{"id":15757,"date":"2021-06-08T15:19:03","date_gmt":"2021-06-08T19:19:03","guid":{"rendered":"http:\/\/privacyfight.io\/?p=15757"},"modified":"2023-06-25T06:30:57","modified_gmt":"2023-06-25T10:30:57","slug":"u24-cryptos-and-risk-management","status":"publish","type":"post","link":"https:\/\/privacyfight.io\/u24-cryptos-and-risk-management\/","title":{"rendered":"U24 &#8211; Cryptos and Risk Management"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"15757\" class=\"elementor elementor-15757\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-bdd2958 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"bdd2958\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-069d056\" data-id=\"069d056\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c7d0a4f elementor-widget elementor-widget-text-editor\" data-id=\"c7d0a4f\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"vidseo_wrapper\" style=\"width: 100%;\">\r\n\r\n    \r\n    \r\n        <div class=\"vidseo_vimeo\">\r\n\r\n            <iframe title=\"vimeo-player\" src=\"https:\/\/player.vimeo.com\/video\/720194462\/?\" width=\"100%\" frameborder=\"0\" allowfullscreen><\/iframe>\r\n\r\n        <\/div>\r\n\r\n    \r\n    \r\n    <div class=\"vidseo_collapse\" style=\"\">\r\n        <div class=\"vidseo_btn\" style=\"\">\r\n            U24 \u2013 Cryptos and Risk Management\r\n0:05\r\nHey there, Brad.\r\n0:09\r\nThanks for putting the call together.\r\n0:51\r\nSo, Brad, did you want me to go ahead and begin here?\r\n0:58\r\nSure. Let me see, I\u2019m going to say a couple things first.\r\n1:04\r\nGuys, welcome, and glad you all are here. Does that made it?&#8230;        <\/div>\r\n        <div class=\"vidseo_collapse_content\" style=\"\">\r\n            <p>U24 \u2013 Cryptos and Risk Management<br \/>\n0:05<br \/>\nHey there, Brad.<br \/>\n0:09<br \/>\nThanks for putting the call together.<br \/>\n0:51<br \/>\nSo, Brad, did you want me to go ahead and begin here?<br \/>\n0:58<br \/>\nSure. Let me see, I\u2019m going to say a couple things first.<br \/>\n1:04<br \/>\nGuys, welcome, and glad you all are here. Does that made it? We\u2019re gonna record it so that we can give it out to everybody, John! We\u2019ve got like, probably, I don\u2019t know, 270 people. This is Kevin Cages, scrape. You\u2019ve probably seen them online. Talking about XRP is a youtuber is really, really good and much loved by everybody in the group. So guys, basically, it\u2019s all about tax. It\u2019s all about LLCs here and you know, I\u2019ve had a couple of personal consultation slips with John and I set up an LLC. We actually did it on the phone a couple of weeks ago, right? After one of these calls and purpose of the whole thing is just to set up a structure. You know, like the LLC in order to protect assets, and avoid, and deferred tax.<br \/>\n1:58<br \/>\nSo it\u2019s an LLC written in a specific way, booked out, and will in one or another state, New Mexico. It\u2019s great because they don\u2019t charge any fees, yearly seasoned staff. But the way John writes it, and he\u2019s been doing this for a long, long time, this is kind of his language, this is the language he talks, you know?<br \/>\n2:27<br \/>\nHe he, she puts a blockchain immunity trust. That\u2019s seems fairly complex when you read it, right into the thing.<br \/>\n2:36<br \/>\nIt\u2019s a trust component for cryptographic currency tokens and assets. And then he makes you a PMA, a private membership association, which is what comes with certain rights, and John will talk about that. Maybe other legal entities don\u2019t have, etcetera. He\u2019s gonna go over the whole thing.<br \/>\n3:02<br \/>\nBut that\u2019s the basis of it.<br \/>\n3:03<br \/>\nSo, I put the agenda kind of into the window before. That\u2019s the one that John has as well, and then he\u2019s going to fill in with whatever else he wants to talk about, And then we\u2019re going to ask all kinds of questions. Be sure to write them down, so you don\u2019t forget. I know this stuff is complicated. It\u2019s not really our language. It\u2019s his language.