports or annual fees.
12:42
So, everyone’s little bit different.
12:43
I would tell you that 80% of the people I work with, maybe a little bit more, use New Mexico, they kind of know that. Now, hold them.
12:50
All right. If I’m a mid-level business, that means I’m I’m have I have a board of directors. I have shareholders, whether or not it’s private or public.
12:57
I’m a mid-level business, I’m making. No gross 100 to $200 million a year.
13:02
I’m probably going to be organized in South Dakota or Delaware.
13:06
The reason being, and I don’t know, all the reasons, but it’s more likely that it’s, those states are more amenable to that type of business.
13:15
The tax year.
13:17
Third year, for the corporate world Delaware system, you have a bit of an advantage because if I have an adversary and lost somewhere, or a risk that I need to manage, that quagmire of no rules and things in those states are going to be to my advantage.
13:33
But for small business, I just want them to leave me alone. I don’t want them to ask continually. If I have employees, and I’m paying wages, and then I have to keep sending a letter back saying, no, just like I told you last month.
13:45
No, so that’s why I pick those states.
13:47
OK, so you say Mexico. And then you seem to be the most menial.
13:52
now are their yearly fees. And obviously, that doesn’t have to be minutes because you set it up.
13:58
Probably. That doesn’t happen. The minute to cap.
14:01
No minutes needed.
14:03
There’s an annual report in most states except Pennsylvania and New Mexico.
14:08
So, all that means is the annual report looks like your articles. It has pretty much the same information. If there’s anything new that you wanted to change, that’s the time when you file the Annual Report to change things.
14:19
Like, if you got any registered agent or you took on a partner or you fired somebody, or, you know, someone, some other member left or came on board, then yeah, you would, you would report that and then you would pay a fee.
14:32
And that takes maybe 15 minutes of your time, maybe.
14:36
Well, what’s the fee for filing the annual report attacks? Its attacks, yeah, that’s attacks. So, the taxation is, it’s, um, it’s not, it’s not like buying a product, like the dollar, the dollar value PE is equal to the benefit you’re getting. There are literally imposing attacks, and someone voted on it long time ago.
14:53
So the reason why you’re paying attacks to register a company and keep it in good standing is because that tax is for indemnification.
15:02
The state has written a law that says, if you do thing a certain way, we will protect you.
15:06
We will block creditors from reaching into your private interests if you organize it and run it a certain way. And that’s what you’re paying for.
15:15
… Indemnification. So I pick the states that leave my clients alone. There are states that I’ve never had a need to go into Delaware. I do have a Delaware company, it’s been expired forever. I’ve never renewed it, and I’ve run millions of dollars through it.
15:29
So, you know, I never benefited from the state I don’t need all that quagmire legislation, or whatever.
15:37
Betsey.
15:37
Yeah, so the only reason we register with the state anyways, so that the banks will open our accounts.
15:44
Right.
15:44
So you get an EIN number, and that too, I mean, you can get an EIN for it without registering, but the banks won’t open the account unless it’s domesticated. Or you do that trick where you do it over the Internet.
15:56
I have like a sole 401 K trust. And I did the same thing through that.
16:02
Then, I have an S corp mm. So, yeah, they hit me $25 like dormancy, like every year.
16:12
Right and that’s just avoids.
16:13
It might be worth it because if you don’t know if you need to have it in good standing, or not if you keep it in good standing, you’re going to avoid a lot of penalties. It could be a lot of money. I mean, I probably owe the state of Delaware, My company probably I was like, probably $12,000.
16:28
It’s been like that for many years, but then the other thing, I didn’t want to get too carried away.
16:34
Well, I had a couple other questions, OK.
16:37
So, I’m looking at selling this property, so I would put it into an LLC, which doesn’t generate any kind of, uh, it doesn’t get ready to sell, because it’s for.
16:51
Forget the term, It’s for poor.
16:56
I forget the term you’re conveying the title for what?
17:00
Well, because it’s like my retirement, basically.
17:04
So, yeah, you can actually sell it to someone, you’re just changing the way the property is, title, right.
17:09
Title, it’s titled in my name personally and I’m going to put it in an LLC then the LLC would now all the money and from what I’ve seen on your videos, you’re not, you’re not paint, you’re not, um, filing cash returns with the LLC.
17:31
Because once you do that, you have to keep doing it, is what I will just correct. That is correct.
17:36
You’re just you’re just conveying titled to Real estate for estate planning purposes, right? And there’s no change. Beneficial interest, Yes.
17:44
Yeah, sure. Then, and then the crop and then the LLC would sell the property to the new owner.
17:51
And then it went ….
17:55
Yeah, right. You can have an airline.
17:58
Is there a liability for the LLC when the funds come out of the LLC?
18:06
Not when you now. When it spends money, it’s when it receives money.
18:09
It is OK income that may or may be taxable, and that depends upon your accounting practice.
18:17
If you file a return and you choose some sort of accounting practice, then OK, that’s what it is.
18:22
If I don’t, well, then the IRS just doesn’t even see it.
18:25
It’s treated as if you could use that word still in transit. The money is still in transit, it hasn’t reached its destination.
18:33
That’s why the tags, it kinda what, it’s kinda like if they’re like what they call an arm’s length transaction.
18:41
Yeah, I think they are almost like escrow It’s an ID that’s just holding the money and it’s not itself a taxpayer. I can make it into a taxpayer, but I have a choice, whereas for most people, we don’t have a choice.
18:55
We’re kind of stuck with what applies.
18:58
What if I was to get into, like investment’s, either stock market, kryptos, precious metals, or any of that, where, where does that, what kind of way?
19:10
It’s all what happens?
19:12
OK, there’s what’s happened, there are some differences, though.
19:16
OK, your LLC can manage any cash flow, any business enterprise in the same way it does with the kryptos.
