Hi, everybody. Thanks for joining this, John, Jay, today's September the eighth.
And I always forget to mention the different websites where I have information, so I'm going to do that. You can go to ... dot com if you're new to the channel, new to the content of coins dot com has a place where you can schedule calls with me. There's there's calendar up there. I believe there's also a helpdesk function. At the bottom right.
The help icon kind of floats with the pages that you go to. There's lots of articles there too. Mostly what I'm doing lately.
Is just videos, so you're not going to see recently published articles on in writing.
Then also, we have the video membership, as many of you know, the privacy fight dot IO, and that has a lot of the content and segmented into kind of beginner content. And then people that are investors and have a little bit more sophistication. So, you can see things there. Also, I try to publish some content on YouTube. I had a limited, but I do like to put some content there, But a lot of the content, a lot of the good detail, I like to put in the membership area. I'm happy to if anyone needs without joining a membership, you're welcome to ask me for something, If I have a video that I can get for you, I can I can send you that I can also send you document, so I'm happy to do that. It's not like, you have to join the membership and then, you know, see what you get. So I'm happy to share things like that.
But what I wanted to do this evening is, I'm sorry. I guess it's probably going to be, I'll sound a little pedantic, boring, pragmatic, I don't know.
But I wanted to show you an example of, um, what it looks like for residency and how you treat things, and how the worst example of a state income tax type agency operates. Which is California's a great example of what you don't want to be involved with. OK. You don't want to be involved with the California Franchise Tax Board, OK? But I thought, this is an interesting case I ran into the other day.
It has to do with, I'll just summarize real quick, I'm gonna do a screen share here. I'm gonna walk you through this, but I thought it was interesting because the Attorney General, at the time, this case, I believe, it was like 2010 happened to be Kamala Harris.
And she was, she was advocating why the California Franchise Tax Board could tax an LLC, when it was operated in a way that didn't create a presence in the state. And I'll get into that. But I just summarize by saying that this is why and how I create LLCs all the time for this worst-case scenario. So, if you're in Ohio, you're still gonna get the same type of treatment is if you, I'm trying to export you from, or your business or interest from California. Because many times I can export the operations that you're managing, or that you're profiting from. I can export it out of the California, and avoid the Franchise Tax Board. And you're gonna see kinda the inner workings of why that, why that is, can be the result here. So I'm sorry, an ahead of time if it's gonna sound.
I don't want to sound like a professor, but I just have to show you this and you know, I'm going to show you the layman's version first, just the article to kinda summarize it. But I just thought it was interesting that it was Kamala Harris. So, let's see if I can jump over there real quick.
Here we go.
I called it notes.
Yeah, there we go.
OK, so, I'm staring off into space, not really, I've got a second monitor here. So basically, this is where, OK, so this is reported in 20 17, so there was this, this went on for quite awhile.
But basically, um, there was a non resident of California, OK, and it was not, it was not doing, or he was not doing business in California. So, therefore, there's no liability.
So, what I'm talking to someone, who's, for example, let's say you got some real estate there, I can do, I can export the cash flow. I can export that real estate.
So, we can have a company that's outside of the state of California, The banks don't like this For you, you'll see why here. That's why the banks, by the way, they try to get you to be a resident of the state.
It's like this battle going on, but I can take a foreign company from the state of California, and I can own real estate, real estate with it. I can also live in the state of California. And there's different associations I can have with that LLC, and I can legally avoid the tax consequence.
So Kamala Harris here is trying to reach in her, reach outside of the state, to impose a tax on an Nevada company.
And what's interesting is, I mean, this kinda tells all, if you look at the State Income Tax agency for the State of California, it's the California Franchise Tax Board.
What's a franchise? Right? It's, what do you call it? A creation of, OK, it's taxable anything that has a franchise of something else is subject to the control of the thing. That created the franchise, Right?
So If you have if you are, you know, so willing to pay the $800 filing fee for your company, LLC, or whatever you want, and you pay the state of California, well, then you're a franchisee, alright?
Just like California has deals with all 49, states are no, 40, What would it be?
47 states to notify the California Franchise Tax Board if someone is using a Californian adress when registering a company in another state.
Because what will happen is they'll use this here.
And they'll try to, you know, create a tax liability.
And if people don't know this, or if you go to an attorney, and He, or she doesn't know this, but I'm going to show you right here. He's going to say, Well, just file and pay, right?
So, um, someone already did the hard work for us. But it was, the case was sort enterprises, Inc, versus the Franchise Tax Board.
And it went to the appeals court because the Franchise Tax Board lost in the trial court and appealed it and lost again.
So, this is the article. I mean, you guys can look it up, if you want.
So, here's the conclusion.
So, swarts, so think of it like this.
Think of it like, you're using an LLC for a thing, and you're sort, OK.
So, what sort did is, swart, had a company, that, an LLC, that owned a share, it's a very small share of another LLC. It just worked out that way. He was truly or swore it was truly investing in this L or L Z I think sort itself wasn't LLC, if I remember correctly.
Yeah, so it was a passive investment.
Now, you can create that situation in almost all conditions, but it just turned out to where this is a really nice ideal, So, so, we had no interest in any specific assets of this company that was in California. So, because it had an interest on the record in Nevada for this California company.
The State of California was saying, Hey, you gotta come over here and pay your share, too.
And, and it sent the way it worked is the California Franchise Tax Board said, oh, for $800, two, this company, all right.
Which ultimately, the company was not liable to pay, right, but it paid.
So here's the thing, so it paid, and it filed a tax return, And then it paid a tax of around $1100, OK.
And, um, this allowed swart to then get a refund. But in order to do that, it gave this work the right to sue, the state because if he if it didn't pay or if he didn't pay, then he would not have been able to sue for the money back. So that's what they do. They make you pay the tax that's not owed in order to sue to get the money back.
So, anyways, sort, did that. So then, on point to the conclusion was that sword had no right to act, bind or B or be liable for the obligation of the LLC. And this sounds kind of like conversations we've had, many of you have had with me, how, you know, what kind of relation do you have with the company.
Well, a lot of times I set up the ownership to wear, I'm going to redo here. I set up the ownership to wear.
You're not having the exclusive rights, OK? And so it creates a situation like this. What you're seeing here?
So the court, here we go.
So the court is looking at this setup.
Now, someone else thought of it, right? This was someone else's understanding, which is exactly how I do things.
Someone else arrived at the conclusion that there is no exclusivity there. I'm sorry, I keep missing this document up. So there there is no exclusivity. Therefore, there's no liability.
If the manage management of the company is outside the company, or the management of the company is inside the company, but shared between two parties, then there's no liability specific liability for any one individual and you'll see in here how they tried to.
They tried to just proclaim that the ownership in Swart created a partnership obligation to the state. And the court said, no, we don't think so. And then the third one is, well, here, let me just go. the sword had no right to act, binder be liable for the obligations of the LLC, OK.
And it was specifically prohibited from management.
Now, that is not the case with what we're doing, for the most part, because ultimately you can say you're not the manager, you can say you're distant. But if it turns out to where your activity in relation to the company's managerial, OK, then then it is fine. So far, we've not had any problems with that.
I don't anticipate any, but I'm just saying it worked out perfectly here because that's actually how it was set up. In fact, I think what they did is swart took $50,000 and put it into the membership interest of this California LLC, which amounted to like 0.2% of the interest.
So that was a real, no good example.
Number three was that the California LLC was a manager managed LLC. Now, the ones I set up are member managed.
I just do that, because it's just easier to deal with the banks. It's easier to get your EIN, it's just easier to operate for many of us. Sometimes, I will do a manager manage.
What that means is, someone who is not a member only is the manager and has no financial interests, like ownership interests, but it has been given the authority to do ownership type activities with the company, OK. So, that's what, that's what was going on here.
And because of that, under California law, a member who is not a manager in a manager managed, LLC has no authority to manage.
And then there was no evidence that sword actually conducted any management activities for the LLC. So, it's kind of like, it almost operates like that trust, OK, you guys want to get that trust situation, that's almost how it is acting here.
And this is really good.
Doesn't saying, this is a great case, because this, this party, Swart, was a very good example of a passive investor.
Like I just said, puts 50 grand in there, as a percent interest, has no voting rights, has no liability, and does only that, he didn't open up a shop or something like that, OK?
So, let's see, I'm not going to go to front of that, but I wanted to go.
OK, let me, let me just get out of here real quick, And I'm going to, I'm going to go back to the article.
So I'm going to show you what, I'm sorry, I'm gonna, I'm gonna go back to the actual case.
Let's see here.
All right, let's close this.
Here it is.
Not too fast on this stuff.
Here we go.
And you can look this up, I just Googled it, and there it was, OK, so, I'm not trying to bore you with case law, but I really liked this language here, because if you want to learn, this is going to be a great tutorial. If you have the patience to read this case.
You're going to find out that really the language I use is that I'm I'm creating non residency situation, non residency.
So, by not having a real active presence in a company that is connected to business in the state of California, the state cannot impose any tax obligations.
So what happened with sward is that all the money was returned, that it paid. It got $800 back, plus the $1100 in taxes.
So you see here, Harris Kamala Harris, I just thought that was interesting. She was advocating for the California Franchise Tax Board, as you would imagine. And so so here, what are the, so there's this saying that the Franchise Tax Board imposed on every corporation that's doing business.
