Alright, so thanks for joining today's July 14th, and we're just gonna do a Q&A.
I didn't really want to start off with anything specific, but you guys can ask me if you want to.
You saw, I put a video up today, I really like this one ladies video, and she was just demonstrating how to buy carwash, and how someone did it.
You don't go to school for that sort of thing, It's not that complicated.
If you wanted to, we can break that down, and I can, we can get into that if you want to.
We can talk about, know, your specific situation if you want. So, if you want, let's just do Q&A.
Who wants to start something?
If not, I'll just talk about something that I think is interesting.
Get me started on, something like that, I got cut.
Essentially on the.
For the LLC?
So not to farm and looking at all for Ed, and when I went out, I would have an LLC, So when I was, I was trying to figure out, I used my home address, but I didn't want to keep the edges for my LLC. I want to change it.
Yeah, when I asked registered agent, they say that I could use their address.
I didn't know if that was a good idea or not. And then they also have a UPS, but not, yeah, UPS, bus in Georgia that I can use, so I didn't know what else to try to transfer the EIN number to the judge an address or the OK raised a lot of questions here. Are you registering an LLC on your own?
Yes, You can do that.
And you're picking Georgia, Georgia as a good state by the way, 100 bucks, they leave you alone. Pretty much George Wright was arrested in awhile.
OK, so it's a Wyoming LLC, OK.
It's OK, for the registered agent, Are you working with an agent who's registering the company for you?
OK, so that agent, if sometimes the agent will you have to use that agents address, it has a physical office location for the Right, right.
Yeah, But for everything else you can use any address you want, you can use a PO box, nobody cares.
I'm just curious, but that's what I was most most curious about. Whether that really matters is the least number of addresses you have when you go to the bank, makes it easier on you when you're dealing with the bank because they're just not too smart, OK and they have too many roles and they're always investigating people as if we're doing the same thing that they're doing money. Laundering OK. So if you have a PO box as your principal office address, use that PO box and the application for the company's EIN.
As you cannot, you cannot use an EIN assigned to a particular company for anything else for any other company.
So it's always pegged to that company forever, and if you do another company, just get another EIN.
Again, make sure that the EIN approval letter name the company with the LLC designation, OK. If you don't, it's a different animal. It's not a separate person.
It's going to be a DBA you don't want that.
Here's what I mean by that.
I, kind of, OK, well, what we're trying to do is we're trying to manage cash flow and assets and liability outside of our state, outside of our individual personal ability to sell it exclusively, right. So, we need a separate person to do that. You can use a trust.
This set up properly, you can use an LLC that's set up properly so that you're not 100% owner and that will be separate and you can, you can divest yourself of the liability or any risk that would normally attached to yourself, and then that thing.
So, if the EIN is assigned to the company name, but it doesn't show LLC on the app on the approval letter, what you've done is assign an end to yourself using an Ultra. Yeah, OK. So you're not, you've managed to separate out, So anybody who sees that, they're going to say, Oh, that's your EIN.
They won't even tell you that we fit a company's name, Company's name. Make sure LLC's there are Inc or whatever you're using.
I don't using yes, yeah, yeah, Alright, and now now what you want to do is take that company. Go make a bunch of money.
OK, right or use it to protect the millions of dollars that you already have.
right? one more thing I want to run by really quick.
I've read that the CMT SS if I'm pronouncing it, just pronouncing this correctly, the Indians in South Carolina.
They have what they call up, but it just started with recurrent first digital economic zone and they took all of the laws from Wyoming move that to their own reservation.
Whoo, good idea to start something. This is it has the same laws that applies in Wyoming would LLC. I'd have to know how that jurisdiction is organized. If it's outside of the state fair, the county, I don't know.
But. Every, OK, I'd have to look at how it's legally designated.
Like, for example, if the, if the tribe pays property taxes to the state.
That's not any distinction, right? But if it's a, if it's an actual reservation that's recognized, then you've got yourself a different sovereign nation, hopefully.
And I know a lot of the southern Indian nations in the States have been recaptured through deals with the state.
Like, now, they collect sales tax and before they didn't, or maybe they're selling cigarettes and they're under ATF, you know, are there cabling and they're under ATF, so I'd have to say that again.
I mean, I like a lot of the statutory construct that is used by the states, I just, I just think it's being used to exploit people, and it's being used to make the legal system or the players in the legal system absolutely stupid, because they think that you don't exist if you're not defined by statute. That's why when we do a PMA, attorneys can't wrap their little brains around it because it does not defined somewhere. That's the whole point.
It's not a creature of statute and they just can't fathom that. That's such a thing, but they don't realize that they they were.
they were reared in a PMA, their family has a PMA. It's like the other day I was talking to. I bought some land and so I, I told the seller it was a real estate agent. And I said hey I'll call you back with the name of the owner because I didn't come up with the name yet but I sent the money over. There was an escrow. And so I call them back with the name and he goes, Oh, I Googled it and I check with the state and it wasn't registered.
And I said, so, that doesn't mean it doesn't. Yeah, I love, I love that question. I love saying that, people. So, and he goes, why don't understand, why would you, why would you say that?
And I said, well, don't you have parents, Aha.
Well, isn't that a private association? Like, could I be in your family? Nope.
Well, then, by definition, you're from a private membership association that's not registered with the state.
So, therefore, does your family exist.
And so just to just to drive it home.
I went to sunday's dot org and I searched on the Florida bar.
The Florida Bar doesn't have its articles registered with the state.
That's the Florida Bar is a private membership association.
So, I said to him, you're your escrow agent, who's an attorney, is a member of a private membership association that's not registered with the state, and you're telling me that to buy our land, I have to register something with the State.
The money's in escrow, yeah.
So, you can take Wyoming rules and you can incorporate them into your own neighborhood, if you want to, you can make a body of Legislation or some case law, you can incorporate those rules. Remember, those rules come from like, the law of nations, that comes from the way people interact with each other.
This has been developed for centuries.
You know, unless you have something like a particular statute that's specific to your area. Like, for example, the consumer protection laws, I don't know where those the origins of those are, but public safety, those are ..., decades centuries, old public safety or sent results. The question on public safety is who has what easement rights.
Who has what bond rights, and what is your bond market insurance? That's about public safety. And the thing about public safety is I really like how we have it set up as much as people don't like getting myself.
I mean, I don't like the DMB so much.
But it's very efficient. And sometimes it's cruel. And it's not fair.
But, what else, what do we replace it with? I mean, look at, look around, you look at how people drive their cars.
They're nuts, they're reading their phones now.
They're not concerned about public safety. So, I'm kind of glad that we have the system that we do.
Don't think that you need another jurisdiction, OK? Tax benefits, yes, you can get them that way.
Give an example.
Let's say I had $50 million I'm going to put into a project that's in Guatemala for some reason.
I would go down to Guatemala, I would go there. And I would set up a company and I would use a local attorney. And I would I would drop the corporate documents in it, probably a joint stock company.
And then I would make my interest in it owned by probably a Hong Kong international business company.
Now, there's reasons for that.
I'm not going to tell you all the reasons unless you want me to tell you, but, really, that is not about taxes, That is about liability and managing risk, OK? Maybe there's some tax benefit, but I don't care about taxes.
I'm just trying to manage risk a certain way.
Either, not long time, Hong Kong is a separate, sovereign jurisdiction now, maybe Chinas trying to recapture it right now, I don't know, but, still, Hong Kong has very favorable rules about an international business company.