19:23
I can run a website with a PayPal account and still the LLC doesn’t file.
19:30
I want to do it that way. Here’s where I can’t probably do that.
19:34
Is if I’m running a brick and mortar business with employees, Now there is a way to manage it. But just with the one company, I can’t do it that way. So it actually makes sense to file as an S corp.
19:45
If I have employees and I’m paying wages and if I have a brick and mortar because I get into the state’s workmen’s compensation and FICA withholding issues and I have to, I just have to file everything.
19:58
OK, and then if I want to get a liquor license, or if I want to be a physician, a licensed physician in California, that requires a professional LLC for which I can’t get out from under that.
20:10
I have to register that in California, as a license, right?
20:14
So, there are some exceptions.
20:17
So, should I schedule a consultation, or you really backed up with that stuff?
20:24
I’m hoping the contracts are gonna go out, know, today or tomorrow?
20:29
Well, today, probably not, because I didn’t get notification of it yet, hopefully, tomorrow, the contract will allow them to sign, and hopefully closing within 30 to 45 days.
20:38
So, should I schedule a consultation once I have the signed contract?
20:44
Well, you got me on telegram, right?
20:47
Yes, yes. Send me a note on Telegram, and we’ll see what we can work out.
20:51
There might be something I could do right now, yeah.
20:53
Very good.
20:54
Yeah, I’ll sit down and so, somebody else can ask you some. Thanks for formative question, cruciate, that, Yeah, good ones.
21:01
Alright, Alicia are gone.
21:03
Yes, Alicia was yeah, I. have a question over the Bank of America Business.
21:11
account, I opened up one and it didn’t take long, You said I said, it was easy.
21:18
And they approved them, And I guess, I guess, under 30 minutes online.
21:24
But here’s the, but, I never asked for anything.
21:28
So how do I get, **** the bank abstract.
21:33
Articles were supposed to say, are you able to use the account?
21:38
Yes, I have the debit cards.
21:41
And all that, OK, then use the account you’re in.
21:45
Miraculously, that’s crazy, but don’t wake them up. I just want to make sure it’s opened up. That is really why somebody made a mistake, by the way.
21:55
They really should have a record of the account holder. If it’s a fiction, they should have the articles, but the articles are public record, and I have not yet seen a policy change. Where they’re just going to rely on public records. They want to have the records in their custody.
22:08
That’s really weird.
22:09
That’s why best and the question is, wondering if you’re dreaming, should a pinch yourself. It was too easy for my personal account, and I’m thinking, well, if this was supposed to be hard, and the second was supposed to be easy to memorize any other webinars. But, here lately, I got a letter from them as gain if my business, that’s a non operating entity.
22:35
And where are the where the fun originate from?
22:41
That’s the after the fact, that’s interesting.
22:45
I don’t know what to tell you on that one.
22:46
I just, You know, we have our backstory about real estate but I don’t like to tell them that, where the funds coming from, generally for what we’re talking about, I usually tell them from personal savings Personally, Yeah.
23:00
It’s non operating, meaning you don’t have customers and I’m guessing it, their definition.
23:08
You could ask them, What if they wanted to find that non operating, what does that mean, but I didn’t want to prolong it.
23:17
Well, I haven’t sent a letter, yet, and I just wrote down that.
23:23
yes, it, to Non-operating entity, and says, Yes, Please select your business, or, Your business, or originates, it’s fun, fun.
23:34
Trust a State subset, or a parent company holding company loans investment.
23:40
So, yeah, it’s, it’s the, you know? You contribute the funds just like you went to a trust.
23:44
So the truss doric contributes the funds don’t tell him that.
23:47
but, what I would tell them is that I’m I’m running this company for investment purposes and I’m using my own personal savings.
23:58
Personal shapes. So, what exactly do I put down on this letter they sent?
24:04
They’re asking you where the money is coming from, from, yes, your personal savings, if I mean, or something. Yeah, Can you not say that? I mean, I’m not going to check, they’re not gonna, I mean, that’s a reasonable answer. We give that almost all the time.
24:19
OK, so, the option, that error about, that, it’s kinda getting confusing because it’s just as simple, and everything’s already open. Options.
24:30
Yeah, if they give you choices to answer their own choices: So it’s a yes answer. The way they lot, OK, yes, interesting.
24:40
Them a letter back. Just wrote them a letter back. Just don’t choose their thing, it’s on paper.
24:45
Just send them a letter back.
24:46
Is it OK for, yeah, it’s on paper, Yeah, just sending a letter back and just say, hey, it’s, it’s a company I set up to invest in different things in the, I’m using my own personal savings.
24:59
OK, so that’s a, uh, I deposited it.
25:04
Like, a few bucks in it, just to keep it open, because I wasn’t sure about this. Yeah. It was way too easy. Yeah.
25:12
And the thing is, here’s here, soon, to their cash out, on these crypto, want to have any conflicts with dozens mm Hmm, Well, they’re going to know, when you hook it up to your Coinbase account or whatever.
25:28
So far we haven’t had too many problems we have had with some state banks closing accounts for that, but not Bank of America yet.
25:37
I don’t think we will.
25:39
OK, yeah, Oh, yeah.
25:43
All right, yes.
25:46
When I write them a letter to, I just e-mail everything online.
25:52
I recommend, if you write a letter, go to the trouble of creating a letterhead for yourself. I like putting a line at the top of the page. And then on the first three lines, I put my name and address and then I put it on the right side of the paper.
26:04
And then I put their address below the line on the left side of the paper.
26:07
And then I put the date.
26:10
And I put R E or in regards. And I put a little comment.
26:12
And then, I put greetings, and then I tell them what I want to tell them.
26:17
Then, that way, you have a form letter that you can use in the future. It’s kinda convenient to use for your company.