It's very specific whether or not it's incorporated, organized, or qualified or registered. That's interesting, isn't it? So, it was trying to reach out into Nevada. I believe, I don't think Swart was a California company. I think it was after they sent the bill.
In order to fight the case, they could have ignored them, actually. But, you know, they probably went to the attorneys, and attorneys says, yeah, let's fight this.
And the phrase doing business is where we get into it for purposes of the franchise Tax means actively engaging in any transaction for the purpose of financial peculiarity gain or profit for Business. Right? And you can look this up California Code, things like that.
Now, I know many of you are actively engaged and things like that. But on the record, it doesn't appear that way. Or it's plausible to say that it's not. And you're never going to be on the radar anyways, because of the way we set things up. I mean, if you come to me, and you said, you're in California, and I'm going to set up a company, I'm going to be very sure that the application does not include your California address on it, even if I have to make one up. So, that way, there's no, and I made that mistake years ago. I learned a long time ago, and that's why I don't do that anymore, But this goes to show. This is how it operates.
So, the issue before the court is whether or not the franchise tax applies to an out of state corporation, C And who's whole, whose sole connection with California's this small percent, right?
In a Manage Your Managed California LLC.
So, swart was a foreign company in Nevada and it owned part of the California LLC. So, here's the court says, holding 0.2% ownership interests with no right of control over over the business affairs of the LLC does not constitute doing business in California within the meaning of the statute. And so we, they affirmed the Court that ruled against the California Franchise Tax Board.
Now, in order to get to hear, to discover, because I know a lot of you are thinking, Well, I'm exercising a lot of control and you are.
And yeah, if there was a test, there was there would be a plausible scenario here. The problem is they would not be able to assess attacks. Because of the way this is this is structured. and I don't want to get into too much complexity here.
But it is something that has to be discovered about, with no right of control over business affairs, or the LLC that takes that, takes months, and possibly years to reach factual discovery.
So, you guys would be way long, gone, OK, and that's why I've never had a problem with the way we do this stuff. So anyways, yeah, so it looks like, OK, swart was a corporation, and it was a family owned, and all this thing.
So you can see the story here, but they put in 50 grand, and then incomes the state.
So, and here's what they're, the Franchise Tax Board was arguing, hey, you gotta, you gotta pay your 800 bucks to, 'cause you're if you're effectively connected, or you're involved in a connected or active business.
And, by the way, I mean, it wasn't enough. I think they even went ahead and issued a, um, some sort of letter ruling, just to just to nail it in. I mean, you know, the agency, the Franchise Tax Board even wrote a little memorandum, or some sort of letter ruling, trying to even give themselves more power plausible connection to these types of organizations, and the Court said, No, no, no, no, it's not going to work that way.
And so, Sward argued that it was not subject to the franchise tax because they held no other investments in California. Did not otherwise do business in California.
So what if you have real estate in California?
It's investment real estate, and you're, let's say it's rentals, let's say you have eight rentals and you have a property manager, and the product manager of course is going to be in California more than likely. And so there's this normal thing that you do. And typically, you're going to do an S corp or something A CPA will tell you to do. If you want to export that situation. If you want to get out of the state of California, you can still have the property ownership, the property title with a California company.
That's one way to go, and you can process your payments outside the State of California's, so the transaction actually occurs outside the State of California. And then you have the freedom.
two, be taxed on what you decide instead of being taxed on everything automatically. You can export that liability out of the state now.
I know if attorneys hear me say this, or worse or CPAs, they'll say, No, no, no, that guy is crazy and maybe I am, but so far, it's always shown to be legal.
And it's always shown to be acceptable, and doing things like that has never created a problem for anybody I've worked with. So I could be wrong. I doubt it, in this case, but I just wanted to share this with you. So they're gonna argue this. So what they did is they paid, and then they sued, OK.
That's just how it works, and then the, the analysis of the Court was that, the company was not doing business in California, the Attorney General.
OK, Kamala Harris says, Swart was doing business in California because the California company that it owned to 0.2% interest in, elected to be treated as a partnership for federal income taxation purposes.
Now this goes along with how I tell you guys to get your EIN, and explained that. The way you get your EIN is just by getting your EIN, saying almost anything, and I do give you a guide as to what to say, but you can't mess it up. You can just say anything you want, because the way you apply for an EIN does not create a tax liability or tax classification. Just like the court is explaining here.
It's just another example of that the Court is saying here, that because the Californian company was considered to be treated as a partnership for income tax federal income tax purposes.
And because the California company was doing business, so is Swart, and then the court says, now, um, we are not persuaded, like how they said, All right? The Court, We are not persuaded by tomorrow, Kamala Harris, OK, I swear it may be deemed to be doing business in California because it owns 0.2% interest. Swartz only connection to California was a mere 0.2%. It was passive, no managerial control, it held during the tax year, the franchise tax was imposed.
And then this interest closely resemble that of a limited rather than a general partnership.
And so as, so, the Court was going off of the actual transaction. So this can work for you or against here. So just be aware of it. Like, you can try to conceal things and claim your this and that. But ultimately, if someone analyzes the way the money goes, because that's what you do, You look at where the money goes, and who has what authority, and who did what? It doesn't matter, even if you have an operating agreement or contract, Because those terms can be reverse engineered. If someone really wanted to do it, I mean, judges can do it. They deduct. The judge can appoint a special master and have someone look at your books and records and all your bank transactions, and say, well, we've determined based upon them, where the money goes, and where it comes.
Then you are the boss, and you are the owner. It doesn't what you call it, doesn't matter what you call yourself. So in this case, it worked in favor of the person that should not have been tax, which Assort, which is a company.
So there's this only connection, and so they're saying, based on what we observed, it was that of a limited rather than general partnership by the fact that sword had no interest.
And it was not personally liable for the obligations of Cyprus.
So, it had no right to act on behalf of, and most importantly, it had no ability to participate in the management and control.
So because the business activities have a partnership, cannot be attributed to limited partners, swart cannot be deemed to be doing business, All right?
And so forth, and so on. There's more discussion here. I don't want to go too far here.
Let's see if there's anything I don't wanna miss, but, yeah.
So, this is a nice case to hang on to drink California. or, you know, if you'd like it that way, I'd just like to stay away from California. They need to get some things right over there, they've got big problems.
Yeah, so I don't want to drag this out but here you see, this is the discussion the Court has explaining itself. And at the very end, it just says we affirm?
It says, yeah, Kamala Harris is wrong.
So where it was right, you guys don't get any more money. Oh, and by the way, give their money back.
So that's all I wanted to share with you.
I hope that wasn't, you guys, I guess awake?
Is it, does it remind you of your history class in high school?
It was good. All right. Oh, OK. That's very nice of you to say. I Most needed even thinking I'm going to talk about that, but I just wanted to show you that It's an this is an example of an action, right?
Someone else is doing a kind of thing that I do, and That's how it turns out Most of the people I work with are not running like you know a big multi-million dollar operation, but still the concepts are the same.
So any John? Yeah.
Yeah, so on that you kept bringing up the fact that the That it wasn't Member managed and and that that that case law was saying that also it that score wasn't being run by the members.
Um, that it was like truly a passive entity mm hmm under Cyprus LLC, So how much how much would that change the ruling?
Do you think if, if the members would have been actively involved, would have, would have that, put it in the jurisdiction of State of California Franchise Tax Board for doing business?
I think that it the court would have had to determine to what extent there was management control, even if the operating agreement establish what the Court concluded.
Yeah, but it wasn't being run that way.
The court would have still discovered, Hey, wait a minute, you aren't even operating, but what's your Operating Agreement says? You're doing something else. Yeah.
The court could, and to what extent, and then you have the other issue of, OK, so, let's say we are liable all right, to what extent I mean, yeah, I mean, then you get into that issue, right?
Yeah, got it.
John, I've got a quick question for you.
Did you, I don't know, I just kind of heard about this. I don't know much about it. Some of them maybe can educate me, It's the Executive Order 14067.
What's that, Dan?
Is that the President's? That's something, yeah. Ensuring the responsibility development of digital assets.
So, this has leads to the creation of new legislation. That's what they're trying to do.
Right, I mean, from what I read, I read so far, I didn't see anything to, like, I don't know if the words dangerous, but I do see them kind of teenagers. That's, yeah.
You know, and this is recent, I believe so, 1, 1, 4 0, 0, 7.
Yeah, I see it here.
I mean, you guys can Google this in one second.
OK, so this is in March. Alright, so nice to meet this. OK, so, no, I didn't read this one. This is OK, so I'm gonna scroll down.
I thought this was more recent, so it seems like I don't think anything much has changed then.
OK, well, let me just just for curiosity sake, I'm gonna go over to the bottom and see if there's anything in section four they, they talk about how they're going to manage cryptocurrencies and digital assets and and stuff like that. So, OK, so I wanted to show you guys something.
All right, Thank you for bringing this up. Nothing's changed, I mean, there's no law that's changed, but let me just show you.
OK, so I'm gonna.
This over here, right?
I'm going to share screen in a second here, OK.
So, so this is what I do. The first thing I do, it's interesting because I just kind of make fun of these creatures. So you got this creature here in March and so I don't care what he says here. I don't care. He says, hey, I don't care. He says here. And I'm gonna go all the way down to the bottom, and this just goes to make my point.