They're probably one of the best in the world.
I mean, this shell islands, that's another one too, but, No. So, Hong Kong, I just think is a really nice turnkey operation.
So, anyways, you don't need to go to a foreign jurisdiction to get tax benefits.
If you're in a foreign jurisdiction, because there's an asset there that you're going to manage, well, then, great structure properly, but don't don't export from where you live a corporate structure so that you can have a tax benefit. That is not really the, that is not the way to do it. The way you get a tax benefit is by changing your property rights.
I can tell you firsthand. I don't file tax returns and I'm not breaking the law. I just deliberately fair. So I don't need to get a game. I don't have a game.
I think I'm going to tell you, OK, with the what is it called? The receivership of Voyager. You're not in that area. Anybody?
No, no, I'm not listen to it.
OK, I have, I have, I have some And boy, do a little bit. Yeah.
Yeah, you saw the The Proof of Claim thing I did.
Yeah, I took most of my stuff. I just kinda gotta think about. Yeah, if you already got. Well. That's good, I'm glad to hear That. So it's still, It's still a good chunk and I'd still It's always having who wants to lose anything. Yeah, it's bad enough. I mean, they're trying to ram us into some sort of Security classification where the IRS said coins are property in 20 14.
Then now that now it's a battle between the SEC, IRS SEC, IRS says property, yea, I like that because it's just like Oh, and Now if it's the SEC guess what? Now?
You are assumed to be a money laundering and you have to give up all the KYC and all of a sudden, you basically can't use it, unless you have a securities license.
So, are you have to go through a trusted custodian, so that's what they want to try to do, I think?
I have some questions if nobody else has any questions?
Uh, so, um, I found a potential solution to the LLC situation with from Jay.
And he said, Google Images, OK, so, I'm gonna explore that. Interesting, OK, Yeah.
Well, I mean, the reason I was able to open an account there was because Jay suggested, you know, get a utility bill, and my, I have a friend. Yes, He's very smart about that.
And I'm all, I'm all for it.
I wouldn't know it.
So that, that's how I got that. After I get this, IRS does bear an absolute bare, yeah. That is at first, but it'll, it'll, it'll wind down, and then we'll get it back on track.
See, the thing is, um, one of the questions I have about those four tap shoes, 18, 19 20, and 21 that I never file, Those were the years that Smith asked me for that I never gave to him for that because you got the frivolous return penalty and so you got an agent who's going to abuse you because you did that.
That's just how they work and that's why we had to bring in the advocate's Office So he's not the one in control of the advocates process. Yes, She doesn't have any right to ask for 18, 19 20 and 21, It's not about right, it's that her job requires her to deal with what you asked her for help on. She can't just make up a bunch of other tax periods.
In fact, she cannot act: in years, for which there is no levy notice.
That's why, so, in the letter that I'm going to write to her, I still have one more return to do that. You said to do that? The 10, 40 X, sure to redo the ones that I did, our hendrickson.
That's right, and it's like, it is a bear doing that, because they're all filled out, was like all zeros, so I have to, like, completely redo the whole thing. Then I have to calculate the social security, which is also a bear.
And then I have to fill out the, that 10 40 X can read on 10, 40.
Otherwise, you have no idea what what you're doing. Just know that the the IRS agent, we're trying to go around the IRS agent and we can and that's why I want to meet with the agency or the advocate.
But Smith can ask for anything.
It's interesting how the IRS agent who wants to collect from you is Agent Smith. I just think that's interesting.
You know, matrix, because of the nature of nature, is yes, it's interesting. Right. With another case, just with hendrickson, OK, in Idaho, and there is another Agent Smith, and he was from Utah. So I don't think it's the same way. I think you mentioned this. Yeah, no, I have all my stuff and Smith, I haven in an envelope that says, Smith ****. So I guess, we'll ask for all the years, and that's fine, but you want to deal with the advocate, ignore him?
for now, we gotta deal with the advocate, OK, well, he's the one that was the levy on 607, 15, 16, and 17, OK, so that's what she has to deal with, that's right, now feel it now, also, I wanted to mention that this zoom, it's still limiting the number of people, at least that's what it says.
Like, right now, there's only like seven people on here, OK.
Well, that tells me if we don't, I mean, I had my assistant change it, and she tested it, so I'll ask her again to confirm that should be working. But I think only seven people joined up or six.
But usually, there's like, like 30, 40 people here. Well, it used to be that way. I changed it around a little bit, and so because of the way I wanted to reschedule this year, so it's different.
I mean, when I had 30 or 40, it was just, it was a free call.
Oh, OK. So, I wanted to, I wanted to limit that a little bit. So, OK.
Um, see, I'm wondering if I owe you more crypto because I got my EIN, and again, I don't remember exactly what I'm supposed to renew that, like, annually. Is that not correct?
Your EIN, know that when you're charter.
Say, what it is, This is, I don't know, your charter, do you want to renew your membership? You see in the video membership?
You can, if you want. Yeah, I mean, it's optional. You can renew it. I mean, I'm putting more content up there.
You haven't seen any new, new content for a few months. but I've been producing content, I just haven't put it up there yet, and I'll start putting it in the fall.
And there's going to be something interesting to do that I've never done before.
So actually, when I was asking, What I wanted to ask is, does that Membership run out after a year and you will be able to see it. It will notify you or do you should like look for it.
You should get an e-mail notification.
I should get e-mail. OK, I haven't got that yet.
OK, so, um, the other thing is in setting up this LLC with Caleb and Brown, I have to get an EIN.
Is it safe for me to do that in my current situation? Can I can? I can do that. You can do that. That doesn't change anything. EIN Application doesn't change anything, Even what you're doing with Carolyn Brown.
You're going to be fine.
I'm glad you asked me but if you if you've got an inheritance right now, I would you call me says hey, I'm gonna get into here and I would say can you postpone that? Yes, yes, right, hopefully the IRS wouldn't look at it, right?
Well, it's in court, you want to make it to where?
You haven't realized the right to receive it yet.
So anything that might come your way, Just, we don't want to get that yet.
We want, we want you to appear as poor as possible, legally.
So yeah, so anyway, so basically I still need to tell her that what I needed help with our 15, 16, and 17, and then the other years don't apply to this. Here's a polite way of reminding or just say I only am dealing with the levy notices for these three years.
That's her job. Her job is not to talk about any other tax periods because there were no levy notices for those tax periods.
We didn't know. She may not be happy when she gets this. I'll talk with her, Just get that time that date, and will smooth it out over there.
OK, alright, so, EYLEA, did you have a question?
Or you did? I shouldn't ask you that. You had a question?
Hello, John? Yes. Can you hear me? Yes, just fine.
Yeah, I messaged you on it and you go about that.
You create it and I'll see Jill first last year, OK. And in order to keep the company in, good standing, I need to update something once a year, right? And I'm from New Mexico. You can ignore it New. Mexico's good. There's nothing to do unless you wanna change articles.
Now, I mean, if I won't change anything after, after a year, Do I have my company in good standing?
It'll be in good standing. Yes, in New Mexico. It'll stay in good standing. Until you dissolve it.
Oh, it's actually quite for a few hours. and I just didn't notice the change. Now that you don't do anything there. If you want to many articles, you just download the Articles of Amendment. It's a one page document.
And write it up and send it back in.
But other than that, you can just use it.
There is no report due.
Yeah, I mean, I remember that, But, you know, I just wanna make sure that it's to be in good standing. when you go to the website, the website, and it says, it's in good standing, or not.