26:22
And if you want it, you can make a nice little letterhead for your company, put your company name on there, and then you could use it for other things.
26:28
So it’d be worth it to spend a few minutes making a letterhead and then just send them the letter back.
26:35
Yeah.
26:37
That’s good. I would worry, They might come back and say, Hey, where are those articles? You know?
26:48
And then just send them a copy of the article, because, I’ve been online. I checked account, Login, I go to messages or e-mails.
26:56
Nothing, that’s really unusual. Well, I think you have a working account there, and I think it’s fine.
27:01
They just, It was an oversight. Maybe they’ll one day, ask you about it.
27:06
I’ve found banks really follow up on things like that. That’s why we can change the articles. And nobody knows. No, Bank has ever been watching public records to follow up on anything like that.
27:16
OK?
27:17
So if I start using an app cache out, and the only thing that’s going to happen, they’re just going to ask me for the articles, all right?
27:25
Are just I don’t think, yeah, I’m just saying, I don’t think they will.
27:30
I don’t think they’re going to do anything after you respond to this letter.
27:35
They would have already asked you more things.
27:38
I mean, nothing came back in the mail or e-mails, or net. I think you’re good just. No worries move on. And, you know, if they close the account will OK, That happens once in awhile.
27:50
But, I don’t, I don’t see that happening.
27:53
All right, well, you just close the meeting. If they close it, what does that mean?
27:56
A: keep what’s in there.
27:59
Are they, Oh, no, they can’t do that. They would give you a check for the contents of whatever’s in the account. And they would make it payable to the account holder and then they would just close your account. So, you’d actually have to go and open another account to clear the funds.
28:10
And, you know, under that name, OK, I’ve had to do that before.
28:15
All right. Thank you very much. Yeah, that helps.
28:19
No, I don’t, I’m not trying to move the order here, I think.
28:23
Was it Don T were you?
28:26
Hi, John.
28:29
We were talking and they created an LLC with BMA talk for investing in encrypt us.
28:37
And I have two questions for you.
28:40
Just in case, if I said, let’s say, if my LLC owns some, you, know, no, crypto assets are, has a bank account that has money in there and let’s say I get married, right?
28:56
And then, like all of a sudden, I get divorced, right? And the wife one pipe gets so you’re thinking way ahead, you’re late for, you know, well, state. So it’s out of the marital community.
29:12
That’s what I write these for everybody, the same way, unless you plead with me and say, Please put it in the Maryland community.
29:17
I’ll say, Well, I don’t know why you’d ever want to do that, but OK but the way I write them, they’re outside the mayoral community in your state.
29:26
Like, what do you mean? It’s, So, it’s great. I live in one state and it was created in New Mexico.
29:33
What I’m talking about is, uh, the property owned by the LLC is owned by the LLC and, nothing else.
29:40
You are not the owner and Norwood your, unknown, Wife B and it wouldn’t ever be part of a divorce proceeding unless you did something deliberately to bring that into your state, into your personal interest, OK Because it’s the biggest, you know, the biggest. Biggest. risky enough.
30:02
Like why I get like everything, OK.
30:07
Well, I mean, if you’re really concerned about that to me you can make it ironclad.
30:11
I think there was a guy named Massey right Massie in the Messy Pre-nup, you ever heard that one?
30:20
Yeah, I know some of you guys are laughing out there, because it’s a movie with George Clooney.
30:26
He never saw this one with them, Catherine zeta Jones.
30:32
And they had the old one, right?
30:35
Yeah, it’s an old one.
30:35
Yeah, It depends what you mean by holder forget, and I go to questions. So so do a pre-nup, if you’re really concerned, do a pre-nup, don’t rely on what I tell you.
30:45
But that that company is, I set it up towards isolating everything it owns from you.
30:55
Yeah, I just wanted to double-check because it’s just a sign are basically.
31:00
If it’s me, it’s just like it’s your church and you work for the church. Or you’re volunteering your time and it’s not your money what the church has. And maybe they’ll give you some money once in a while for helping. But if you want to take it up a notch, I would say, the next thing, if you’re concerned about the marriage aspect of it, I would do a pre-nuptial agreement.
31:22
So, the moment most parties, they don’t, you know, don’t want any.
31:28
And, you know, each other assets, generally, you, you go into the marriage. And, if you leave the marriage, you leave with what you came in and nothing more.
31:40
Or if, or, if wealth was generated within the marriage, then it, there’s a split or something and depending on what the agreement is.
31:47
But if you’re really concerned about that, I would do a pre-nuptial agreement.
31:50
Let me, let me just share a personal thing with, with my family, I have a high net worth, and my wife has control of everything. I’m not, and I just do that for convenience.
32:02
So, I’m not saying you should do that.
32:04
And the way I personally look at it is, if we ever got divorced, I would make sure that she has whatever money she needs.
32:10
And if she wants to be crazy and mean, and tried to take me to court and do all, I would just say, just take it. I would just take it out to say, take it, and now we go do something else. I’m not saying, that’s a great idea.
32:22
But I do that because I genuinely feel that way. And for me, that’s how I just want to live, I don’t want to be stressed over Oh my gosh, who’s going to take it?
32:31
I’m not saying, you know, you shouldn’t be concerned about it, but I just, you know, I like to trust people, and then I don’t care.
32:40
You know? In that sense, I want to make sure. My children take care of, and I believe, I bet on my ability to generate any kind of money that I need.
32:46
But, um, Yeah. We’ll just do a pre-nuptial Then you should worry then.
32:51
I just wonder what what that conversation sounds like.
32:54
Hey, would you marry me Oh, and here’s a contract. That’s right, yeah. So, you have to the next day or something, or maybe you have to do it, you know.
33:08
But anyways, yeah, I mean, like, I have a quick question about.