What do you think that means?
You're like, yeah, yeah. No. Legal force, or effective law.
Yeah. So, it's just like an executive order telling you what to do but like also, there's nothing to back it up. So if you want but we can't make it. So, I just loved the, you know, point this stuff out.
I mean, more people would read me Like, I'm talking to attorneys and recording commentary on the EEOC website, I'm talking the fake pandemic stuff.
And an end, they're, they're quoting to argue with me. I'm, I'm quoting a case citation and I'm quoting the statute from a federal law and they're quoting the commentary from a website. It's a, my response is, Did you bother to scroll down and see that everything on that website has been disclaimed?
Did you read the disclaimer?
It says, We don't accept. Any responsibility for legal advice and medical advice given on this website.
Got about that one didn't. Yeah. Hmm, hmm, hmm, hmm, hmm. So section for policy and actions related to US Central Bank, digital currencies.
CBD, see, wow, they're bringing that. Now, see, you see how they get us talk in this language, they introduce these terms and now it's like we just keep on talking about CBD. See, pretty soon I'll be like the other day? I was trying to say I'm like, What Was that? Called DCP? What was that? The more I see, I'm thinking Yes, CBBC, Sure, I could talk. I could say that washing. Right, yeah. I get to talking to accounts, which are really smart people you know, they're very educated men, you know, and they, and they are there, so on. like.
OK, if I could argue with you, You know, but they're quoting all this stuff, and I'm like, Well, did it ever occur to you that?
None of that matters if I don't have the property rights.
That created the obligation in the first place and they're like, Oh, right, and no, I I did fall fall asleep and accounting which I almost took in college, so but yeah, I mean, it's good to have that knowledge but you don't get fooled by it.
So sovereign money is the core of well functioning yeah. Sovereign money. Well.
I'd like to see some sovereignty, first of all I mean, how do you have sovereignty when you you oh, everyone in the world and they hate you and they're about to destroy the silver market that you've built up?
And used to pillage countries. Now what? How do you have any sovereignty, then?
Well, the whole fiat currency thing, is debt based, right? Uh-huh, Yeah.
C, D, C, C D, Niger Central Bank Digital Currency. I can't get the letters, right? That it is the same as V at currency, except they're going to be able to track you and shut you down. That's right, and they're going to They're going to call it a dollar. If they don't like what you think, or you know, who you support, how was it a dollar?
When they took the gold out, that was no longer a dollar, but they kept calling it a dollar, So they created a whole new economic system.
Then, we just kept calling it the same as it was before, but that's not, we don't have 100 year old monetary system. We have about a 20 year old monetary system. And it's been renewed every 20 or 30 years.
They created a whole new economic scheme.
Know, they brought, They doubled the workforce, right, and fifties, and sixties and seventies, and so forth, and so on, that they they used our military and foreign countries to. No force forced the oil, Tabak, the dollar and our military, it back to the dollar and so forth. So, yeah, interesting. But, yeah, I thought you'd like that. They didn't have any authority in the first place.
Anything, anything interesting out there?
You guys want to cover, um, I mean, really, we're talking about the, I mean, there's a lot of good stuff on this crypto.
What do you guys think?
Is a good thing? Should we do it, tweak, participate, we advocate, we should not, we should not protest it, I think they're going to force it on us.
Well, maybe not.
I look at it like just a, it's a good tool. I mean just like a chainsaw I'm not gonna use a chainsaw to, you know Cut my steak at the dinner table. I'm going to use the tool for what it was designed.
If someone wants to use a blockchain, no open ledger or something that's immutable to connect my biometric data, I'm gonna, I'm going to refuse. Now, for some people, it's going to be difficult because they're gonna have to do it as a condition for employment or something. And I don't know what kind of defenses there are that, you know, when they're gonna, they're gonna claim that we can secure your medical privacy and your financial privacy and your credit. Oh yeah, they've really done a great job so far.
Right? But they don't care about that.
So, they're probably just say, yeah, well, we have a law for that.
You know, you ever read the Privacy Act, 70 of 74.
Now, I was in my, I had a lawyer when time, way back. It was like, 20 something years ago. I hired her to do a case for me.
She's a fantastic job. And, I was sitting or office one day, and we were both privacy advocates. In fact, she had. she had written her thesis on privacy, in fact, the Privacy Act of 1074. And we were laughing about it, because I said there were, doesn't it just pretty much outline what privacy you don't have. And that she's like, yeah, it does, actually. That was my thesis, in college. I mean, it's just basically says you don't have any privacy.
They call it the Privacy Act.
But, yeah, I mean, I think this technology so it's not like we have to use Monero.
But I think from what I heard at least at least a couple of up to a couple of years ago, the most commonly used cryptographic currency on the dark web, Know, the dark web is that sinister place of, you know, all the evil, right? Those who want privacy, those who have something to hide. OK, but the most common, cryptocurrency, is it was bitcoin.
You would think it's Monero.
But, Bitcoin is just as good.
You know, if you know what you're doing, so, they're gonna try to push us on us, but I would just recommend against biometrics, you know, don't let that be connected in. I don't know at some point we're not going to have a choice that's going to be, you know, you can't buy or sell right. Because I know in some jurisdictions they're using already the QR code on the phone.
I don't know. For purchasing things, you mean? Yeah. I wanted to go use it the other day. You can do it if you wanted to.
Some merchants will allow you to use a QR code to buy things on your phone.
Like, I think your Apple wallet is like that.
So, I don't see that it's too difficult to bring in the C V D C And still call it the dollar O, and it looks like a QR Code, and it has all your personal information on there, your eye color license. What do you think do you think they're gonna?
I mean, do you think there gonna allow comp there to be competition and you know, to to their version of bitcoin or I'm like I've been curious like is the is the private Like entrepreneurs, is that is the private marketplace?
Going to use an alternative to their Bitcoin, or they're going to keep using Bitcoin. Like, I would like to keep using that. Yeah, yeah. I would expect that we can still use the coins that we like, But I do believe that it will be treated, just look at the trend.
What has been done with a dollar, every time someone comes up with a new unit of currency.
And by the way, it's got about 60 functional currencies that are being used right now, in the states, and but they are tolerable, the government lets them do it because people are assessing their taxes in terms of dollars. So, it allows you to, as long as you're doing that, they don't care if he's gold and Silver and tokens are shells. But, yeah, I think that the trend is going to continue at some point. I think even cash is going to be considered illegal. Or, if you're using cash, you're already a suspect in something. Yeah. That's true. I mean, and so, that, Look at what they've done.
It doesn't take me to tell you that I would just look at what they've already done. And they're going to keep on doing it.
And at some point, they're going to say, well, you're using you, can use all those other Kryptos, but we want attacks this way. And you're going to have to account for they're already doing this right, this is why we were having this conversation, And, you know, they can get away with it.
They can no, they can they can measure value from a barter transaction in terms of dollars.
And you can be subject to the tax on that, If they can see it If there's a third party involved, you know, second party, or well, but, yeah, the trend will be the same. So I look at it like this.
It's just like, um, You have to you have to take back your privacy. You have to exercise your right if you just go along with oh, well. I guess we have to do it this way now, because Joe Biden said, so, in his Executive Order, well, then you're going to change the way people do things. And, for me, if they want to force me to use, you know, QR code, I'm never going to do that. First of all, I want and I won't even use my phone at the restaurant when they, you know, they're trying to get rid I won't either. Make them bring me a menu. Yeah, So far, they still will show, at some point, they'll think I'm from Mars. You know, because their kids, I mean, you know, the kids come over and they're doing this the whole time, you know?
And so why aren't you doing that? I'm doing that.
But, yeah, But, we have to have take the initiative and set up our own system.
Right. Well, let's get curious about like, you know, like right right now, you know, the crypto market like it, it's it's corrected in its value.
So, is it possible to use these different technologies even though the value the value may have tanks?
Like I'm just curious the best way of of doing of doing that, you know, what about this concept?
What if the value is what you can?
What you can negotiate by the face value of the currency right now. You're talking about value.
You're saying the price of the coin in dollars Say that gold So what if the price of gold wasn't silver?
Ooh, So we have to break free of that thinking that everything has to be discussed in terms of dollars And I know it's the reality, but when we start operating that way, then we can free ourselves just like the Shanghai exchange You know they're they're starting to price.
Silver and London can't keep up and now There's this break.
They're breaking free because they're tired of getting exploited So we should we should think of OK, so if I have Trade partners and let's figure out what kind of Yeah, like standards. Yeah, and and this is being done to us by the way, we we are Victimized I should say by associations, economic like the World Economic Forum. That is an association.
I think it's a private club.
It's a private membership association in its ruling the world.
It's crazy. It was started in the seventies who ever heard of it? I didn't I didn't pay attention to that. But this old bald guys, you know, can't even speak correctly as is running as mentally ill. No psychopath, Yeah. Yeah.
That's, that's the power of a private association, they don't have, I mean, I'd probably, they probably have agreements with countries So they have a world economic forum, whatever that is.
And they take components and parts and people from all over the world. And they have this gang basically. and then the boys are themselves, you know bully or other people. And so, so if they have it, what, what kind of an association is it? people like us?
I mean, just in the States, there's about, let's let's say I'm gonna use the number 168 million.
People that are in business and commerce that are filing tax returns.
Let's just say 168 million in the States alone. Well, that is a pretty big private association.