It is. And just so, you all know, this is a question for everyone.
I mean, if you have a company, and you've used it to open accounts, and it's functioning fine, and you let it expire, let's say now New Mexico, that doesn't happen, but let's say it's in Georgia, and you don't renew the Articles, like, finally, annual report and pay the fee.
It'll get revoked by the Secretary of the State for non filing, right?
But, your corporation, your LLC, is still valid and viewed as valid, and still everything's in town.
Because the courts and the case law look at it in a way that says you can just pay your your filing fees and be caught up, so they don't care that your company's been dissolved or revoked. Now, in New Mexico, that won't happen.
The only distinction is that if you're going to do that, and try to do something new, like get a lease agreement, or get a new bank account, the bank will open the account.
If the charter has expired, you're not going to have that problem with New Mexico.
Yeah. Much easier. There's only a couple of states, I think Pennsylvania is like that.
And maybe Ohio, I think there might be maybe Arizona, too.
Another quick question, For example, If I have one, I'll see which is connected DMA, and, let's say, disabled krypton that bond right?
If I want that, let's say buy real estate. I can create just basically, regular LLC. it just in case if I want. What if I want to file an aged? Say I have an expensive business expense and I now write it. Write it off. If you do a new LLC and use the same PMA to own it. You can file tax returns for if you aren't, doesn't change anything.
Yeah, but it's harder to create DMA in the.
That obviously is much easier.
Me and I can do: I can great LL see myself.
The, the PMA, you can name the same PMA as the owner you don't have to, but you can Hmm? hmm, hmm.
If you want articles for a PMA, I can help you with that.
I mean I don't write those up because most people don't have a use case for it.
Usually at the use case is going to be a state planning which I'm not I'm not saying I'm an estate planner, but I can show you how to manage personal things. You know, as an aspect.
Searching about the AMA. And I'll see, it seems like if I have my personal expense like travel and it's a buying, say, painful vacations for example, right?
Yeah, something like that.
Express flights, for example, and I won't be able to write it off.
Depends on how you have your company set up, but it has nothing to do with the PMA. It's your LLC so it's an expense if you incur that expense from your salary.
I suppose you could. I don't.
Yeah, but usually, using an LLC to avoid the tax altogether limits your tax to only your living expenses, and that's quite a bit of an advantage, compared to trying to, you know, get deductions on everything.
But let's say ..., like For ... gave flights for business, and, you know, food for your business. Will I be able to use LLC?
Guard, it would be the same, or they give you the same as if you worked for a company, where there's a partner, and a separate partner from, from what you're doing.
And you had a regular disbursement, like, Let's call it a paycheck, it's not really wages, but you would have to make that arrangement, and, Yeah.
You can then, from your wages, individually, have a write up, So I don't know, I mean, I'm not an accounting person, you see that as an account for that. But if you ask an account and you tell them the whole thing, he's got, He's gonna say That's a no-no that the LLC has to file. It's going to you know, be contradictory what I've said. And if you Google stuff on the Internet, you're gonna find a lot of confusing information, but generally, what I tell people is, you're not going to have a right.
And that shouldn't really be, you can start analyzing your, your tax benefit as a fact that it's a pass through and you're not gonna get taxed on the full amount of the gross income.
Yeah, it's a very complicated topic.
It can't be, I mean, I would just, like, I could look more at the numbers, but, your accounting personally would be on a 10 40, so, the question is, Do I have a deductible expense on at 10 40, forget the? LLC? I mean, look at the LLC, as you don't have any control over that accounting.
Alright, as if it's your employer, like your 1099 employer, OK.
My personal Forum Belair filed, exactly, right. You'd have to limit everything to what you can do on the 10, 40, Yeah.
And you would not be needing a Schedule C, You want to, any income, is going to be other income.
If you schedule C, then you start causing problems for the LLC, because it's just like the other days, I've never seen this before someone did a K one because the CPA bully the person into following the K one. And this is an LLC that didn't follow return, and now we got the California Franchise Tax Board asking for the tax return.
So we're going to have to dissolve that company and start over this ridiculous. Yes, so just keep that in mind.
See if you can qualify for some deductions under the idea that it's not anywhere related to this company is like a company, you're just, it's out there, third party.
And the next question, Michael, had a question.
I think, unless you, you know, I, kind of new to these forums. I don't want to keep my hand up and be OK. I remember your hands up. So.
OK, I'm a situation.
I've been paying a lot of taxes and I'm really sick of it, um, and I listen to you, and I'm like, man, I'm doing this wrong, but I'm in construction, and I borrow a lot of money.
When I go to the bank, they want to see income.
So is that, you know, do they have yes.
So normally a year because of your licensing and everything, you're kind of inclined to make everything in your name. And so it is a DBA, even if you have an S corp.
You're 100% owner, probably.
That's usually my wife and I own half and I'm an S corp and the others.
Yeah, there's no separation.
So, so you're still good.
You're still in a situation where the IRS wants to see tax returns because that's the not the IRS. The lender wants to see tax returns, because that to the lender is proof of your balance sheet. That's your balance sheet.
So, you would want to start separating out the company from yourself, and so you would, you can use an S corp, you can file tax returns.
But if you're, if you want to change your tax treatment, you would have to set up an a pass through where you're now going to separate the gross income from the company, from your income individually.
And your income individually doesn't have to be more than your living expenses. Just because your company makes $2 million, doesn't mean that you have to pay tax on two million. You pay tax on 80,000 that you need to live, or whatever it is.
So that's this that you want to separate, so you can't do that with you and your wife as the owner of an S corp. You have to use an LLC that doesn't file So that means it has no S corp classification. It's just a password, now you can keep everything the same.
Keep your licensing and all that.
You would just set up another company that works like an escrow agent and you process all your payments to that other company. So you can do all your loan qualifications and things like that and process payments through that company.
Receives all the income in your S corp, receive zero.
But at the end of the year, or tax period, a quarter or whatever you do, you would claim the income that's needed to be claimed on your S corp tax return, whether or not that LLC disperses the funds to the S corp, because either way, the S corp is going to use those funds.
So everything stays the same.
It's just that you add in a pass through that receives all the money, then that then gives you the choice to hold the money there, and then only cover your operating costs and things like that, and still document everything you're doing.
OK, so, we want to bank issues me.
A Bank draw our customer writes me a check, they read it to the, to the next new company, right.
The next new company. And there's a, there's a bit more to it. But that's the general idea. So, again, a case scenario is where I, where I started doing this in the nineties is where I would get a chiropractor Dennis call me, saying, hey, I did some stupid things with the IRS, and now their afternoon, OK. So the Iris has taken like 30,000 a month. So it's a really bad situation, and the doctor, or whoever can't pay the bills? And I don't want to have a discussion with the accountant and tell him to change anything. Who am.
I don't know anything about accounting compared to these guys. And I don't need to tell them what to do. All I need to do is isolate the risk, so I haven't set up a new pass through an LLC and everything goes over there. And then the accounting is identical.
So what I've done is make it to where we can turn off the ability for the IRS to levy the incoming receivables.
So that works beautifully and I always bring the IRS to the table.
And what I would end up with for a solution in that case was, instead of a $30,000 a month levy without the consent or working it out, I forced the IRS to accept $1500 a month, voluntary payment plan.
Because that's what we can justify, right, so that puts it into it, normalizes that for the client. And so in your case, when you're not having problems you're going forward, again, you pull the money into a pass through.