33:14
When I created EIN, I would say adress of in New Mexico by they live in other state, so, and I Maybe I did mistake or is it OK? But no, as long as you get an EIN that’s assigned to the company with the LLC designation, after that, it doesn’t matter.
33:34
It doesn’t matter all.
33:36
You could tell them anything.
33:38
The reason being is that you can change it afterwards.
33:42
How do I do that?
33:43
Well, well, whatever you tell the IRS to get your EIN, or the SSA, I think it is, you can change it the next day.
33:51
In the articles, Only the articles are important. Only the articles are are binding on you and everyone else.
33:57
So, whatever is in the, whatever is in the articles, that’s the law of the company. If you say something on an EIN, or a bank application that’s inconsistent with the articles, or it’s either a lie or a mistake, but so what?
34:09
The articles control everything.
34:14
And do the address that you put on the form, well, that addressed in New Mexico, that she was created?
34:22
Do I need to do I need to change?
34:24
Do I need to get into a virtual address, or, Or not. There’s no need for that, because no one’s going to use that address. The only the only place that mail would be sent to your company and your company name is where you tell people to send it.
34:37
Unless you’re. Yeah, exactly.
34:39
And unless someone, if someone wants to see your company, he’s going to file a case where the company’s registered and then he’s gonna serve it on the registered agent.
34:50
And you wouldn’t know that it’s happening long before it does happen.
34:53
So, if it’s a case where you want to defend it, you’ll have plenty of opportunity to accept service. You want to, You won’t be having a problem at all.
35:01
Just going to use my Admin address, You can send me a letter. You can you can just wave service if it’s a case worth fighting, but this gives you the choice. You see? You can decide.
35:11
I’ve had cases before, where people suit me for just craziness. And I can choose to either fight the case or not. Some cases, I just ignored it because I have the choice.
35:21
Because I could, I could always argue that service of process was not perfected.
35:25
So the courtenay require jurisdiction.
35:28
So, you really have the most versatility with the way I set this up. Some people don’t like the way I do it, but it’s worked the best over the years.
35:39
OK, I understand a dike. And the last very quick question.
35:42
If I have, like, I went to offices for business, and I’m paying using my personal cards.
35:50
If I switch to company card, and, uh, and they’re going to be using funds from the company.
35:59
So those are gonna be not non taxable.
36:04
Yeah, right now it’s a personal debt. OK, so yeah, if it’s being paid, then it’s your income. So if you want to get out from under that, there’s a couple of things You can do. The easiest way to do it is to rewrite the commercial lease agreement. Is that what you have, right?
36:16
Commercial lease agreement yes. Correct.
36:19
OK, you want to rewrite that and make it to where you individually are not the the guarantor on the debt which is difficult to do if you don’t have a Balance Sheet. I just did one while last year. I did one for a couple. They have a sandwich shop and they actually had a rental that was an asset in a separate. I had them set it up in a separate company and then I don’t know if they’ve done this yet because it takes a little bit time.
36:40
But I suggest that they take that asset and make the owner of that asset which we set up the new guarantor on their existing lease agreement.
36:49
So that way they don’t, they no longer have that personal debt.
36:53
So that’s that there’s a way to get out of that, so that way when the debts paid, it’s not your personal income.
36:58
So you change the guarantor on the commercial lease agreement and you change the tenants’ name on the Commercial Lease agreement.
37:04
You make it the company.
37:07
That’s one way.
37:09
And, the other way to get to that point is establish business credit through Dun and Bradstreet.
37:15
Either way, again.
37:17
You can establish business credit through Dun and Bradstreet.
37:21
That’s the other, then, and Bradstreet is like the business version of Equifax.
37:29
So, there’s a process that where you would you would follow to get a Dun and Bradstreet credit score for your company, which would allow you to borrow money in the name of the company without you guaranteeing the debt in most cases.
37:43
So, that’s, that’s a process that takes 3 to 6 months to get something going. that’s worthwhile.
37:51
So there’s, I guess the first option is better, it’s, I think I think that’s better, yeah.
37:58
So it depends on your relationship with the landlord or the property manager, the owner, and he’s going to want to have some sort of guarantor, because it’s probably as partners or lenders and they want a guarantor on there. So give him something he can use.
38:09
Maybe it’s going to be a large deposit or maybe it’s going to be a piece of equipment as the collateral as the guarantor.
38:15
So you gotta give him a remedy. if you default that’s what he wants.
38:20
I’m using I’m renting offices.
38:22
We want, we work, you know, through your work, OK.
38:27
Yeah, just find out if you can replace yourself as personal guarantor with something else, maybe it’s another Asset, another company with a Balance Sheet.
38:37
OK, a company with a Balance sheet, I’ll explain what that means.
38:39
If I have a rental, then I’m renting out the tenants, and I’m, let’s say I’m netting $100 a month from the retina, and the rest of the money goes to pay the mortgage and the operating cost and all that. That’s pretty good deal, actually, it’s if it’s new, and maybe my company owns that, I have a separate LLC.
38:55
Let’s just say for example, it doesn’t have to be, but another company owns that rental, and I could replace my personal guarantees, commercial lease agreement with the other company who owns that rental, OK.
39:10
Because it is an asset, if the landlord will let me.
39:16
So I’m off the hook.
39:20
Yes, you’re OK. Thank you so much.
39:23
OK, alright, and Janet I know you’re very patient, I must have sounded something to put your hand down or somebody with guard ahead.
39:33
Yes, can you hear me? Yes.
39:36
OK, I’m really sorry I’m feeling kind of blond here. But I need some clarity on your instructions for requesting a determination for the, yeah, the determination letter.
39:52
OK, we don’t have to send anything to the issuer of the 1099, just forget them.
39:57
You want to fill out a W nine and the 10, 40 or a copy of your 10, 40, even if you haven’t filed it yet.