<br \/>\n3:24<br \/>\nSo, just do the best you can at understanding, and we\u2019ll go from there, and then John will tell us how to get in touch with him, where to go to set up one of these things. John, everybody\u2019s concerned about taxes, obviously, and, you know, they all get that message coming through from the IRS and various ways that you have to go crypto to crypto and whatever gains you\u2019ve got. You know, everybody\u2019s nervous about that, you know, because it\u2019s put out by all these youtubers as real, you know.<br \/>\n3:57<br \/>\nSo, anyway, with that, I will leave it to you.<br \/>\n4:03<br \/>\nWell, thank you, Brad, and yeah, that\u2019s what you\u2019re seeing, is sales pitches. These are sales pitches and nothing\u2019s changed.<br \/>\n4:09<br \/>\nAnd well, I\u2019m gonna back up but I just want to address what you just said.<br \/>\n4:14<br \/>\nThere are no new tax laws for cryptographic currency, kryptos, or just property. And there are no new taxing statutes or anything like that.<br \/>\n4:23<br \/>\nYou\u2019re just being scared into doing something so that you will create a tax liability, and I\u2019ll explain what I mean by that.<br \/>\n4:29<br \/>\nBut, my, and thanks, Brad, for putting together this guideline here. I\u2019m going to follow this guideline here, the bullet points.<br \/>\n4:35<br \/>\nAnd I did make some notes for myself, so, it looks like I\u2019m reading, I\u2019m probably reading. But, anyways, about, about myself, I\u2019m, I\u2019m 52. I started doing this in college.<br \/>\n4:46<br \/>\nI\u2019ve been doing this work for, I guess, 28 years, since the mid nineties.<br \/>\n4:51<br \/>\nAnd it came out of, uh, just disbelief that there was some, let\u2019s call it conspiracies or whatever about the whole legal system.<br \/>\n4:59<br \/>\nAnd as I did more research, I saw, I saw a niche market that I could actually work in and help people and do really well. And I really thought I could, when I decided that, and I got into it in the early nineties, actually, towards the mid nineties.<br \/>\n5:12<br \/>\nAnd, um, it was, it was, let\u2019s say, way worse, are way better, however you wanna look at it than I thought.<br \/>\n5:17<br \/>\nAnd so I just continue doing my research, and I arrived at some basic conclusions.<br \/>\n5:22<br \/>\nAnd the first types of situations I found myself in, and if, if I could just describe what I do, I cannot say I\u2019m a board member, because I\u2019m not an attorney, I\u2019m not a CPA.<br \/>\n5:31<br \/>\nSo I\u2019m not, I don\u2019t have letters out from my name, I simply am an entrepreneur. I\u2019m an investor, and whatever you\u2019re doing, I\u2019m probably doing, I\u2019m heavily in Kryptos. I\u2019ve been buying them since 20 13.<br \/>\n5:42<br \/>\nAnd, um, in the nineties, I was helping people out, let us say financial problems.<br \/>\n5:48<br \/>\nAnd what I discovered is that the reason why people had certain problems with finances is because they had the finances, which sounds kind of funny, but say by default, if you go to an attorney or a planner, you\u2019re by default going to be creating all kinds of disability for creditors and third parties that you don\u2019t like to take your stuff.<br \/>\n6:10<br \/>\nAnd so, when I saw that common denominator with all the cases that was working, let\u2019s call it.<br \/>\n6:15<br \/>\nworking situations. I was helping people. Excuse me, Just a second, let me Like him.<br \/>\n6:27<br \/>\nSomebody\u2019s got to mute themselves. Yeah, and now I can mute it. I just don\u2019t see the mute button anymore, for some reason.<br \/>\n6:37<br \/>\nSorry about that.<br \/>\n6:40<br \/>\nOK, all right, sorry about that, OK?