The reason why I use the term pass through it's not falling in return and it's not taxable is because it's considered unsettled Funds.
It hasn't reached the destination yet, and so then you can decide how that, how you want that to play out.
So I can decide when, when it hits the destination. Yeah.
I mean, the S corp needs, you cannot like, if your operating costs are half a million, and then you tell the IRS made a quarter million, they're gonna say you're lying, right? That's going to cause an audit. So at least your S corp has to report its operating costs as income.
OK, yeah, that would reduce your, I mean, we could talk more individually, but that's a generalization of how this works. You isolate, what could be a risk. So, that's not yet a risk, that's how I'm able not to file a return. Because, I make money go over there? They're there and I directed places, and I don't have to have a game.
Yeah, I also have an LLC that does rental property.
And that's another, right, that's another thing. Cash flow and so. Right, so you can have a property manager or be your own property manager.
Yeah, You can route the cash flow in the same way, and I would separate it too, by the way.
There are two different things going on there.
Real Estate Investment is different than the builder, OK?
I think I might need to find a way to go and give me a telegram. And it will set up a time.
Just you can see me at at JJ Singleton.
Just shoot me a message on Telegram.
Then just just realize, I get a lot of messages there.
So sometimes I might miss it so it's OK to nag me. So, what that means is, you can sit there and hit the period T four times, and then it'll pop up on my screen and go, oh, wait, I was trying to get me, or literally call me, and my phone will ring on Telegram. It'll alert me.
So, it's OK to do that, OK, for a period, and we'll figure it out. This might be an elementary question. Is barter taxable?
Yes, It is, borders taxable. When it's dead, it's denominated in dollars and you almost can't avoid that.
Most most, 99% of the time, yes, you can less.
That's well established OK, so if you were to go to take crypto gold coin cards or something like that and then spend those Goyne cards, so the dollar amount of what you bought would be your yeah, even if the recipient took the seller took the coin, uh, and it's for a, you know, an over the counter type product.
The irises never going to say that was a sale in Bitcoin and we can't tax Bitcoin.
Now there is an argument there but you don't want to go that way. So what you can do is you can liquidate a coin for dollars and do it in an LLC and you can use that to purchase real estate or a vehicle and you can do it. So it's not in your name or you can use a debt.
Even though it's denominated in dollars, it didn't constitute a game.
But because of the way you move the money around, you just had your company buy for your benefit.
It's not taxable, because it's not yours. It's not, again, just like if you paid for the current Bitcoin, you can't just tell the IRS, well, I paid for that Bitcoin, So you can't, you can't tax me.
No, you, that company over there that bought the car for you, that now you own, with no debt on it.
That dollar amount that you paid is actually your income.
And we don't care that it was in Bitcoin only, we're going to evaluate in Bitcoin in a dollar.
And that all the case law is in their favor.
So, that's why I titled it in your name, unless we're going to put a dead on there. And if we're not going to put a debt, we have to title it in the name of something else, like an LLC or a trust.
OK, all right.
So, if I want to, I have, you know, crypto that I bought personally, If I wanted to move until an LLC, do I just open LLC and move into the document? That's how I funded it for now, just move it over there.
And the transaction, the manner in which you did it defines the nature of the transaction. So, here's what you're doing.
You're taking something that you own, that you have ownership and possession of.
Yes, that you also have beneficial interest. And so there's, they broke, they've broken this out into two different aspects of ownership. You've got possession, ownership, and, or title.
And then, you've got also a beneficial interest in that, whatever happens to this thing. As long as you still have the right to sell it, you retain beneficial ownership.
So if I convey this overplayed, they write a check and move it over to another account an LLC, for example, And I and my interest in the company is the same as it is personally. I still have this but I don't have the ownership. Therefore, I don't have the liabilities associated with ownership.
So, the language for this is I'm conveying the property for estate planning purposes and retain the beneficial interest.
OK, So, but if I if I start analyzing, all right, move my crypto into their desires, their taxable interests when I transferred, or not at all, OK, so, how do I document that I transfer the crypto? It's documented when you go from wall to wall it. There's a record of it on the blockchain.
OK, so I have to get a wallet designated as that LLC. Well that'll happen, but you don't need to tell anybody you did that, this is not a case where you're gonna have to answer for that. OK, Why to do that?
The minute I over now, say I can say poof, these Assets belong to L, Z. Yes, you can, exactly, just like look at it this way. Let's say I want to start a new venture and I meet up with a partner, and I go, Hey, I'll put my funds. You match funds. So we put our funds together, and we go, Hey, let's do, let's set up a company, Of course, we should set up an LLC. I put my funds and he puts his funds in and we're off and running, where it was the tax consequences there.
That's right. You have to put an extra tax dollars in there.
Whatever it is, Who cares? Who cares. I mean, I like your thinking. After tax dollars. Yes. But it doesn't have to be.
Because that transaction is not taxable in itself because I funded a company and the company is not receiving income from something that we're retaining. Our beneficial interests will move the money or that we still care about that money.
So it's not a third party, if I put it into a company that's, I don't know, I mean, I couldn't make it really complicated, but you get the idea.
Retain that. beneficial interests.
I pretty much get it, but I mean, I realize, I think, with my financial picture, there's a whole **** of a lot we could do, But I'm just kinda wondering, and that the nuts and bolts of how, Yeah, those are the basic concepts.
But let's talk in more detail without, you know, and then privately, and then we can we can dial it in, and be very careful about this. So I've done a lot of re-organizations. I call them re-organizations. Their rescue is really, and that's how I learned people were really bad situations. And I literally cut off the irises ability to take their money and that just saved everything.
That was, in the nineties now, people are just planning ahead! They're like, oh, shoot, I didn't know you could do it. That way, OK? Now, 10, 31 is 10, 31 just for real estate.
As far as I know, it was redefined because if people try to use a crypto is an IRS amended the reg fast. They were fast and they said, now, it's really only for real estate, but, you don't need it for anything else. I mean, it's perfect, and it works great for real estate. I mean, I wouldn't try to use it these days. The risk is too high. Because of the way, the financing, it's hard to close a deal.
If you Well, if I if I transfer my one crypto for another switch, you know, from whatever from bitcoin to Monero, that's not that's not a barter.
That is that Berg why We just we just explain.
So you just said, I went I took my bitcoin, and I put it into Monero it's still Mind Monero.
So you retain beneficial interests the whole time. Where's the disposition? Not there.
when I, when I wrote, when I asked the IRS determination letter, about that same question on the exchange, there was confirmed that I'm right, that there was no tax liability and the 1099 is erroneous.
OK, Because I hear everywhere everywhere they say, you know, if you exchange crypto for crypto, what did you receive?
If you receive you as DC's interest, I did own Celsius. I received some interest.
Yeah, you're talking about in your name, and so you can call it interest all you want, but you're not receiving a dollar, OK, so yeah.
it's not a gain yet, however, if you report it as a gain, it will become that.
OK, I already reported last year because I got, when you created the liability and that's OK, I mean, there's nothing wrong with that. You did it correctly, it's just that you didn't have to do that.
Yeah, sorry to say.
That's a little outside, my, my definition of directly, OK, OK, well, there's two ways of accounting.
Yeah, yeah, exactly. Well, you know anybody, any account, I'm just gonna operate as accrual based, but you're a cash basis. Most people are cash basis, people, accounting. Why are we using accrual based? Well, so the IRS can give more money.
You don't realize again, because value went up and something you own.
all right, but I Well, I was I mean, they paid me interests when I had a deposited.