40:03
You can say oh give them an unsigned version if you want. Can I give them last year’s just last year’s 10, 40?
40:13
You want the current year that we’re dealing with, like, in your cases, 2020.
40:17
So you want the 1020 tax return, OK, and that has not been filed, so I had to fix that.
40:24
Just make a copy of it and give it to them.
40:27
Over your signature, if you don’t have a stamp for this, you can handwrite it, just put it in reading, put file copy, just handwrite it.
40:37
OK, yeah, I’ve got a CP. I’ve had a CPA for ever.
40:44
Millimeter, so. Oh, Well, OK. Well, I mean, they don’t like stuff like that, But, um, yeah, I know, I’m trying to figure out how much of this I can do, or if I have to send this with Mac, because we filed for an extension. So, I don’t yet have everything done.
40:59
Tell them, your copy of your 1040, a completed 10, 40 for the year 20 20, and keep on doing his job. That, I’ve always All The drama, right?
41:10
Is to you on a whole separate mission and he’s going to do his thing and then done. No drum.
41:16
OK, so I’m going to complete it with him, But he but not let him yet. Well, it matter.
41:22
We’re going to do, but I’m just saying get yourself a paper copy of the 10 40 completed.
41:29
Just say send me a paper copy that 10 40 completed, OK. That’s that’s not too much effort prior to push a button on this computer, right?
41:37
Right, OK, and it just doesn’t have to be filed yet. exactly then not to be filed and then just like you would if you’re going to send in 1099 from other places or W twos or whatever.
41:47
Whatever you would normally file on your 1040, that’s part of your 10 40, So send that in with this request for determination letter.
41:55
OK, and on, and I’m gonna send those three.
41:58
OK, and I’m going to send a copy of a … certification. I’m not sure, I don’t know if I understand that.
42:10
I have to go look at my directions listed the W nine is to certify the correctness of your your SSN.
42:19
OK, each must retain the same, yeah, just kinda I’m just gonna fill one out for that purpose for yeah, here’s why we’re doing that.
42:27
Right, the whole issue with the 1099 and your case, 10, 99 miscellaneous is a question of whether or not you are subject to backup withholding and we’re telling the IRS that you’re not and we’re saying why take OK to give it the full weight of saying why?
42:45
So, there’s no question We certify the correctness of your SSN on a W nine.
42:51
OK, OK, be complete, and that way, I’ve never had a problem. They always agree with me.
42:57
So when you, you probably get a response, you might OK. Yeah, I’m, I’m tracking on that. And then the last thing is in red, it says, do not send your tax return to the exchange only send a copy of the 10 99 K and the letter. So, I’m going to send this to Celsius, to the, to the net, to the exchange.
43:17
Then we do that I don’t think we do that because they’re they can’t change the 10 99.
43:26
They’re not going to re-issue it. I mean, they could, but they don’t have to.
43:29
So, they showed the exchange that issued this, this erroneous 10, 99. I don’t need to worry about them at all.
43:37
I wouldn’t have anything.
43:38
We don’t need anything from those guys, we just need the IRS to correct it, which it will, OK?
43:43
Yeah, OK, All right, good, OK, yeah. I’m sorry for the cryptic note. I tried to make it on one page. You see, but maybe I should say they should make this font smaller. But it says.
43:57
Only send a copy of the 2099 K and the letter so out. I mean, If I don’t send them anything, then, I don’t send him anything.
44:05
So, that’s good, yeah, Yeah, OK, got it now, thank you so much. All right, sure thing.
44:13
Alright, and who is the next. Let’s try Clemens, if I could Please, John, I have a question. About to sell my house and established a new LLC, so I can get the house into that and I will see, for capital gains tax deferred months. Millimeter hmm.
44:36
So that LLC, a member of the LLC, has to be the same light those persons, totally owning the house right now, right?
44:44
Now, right now, all my, my family revolts electrons.
44:49
So, that’s, I mean, we all feel it does have to be does the member of the new LLC in order to maintain the benefits interest.
44:57
You could. You could do that. I, doing this transaction because the trust has a different tax treatment, it’s filing a return.
45:04
Correct?
45:05
Because they want to obviously, I know, if I’m going to be a capital gain, right, I want to defer the taxes by using the LLC and owner, but the LLC has they have the same member as the current met, the owner of the house.
45:23
Am I correct?
45:24
Yeah, I think you got it correct. I would conveyed I’ve done these before where the trust is the owner. So the trusted, the title holder. Now the LLC is, but the trust still owns the LLC.
45:33
Correct, right, so So that trust is a single member LLC, because the right now, that’s just owned a house.
45:41
So we stopped the LLC with the trustees, a member LLC and then we did the house into the ROC right, and then we can sell that.
45:50
But then the one button.
45:52
So OK, so that cannot be, have to be, the Sami can be a new law TMA on your person.
45:57
I don’t like it to be a different Manifesto intro. Yeah.
46:00
You, if you show in the articles of the LLC, a different ownership beneficial interest than it was on the original title.
46:09
You could probably get away with it.
46:11
People are just gonna go, OK, no. They just want to get the deal done.
46:16
But if the IRS wants to scrutinize it, they’re going to say wait a minute you didn’t. This is a disposition. Or if this tax people yeah.
46:23
If the state tax appraiser goes back and does an audit and goes and they audit the state and they look at that transaction like they might just audit all these types of transactions right? And they see yours. And they’re going to have some clerc comparing the two names.
46:35
And they’re going to say, Hey, you owe us taxes for that year, three years ago.
46:39
So that’s where I do it the right way.
46:41
And yeah, you could move ownership from a trust to an LLC for estate planning purposes. Yeah, you could make that. No one’s really going to question you. I’ve never seen a problem with that.