You're already a member of it. The problem is we don't do anything together.
We don't have a charter, we're not organized.
Everybody's got his own thing, so, All right, I don't know what to say on that one, but I think it would be beneficial if people were to set up trade or organizations like physicians.
Work together in that capacity, do their own thing. like doctor Rake OK, doctor Rick has a great, he already has an organization.
He's, his organization is so large that he could actually write regulations and established licensing, and have its own insurance and regulatory body that is outside the United States, and that will be restocked respected in the court system in the states.
R OK, right, yeah, Christopher are AK. Yes, Doctor Wright. Yeah, Christopher Rake.
And many other physicians, as well, that, I've been speaking with. And they're starting their own and they've got a growing networks and they want to do the right thing. They want to actually heal people, not just sell drugs and things like that. But yeah, we have a lot of power. Look at it this way.
How would you, Well, I mean, if you don't like the driver's license system, if you think it's exploiting people, well, the problem is. They do a heck of a job with public safety. It's just the gym and a bunch of other stuff in there with public safety, so kinda how to argue with it, you know. And, all right, I'll just kinda tolerated because who else is going to do public safety? You know, they already have the infrastructure, but what's really the underpinning of the whole thing is they have the insurance.
How do we get that going? Well, who's going to fund that? How do we know we can't get out of it, It's the banking system and the insurance industry, which is the same as the banking system.
So, what if we had a way to finance the insurance requirements of and and the loan business of all vehicles on the highways?
Why couldn't we use a cryptographic currency, a new one and create more coins when we're lending?
Just like the banks do?
We could do that.
And we can set up a pool of assets to have our own captive insurance.
But when you're talking about creating more currency, as you go along with the great, doesn't mean that, then that's creating the same debt, debt cycle. Well it is. And I hate that, but I don't know how else to do it, but how are you going to compete with a system that's already doing that? And it's doing it in a way that exploits people, I'm saying, Let's do it in a way that does not exploit people, So. I don't know. I mean, does it come down to, we have to be responsible forever. I mean, maybe it does.
No, because there is always good intentions. Look at Ben Franklin, why, what was it?
What did he have some currency that he, always everyone, trusted Ben, so they were using his notes, I don't know.
Yeah, he had his own currency, Ben, Ben Franklin, and of course, that's not, that's not sustainable, right.
Those are women, didn't like it.
Well, that's for sure, you know, that, that was amazing because if you look at the history, I mean, Ben Franklin, you know, he was about a generation older than most of the colleagues and he was a badass. He went back to England, when there's a warrant, a death warrant out for him.
For his yeah, he went back to argue with the King.
And he had the nerve to still go on his way to France and get them to give up some of the King's money, so that he could continue fighting. That's when the King finally gave up.
I don't know if you're know this, but basically, the king realized he was fighting his own money. So, he said, OK, guys, look. You can have your little, whatever you call it. I just want you to set up the Supreme Court. No. Court system. That's the top court level court system, so we can settle our accounts.
That's what ended the Revolution when France came in there was donating or its resources and they were the Kings resources.
So, anyways. But yeah, it's, it's going to be, like, you already see it, They're not going to do anything different. They're saying they're going to keep on doing the same thing, and we have to just say, You know what? We are the government.
And that doesn't mean we have to, you know, hang them high. We don't have to, you know, do what they did for the French Revolution. We just have to just do our own thing. In some cases, we can ignore them.
Some cases we can.
And you're saying that right now, the Shanghai there on silver exchange.
It's like, It's actually doing real price discovery for silver, right? Because it's not manipulated like the London Exchange getting there. It is getting there, they've been the victim of that for at least 50 years since World War II and it's just unbearable right now and so yeah, they, they get there. They're not going to get away with doing the same thing. The US has been doing because they've been victimized by it.
So, yeah, for right now, it is moving toward a market discovery system.
I don't know that it's there totally yet, because if it was, you would have, you would have Shanghai pricing silver at six to $900 an ounce. In London, I'm going Woo. It's only 90, well what, it would just create, all kinds of have it, right?
Maybe arbitrage. I think arbitrage that's already happening on on gold between the United States. Selling really cheap and India selling high that is happening in the India as well, yes. So, so there's a lot, there's a big changes. I would definitely have a handful of gold silver if you get it And I also caution you on, don't use that as your, as an investment. Just like, you know, like, you would buy an actual asset. It is good to know, ride the wave, you know It's coming.
So it's good to have some for many reasons, but don't, don't just sit on it.
OK, I think a lot of people do that, And, as you can see, they just don't really want us to get rich or make a lot of money off of this stuff, but I think there you're not going to have a choice pretty soon.
Can I ask a question about buying gold with crypto? Sure. I'm thinking that that might be a good way to do it.
That doesn't stick it in the IRS face and you can purchase it.
Like, um, with crypto that perhaps I got at Caleb and Brown Sure, and then there's the question of how did you get the crypto right? So at some point there's some dollars there, but I mean, I would just do it as a matter of convenience.
I wouldn't try to like hide anything. I'm not hiding anything. I don't care if anybody sees the transaction because you know, you're just buying something.
You already had the money.
I would just do resume, I've bought precious metals before with cryptocurrency.
That just depends on who's selling it that way.
I think I got a discount last time. I did that.
So, but it doesn't really matter, I mean, if you wanted to, if you wanted to try to hide your allocation, that makes sense.
Um, now, that's why it's, you know, give you an example, if you go into the Exchange, and then you go right out of the exchange into your wallet. Or, you know your ledger or something like that, or Kilbourn Brown.
Right now, I've never, I have not yet seen any discovery attempt on accounts at Caliban Brown, so far, that's not come up.
Um, know, I've been trying to start up an LLC online, and I guess, I'm just a real, lots of these things.
I've tried with exos Bank and they wanted my SSN and now I'm guessing they want it because they want to do a credit check on me. They will, they want to underwrite the account and value it and then trade on it somehow.
I don't know how that works, but the SSN is not a problem. They're going to ask that all the time. They want your credit file number basically, I mean, I, if I open an account, I use my credit phone number. I don't use an SSI and I have an SSN. I just don't use it for that.
Just so you guys know, I mean just because someone asked for your SSN doesn't mean you have to give it to them.
OK, sometimes you do, I mean, there's actually no legal duty to use one pretty much anywhere.
So, you get, even, even for working at a company, it's just the account doesn't know what to do.
How do you get a credit file number, or is it a long process, the same way You got one before you had one. You apply for credit.
The way it works is, I mean, when you first applied for credit, More than likely you were denied, because you didn't have a credit file, and that act of denying you credit creates credit.
That's one little about one little thing right there that I kinda like, I didn't know that was the case until I looked at it, and I analyzed it. I was like, Well, wait a minute. How are they doing this in the first place? And, then, I realized, I could just create a credit file, and then I learned how to do the profile, you set up a whole profile. So, if I'm going to do it for somebody, I go into a profile, then I go, look, and I find a number that's available, There's a database, I mean, they publish the database.
And, very seldom, the number I use would be merged with somebody.
Sometimes it happens by mistake, sometimes it gets merged with the previous number that you were using the SSM.
So, then, we just have to un merge it and we have, we have the CRA to do that. The credit reporting act. But, yeah, it's that simple!
You just apply for credit, I did want, somebody get a driver's license or passport without unnecessary, OK?
If you're assigned an SSN, the DMV is gonna ask you, I think in most states, it's going to ask you to prove that, it's going to ask you for an affidavit stating that you were never assigned a number, so if you were assigned a number.
You have to tell him.
Hmm, hmm, hmm, I mean, they're going to find out if you were not assigned a number.
Some states will make you get an affidavit from sunscreen adminstration, or make you sign a certification that you've never been assigned or applied for a number.
So, that's how it works. But there is, there is a state law in Florida. I know that says, if you have an SSN, you have to use it on your driver's license.
So, there is no federal law, but there's a state law that says, if you have one, we want it. Because the DMV is a federal agency anyways.
It's just a franchise.
Foreign passport. You don't need an SSL. I don't need one, but, but, I'm not able to renew my passport Now. I believe, I might be able to, I think, I am being referred to some people that can actually do this. But for years, I never used an SSN. I had one of my driver's license, but not my passport.
And then, in 2019, the, the State Department wouldn't renew my passport.
And I know I sent a letter saying, hey, the law doesn't require disclosure, here's your law and all this. And, and they just said, so.
That's what we wanna do now. I mean they did answer me, they wrote me a letter back and said, in so many words, they said, it doesn't matter. We just want to do it this way now. So again, it's that association, there just as they're running everything by policy and how to argue with that. So I don't really care. In fact now that they started the fake, you know.
Pandemic, what difference does it make anyways, right, how do I get to travel anywhere? And I don't want to be stuck in some country, and then they start this nonsense and then I'll be trapped.
Is there a new Law and Florida about driver's license and social security number, Know, it's been around for awhile, but it's recent, I think it was maybe 10, 15 years ago.
I don't have mine on my driver's license. That's good, father, then. When was that, When did you get your license?
I just got it running like originally, like, July 25 years ago. But I just got it renewed last year and I had to apply all over again because I didn't realize it had expired during the what was it, It? was, it issued by another state?
So, you gotta have a brand new for licensed, but 25, about 25 years ago was originally, Yeah, OK, like, maybe the maybe I just got a brand-new one.