It tells us my interest in crypto non interest in dollars.
But exactly say they can call it interests, but it's not taxable interest, because it's not yet dollars. OK, because I use, in my construction coming, we build new homes. So I usually accrue curl method. Yes, of course, you do, yes.
But so many people are confused by that, but it is that basically kind of parallel of what you're doing in crypto. You just kind of using an accrual method.
I'm using the cash basis so that the client is not going to have a tax liability in his name unless he sells coins for dollars.
Very simple, and if he has that situation, then what we do is structure the transaction using a pass through.
So, it can have the gains in dollars. It's not his gain, anymore, It's reported to the LLC which has a different tax treatment.
OK, I know. No, no accountant will do any of this stuff?
And I've had so many conversations with accountants over the years, even in different countries lately. And after a few minutes they're like, Yeah, OK, I guess that makes sense You can do that.
No, because I asked him at what point do I have a taxable gain, I went from bitcoin or litecoin, where's the game?
And they go oh well you know the value changed and I go what if I don't have any dollars?
Am I required to sell one of my coins to pay dollars in taxes and that's what it all breaks down in their mind they're like, Oh, no, what law requires me to liquidate an asset to pay a tax and dollar. So therefore, that tells you right now, I don't have a tax liability because my asset is still circulating in nature of the asset gold, silver coins.
If the system were stocks, you can sell this doctrine or starve yourself for dollars and then buy it and that is because of the way the stockbroker and the Accounting practices are used at the stock brokerage.
They do it that way to create a tax liability, see, the kryptos are not like that. Stocks could be like that but to answer your question, you're correct.
You're not going to get around it because of the way they do the accounting.
Now, if I did. Like, if I have a client that's got lots of holdings in stock and he wants to do the same thing that you just mentioned for, for us, we can open an LLC. We open an LLC at a same brokerage. Now he has a personal account and he has an LLC account.
We have the broker transfer, the holdings.
From the personal to the business, we have to be very careful. There isn't count for them as a sale.
Liquidate $2 in back. Now doesn't mean he actually did. That just means that it counting was done that way to reflect that he went for $2 back so we make sure that we just simply conveyed the property rights of the stock.
Not disposes of liquidated and gone back into.
And so we have to, in some cases, I have to get on the phone with them. And sometimes we have to talk to the manager. Because the front end person doesn't get it.
And he's going to push some buttons. And it's got the accrual based accounting approved. Now you get a 1099 that you can't argue with.
So you gotta be a little extra careful with stock.
When that LLC receives that, receive that money it can Now so you can spend money on legitimate business expenses like sending key employees on business trips and you can do that. Yes. The key thing on the LLC there's a pass through Unsettled Funds, is it's not gonna be taxed initially.
It's not going to be taxed, and let's say there's a tax on everything, it's always going to be deferred, as long as it's treated that way.
So, yeah, you could spend money or whatever you want.
Deferred, say, can be passed on to a new manager in the event of your demise.
You can do that too. Yeah. But, remember, it's not in your state.
So, that's the nice part about this. So, you can have rules or something, or put something in your will, but if you've mentioned your interest in your LLC in a will, you pulled it back into your state, so be careful about that.
I can show you how to set that up.
It's a little more involved when you're dealing with it. Especially when you want your family to benefit your friends or family to benefit from the thing. You built your lifetime, you want them to like inherited or something, right? But, if it's not in your State, they don't get to inherit it. But they could.
If you set it up, you have to do by contract, But there's a little bit more in my book on how to do it. You don't just do a contract, and trust, and move money around when you die.
What you wanna do is make sure that the people that might receive this wealth that you've built up, know what they're doing, and can actually have the maturity to use it.
There's a lot more to it than just selling illegal.
I've heard all kinds of stories where, you know, people inherit a million dollars, and then they end up dead because of a drug overdose or something unless your family, but I mean, you don't know unless you really know your family.
You could have Robert kiyosaki's right, and all these rich guys I'll tell you, if you get a bunch of money real fast and you don't learn about money, you're just gonna do big, more stupid things. Bigger, right?
God, I hadn't inherent his brother who won the lottery clearly.
Yeah, they bought the house for his brother.
Like, I never, I never thought these folks were biased and They've kind of like Yeah, mean the first thing right there, The first indication is that you play the lottery. I mean it's funny, because when I go by money orders, I don't do this too much anymore, but when I go by money orders to pay for Silver Bullion, I'm standing in line next to a guy who's buying like 10 Lottery Tickets. And I'm thinking, man, I'll take my silver blade all day long. I hope you win the lottery, but you know, I hope you win the lottery. So you can spend money with me? Exactly. Yeah, we watch them. I mean, they were they were buying does the stupidest thing, like it's going to be gone in a year, you could just see it happen.
It was pretty sad, It's less, Yeah. Yeah.
All right, but, but ladies a pass through, I can still maintain my ability to borrow if I do it right. Yes, you can.
You keep everything the same, you create a pass through and that's a very basic step, step one.
So, that answers the question, and if you can run with it if you want. But let's talk and I'll dial in some more detail so that it's not precarious.
Alright, thanks, Michael.
And the language, would you you come up with their way.
I'm sorry. I'm just saying I'm so grateful for this. Thank you so much on a quick question.
Can you tell me again how does say about, um, uh, my representative will be retained until I get an appointment just, you don't have my retainer yet. You don't have a representative. You say I don't have you on retainer.
You just say just say that his way of operating his way of working is that that he doesn't, he doesn't he's not retained until you've managed to get a date with the IRS a tie scheduled on the schedule.
And that's, that, That should just make it easier, I think, to communicate with an IRS agent, and so she would understand, I would think, what I'm doing, basically what she would see if she's going to think about this.
What I'm doing is I'm promoting myself by actually setting up the case without charging you.
Then when I finally get the meeting, then I will charge you to be retained and then I'll represent you before the IRS.
That way that way She's not gonna harass you about, Hey, we want to seize Power of Attorney OK and are there any times that would work good for you?
Were usually is, Give me a few days notice and I can work it in noon to, well, let's say 11 Eastern time till two Eastern time. Seems to work the best, OK and then also like around this time of day except for Thursday's should work pretty good.
OK, OK, and um, the noon Eastern till evening except for Thursday and then Is there any advantage to buying Metal's with crypto?
Convenience. I've done that.
I'm just as happy to wire some cash.
Or use my credit card sometimes.
But yeah I mean convenience.
But there's no particular tax advantage or anything like that.
I sometimes look at a discount like my eyes provident metals.
I think, if I pay in Bitcoin, I get a discount.
I think, probably.
Providence. Providence Metals, yeah, and a lot of the exchanges I think I shouldn't say exchange, but the Vault service is prevalent mental jam bullion.
I am going, and I've heard of them.
Yeah, there's another one I think of a second. But, yeah, check them out. But, the only way I would do it is if I'm getting a price break. Because I'm always gonna have a premium. When I'm moving money around, right?
It's like the other day, I wired some money, and then it costs a percentage. And when I bought, when I did my transaction, I got it back. Because the thing I bought, I got a discount, which was equal to my premium.
So going, going coins to precious metals, so I kinda broke even on fees, I didn't pay any fees, basically.
So I try to work those out, OK.
All right, thanks, Kristin.
But you go, what's going on?
Yeah, I has a New Mexico LLC that I did on my own, and I have it as a single member, as myself.
I was just wondering, how do I amend the articles?