46:52
Traditionally, it’s the human being that sends it over to a trust or an LLC.
46:56
You can also do it for as a re-organization but again, as long as the title holder is still the owner of the company that is now the title holder so you’re gonna be fine, right?
47:07
Yep.
47:07
So so OK, so then when it gets sold, obviously the money remain inside the LLC account.
47:15
Never get just build it to a plus a cow.
47:19
Then the test can be differ. Am I correct?
47:22
That is correct, But then the normally the ESCO company will fire 10 99 S. Normally they would fight with your name, and now they have to attend. I’d ask with your LLC to the IIS? All right, that’s correct. That’s correct, and it does not cite any tax return, then that should be OK. We don’t, we don’t care about The …, … Company, right. You’re, you’re a good student. Yeah, The 1099 does not create a tax liability. It’s your accounting practice and filing returns.
47:53
That creates a tax liability, OK, yeah, yeah. There’s sometimes a company would not fire 1900 S.
48:03
Today, I will say, I get to have to fly tonight.
48:06
The last owner of the house, right, we’ll see the LLC. I just deploy, whoever got the money.
48:11
Now, sometimes, they try to get around it.
48:13
I don’t know why, but sometimes they’ll try to get around your LLC by asking for your operating agreement.
48:19
Guys, don’t give up your Operating Agreement, OK, because they will try to pierce your corporation and make you liable for stuff.
48:25
So, they don’t need, no one needs to see your Operating Agreement unless, they want to pay you lots of money.
48:30
Seriously.
48:31
OK, I did a video on this awhile back.
48:36
So, essentially you can do pretty much the same for a business, right?
48:42
If you own that Besets about when you’re about to sell the business.
48:46
Yeah, you can use that. Transfer is that only shifted. I’ve done that with stock transfers and buyouts. Yeah.
48:54
Yeah, you can do estate planning, It’s estate planning, beneficial interest, stay the same.
48:58
Now your record looks different, it’s all legal.
49:01
So sure, just tell the truth!
49:04
Right, right.
49:06
Somebody that does not file tax, I think.
49:09
Exactly, exactly.
49:12
Great. Thank you so much. All right, yeah. Good question.
49:16
Alright, and let’s see, Marco.
49:19
Hey, John, So I have a question about you.
49:22
You made a comment that Tom, the articles were public record.
49:28
And does that mean when you file with the state, you actually, like, upload your articles? What does that actually mean?
49:36
When I register a company, I type in the information on the on the internet regarding them, information needed for the articles. When I used to do it, it was, it was in person or by mail, I would do it on paper form. Today would use the internet.
49:49
So, whatever information I enter into their forms, Secretary of State, archive that information and then publish it. That means that it’s available to everyone in the world.
50:00
So that is what makes your company valid is that its articles have been published.
50:05
So, the state kind of monopolizes that right now, we used to publish them in the newspaper.
50:10
But the banks want us to register with the state.
50:11
Now, OK, so, when everyone can see it, when you’re talking about articles versus the Operating Agreement, you’re saying, never, give out your operating agreement.
50:20
You’re saying even to the state, I know we don’t get it right. We don’t give it to anybody. No, OK, so, so, here’s. so I was just goofing around, and I was I went I went on to Pennsylvania.
50:32
I was like, I’m just going to try to register an LLC, right, so So I did and, you know, I got my registration number, you know, 3 or 4 weeks later, But I can never like I didn’t put any information in there.
50:46
That was anything worthwhile like I put in my name is the organizer. I know, picked an address in Pennsylvania to have my company out.
50:54
So, so, like, say, I really wanted to use this company.
50:58
There’s really no information on this study that they could really say, if, if you give them this information To protect you, I didn’t really give them any information at all.
51:10
OK, yeah, I said there are some States that don’t show the actual members of the LLC, for example, or the ownership, and maybe Pennsylvania is one of them, I sometimes?
51:21
have uploaded supplemental articles, so that it will appear on the record.
51:26
I want everyone to see who’s owning it, so that I can get my client out of like Cost of Litigation or something.
51:33
I can discourage people from wanting to take money.
51:36
But if the crop, I think it’s a problem in the state doesn’t publish the information, Right? And that’s kinda what I’m understanding from all your teachings, but So this, this company that I registered, I probably never really want to use this because there’s nothing on their record that would offer any protection to me, right? Because I didn’t really give them any information.
52:01
Um, even though I got an, even though I got a number, mean, I got number. Yeah, you’re gonna be fine, it’s registered, you’re gonna be fine. Because the chance of someone wanting to mean the chance of that, trying to somebody trying to collect against the company for your personal debts is almost nil unless you’re doing something specific that you would know about, you know, it would be years from now. Right?
52:22
If you just set this up for Investing in Kryptos, if you want to be complete, I rarely do this, I would take the abstract documents that you have, just the one that has what’s called Articles of Association.
52:35
That document, I think, maybe 1 or 2 pages, maybe, that you could upload it, you know, scan as a single PDF file and upload it to supplement your annual report.
52:46
Even though one is not required, you can supplement the record.
52:51
OK, I don’t even know any of that.
52:53
Even though an annual report isn’t required in Pennsylvania, you’re saying upload these articles of association. Just so there’s some kind of backing there. If I ever would get sued, Yup, I would do that in a case where my client is personally being sued, and he’s in that situation, like you’re describing.
53:10
Just for good measure, I would just upload an set of articles that establish, he is not the exclusive owner, so my purpose in doing that is to avoid costs of litigation to discourage someone from thinking he’s going to get money out of the company.
53:26
Yeah, OK.
53:28
OK, thanks, John.
53:29
OK, all right, and Joey?
53:34
Yeah, this has, this is perfect, I’m just piggybacking onto her question.
53:37
So, um, the LLC that we just set up for me isn’t Florida.