Yeah, well, if it, maybe they just grandfathered at NIH and that's, that's interesting.
I think there's a Florida statute for it, but, I don't know, maybe, I'm gonna bet you that they have it. You have a number, right?
Yeah, I have a number, but it's not associated with my social, to your knowledge.
I mean, I've had people tell me, hey, John, I got a bank account with no SSN. And I said call up the bank and verify that and they call me back and go, how did they get that number. You gave your date of birth and your name and your address and all they did was go into their database. And they said, oh, yeah, let's get all this other data that's already out there. So, it can be tied to the actual PowerPoint you, but that'd be nice. If it's not.
I mean, But, so what?
I mean, so what I mean, when I got, I think my parents got me one when I was about 12 or 13, and then I, you didn't know any better. I put it on my Florida license application, so it'll be there forever. You're saying if it's on the application, I was thinking that it's not, it's not actually on my driver's license. Oh no, it won't appear on the face of it, in Florida.
In fact, that used to, in some states and they are, enough, people complained and they took it off Oh, I see what you're saying. Well, yeah, totally. Yeah. Oh, yeah. It might be in the D&B file, yeah yeah, I think it is you'd be surprised. I mean you could subscribe to DMV data, it would scare you what the DMV has on you.
That's an I mean, I think I did a video on this.
I mean, I should probably do some more because you get ****** off when you realize It's almost like you have a stalker. It's almost like you have a team of stalkers.
Nothing is nothing is sacred here. I mean, Chance wants me to put another app in my car and I'm like, no.
Exactly. That's why, I, that's why, I mean, I didn't, I didn't know they were going to do that.
But, I just said, I don't want to ***** up the insurance companies anymore. So, I just insure my car and I don't have to deal with that. I mean, it's still a bit of a hassle.
But I don't want to, they're gonna make it, it's gonna get worse and worse.
Mean, how do you ensure your own car?
Reserves you just have, I mean, I, for years, for about 20 years, I just had, I literally had money set aside.
And you don't need a lot of money, you know, like maybe 30 or $40,000, $30,000. Right, in Florida, it's probably the same in most states. And I would use precious metals, and when the precious metal would change in substantially, I would use, I would sell some of it and keep my 30, but then I would put that other money back into something else. Like kinda use it as a rolling fund.
And then recently, everything was cruising along just fine up until like last year. And they said, hey, you don't have insurance. And I said, hey, I've added shirt for decades. You know, they said, no, you have to fill out this affidavit and give us proof, and I was like, OK. And so I had to fill an affidavit and I could have lied on the affidavit. They didn't really get proof. But I just told the truth. And I just said, yeah, I have $40,000, And that you have to have 100% coverage or a portion of the coverage in a car. No, you have to have, you don't even need comprehensive. You need the ability to.
Make someone hole as they say, you need someone to compensate someone if you injure him.
OK, so in the statute in Florida, if we're all gonna go by the statute, because DMB is all statutory, it's going to be 30 to $40,000.
You need the ability to spend that much money if you hurt somebody. Now, that's not nearly enough money in many cases, but that's what the statute requires.
It's a deep subject, There's a lot more to it, but that's amazing.
Thank you. I bet there's not the same in all states.
I can tell you also that when, OK, when you have a license, there's a, there's a franchise going on there, and there the license itself is evidence that there isn't ...
for you using the public rights of way.
There is already insurance, but they want you to pay for it as well.
So, that's why, you know, if you break your tire on a curb or something. Whether it's construction side or you know, some break A windshield or rock comes up or something. And of course, it's on the county property. You can make an insurance claim and get reimbursed for the repair work on it, you have to pay for it. But the county will reimburse you and it has insurance for that.
Not many people don't know that, you can actually make an insurance claim for a lot of things with the county.
So that's what the whole system is based on. That's I'm saying, if we're to emancipate ourselves from it, we're going to need a way to have insurance and a way to indemnify each other.
It would take a long time to get, know, if you had, let's say, for example, let's say you injured somebody, and you're self insured.
I mean, if you really wanted to fight it, it makes someone go to court, even if it was the insurance company, it would take.
probably it could take a couple of years to get to a point where if you truly reliable, they'd have to pass the test and prove it. And then the judge could order you to pay.
And still, the only thing they could do would be to levy anything available.
You would never have to voluntarily write out a check.
So, you just have to show evidence of financial responsibility. That's the whole thing about the insurance. You don't need insurance.
You just need evidence that you can indemnify someone or make him whole and what does that evidence?
It's a card. It, that's it, it's just, it's a card you keeping your card that says, Here, I have insurance, and they have a code here. Self insurance in Florida is the insurance code is 111.
Yeah, I'm currently filing a tort claim against Washington State because they they did damage to a vehicle of mine.
So, it's simple, I just write, just fill out this claim.
And, yeah, they can either accept it or deny it and then, you know, if they deny at the ninth grade, I guess I get I get to know that the grand assume, yeah. Yeah. So you want you want to do your best to get it? You know, get it done before we get them.
Yeah, exactly, exactly How you waive immunity as you you file a claim like that and if it's denied then you have a right to sue.
Yeah, exactly. Exactly.
Sometimes, you know, crypto J talks about having like a credit file, number.
Yep, but it's what it's like, No. Feel.
Like for me, my credit is is hammered because of student loans and stuff and what I've decided to do with that.
So, it's like, can I create a credit phone number?
Just create a, like a new one for myself. Yeah, you can, you can start over. You get a fresh start that way. I don't, I don't like to recommend that you just go ahead and do that. You can, yes. The answer is yes. But I will share something with you, since you brought that up, and I haven't started this yet, but I have outlined, So, they're sitting here and I just have to produce the content.
I need to sit in front of the camera and do this and I'm just going to tell you real quick So, what you do on your credit, let's say you have an item that's, you don't want there, whether it's accurate or not. We don't care. We just don't want it there, right?
So, the way the way the scheme works is Equifax, as we all know, is reporting and when you dispute something, Equifax will check with another CRA regulated credit reporting bureau to verify that item.
That's why a lot of times they come back and say, it's been verified. Well, you disputed the item with the wrong party.
You should have disputed it with, let's see who they have.
There's like nine other reporting agencies.
Lexis law I think is one of them.
They're the largest. They're the largest purveyor of like information.
Yeah, like the axis, I think it is, yeah, yeah, they don't, they own medical journals, they own the land that they owned, like all those databases, right? So here's the trick to the system, what you do is first, you pull your credit and narrow the data footprint as much as possible. So if you have an old address, it's not accurate to get that off of there, so you should only have your current address or whatever address you want them to have.
one address, it's residential one version of your name, the smallest amount, Only accurate information. Get rid of everything else. So that takes maybe a few months to get, right? So you get that cleaned up.
Then you put a freeze on your account with these other bureaus, the bureaus, and I can't I'm not trying to be cryptic here. I don't remember the names. I have to go. That's I'm saying, I have to read my. No, it's easy to look up. Yeah, I can look it up. But OK, So what happens is you put a freeze on the credit reporting agency. That Equifax is going to request validation from.
You put a freeze on there and then Equifax cannot validate and then when it can't validate, it'll remove the item and it'll send you a letter saying, we have to remove the item. Thank you very much.
That's how you do it. That's the game.
So I can basically pull off, like, like, Bankruptcy student loan, all that's Yes. Yes. That's a very effective way to do it. Yes.
So I'm gonna, I'm gonna have sample letters and what you do and what you say and what the remedies are. And because it's a little bit more to it I mean, you have to there's a couple of things. But basically, that's the bottom line. The whole thing's a racket.
That's how you That's how you handle it. Well, that's all right.
And then at the end of that, then they'll allow you to borrow a creditor know Yeah, sure. You go into debt again. Exactly. Yeah. I mean, once you learn, I hope that you know, I've done that. I was the first guy to do it. OK, of all of us, back in the nineties, I was a Stupid did.
I was in college, and my, my best friend signed for a car for me, because he had good credit, and I got a car, and a new car and all of a sudden I go this credit card offers.
And I was like, Yeah, free money.
You know, and so, I blew it. I just, it just disappeared. And then next thing, I know I'm getting these bills and I can't pay, and I'm like, whoa. And so that's what got me into this stuff, right?
Sure, but hopefully you learn and you hear well, how I'm talking, right?
I think I learned. Yeah.
So, and I want to share it with other people. So I hope that you know, once you go through that cycle once, that's, that's enough. And sure, credit is great if you're using other people's money to make money.
So, that's my pressure for sure.
That's great, That's great that you, if you want that motorcycle then by the dry cleaners in your neighborhood and use the income to pay off the motorcycle. The luxury, right?
Don't buy the laundry mat, California. Because. All right, because they very well. Could just take your ****.
You think, yeah, I don't know, They're talking about, like, you know, they're talking about, like, like, you know, us, assessing people's property taxes. And so they can charge you more property tax. But also about freezing.
What people can actually, the landlords, can actually charge on the properties that, while raising, that's, that's to deliberately destroy the economy.
So, that's that. That's right. Yeah, Caliphs, it's a forgiving student Loans.
All that does is put $2000 billion into the marketplace and then make people irresponsible whatever to get started. Michael, what did you want to?
Where do you got your hands up?
Oh, I'm hoping this is a perfect time to assess, but I took my LLC, tried to open an account at cracking and they asked for share manifest.