<br \/>\n6:44<br \/>\nSo, anyways, what I did is, I discovered that the common problem that people had when they came to me for the financial problem, I\u2019ll explain what that is.<br \/>\n6:52<br \/>\nThey were being levied against by the IRS or they were being sued by somebody or some other jeopardy was being placed on their cash and property rights.<br \/>\n7:02<br \/>\nAnd so, the reason why they had this problem is because they actually had the property rights.<br \/>\n7:07<br \/>\nSo, how do you get rid of the problem, get rid of the property rights? That\u2019s what I concluded back then, but I didn\u2019t know how to do that effectively until I tried a couple of things.<br \/>\n7:15<br \/>\nSo the bottom line is that the core principle that I\u2019ve developed is that I can share the property rights in a group that\u2019s innocent.<br \/>\n7:22<br \/>\nI know that, like Brad said, that\u2019s my language, so I\u2019m not trying to speak over anyone\u2019s head, but I try to use common language. This is pretty common as I can make it.<br \/>\n7:30<br \/>\nIf I have a debt liability too, a bank, the bank consume in levy my bank account, no problem there. The laws allow that in any country. But if the money in my bank account is not mine exclusively, the bank cannot do that.<br \/>\n7:45<br \/>\nAnd how would it not be mine exclusively? Well, if my brother was on the account also, and my brother didn\u2019t have the debt liability with me, Now, if my brother signed on the debt liability and we both had it together, then we\u2019re not safe, That bank can then take the money from the both of us. In that case, we can add yet another person.<br \/>\n8:03<br \/>\nSo, this is the basic idea.<br \/>\n8:06<br \/>\nIf you divest your exclusive right and property, you avoid the liability, and I know this call us about taxes, and we can talk about that. And that\u2019s the most compelling. But what you\u2019re going to find out, is these ideas span just about every ability you could have to manage risk. Because they can be applied and all kinds of situations.<br \/>\n8:24<br \/>\nAnd I\u2019m gonna give you some examples here, Um, but basically, my, and this is what I tell my clients, too, When you\u2019re talking to, someone about, Let\u2019s call it advice, or no information, or direction on what to do with money.<br \/>\n8:38<br \/>\nYou should know who you\u2019re talking to, so I\u2019ll just briefly tell you, I\u2019m somewhat of a millionaire, OK?<br \/>\n8:44<br \/>\nBeen that way for about 20 years, and I\u2019ve lost millions of dollars, I\u2019ve made millions of dollars. I\u2019m not, I\u2019ve never had a net worth of more than $10 million.<br \/>\n8:52<br \/>\nBut, I\u2019m an investor, and I\u2019m an entrepreneur.<br \/>\n8:55<br \/>\nAnd so, the way I interact with clients is as if they were my peers, or I want them to be my peers, or that they\u2019re my partners. I look at it that way.<br \/>\n9:05<br \/>\nI don\u2019t look at it like, I\u2019m going to advise someone on something that I would never touch. If it\u2019s something I\u2019m going to tell you, it\u2019s probably something I\u2019ve already done.<br \/>\n9:13<br \/>\nSo that\u2019s I do a little bit differently than other professionals. I do not bill by the hour. And the reason why I don\u2019t is because I believe that in many cases while people are exploited by that, but also it demonstrates, in some cases, it demonstrates and competence.<br \/>\n9:27<br \/>\nBecause if I bill by the hour, then it\u2019s that arrangement is in my favor. So I have a competing interest with you.<br \/>\n9:32<br \/>\nIf I bill you based upon a solution that you\u2019re calling me for, then I need to solve the problem, right? I need to deliver. And I think, then we don\u2019t do not have a competing interests. So that\u2019s a little bit about me. I don\u2019t know if that\u2019s enough. You guys can ask me whatever you want.<br \/>\n9:46<br \/>\nNo, I\u2019ll just tell you.