Yeah, very simple, very simple thing. Let me do something real quick. I'm gonna show you guys this. I've done this before, but let me just show you.
I'm going to do a window.
I'm going to show you.
Yeah, so I'm sharing a screen, so I want to amend my New Mexico articles.
So I use a search engine, this actually is private, somebody's, this one and I'm going to search for New Mexico.
See, I'm using the Internet Search engine to find something at the Secretary of State's website and it works out pretty good usually.
So New Mexico, LLC Articles of amendment and TDF.
And then I'm going to do something like this. How to file it tells you what to do. Now in north-western is great: they give you the documents and everything. They'll charge you $100. You don't need them. I recommend not hiring them because you gotta pay $50 to follow.
Anyways, the $50 is a tax charged by the state, but you don't need to pay another $100 and north-west. Although, if you guys like that service, you know, if you're already a client, I'll just do it for you.
I hope you do it, but I mean, if you really want me to I will.
It's very simple, So this tells you how, but I want the PDF, so let's just say I'm gonna, I'm gonna hop around here until I find one.
Uh, yeah, so some attorneys will have a nice cover letter so they can make it look and see, you don't need to do that.
Let's see here, That's OK how to file.
Maybe it's sometimes these guys Publish the PDF now the Secretary of State may also publish the PDF that you can use here you go amend your New Mexico here. So, let's see what this does.
So a lot of times, OK, What they'll do is they'll want you to have them do it, so they won't give you the form, but I think these guys are kind of nice to give you the form.
This is a statute. We don't care about that.
Um, I'm just looking for the form.
Station Amendment. So anyway, so you get the idea, This is what I'd be looking for now. Let's say I really want to do it, so I can't find it. But let me just do this. I'll just go right to new Mexico, Secretary of State.
Oops, I put the wrong, OK.
And I'm going to look for here, see this, this takes me right to the New Mexico, Secretary of State, So I'm going to pick this one, maybe I'll get it right from the state.
Sometimes the state will have it.
So like online services, business portal.
Let's see what we got here in Business search.
Oh, certificate, partnership, forms and fees, RT an online.
Let's see here.
Anyways, You get the idea. There's options here.
Sometimes, I don't want to take a lot of time on this, but this is what I'm doing. So, if you like, if you ask articles for a state, I'm gonna do what I just showed you. I'm gonna go search and see if I can pop up real fast.
It's an amendment form that the State publishes. Now I don't need the States form, I can just write up a letter and have you sign it. Now, there are certain technical requirements, like sometimes it needs to be signed under penalty of perjury, and it should be somebody who has authority, and that's no problem. But I like to use their documents because I don't have to re-invent the wheel.
Yeah, OK. Yeah, I was.
I was on my account I had with them on the secretary of state, Yeah. I'll find that, actually, the form.
I'll have it in my computer, but OK. I actually, because New Mexico so comment, I'm actually haven't my, my computer. So, let me just see.
Yeah, because I wanted to change it, too.
Either a two member, LLC or PNA on one.
And I was just wondering, like, what type of wording do I use for that?
I'm going to show you right now.
Let me just switch back over. I just opened up the file from my computer. This is unless they changed it.
This is the actual.
switch over here.
So here's your actual or am I have this on my computer.
So, could have done somebody, New Mexico's. So you see here. That's why I like to use their farms, because I don't wanna have to look up their statute and see what the rules are.
This is a cover letter, they, It's so nice to included here.
So the attached application, so they want you to make sure you're doing everything right, So this is just for you.
A checklist they dedicate a whole page to that all right? So then you come down here and so you you want to get your business ID number, which is that?
What seven digit number something they assigned to your articles, right? So that goes here. Whatever number, right?
Put your e-mail address here.
Contact info, um, or it might went somewhere.
Let's see, oh, they want the name of that company, sorry.
Put the exact name of the company and put in the business number, OK?
Article to the date, it was filed.
So you're gonna get this, if I went to the state right now, I can go find out when your company's file, That's what they want to see, right? So Article III, this is where people need the help of the language.
So let's say John Smith is the owner, single member, 100%.
All the shares.
So I wanna, I wanna make it John Smith Society, PMA, Let's just say.
So, I would do something like this.
I would say, um.
11th day of May.
D articles, too, include a new member.
Now, notice I'm adding a member first.
So, I'm gonna, I'm gonna go down to my next line here, It's not very friendly, Forms out the tab.
Here's going to be the name it's going to be.
And removing the member.
That's the key.
Is held by.
A single member?
And if you asked me to do this tomorrow, it's probably gonna look a little bit different. I just made that up as I went.
So I'm very specific about what are the first I'm going to exercise my authority, I'm going to make the change.
Then I'm going to remove myself, because John Smith alone had the authority so after I've extra my authority, I'm removing myself and by default the new member has the authority.
So now the PMA can do what I just did: I can sign for the PNA.
So in this one, I come down here and because I had the authority at the time I did this, I was a member manager and I'm going to sign as a member manager, now then they'll accept it. So I just appointed a new member and it just happens to be a PMA.
I can appoint my brother if I wanted to, and then they have no contact. And then I think we're going to do this by e-mail or mail. Whatever works out.
Then, you just send the same with 50 bucks, and then there's some instructions, I think, at the top, somewhere, OK, let me, I don't know, pick a couple of this.
You're gonna upload this to our chat thing here, Grab it real quick.
I can figure out how to do that, sometimes I can't find the thing.
Anyways, I'm missing anybody else, have any questions?
Any other phone?
Like, uh, any other form of payment, like maybe a crypto payment or credit card payment, or something like that, right now, we're taking the regular payments, it's an ... check.
You can ask about crypto. Sometimes we do, but we took too many of them over the years. So we're trying to balance it out a little bit.
So probably right now, it's going to be we don't use merchant account either.
It just you can always, yeah.
And if I can't find it here quickly, how can I send you the file?
Just to save the time, you could send an e-mail, OK. I got a call with you next week.
Wednesday, I can just give you if it's booked, I'll go find your number. You don't have to say it here. OK, look it up. Yeah. No problem.
Oh, Um, yeah, What's your first name Branch? OK, so, I'll remember. It'll be, it'll be on there So I'll have your e-mail address, and I'll just shoot it over to you.
Appreciate it. Yeah.
Yeah, I got some controversy recently, is I'm trying to, uh, mitigate some risk that I have.
Yeah, it's your name office stuff, because you know, the world wants to get your stuff, and if you don't have stuff, They can't get it.
Yeah. That's how simple it is, you know.
That was the revelation.
When I was in the nineties, I was like banging my head on the wall, like the Irish, they just don't read anything, I send them, I'm so smart.
And then I realized my client had stuff I was like, well, let's focus on that.
So in a situation where there's controversy, Irene, worried about people looking at your holdings.
Do you think it's better for them to see a PMA or a team member?
Else? Think the two members more effective, but PMA? It's just as well. And it's a party, but to member so far have not seen a difference.
But if it's me, it depends on what I'm doing.
Isolate each of them.
A PMA, I mean, if you have an attorney who's going to be aggressive, he's going to accuse the PMA of being your alter ego.
Does, so, It shouldn't be a problem, but keep this in mind, you're gonna see it months and months in advance over a year, You can see it coming, because you already telling me, right now, you see something coming, right?
Well, you have a chance to liquidate things, unless it's anchored into some real estate. If it's cash flow, that's easy.
So in that case, it doesn't really matter OK, yeah. All right. And they've got options there.