That's called the audio, by the way.
OK, so That You already gave him that, no, I don't know. yet the e-mail back.
It became a copy of the articles that were filed with the state, OK.
And, source of funds. I wrote company capital.
Michelle, I mean, they shouldn't be asking you know where the money is coming from, but they just do, so. You just tell them. It's my personal savings.
And I wanna, I wanna be an entrepreneur or something. OK, so, an LLC I funded, they funded the LLC with personal savings. Yeah.
That's a generic answer, yeah.
OK. That whole source of funds question. Like I got it from various lawful business activity. You know, that answer because it begs the question so, that's why I say just give him the boring answer, why I've been saving it up like all the other poor souls. We've been saving our money so we can get into cryptographic currency.
Yeah, I had a very successful paper out the kids and tell them that. I'm sure they'll laugh and say, OK, yeah, you know, anything that will answer it. But that doesn't really answer that's boring is, is preferred.
OK, the deposit checks into my LLC, my payment processing LLC? Yep.
Can I set up a DBA for that? That is like pretty close to the same name as my S corp.
Sure, can just ask your processor how to operate through a fictitious name or and or the bank and they'll tell you different things. Sometimes they'll say publish it in the newspaper. Sometimes they'll say register it with the state. Has all kinds of ways.
How to function with a fictitious name?
Yeah. Just ask them how do I clear funds in the if I get a client to pay me in a fictitious name?
And if they want to ask, this is common business practice, but if you're asked why, just say, I'm setting up a different marketing program, and I want to isolate those sales from my older ones, OK?
I mean, OK, I mean, if I file a fish dishes name, and the exact same as my S corp, which is a filing, just makes it easy to deposit this stuff. That's another way.
You could just do that right now.
and then go open a new account and bring it, bring all the documents there and you're in they'll they'll more than I've accepted. I'd just like to go to the bank first. In case they have some preference so that way you're not going to run a friction by plagiarize, my own name. I guess I can always show myself.
Yeah, there's an interesting concept. You can do things like you have a XYZ Company DBA John Smith, right?
And you're John Smith: It's the opposite of what many people do. In fact, I think one state says you can't do that, was weird. But I mean my Palmer homesteading because my company so I could put a DBA as Mike Bomber homes.
Absolutely, just copying. That way, I want to deposit a check.
There's no, there's no holding it and flagging in third party chatter. Now that's normal stuff.
I mean, don't you think the ban's do that?
Like you would never see?
Think of a, I don't want to date myself think of a band. I have to say the Rolling Stones, let's just say.
You don't see the Rolling Stones Incorporated here.
How did they clarify? Captain Ateneo and Incorporate it, there you go.
OK, I got a question. I At the end of the year, I had a tradition of pay my my employees, pretty generous bonuses of Christmas.
I wonder if this way I can just pay them to an hour.
Like Ken mine none.
As my non reporting LSE just gives them money. They can just claim that as other incomer.
They could do that, sir, OK, I want to keep it off the books and pay an expense off the books that yeah, it's really off the books all the way around, so yeah, OK, And now I can tell you that I've been a lot of audits, and I can't tell you that the IRS would say, Hey, that's part of your operations cost, as you know. But yeah, you could, you could do that, and, yeah.
Keep it away from the books, OK? But then, if they receive that as 1099, then they just have to declare their own taxes and whatnot.
Well, if you did it 1099, then it's, it's part of the operations.
So OK, Then they. I guess there's no advantage to doing that. I know that you're not going to do tonight well if you did a 1099. It's gonna come from your company That's filing.
You can't do a issue, a 1099 from a company that does not file tax returns, but that's OK, OK, like if your S S corp is still filing, no problem. It makes it easy.
OK, got it.
All right, I just recently had a section on insurance company called me and said, uh, I mean, we're erect as a mobile homes.
I did that with a partner. Actually, a partner did everything.
I just provided the funds, mm, and they said, We don't wanna share that.
Um, I call it actually, I had insurance claim on one of my rentals, my air conditioner lake.
And you know that this lady below me got a flower, and she came with this astronomical beard to like, get remodeler whole house. Yeah, sure. And you can always will have to send us your insurance adjuster. I come on insurance agency said, Yeah, you're erected at mobile home. So they didn't renew your insurance. You have fire, but you don't have any general liability.
So, I'm just kinda wondering, did you shop around? I'm not sure about. I don't know. Much about that.
I'd have to look more and mean, I'm sure you can get insurance. They do. Yeah, Yeah. I mean, maybe the rate's high, I don't know.
I mean, do you need insurance for financing? sometimes? That's a factor. They just care about the fire.
OK, thanks, Kevin. That makes it easier.
So then the churn sneed would become from just literally risk, that financial rescue map, and that's another reason to separate things out, you know, Separate ownership out, OK, oh, I wish I was closing on loan and then attorney's office and I asked him, did you record this deed?
It was a quit claim date.
And he said, yeah, it had, my name is again to put you and your wife on there.
If you're a married couple, or do I have to put myself, Michael Palmer, a married, man?
So we are OK, either way, it's still recognized as a married couple, it's still part of your marital state.
But he's correct if you're going to take title or something or if you're going to convey title, and you're you and your wife or on the title now, yeah, you both have to be on there in the same exact way.
But he's right.
I mean, even if you only had your name on there, what is, what, what's happening is if you, if you only put part, like one of you on there?
If one, if the title holder were to die, it would have to go into probate, they would get tied up in probate. It'd be a little more costly to, to deal with that.
And it is, it does make sense to have husband or wife as a married couple or how are they designated on the deed?
OK, the original title said, My name, ..., a Married Man, so I should just did a quick claim. The exact same way, Exact same way and I mean, whether or not you add your wife, it doesn't matter if you say it that way, because your wife is already included.
Well, we were trying to convey it to an LLC.
I guess I'm wondering why you're doing that, so yeah, if you're conveying it to an LLC, so yeah, exactly your, that the grant towards exactly how it appears and the grantee is whatever name of the LLC, exactly, as it appears.
Do you think there's any legitimate concern about a due on sale clause?
And, you know, it's really ironic about that, and I've done thousands of those, and never had a problem with a bank except one time.
And this is crazy, I'm the only one that got foreclosed on for due on sale.
I guess, because I was kinda stubborn, but still have all my clients. I'm the only one that ever went through that, And my partner and I were just having fun with this thing. We bought this property. It was, it was just a fun situation. And we made a bunch of money on it. We didn't care, And during the foreclosure process, we, OK. So, the bank foreclosed on it, because we did what you're doing. We convey the title to accompany. And the bank said, no, you can't do that. And we said, well, we want to do that. And they said, no, and it was Bank of America, And so, my partner, and I are like, John, what you want to do?
Like, I don't know, I'm OK with letting them come and take it. If they want, we're making a good amount of money here. It'd be great if, if they refused the payments will just take that cash and put it somewhere else, which we did. For like 2 or 3 years weirdest thing ourselves. We had, like, debt free properly. And we're releasing it out to this roofing company.
And they had long story but they were they were paying us, 50% more than the rents because of the way that we're letting them use the property, put it that way. So, it was a big party. And they finally took it off our hands, thankfully. They foreclose on it.
We got a bunch of money out of it, you know, it was very low out of pocket to run that thing.
Do you think that, like, I mean, we've had declining interest rates for a long time.
So, why are they going call it due on sale?
And they're getting, so I'd say, there, getting a 5%, but now that current rates are only 4%, you know, they refinance at Amanda refinance.
I don't think they can legally foreclose in that situation.
I mean, the thing is, we didn't, we didn't really fight that case. We could have won.
I mean, probably we would have to get an attorney, But I think it was, if I remember correctly, it was taking place during the Mass foreclosures they were doing. We've kind of got lumped in with that. So we're being foreclosed on, because we wanted to, not because, you know, we can't pay the mortgage. But I don't think that they can actually legally foreclose. And maybe that's why they don't. But I can tell you that I took about a thousand foreclosures in that crisis, about 10 years ago, or so.
And I saw that they were literally just cleaning their books, and they were foreclosing on everything they could conceivably justify.
Yeah, I don't, I don't know. I mean, I just think it's more like laundering money. So the question is, would they do that again?
Yeah, probably, Um, I don't know that due on sale clause. I would not statistically, I can tell you from working cases that is not likely.
If they confronted you say, OK, I'll just quick, quick, quick. Oh, yeah. They'll give you noticed. And I have a letter. By the way, We can even In fact, I covered this in the video, I have a letter that I sent to them.
But I would I normally the way I use it as I have the client do the conveyance.
And then, if the bank context, the client, and asks about it, I then write the letter and say, oh, here's the condition here. Are beneficial interest retain the same?
And here's that there's some sort of federal statute I give them, I forget what it is and they never had a problem, but I very seldom get those letters anyways, OK. So, if you got the letter, you can send them a Federal statute.
I still pushes, you could say, it's quitclaim back, and everything's backed away. It was you could do that and they'll give you, yep, and like I said, I was being stubborn, and I could have done that. And I just talk. I talked my partner I said, what do you want to do? He goes, I don't know. What do you want to do? That was a worst-case scenario.