<br \/>\n9:48<br \/>\nSo, my experience has been managing risk, let\u2019s say, working cases, not as an attorney, I don\u2019t practice law.<br \/>\n9:56<br \/>\nI do not do accounting, I definitely need help with accounting if I need that. I gotta go to an accountant or bookkeeper CPA or whatever. Sometimes I have to go to an attorney for help on things, but I am fairly competent in those areas.<br \/>\n10:09<br \/>\nSo, yeah, I just say, I just share with people my strategies about managing risk.<br \/>\n10:14<br \/>\nNow, there\u2019s no real title for that.<br \/>\n10:16<br \/>\nYeah. So, Kryptos, I\u2019ve been buying since 20 13.<br \/>\n10:20<br \/>\nAnd, so, so, Braz given me this one point. Here, I\u2019m gonna get into this.<br \/>\n10:25<br \/>\nUm, the need to, for the correct LLC and Kryptos, OK, an LLC is a tool. It\u2019s a tool that I like, because you can\u2019t really mess it up.<br \/>\n10:36<br \/>\nIt\u2019s hard to mess it up, put it that way. So, I know that I can leave it with my client, who\u2019s just learning in some cases.<br \/>\n10:42<br \/>\nAnd he\u2019s not going to mess it up and call me back in three months or two years with a big problem.<br \/>\n10:48<br \/>\nSo far, that has been true.<br \/>\n10:50<br \/>\nBut the reality is that you can pretty much use any contractual arrangement you want, you can package it in an LLC, you can use it trust.<br \/>\n11:00<br \/>\nYou can use a partnership. You can even use a joint stock company.<br \/>\n11:03<br \/>\nYou just have to understand what types of risks you\u2019re dealing with. So, if you come to me and say, Hey, my friend said, you set up an LLC, can I have one? I want to set one up.<br \/>\n11:12<br \/>\nI think they\u2019re great, and I would ask you, OK, what are you trying to do with it, because it has to suit the purpose for which you\u2019re, You\u2019re asking me to set that up.<br \/>\n11:20<br \/>\nAs far as a correct LLC goes, an LLC is just, it\u2019s a limited liability company. It\u2019s accepted by statute here in the 50 states.<br \/>\n11:28<br \/>\nIt is recognized around the world.<br \/>\n11:29<br \/>\nIn some countries, it\u2019s not, but you can get an LLC in a business relationship with a bank in your country, even if the country doesn\u2019t officially recognize a limited liability company.<br \/>\n11:40<br \/>\nOtherwise, you can use a partnership.<br \/>\n11:42<br \/>\nYou can use other trusts, you can use other arrangements, so I\u2019m just saying, I choose an LLC here in the states because it\u2019s easy to use, and it\u2019s easy to not mess up. Let\u2019s just say you\u2019re not going to mess it up very easily.<br \/>\n11:56<br \/>\nSo, I just had someone call me today, and he said, he understands the concept to watch all my free videos. And he said, I went registered the company, and did I do, OK?<br \/>\n12:04<br \/>\nFirst, my first question is, who\u2019s the owner And he set it up in a way that is suitable for what he was trying to do, and he understood that.<br \/>\n12:12<br \/>\nAnd I said, there\u2019s, there\u2019s everything\u2019s fine there, You don\u2019t need any changes, really. And so, we just talked about how to use it, and that\u2019s the other side of it.<br \/>\n12:19<br \/>\nI can set up a limited liability company or partnership, but if I don\u2019t know how to use it, just like flying a helicopter, I can spell helicopter, but I can\u2019t fly one.<br \/>\n12:26<br \/>\nSo, the liabilities that you want to avoid, you can incur them in an LLC if you don\u2019t understand how to use it.<br \/>\n12:34<br \/>\nSo an LLC is one thing, but then your accounting practice is something else. So what people don\u2019t realize is, they asked me, OK, why does my LLC not have to file a tax return?<br \/>\n12:44<br \/>\nIf I put $50,000 in it, and it\u2019s now worth $2 million, and the reason why it doesn\u2019t have to file, and I\u2019m talking about the 50 states.<br \/>\n12:51<br \/>\nI don\u2019t know about other countries, but I believe they\u2019re similar.