53:43
And so these Articles of Association, do I upload those to the lab son beside to the Secretary of State site? Or these are just to show the bank.
53:54
Well, if we have already entered the company, we’ve already entered that information and the state issued articles with a registration number, and that information is already in your banking abstract documents. So, all you gotta do is take your abstract documents in.
54:08
You may need a copy of the articles, you can print that out for free.
54:12
You don’t have to buy a certified copy.
54:15
And sometimes the bank will just look it up online.
54:18
OK, so, when we set it up on the LLC, there’s Articles of Association in there.
54:26
Yeah, that is what, That’s the reason why that, yeah.
54:29
That’s the reason why the state issued the registration number, if it weren’t for that, they wouldn’t have issued the number it.
54:35
Yeah, a company is a contract. Yeah, So, Yeah, So, so, how, what is the nature of the contract? Well, it depends on the relationship between the parties. How they are associated. Well, we have terms as to how they’re associated. So, we call those articles, If I publish that, and I start using that as a means to engage in business, well, then, it’s legal.
54:56
And it’s legally binding on everybody because I published it.
54:59
So I’m gonna be held accountable for what I did.
55:02
That might be where I’m hung up. Where did I publish that?
55:05
Because I did not upload that to that, that’s when I set up the LLC.
55:10
OK, if the state issued a registration number, whatever information you gave, the state, the Secretary of State is sufficient, two, create a company?
55:19
OK, so the registration number, are you saying that’s the That’s the EIN is the IRS number, so Yes.
55:25
But that’s not the same thing.
55:27
No, no. The state uses its own registration number, Yeah. It’s different.
55:31
Do I have that?
55:33
I think they all issued a number. I forget what it looks at. Florida is a long number.
55:37
Florida has a long registration number. OK.
55:41
Oregon, It’s gotten something dash along number of. Yeah, it’s got some dashes.
55:46
Yeah. Got it, OK. I think I know what that is. All right. Thanks, John. Alright.
55:53
I had to, I forgot to turn my phone off, so, I’m sorry, whoever that was. Your try to come, I didn’t want to pause.
56:01
Um, All right.
56:03
Any more.
56:04
I know those are, those are, those are really good questions. I appreciate those guys. That’s, I’m sure helps other people out that may have the same thing.
56:11
We were doing that other part of the conversation.
56:13
I’m going to do a video on this, OK, and I think I’m going to do make it a big production, because I’m really reluctant to publish things that are complicated or complex.
56:24
Um, just because, I don’t know, I’m just, I’ve been very careful about over the years, so I am going to produce a video that’s explaining how to ask the IRS for determination on something. So I have my unique ones, way of using it for people that have, you know, an erroneous 10, 99.
56:46
Once you all see how to do this, you, you may be able to share this with your CPA, OK?
56:50
And maybe it might benefit something down the road where there’s an issue that comes up because a lot of times the CPA just does what is published on websites. He doesn’t challenge anything. He doesn’t ask for letter rulings or termination letters. And if he sees that a person a layman did that and it’s quite successful has never had a problem, and the question is always been answered correctly, you know, affirmatively.
57:13
I think you can benefit from it. So this will be in our members’ area. It’s probably going to be a special call. I’m going to set up.
57:20
But anyways, we’re just on the tail end of that with the, the other question.
57:25
Someone want to say something?
57:29
All right, but yeah, that was that pertain to when we do a request for determination letter. We have like a six page letter. Really. It’s about two pages.
57:36
The two page has a legal conclusion, and we fill out some formality factual statements with the IRS. Would they want to know? And then we have to certify the correctness of the tax number over the person who got the 10 99.
57:47
And we are asking the IRS to agree that the 1099 is erroneous and that it should be excluded from 1099 to the IRS.
57:55
Either doesn’t respond.
57:56
Or response, it says, yeah, don’t make any more changes, you’re good.
58:00
Or, in so many words.
58:01
So, I think I’m going to go through the detail of what that’s all about.
58:06
So, that way, I mean, I don’t want you guys to think that, I hope you don’t, I’m not the only person that you’re gonna go to for this type of information.
58:12
I’m more than happy to share it if you have a CPA that’s, you know, seriously wanting to learn some of this stuff, I don’t mind sharing, OK? So, I’m more than happy to do that now, but I will produce a video that’s going to go into that.
58:26
Among other things, by the way, I’m going to produce a video on that.
58:29
And I’m going to do a special session on how to develop a private membership association, OK, The different core elements you’re going to need, and why you’d want to do that.
58:40
And I’m gonna share with you how I’ve done things over the years.
58:44
I think a lot of people may want to know that because I’ve never had a problem with the IRS. I don’t even file tax returns guys. I mean, I don’t, I don’t owe them anything. They don’t care.
58:53
So, I can share that with you. I’m not saying you should be like me. I’m just saying, we’re going to come up with that pretty soon.
59:00
And someone’s got a question. Go ahead, Dave.
59:07
John.
59:07
Hey. Can I give my testimony real quick, Sheerman shoot, yeah.
59:12
OK, so, ladies and gentlemen, I think also for Janet specifically, I got that 1099 K, I didn’t know how long ago, I think that was 2018, John helped me out. I just followed those instructions.
59:24
1, 2, 3 IRS walked away, and so I think they just sent me a letter back saying, I missed a signature somewhere.
59:31
And they never have to go with me again, so that was, yeah. It’s phenomenal. Just, yeah. That’s nice to hear our great, appreciate that.
59:39
Yeah. I mean, it’s very simple UI. It’s their procedure, so I guess they’re afraid to ask, what is it, The Wizard of Oz, right? Don’t question the wizard.
59:49
So by that, we can do that.
59:52
I appreciate that, David.