You quit claim it back that Tufts outfit and why foreclose on a performing asset they can't answer to the judge the judge, but he wouldn't take it OK. He would say, All right, he fixed it, it's back, get out of my courtroom. They wouldn't even try it, because they know the judge would say get out of here. They would, they would be in disfavored with the courts. All right? So, just switching it back as, like, your worst-case scenario.
Which you have to pay another 26 bucks or whatever?
Recording for. Yeah. That's even true, if there's a huge tax like an photo. We have the documentary Stamp tax in California. They have when you're always going to be exempted from that because you're not changing the beneficial interest.
Yeah, we'll duck stamps here.
They're pretty small. But we still have this now if every time. I went nowhere with a whole life policy. I don't know if this is too much of a question when your LLC by your LLC CRE accompanied by a whole life policy on yourself.
Or do you have to buy it at a personal? OK, so there's the owner of the policy, which I do recommend an LLC.
And I think the ones that were doing that in Texas, those guys are recommending it.
And for our purposes, generally, an LLC to own the policy makes sense, and yeah, you can be the insured.
OK, but But can you borrow money out of it?
Yes, yes, That's what you want to do your LLC I believe would be borrowing the money even better.
I think it's How are you talking about the infinite banking concept?
Basically, yeah. But I'm wondering, I mean, you can buy a home You do ABC. You can put your own personal money into a whole life. You know, Max contribution whole life and then do the infinite banking, but, Can You are non reporting, you, know, undivided Interests LLC?
Buy it and then you borrow the money out, and it just comes off your death benefit if you don't pay it back.
Well, LLC is a completely different tax treatment.
So, OK, it almost doesn't even matter at that point. If you own the policy, then, I don't know. I'd have to know exactly what the transaction is to answer that question.
Borrowing is no problem. I mean, if you're asking if it's going to create a tax liability, If it's in your name, there could be a situation where that would be a tax liability.
OK, so, what are you going to ask? Oh yeah, oh, good.
Whole life guy.
Yeah, I would ask them that they're very good at that, I love those guys in Texas. I'm sorry, I can't remember, I haven't spoken them in such a long time, I can't remember their names.
You ask them, I'm gonna give you guys here if you want to look at that, Yeah, where do I find the resources that on your website?
Yeah, I'd have to let me look it up. I, just while you're talking, I, when I see, I'm sorry. Didn't ignore your lineup, sorry. Sorry, I know you're out there, Go ahead, I'm going to post something here in the chat.
But what is it you had asked me Yeah, Yeah, go ahead. OK, um, I wanted to ask a question regarding my situation with the IRS. I am then in the habit of paying off my last statement balance.
And so the accrue interest charges, and I've been doing that with money that I had stashed under my mantra, so to speak. And I'm running out of that and I am, I just paid the minimum and I'm just, I'm trying to get these LLCs setup with Caleb and with another bank so that I can get money out of cable to pay their bills.
Am I jeopardizing my situation with the IRS by paying that minimum, not let them know, because that can be explained away.
It's not going to hurt you because I was like: What do you really like to avoid getting an interest charges, what?
I've always sure it makes total sense. In fact, it would make total sense to pay the bank first then pay the IRS and they would say, Why didn't UPS first? You say, I want to pay the bank first.
Yeah, sorry. Guys, but I don't like you that much. And I'd rather pay a grantee first or I'd rather have my credit card bill, or That's great. I love it. Thank you. They're just little robots. They don't get offended by, stuff like that. Somebody was asking about do I like trust for protecting assets.
Yeah, the idea behind protecting assets is that you don't have them or you don't mix them in with something or someone that has other unknown liabilities like human beings. We go around in the world and we do stuff right. We drive cars, we can get to a bar fight.
Somebody can sue us, we can get accused of money laundering or trafficking, whatever and but your trust that does one thing doesn't do those things, right.
It's just a piece of paper, and it's a separate person, and yeah, If you like trusts, I mean, they're great.
Jay has some great ones. I like his explanation. He did a great job explaining all that and I very seldom will do them.
But LLC's, you'll see I'll do a lot of LLCs.
Did you not say one time that a trust could own an LLC or vice versa, something? You could do that. Sure, trusts have property rights.
Sure. I don't know why you would want to do that. Most of the case cases are not it's not necessary or not beneficial to do it that way.
And then Brandon had his hand up for awhile. What's going on, Brandon?
I: I started my first. I'll see you later this year and so I just want to be clear.
I: I'm only required to pay taxes on the income that I pay myself.
If you treat it that way if it does not follow return, then there's no tax treatment.
It's considered Unsettled Funds to the extent you take money out for yourself, that would be reportable and taxable. Yes, on 1040 as other income.
OK, and the account can be for various things to pay whatever you can imagine. Yes, I know a lot of people take cash flow from somewhere, and then they pay themselves a little bit, and then they, Because it's, it's before tax, it's before tax.
And so, they roll it over into something else and make, yeah, new investment in the right, roll it back to the LLC. And, you know, you do that too.
And so, my next question then, I am just talking like a lot of other people in my field through on similar businesses. A tree service business harbors. Should I charge sales tax if I'm not taxes on the business?
If, oh, gosh. It depends on how you or your business operates and what you've done with the state.
So, if you've got a business license, some states are more draconian than other states, There may be a sales tax there. I would say, yes.
I would say there's probably likely going to be a sales tax if you're operating a professional service, like most other people.
Most arborist businesses charge like 5.5%, OK, if it's required. Yeah, and now what's interesting is that this is an unfunded mandate, right?
You're, you're a tax collector and you're passing it on but it also puts you in a precarious situation, because you're now a trustee of the public funds.
It's worse than oing, my acknowledges if I owe the IRS that's one thing, but if I owe the IRS because I'm a trustee withholding, FICA for my employee as a completely different nightmare, because you can go to jail quickly messing with that. So just be aware that the state is making you the trustee of the public public funds.
So I wonder if, uh, they need to compensate you for that, just want to put an idea in your head.
Or if they want to indemnify you in some way. Right.
So you're talking like if I have employees to pay that's another thing too. That's a different animal.
Because you got workman's comp and things like that, but sales tax, know. Once you get that sales tax ID, they're just gonna never leave you alone. Right. You're gonna make sure that they can audit you, They can check and make sure you're collecting the right amount, the look at your banks and all that. Thanks names and all that.
So this is, I can't argue with sales tax.
You're gonna if it's if it's, oh, it's owed.
If they're telling you, as a licensed business, resident, here, open to the public, Yeah, you're going to have to collect it.
I don't know if that's required for all this morning. I would look, it makes total sense to even talk to an attorney who deals with that. Now, attorneys would probably just say yeah for everything. Yes. So be careful what you wanted to, I should, I should qualify what I said. We should get information from an attorney and then go research. Go read the actual statute.
And I would even check with other professionals, I mean, I think you're telling me somebody else is already doing that.
Yeah, because I've done that before. I've done professional services, you know, lawn maintenance and stuff like that. I never did any of that nonsense. I didn't have a big operation though but still, I mean I just did it. Old school I just went over there and you know I did my monthly contracts or my on the job contracts and I got checks and cash I didn't even use credit cards you know so.
So another question along those lines.
Is bartering, taxable under an LLC.
It can be It can be treated just like dollars it's just again it depends on how you handle the transaction.
There there are it's an IRS publication that tells you all about that. That's where a lot of people get get confused on Kryptos when they start reading about the barter transactions.
So, it can be, I'd have to know more specifically. Like, if you want to give an example, I can tell you.
And if there is a liability, there's probably a legal way not to be taxed when it comes to barter transactions.
But yeah, they kinda got us a lot of times on that.
Another kind of concerning question, but I hope it doesn't come through. I've been locked out of my on my business banking accounts This FDA, see, ensure outfront. But we are pretty unresponsive.
Yeah, that's happening throughout the country. And FDIC does not insure you.
You're not sure it insures the bank.
Because, you have an account there, it gives the bank more insurance, you don't have any.
Even if you did, they wouldn't pay you anyways.
That's another subject.
I'm sorry, sorry to break that to you. But, if you want to let me know, like, you know more specifically, it'd be nice, I'd be more than happy to, you know, line up something for you.
In fact, I can even look it up, I can go look up, you know, whatever would apply in your situation if you want me to do it better.
Banking, financial service, it says it's called Relay.
Uh-huh. Or E, L, a Y, and they're pretty slow to respond.
So I'm just kind of way in and out.
Well, if you want, if you're, if you're having problems like that with the Bank, OK, you want to deal with the chief counsel of the bank, Chief Counsel as the top attorney for the Bank. You can find that on the Internet.
You can also go with the state regulatory agencies, or at least tell the chief counsel that if you don't get it resolved now I'm going to do this, and you have the Office of the Comptroller of the Currency is one administrative agency. You got probably six administrative agencies over every bank, You got your state admin, agencies, or several of them, and then you got your federal ones. I'd go with the state ones.
And I've gotten a lot of things done over the years with going to those agencies, or at least going to someone who has half a brain at the bank saying, look, this is my next letter.
And I get what I need.
Does that matter if it's a good?
It's a Canadian service. That's their headquarters. They don't know. But they have regulatory compliance as well.
So, you'd have to find out, it's a similar structure, and you're going to have a top attorney, state agency, just know that there are some unusual things going on with the banking system.
Yeah. And I think they're testing to see what people will do, because I think, at some point, they're going to shut us out.
Elaine did I, Um, yeah, I'm sorry. I think ..., here's a question, too.