<br \/>\n12:55<br \/>\nIt\u2019s because the the filing obligation comes from filing.<br \/>\n13:00<br \/>\nAnd I know that\u2019s a real subtle concept. You guys are probably saying, What? What did he just say?<br \/>\n13:05<br \/>\nThe accounting practice or filing a tax return creates a tax liability.<br \/>\n13:09<br \/>\nNow, sometimes you have a tax liability without filing.<br \/>\n13:12<br \/>\nWith an LLC, there is no tax liability until a return is filed.<br \/>\n13:17<br \/>\nSo you get to choose and the reason why that is, is because you get to choose what type of liability you have. You get to choose it as if it\u2019s an S corp or a Partnership over. It\u2019s a sole proprietor. Or, there\u2019s all kinds of options.<br \/>\n13:27<br \/>\nOK, that\u2019s why and you can also defer any tax liability, so, you can actually run an LLC with high volume dollars and not have any problems whatsoever And here\u2019s how I figured this out in the nineties when I was dealing with IRS and I call them IRS takedowns.<br \/>\n13:44<br \/>\nSo, for one reason or another, the IRS has taken down a company.<br \/>\n13:48<br \/>\nThat\u2019s the till take.<br \/>\n13:49<br \/>\nThat\u2019s where you\u2019re running a business like a chiropractic service and for some reason you have a half million dollars in Iris, the bill debt, whatever and they are levying your receivables before you get them.<br \/>\n14:02<br \/>\nYou can\u2019t run. You can\u2019t run your business that way. You\u2019re running off savings and it\u2019s not going to last long. So what I do is re-organize the company. That means I keep everything that weight as I leave it the way it is.<br \/>\n14:12<br \/>\nI don\u2019t change the accounting function. I set up a separate company.<br \/>\n14:16<br \/>\nI reroute all the merchant processing to that other company.<br \/>\n14:19<br \/>\nSo, I cut off the IRS. I literally cut them off so, they cannot do the levees Anymore. They could send a thousand levies to the bank and there\u2019ll be zero dollars in there.<br \/>\n14:25<br \/>\nAnd all the clients money is going to a company that\u2019s a neutral innocent party.<br \/>\n14:31<br \/>\nThird party, and let\u2019s call it, a payment processor.<br \/>\n14:34<br \/>\nAnd I set this up in a way where it has no liability to anybody.<br \/>\n14:38<br \/>\nSo the IRS cannot levy that money, even though it can see where it\u2019s going.<br \/>\n14:42<br \/>\nThen my client can, and he and I can work together and we can still keep the business running, pay the bills, and the IRS can\u2019t touch the money, and then they will be so friendly. And they\u2019ll come to the table and say, Hey, can we work out a payment plan? And, you know, and the rest is, you know, kind of interesting, as you can imagine.<br \/>\n14:58<br \/>\nSo, so, in that case, you know, I\u2019m putting out a fire.<br \/>\n15:00<br \/>\nI\u2019m pulling something out of the fire if I\u2019m going forward and I\u2019m looking at a possible windfall of some kind or a new business venture, it might make a lot of money. I can plan ahead and I can decide what my accounting practices is going to be. I can decide how I want to manage my risk, and I think that\u2019s what you all are mostly interested in. If we\u2019re talking about kryptos, so that\u2019s what we can, You know, we can use the LLC going forward, too.<br \/>\n15:20<br \/>\nTake money that we earn. Maybe it\u2019s after tax money. Maybe it\u2019s from your savings, Who knows? Maybe you sold your house or your boat or something and you put that money into kryptos or maybe you re-allocated like I\u2019ve been doing in the last few years, is selling my silver and going into, you know, kryptos, it\u2019s almost a no-brainer.