And then for the LLC that I'm going to be amending.
I have a bank account for it and in Mexico, and I want to add the second member, and I want to make sure that that bank account get can't get levied or anything.
Do I tell the bank about the second members so they can change something on there? A second member, do you want to add another member? Yeah, that's what I find.
The best cleanest way to do it is to have a two member LLC whether or not spouse was not married, right?
And they're both seiners at a bank account and that'll do it.
Now I've had the same success using a PMA.
I've even had limited success with single membership. It just depends on the plaintiff. Whoever the creditors is going to be.
Sometimes it comes down to the attorney, What is the attorney going to do?
Like, how much was he paid, and how much money does he have to go to try to collect? And as he think he's gonna get some money, and it's a single member LLC, and so yeah, he's gonna ask the court to attach it.
And then he's gonna make the argument that the dead or the defendant is a 100% owner, but it's on the articles that shows you and your brother and it's too different.
It's not, you know, husband and wife.
Are you and your friend?
That's going to stop them.
So that's going to prevent a lot of waste of your time and cost properly, right?
The innocent party, PMA works fine also and the trust works fine.
If you have a trust that works good. You're not going to run into many attorneys. And I should say. Let me give you a statistic.
I'm just gonna say under 10% about that, under 10% of attorneys of any creditor are going to take the next step and try and challenge your interest in accompany using the articles.
Very small number because it's expensive to do that.
Yeah, it was just just a car accident I've had recently and, you know, there's billboards, all over town with injury attorneys.
Yeah, Yeah, yeah, mitigate that. No, that's a thing too. I mean, that's what they're gonna do, and then when the client comes in, they want us to your right. The client comes in, and the first thing the attorney is going to do is, what's the guy's name, right? They're gonna say, Show me the police report, and they're gonna use your driver's license information to pull your credit.
They're gonna do an asset search. Sometimes, you know, if it looks like it's a good case, a good case for them, right?
So, certainly, you want to show that the important things you care about or you don't have exclusive rights over.
That's the game property rights.
Yeah, one time I was, it was, this is about 15, 20 years ago.
When I was, I was in, I was in Atlanta, and my wife and I was our nine o'clock, it was dark, and we were looking for some real estate or something, or visiting a friend. And we're ligatures I, and so we're deciding, I'm gonna go left or right, and we're at a red light leaving a grocery stores parking lot publics. And so we're gonna go left and then she said, no, let's go over here.
So, so I'm very careful when I backup so I look back, you know, and it, and I backed up and I was backing up like this. Right.
I'm sure you've done something like that. So I'm, I'm looking at, you know, over the seats everything. And there's nothing behind me.
Crash the my vanitas guy that was this close like bumper.
And the guy was driving a black sports car. Now I'm in a minivan in his cars like you know, two feet off the ground and not really small.
He's under my viewpoint and lights off and he's sitting there. Right. So I felt bad for the guy. Mean I want to crash into, didn't really hurt my van that much, but I heard his, I figured there's probably a thousand dollars for the bears.
So, I, you know, I got out, We're talking, and I said, No, this is private property, So you're not going to have any luck with your insurance company. But I'd be more than happy to split the costs with either to repair your, your damage. After I saw that you'd have lights on, and he wasn't paying attention, you have to close to my car, right? At first, I was going to pay and everything, because I felt bad form, because I figure is only one thousand dollars was a thousand. But anyways. So, he's like, no. I gotta call the insurance company, and I'm self insured.
So, it's not going to cost me anything, really. I mean, if you, if you want to make a claim on my insurance company, I'll just say to go pound sand if I don't like, you know.
So I told the guy like, it's not gonna, it's not gonna affect me. Because I'm self insured. But if you call your insurance company, your rates will probably go up, and there's no need for that. I'll just pay you, just send me a bill, you know, give me a couple of estimates, and I'll show, I'm sure it's reasonable.
And, you know, he's like, No, we gotta call the police. Because the police, please come out there, and they're like, We can't do anything.
It's property, And I said, I told you that private property, and then I said, No, I gave you an option to do that, and I'm gonna withdraw that offer Leaving, have a nice thing, I'm sorry, you know, and I left, and so we exchange information everything, and then I get a bill from his insurance company, my company got a bill from his insurance company for $950, which I completely ignored.
That was the end of it.
Because I could, do, I'm the company, can I cancel my insurance policy?
So, there is a downside to it.
There's a downside because you gotta get an attorney and stuff like that sometimes.
Anyway, tycho every month You self insure And something happens, you just cover yourself or Yeah, that's the, that's the downside is I'm willing to take on certain amount of risk now I am a safe driver, so I'm betting on myself and So far it's been OK, The thing I'm not covered for, it's catastrophic so the way I would cover catastrophic is with credit.
So I would use credit cards to cover catastrophic, um, like a broken arm or something. Hopefully catastrophic as it gets, I mean, if it's, you know, if any brain surgery in a quarter million dollars or something.
I'd probably end up having to, I could probably use some credit and probably I might have to sell assets or borrow against or something like that, right?
So I'd have to make other arrangements. So I'm not really in a great situation of, is catastrophic.
So just realize that there is that aspect of it. But for the, you know, the other aspect is if I want to deal with Geico or something, they don't take me seriously unless I have an attorney. So it's a little extra work.
But we, we have my wife and I have a couple of collisions, where it was always the other person's fault. And like I said, I bet on myself.
So usually, if I'm in a collision, it's the other person's fault.
And in most of the cases, we just got to check. It was so easy that the insurance company just send us a check for 10 grand, or whatever it was, and it covered everything.
So, in that sense, you know, my guess is right? Although it's not the best situation to be in, I probably should have a little more coverage.
But, um, So far, it's worked out in my favor. I like that way.
I don't really care for everybody, but, yeah. I hope they don't try to become one of those billboard people.
Mean, I wonder, I saw in the other day, was like, just outrageous amount of money in Florida. We have a lot of them. It was like $8 million. Normally it's under a million, but this was like $8 million and I'm thinking, gosh, you know, the guy standing there and he's got a picture of me smiling. I'm thinking, man, I would think if I got an $8 million claim I'd be like, oh, maimed and stuff like with no arms and distorted. But the guy looked happy.
So, that's more important than $8 million, but, hey, you got $8 million to say.
Yeah, I've got another question.
Uh, are you concerned with entities entities with bank balance? Roseanne, outside the purview of this entities matter, if you have an account, through a company, or individually, you're all at risk. We are all at risk.
So, you take what precautions are necessary.
So just think of it like you left your something that's valuable to you in the care of your kind of college buddy, who's not very trustworthy, but you've known for a long time.
Like that, so figure out what amount of money is, OK to risk, like maybe it's my monthly living expenses, and the rest shouldn't be in the bank OK, so there are good alternatives to put it.
precious metals, OK, and I just did that. I just got, I took cash I'm not going to use now. I do have kept so what I did is, I have cash set aside that I can use for the whole year if I have to.
It's interval in my possession.
The rest of it is in precious metals that are not allocating yet. And this is not a good thing.
Not to have it too long in precious metals. So, I do use precious metals, but it's in the meantime.
So, I'm in the middle of purchasing some assets.
So, but it's out of the banking system, and it's pretty secure. So, that's what I'm doing.
There any things like brokerage accounts that are exempt to those laws, and, you know, of, there might be and there might be some solvency. things that were solvency things that would help you'd like. For example, credit unions and state chartered banks.
But, for me, I like to be very simple and say, You know what? I don't trust any of them.