This is really relating to my account or killed in Brown. As I had told you, they had trouble finding my quote, unquote, details.
When I, although they accepted the utility bill that I initially submitted to them, when I tried to save the LLC, all of a sudden, it became an issue. They'll how come. So, what I want to do, is, I want to change my, I want to move, quote, unquote to New Jersey, Millimeter, because I can get there. I feel OK.
I can't work, and I'll establish residency with the least method that you described, and that way, if I had trouble setting up an LLC online, I can go to do it work, OK. Also, a kind of a backstory.
You can also mentioned that you make this story up, you can just say I live in an RV and I'm typically traveling and that's why I have all this stuff. So, you know, that might help a little bit.
I don't know, what do you mean?
Oh, some people live in an RV, and they travel a lot, especially, Yeah, I mean, in the Northeastern states are there so, there's, there's smaller, right? And it is easier to travel through lots of states in just a few days. So, that may be also a backstory that you could throw on them and see what they do with that one that But, they've never heard that one before. I tried that, went, well, I was just gonna say that my friend's husband came back.
His, he was he had a job, and this is the truth where he was away from home all the time, and now he's got a new job where he's there, and I just too many people in the house. So It also The other thing is that it's too far to Oklahoma, to Rochester, where my family is and I can drive New Jersey.
Yeah, nice. So. Yeah, That's what it takes. You Just gotta work Work through it. It's all because New York has some stupid law that doesn't even apply in Australia, and they're just going along with it.
I know we have to do all that nonsense so crazy.
I was going to stray season, but I wanted to just mention, I've put in the chat my legal reference. You guys can look this up. It's right in the chat there regarding due on sale clauses.
So this may be, you know, give you guys, if you'd like to read up on that. Are you talking about the chat on Eisa coins?
No, right here, in the Zoom call, I don't see it here. It's not showing up. Just click on the share is I got it, yeah. That's all the gobbledygook CFR, USC nonsense. OK, that is what I tell them. And I don't even say that in the letter, I just make that a footnote. And in the letter I just verbalize it in layman's terms and it works pretty well.
Stray what would you have in mind?
Kind of I I've gone through your videos so many times, but I've kind of forgotten if you're buying like, let's see, Another house or property.
You go through, obviously the LLC, right? Like as far as if you have bad credit or like not great credit. Doesn't matter because you're going to the LLC which is owned by the PMA. Right?
Well, if you're getting a loan, the bank's gonna look at your credit unless unless your LLC has a decent balance sheet, OK, so they would look at the authorized signatories of the LLC, right somebody there, someone's going to be the the borrower is it's not going to be the LLC. Would you like it?
Maybe that sense, I'm kind of in your like kids position where I don't I can touch it about that before, right?
I'm kind of fresh.
No, I'm not really into all that stuff yet, OK. What are you trying to do?
You're trying to money to invest in real estate?
Yeah, like to actually buy another house potentially for investment.
Well, so the house or and potentially used as like an air-b.n.b. or something like that, OK, then move to a more open space lands so we could actually live off the land kind of deal. Sure, OK.
Well, you can build credit, I mean, a quick way to do it, know, it is to buy a car and credit and take 10 months to pay it off, OK. That's a quick way to build credit. You can also add trade lines to your credit file.
Um, I would just suggest if you're going into real estate for investment purposes, I would start looking for alternative financing in addition to traditional, but traditional, you're gonna run into a lot of friction. Especially now, you'll see, but I would go, connecting with the Georgia Real group, Georgia Real Estate Investor Association.
Just just go talking to people that are note buyers and brokers and hard money lenders.
And even just the investors themselves and find out how they get there. Find out I was, I helped a client. one time, he, he was getting foreclosed on and we shut the foreclosure down for several years and then he finally moved out.
And then I had the chance to talk to them Afterwards. We're just talking about something and he had, he was asking me some questions that. I said, hey, what are you working on? He goes, oh, I just bought this house. It was like one million dollars or something Like, how do you do that? I mean, this guy is credit was toast.
And, and he goes, oh, I went to the public records, and I and I look and see, this is what this client did to to get money, Maybe this will help you. So he goes to the public records and he found recently conveyed property from sales real estate, where the title was clear.
So that meant that someone paid cash for a house. There are people out there, just pick Casper House. A lot of investors, and they were all the money around stuff like that. And they might have a different way to get financing, but he sent, like, you know, a half dozen of these people that did this. There was a lot of people, and he sent him a letter, asked him, Hey, would you like to put in extra hours? He had this whole program. Or if you put in $25 or $50,000, you'll, you'll get X return on your money, and then your money and your return is returned to you, and then you can do it again, if you want.
And he said, once I did that, and I got a few that trusted me, he said, they just give me $100,000, and then I do what I say, I'm going to do. I always make them like, they're making doubling their money every year, pretty much.
And he just figure out how to do that. So, he bought himself like a 600, he paid 600,000, but was a million dollar home, and who's going to flip it?
Just by using other people's money and talking to other people. So, that's why I'm suggesting, always look for money beyond just the banking system. Especially for real estate, because there's lots of money out there for that.
OK, cool, thank you, OK.
And let's see, Did I? Oh.
Somebody was asking, does it matter if it's a single member, LLC?
OK, so single member LLC is useful because it's easy for me to open an account at the bank, because that's what they want me to have enough that I care.
But once I have a single member LLC, it's got, it's on the articles, my name on the articles. I'm doing the thing I want to do with it. I'm not going to have the separation from my personal liability that I have to from unrelated things into the company. So that means if someone sues me personally for some unrelated debt, if he gets a judgement, he could reach into the LLC that on the single member of right. So to avoid that, to separate causes separation, I'm going to either use a trust as the owner, which is still an innocent party, but I don't get charging order protection. I won't be the owner, but the trust, well, it could be a private membership association, or a club, or whatever, It could be an entity.
It could also be adding my brother or my mom, right? If another person who's not my spouse is added to the articles, then I have charging order protection.
And I have separation from anything that happens to me personally and the company.
That answers your question?
Reporting is other income.
Yeah, OK, So, what I'm describing, like with Brandon's question, as the liability is going to be created by the waiter using the company.
So if it's a single member LLC and I use it to receive money and then I take half of that money and I report that and the other half sits in the company.
That's perfectly fine. It's still Unsettled Funds.
That's not my preferred situation, because you still want, in my opinion, you want the property rights to be out of your state, and they're not, if you're the 100% owner of the LLC. But your tax treatment is what creates the liability.
So that answers it.
It's what you do. It's not what? There's no statute that creates a tax liability. There's a statute that will tell you a tax rate, but the liability comes from what you do.
I haven't seen a case yet where that's not true. In Income tax it is.
Yeah, this gonna be recorded and what I'll do is I will put a link up. I will probably put this up on.
I might just try to put up on YouTube.
I know I said the keyword in here so I don't know if that's going to cause me to get censored.
Anything else that I miss? Anybody?
Well, thank you for making it entertaining. I know I'm, I'm not the best person to be entertained by the subject, but some things we have to talk about.
Can I just want to go right ahead, Yes, please, go ahead, Mark: Oh, I'm looking at my Articles of Organization. I follow the state, I don't break down the number of share. You know, the shares held because it's not.
But, OK, I'll go make it.
But the crack and asked me as a company share registration or are operating agreements showing shareholder names and the number of shares held, OK, So that should reflect what is shown in your articles.
So whatever whatever member you have. Whatever membership you have has own, like if you have a PMA, that's the owner or you're the owner. Then that's 100% of the interest.
Sense. So I said: Could I say attach it to an organization? I have 100% of the interest. You, could, You could tell them, you don't have to make up a document. My documents. Have a little schedule in there that the bank already has, and it reflects what's in your articles. But yeah, you could just tell them that. They'll probably give you an intake form also.
OK, I've got my son listed on there as a member about it, I can just, I can just say that: Attach Articles of Organization. I have 100% of the interest. You could just say 100%, Yeah, Even if it doesn't show that way in the articles, they'll accept that. Sometimes they'll ask you about it, but you can just say, well, I don't know, That's how, that's how it is. Because they're just gonna, that's just doing their job, they're like robots.
And when the bank asked me that, too, I just said and the bankers to defend matches a mic just, well, we just gotta write something down and doesn't invalidate your articles. That's exactly right.
That's why I tell people to tell them whatever You have to get the account open, and then your articles, like I say, are binding on everyone, So the articles matter, what you say does not matter. You'll just get your account open.
OK, even if I put it in writing in an e-mail.
Yeah, because even if, even if you tell them a thing, because you think it's truthful, or you want it to be truthful, or correct, or whatever, and then the next morning, you wake up and go, I gotta change the articles. Right, yeah. No, Because they're not our business partner. You can change it and make it whatever you want, and that's exactly. That's why you can tell them anything.
OK, All right. All right. I know that that order of women joined up. I can't wait till I wanted to do a string of LLCs inside. Now, say, I can't wait to do that, OK, that's a lot of work.
But, OK, lunch, once you get a boilerplate, you can kind of create these, right? And you have a lot of things going on. So that makes sense.
Yeah, you're right. Yeah. You start with that boilerplate and dial it in as you need to. Yep.
Oh, sorry. Thanks again, everybody. I'll record this. I'll give you guys a link.
Thank you so much, Heidi, I'm going to do that.