<br \/>\n15:35<br \/>\nAnd then when you get that nice windfall when it\u2019s time to take profits and time to get out of the asset because sometimes you want to take profits and get back in, but when it\u2019s time to leave that asset, you can do it in a way that allows you to do something like you would do in a 1031 exchange except without asking permission.<br \/>\n15:52<br \/>\nOK, so, a lot of the benefits we\u2019re getting, for example, a lot of you heard about how they set up the statutes in Wyoming.<br \/>\n15:58<br \/>\nHow you get certain tax benefits, or liability or liability coverage or benefits under the statute. Well, that is nice, and I\u2019m glad to see Wyoming did that.<br \/>\n16:09<br \/>\nIt does require, in many cases, litigation. So there are costs to get those benefits. You have to be in court. There has to be something, some legal process going on. What I\u2019d like to do is write the contract, right? The company\u2019s in a way that gets me those same benefits, no matter what state I\u2019m in.<br \/>\n16:25<br \/>\nSo we can get those benefits by simply changing the property rights. We can eliminate risk, and we can get certain benefits.<br \/>\n16:31<br \/>\nJust has to use your imagination. And sometimes we don\u2019t use our imagination. We use what someone else did, which I try to do a lot of times, and I could, I\u2019ll talk about that shortly.<br \/>\n16:40<br \/>\nUm, let me just give you a couple examples, I know you have some bullet points here, but um, how bulletproof is this method, OK?<br \/>\n16:51<br \/>\nThe way I change the property rights, I make it to wear, Let\u2019s talk about bulletproof, meaning, is my client\u2019s property, at risk?<br \/>\n17:00<br \/>\nif he continues using this structure, the way I showed him, even if he\u2019s not sophisticated.<br \/>\n17:06<br \/>\nAnd the answer is yes. Now, there\u2019s, there\u2019s a couple of kinds of risks here.<br \/>\n17:09<br \/>\nWhen I\u2019m talking about risk, I\u2019m talking about a tax debt, or I\u2019m talking about being sued, and having to deal with that, not only having to deal with the actual debt, but having to deal with the costs of litigation to defend yourself against it. So, my first measure that I\u2019m trying to accomplish is allowing my client to avoid the cost of litigation if I can do that. I already won the case, I don\u2019t even care if I really won the case. I just won the case because I don\u2019t have to deal with it. It\u2019s a piece of paper, and it won\u2019t affect or adversely affect what I\u2019m doing.<br \/>\n17:40<br \/>\nSo that\u2019s that\u2019s why I say it\u2019s bulletproof, because I\u2019m looking at all the risks, not just how much tax IO it\u2019s everything.<br \/>\n17:47<br \/>\nAnd yeah, it\u2019s bulletproof, and it\u2019s like I said, we\u2019re creating an innocent party and we\u2019re using it as a property owner.<br \/>\n17:53<br \/>\nSometimes the innocent party, I mean, most of the time, I\u2019m writing it as a group.<br \/>\n17:59<br \/>\nSo, for example, let\u2019s say it\u2019s a partnership, Mo, Larry and Curly, OK, partnership, three guys.<br \/>\n18:06<br \/>\nAnd together, they can own things, OK.<br \/>\n18:10<br \/>\nLet\u2019s say they can own cash in a bank account.<br \/>\n18:13<br \/>\nWell, if Mo has a debt to somebody that somebody can\u2019t take the money out of Mo, Larry and Curly Bank account because it\u2019s not just mo\u2019s and the other two people are innocent parties.<br \/>\n18:24<br \/>\nSo the individuals in the group prevent the one who\u2019s not innocent from having his property taken.<br \/>\n18:31<br \/>\nRight. And that\u2019s how I set these up. There\u2019s options. I mean, we have different variations on how to do it. So I had a group come to me, it was a four partners, and they already had a partnership contract.<br \/>\n18:41<br \/>\nI didn\u2019t change anything on that, all I did was give the partnership a name and make that named partnership, the owner of the limited liability company, so now I just put the partnership into limited liability company and the reason why I did it was for simplicity and for interaction or user use as a conduit to the banking system.