I just act like they're all the same.
Because why not?
Mean, why should I try to calculate the risks, and why should I think that I know something, if I can look at my credit union's balance sheet?
I don't know what those guys do in the background. I don't know what deals they got going on.
I'm saving my money out. And so I don't mind having 10, 20, 30 grand in a fault, or in a shoebox or my freezer or something right?
That's where that's what I would do.
And sometimes, I mean, I'm not saying this is the best way to do it, but if you don't feel safe keeping 30 grand, maybe you should pay your length up for the year and maybe you should pay your rent for the next three months or mortgage or something.
Not a year, but I'm three months and store your cash going forward with your liabilities on I just it just in my business, I have a lot of money coming in and I count.
I'm wondering you know, and something almost can avoid that because it's your operating capital C cap You gotta let that work But sometimes we have a surplus of just hanging onto know you you accumulate it outside the bank Whether it's going to be in cash or gold? I don't know what you want to do for business. Do you have other interested parties in your business? You have a partner, or something.
No, No, really, I'm just, You, Yeah, In my LLC, or corporation, ..., and my wife, but, yeah, So, just look at it, in terms of, Answer, this question, What would I do?
Regarding my business? I couldn't access my money.
I can see it, but I can't access that summary.
What would I do?
I guess, I look, I want to, I like my Voyager account.
Yeah, so, maybe running a business, it might be like, it was, pre pre world War II. Maybe you would want to have enough cash to handle some things for three months.
Oh, I know that may not make you feel comfortable, but that may be better than that, and then not touch it.
Like, it's set aside somewhere, and then you don't touch it. Now, I'm done that.
I've taken cash and set it aside and tend to forget about them. In operating capillaries, I guess you just gotta hope for the best because you operate it could be 100,000 a month to give you 200,000, and I hate to say, but.
if it is, that's what it is.
Do the best you can.
Elaine, you had a question. Yeah, I'm talking about banking, that Infinite Banking Concept thing they have said that they're not subject to Balan. OK, talk about that, that's a good point, OK.
Notice, I didn't I just didn't, right Yeah. Now, notice, I didn't mention that. Now, here's what I recommend. Now, right, now, I'm looking at buying assets. I'm looking at buying things.
So, I'm not going to tie my money up there.
If I had a large amount and what's a large amount, it's going to have to be at least several million dollars that I'm not going to do something with. I'm not going to buy assets, not going to allocate it.
Maybe I'm going to use the two or $3 million to manage some risk and some assets I am gonna buy.
OK, so I would then use the Life policy and the whole life policy, Infinite Banking, and with the idea that I'm gonna tie this money up in a policy, I'm gonna fund the policy and I'm going to do it for a long time, like 20 years and then that 20 years, I'm going to borrow against that policy as much as possible to offset as much risk because I can.
That is how I would use it.
It's not a place to store money, because, right?
When you find the account, you're going to, you're gonna pay a commission off the top.
It's gonna cut back, you know, you're gonna make it back, But it's going to be time.
And so, to really make it worth your your time to really recover that cost, it's going to the logo in there, and you're borrowing against it.
That's going to be the best use of money. And so, for me, right now, that's not a solution.
I wanna get out. It's like, for example, if I put cash and an asset, the way I look at it, as I'm gonna manage risk by borrowing against the asset, or I'm gonna get loan money first.
That's how I'm going to do it.
Otherwise, I can have the life insurance and then borrow against that and then make my return on that, you know, percentage and then also my return on my asset and have tax free and all that stuff.
But for the long term, and right now, I'm not ready to do that.
So, Where can I learn a little bit more about borrowing against an asset to manage risks, like, Can you recommend a video?
OK, you've done, I don't know that, I don't understand that concept at all, but I'm like totally ignorant about this. Well, let me just give you one.
Let me think for a second, but I'll just share a conversation. I had with one of my clients. The guy's a high net worth any.
And he made a lot of money, Kryptos And he told me this last year, he said, Man, I'm never going to sell my group, does. I'm just going to borrow against him. And I said, Exactly, that's what everybody should be doing.
You should never sell the thing.
It's not that it's an asset. It's something you can use.
So the crypto coin is Kit should be used as collateral. That is probably the best use for it.
If you're gonna use it for investing, just like gold should be in spite of the volatility.
Well, once you get a collateral agreement, you got the agreement, right.
Whoever's going to take that risk has already factored that in. That's his problem.
You've got the cash, now that you can go into another investment.
And once you do that, you've got collateral over here but you don't have collateral in your app.
So it's interesting to think about that.
So that's what you do. So you want to borrow against your coins, so you want to find a platform, there's a service and there's a list of them right now. There's a growing list of it that will take your coin, put it in their custody.
And there's, there's conditions, I don't know, all what they are because I don't use it right now, but once your coins are in their custody, you don't lose the coin.
It's just collateralized or whatever they do with it and then they give you the credit that you want.
So maybe I don't know if it's 50% or something, but they'll give you the money that you need and you'll figure that out.
So I don't know what you're gonna look like, I would, I would search on the internet for crypto, coin lenders or lending platforms and see what you find.
What you want to end up with is lateral agreement where the coin is the collateral and you get the cash.
And the reason why I can't give you more specifics is because I don't do that and I haven't done the research on it, but it is.
I think it's a good way to go, OK?
Don't sell your coins. Always borrow against them.
But if you don't sell it, when it goes up, then you end up holding nothing, when put into a stable coin.
J is saying that, he these stable coins are gonna get hit really hard with some nasty scheme. I think he's right. I think it's going to be a KYC KYC type scheme.
Yes, that's why I just got out of a bunch of stable coin. I had it there for after I took a lot. I took profits. I made a good a good money and I've been looking for a thing to buy and I finally found it and I moved it right in there.
So now it's it's in the asset.
I totally am out of the coins except for I have a small amount of coins That are still in some coins, you know, But yeah, they are going to do some access to them.
Right, guys, this I'm gonna end This is quite quite some time here.
I appreciate the questions and participating in this And you guys have a nice weekend look forward. Thank you so much, John.
1. The session started with a Q&A on financial risk strategies, where participants were encouraged to ask any questions they had. The discussion was largely unscripted and open-ended.
2. A participant discussed the process of setting up an LLC, considering using a registered agent’s address for privacy reasons.
3. The speaker emphasized the importance of ensuring the EIN approval letter names the company with the LLC designation. A different entity type, like a DBA, could complicate matters.
4. The topic of Private Membership Associations (PMAs) was explored, and the speaker mentioned their potential in managing assets and liabilities outside of the participants’ individual personal abilities.
5. The idea of creating a separate company to act as an escrow agent was brought up. This would allow for loan qualifications and payment processing without affecting the S-corp’s tax status.
6. The speaker discussed strategies for reducing tax liabilities, including directing income to different entities and controlling cash flow to avoid tax obligations.
7. Participants inquired about transferring personal assets such as cryptocurrency to an LLC, to which the speaker suggested creating an LLC and documenting the transaction to determine its nature.
8. A concern was raised about managing a LLC’s finances, particularly in relation to accruing income and business expenses, to which the speaker advised careful handling of such transactions.
9. The speaker recommended using New Mexico’s Secretary of State online services to handle business affairs, demonstrating how to add a new member to an LLC’s articles to mitigate financial risk.
10. A discussion took place about protecting assets from creditors and the expensive legal process involved in challenging someone’s interest in a company. The speaker emphasized that this step is seldom taken by creditors.