59:54
Alright, guys, I think I’m, I’m losing energy here. I, oh, I see I’m gonna go for it. Has one more question.
1:00:02
Go right ahead.
1:00:03
I’m not going to pronounce that. Hey, John. Yeah.
1:00:09
It’s Adam.
1:00:11
I have a question with found out about using CPMs to get, um, I guess access to credit.
1:00:23
Yeah.
1:00:24
Because I was looking at a couple of online businesses that were pretty interesting and I was curious to know about because it seemed like getting access to credit lines, using a CPM was a little bit faster.
1:00:38
Then doing it with like done and bet Dun and Bradstreet is there because it’s personal, it’s easy because most people are used to using personal on a small scale, like a small type business, like a small ticket item purchase.
1:00:55
So that’s why.
1:00:57
Yeah, you could do that. You could set up a new credit file.
1:01:01
Um, but I would just I would first look at buying a business without using your personal credit.
1:01:07
It’s easily done.
1:01:09
But you can, a lot of times you can get the seller to finance the business based on the merits of the business, you just gotta get the right pricing ratio.
1:01:18
That’s what I talk about, My 13 minute video.
1:01:21
You know, an intro video on how to do that, Anka, um, see. So then the CPM is a is a credit profile number for those who don’t know.
1:01:33
And I came up with this, I’m not, I’m sure other people did it before me but I did it independently in the nineties.
1:01:39
Because, I just didn’t want to use an SSN because the moral aspects of it, the immoral aspects of it, it wasn’t trying to do for any other reason and I just, I just reverse engineered the system.
1:01:49
But, the answer is, you can, you can set your own file up OK, and you can start a whole new credit file.
1:01:55
Now, if you guys are thinking about that, I would just caution you on one thing, if you’re going to do that, limit yourself to once in a lifetime.
1:02:06
OK, that was going to be another question.
1:02:08
Yeah.
1:02:09
I don’t, because it’s so simple, But then, you could do many of them, But then it gets a little, I mean, It looks like you’re trying to do something wrong.
1:02:18
You can do it. It’s legal in itself.
1:02:20
You can commit a crime with it, and then it becomes an element in the crime. Even the FBI says that I was saying that before the FBI said that in the nineties, everyone would say, Is this legal?
1:02:30
I’d say, OK. Well, don’t commit a crime doing that way, you know.
1:02:35
So, but, yeah, that’s kind of a shortcut.
1:02:36
I have used it more instead of what you’re describing, which is for financial reasons. I have used it for privacy where people’s physical security was in jeopardy and I had to make it look like something changed on paper.
1:02:48
Like, make them move or something, that was helpful because they’re being tracked on their credit.
1:02:55
That was direct, where the telephone.
1:02:59
Which, of course, is making that a whole lot easier now.
1:03:02
Yeah, the cell phone. In fact, I just talked to a woman today who’s, I think, she’s being tracked by the police. I think they’re harassing her, and I think they’re using her phone to do it.
1:03:10
And that’s not the first time I’ve heard that.
1:03:15
OK, um, so did you do it? Did you set it up the CBN?
1:03:21
No, I haven’t done it yet only because I wasn’t sure about the legality of, of the whole process.
1:03:30
Well, legal or not, why don’t you try to make a deal without credit.
1:03:36
You can Yeah, yeah.
1:03:39
And then uh, the guy that did the testimony on Davis. I forget the when it was maybe a year or two ago.
1:03:48
He bought something for $200,000 and he never did that in his life.
1:03:52
Like 28 years old, but he had really good credit and he did use his personal credit and the seller financed 40% of it and the broker we used connected him to a lender commercial lender. Now Commercial Lender, a commercial lender that lent him the money on his personal credit.
1:04:10
But, check this out, within like a week of closing on it, she was calling them and begging him to get another asset or refinance.
1:04:18
And, here’s what she said: I want to refinance it at half a million dollars under the business without you being the personal guarantor.
1:04:29
That’s how she was able to get them in the door, and then she’s still wanting to get them into her, her world of commercial lending.
1:04:36
So they, the commercial loans are, you know, once you get rolling on it, more debt gives you more ability for credit.
1:04:46
Well, that’s A, it’s interesting that you say that, because, you know, Davis is a close personal friend of mine, and he tells me all of these things, and he’s actually told me about how, how he’s been doing some of this stuff. And now that he has this rolling, he’s actually been working with some CPAs, I think, who have been recommending these kinds of things for their clients. And so, now he has, I think, an agreement with those same people you’re talking about to where he gets kickbacks. Every time one of their customers buys an online business.
1:05:17
Great. He’s a smart guy.
1:05:19
Absolutely, yeah.
1:05:21
Yeah, super. Yeah, that’s that’s really That’s what it takes. I mean, you just gotta be creative. He just ran with it and yeah, excellent. Glad to hear that.
1:05:29
Thank you.
1:05:30
All right, appreciate the question.
1:05:31
All right, and Matthew, what’s on your mind?
1:05:36
Actually, it’s just a quick question. I Had spoke with you, I think two weeks ago in the last All. about you coming on that call on Sunday nights.
1:05:45
I just wanted to you confirm for this weekend or for this Sunday 915 year time. Probably know, and that way gives everybody a minute to get on. I just wanted to make sure, and Soon as this is done, I will e-mail you the Calendar, OK? Perfect, OK, yeah, looking forward to it.
1:06:05
Appreciate everyone out there. They’re all pretty excited. Yeah, all right, all right, and it’d be nice.
1:06:10
Alright, guys, Well, it’s on the hour. Oh, we made it past. and our awesome, OK, I appreciate the questions That was really good.
1:06:16
Get some good content out there, and I’m going to end it for now, and I will put up this recording.
1:06:20
Should be tonight or in the morning?
1:06:22
All right? You all have a good night.
1:06:23
Thanks a lot.