<br \/>\n19:00<br \/>\nAnd that\u2019s what we\u2019re doing: a limited liability company is a conduit to the banking system because the banking system is a policing system, it\u2019s actually the government. They\u2019re collecting information. They\u2019re gonna use it against here. So, I use an LLC for that purpose because I can control the risk and that way. If I want to use my family trust with the bank, that\u2019s probably not a good idea because I have to give up certain information, right? Dealt with an LLC.<br \/>\n19:21<br \/>\nAlright, same with pretty much anything else. So, the name might give to my group, my own, or sometimes. It can be designated as a private membership association. It can also be designated as a partnership.<br \/>\n19:31<br \/>\nSo there\u2019s all In fact, it operates as a trust.<br \/>\n19:34<br \/>\nSo I don\u2019t want to I don\u2019t want to throw a bunch of terms that confuse you guys, but you can ask me about what I mean by those specific things.<br \/>\n19:39<br \/>\nBut as far as being bulletproof, yes, It is bulletproof in the sense that not only would you not have the risk that you\u2019re trying to prevent, but you don\u2019t have the risk with defending against the risks you\u2019re trying to present.<br \/>\n19:52<br \/>\nPrevent, Which is the cost of litigation, This also does a lot for dealing with them, insurance I\u2019ll give you a great example.<br \/>\n20:02<br \/>\nA gentleman called me a couple of years ago, and he was running a factory, and he said his attorney told him to get $3 million of litigation insurance. So I like to think I have a sense of humor.<br \/>\n20:13<br \/>\nAnd, so, I don\u2019t know, this guy, I just talked to for NaN already, and I said, OK, so, let me ask you this question, Who asked you to get litigation insurance? and he started laughing?<br \/>\n20:23<br \/>\nYou know, and I said, well, of course, you know, of course, your attorney would do that, he wants to get paid first, and you have a competing interest with your attorney by default. That\u2019s what it\u2019s about.<br \/>\n20:31<br \/>\nYeah, he\u2019s an unbelievable hours, that\u2019s all he cares about, and he wants to be ensured that he\u2019s gonna get paid, so I said, well, let\u2019s look at the risk. What kind of risk does your attorney believe?<br \/>\n20:39<br \/>\nthat\u2019s going to cause him to need to go to court for you?<br \/>\n20:42<br \/>\nAnd so we dialed it in, and it was a customer, it was the customer demographic, not not employees or third party vendors.<br \/>\n20:50<br \/>\nIt was, the customer in that business, had a high propensity of suing that type of business owner.<br \/>\n20:57<br \/>\nSo I said, well, first of all, let\u2019s look at how we mitigate that. Forget.<br \/>\n21:00<br \/>\nGo into court. Let\u2019s just cut that out.<br \/>\n21:03<br \/>\nLet\u2019s look at the relationship with the customer, so you want to have your your interaction with a customer with an employee\u2019s proper training, so that they\u2019re going to be on good terms. You want to have good policies. Friendly policies, faire policies, good refund policy, customer service. That sort of thing, OK, That\u2019s done. Then. You have a written contract. And he didn\u2019t have a written contract. The attorney would even recommend a written contract, you see, that\u2019s another thing too. If you don\u2019t have a written contract, then you create more liability, you allow more liability.<br \/>\n21:30<br \/>\nSo I\u2019m trying to explain how why this is so bulletproof.<br \/>\n21:35<br \/>\nI can isolate risk, as I\u2019m telling you, I can export risk with this method.<br \/>\n21:40<br \/>\nSo we, we dial that in a little bit, then, we start talking about the contract. And I say, OK, let\u2019s look at the contract.<br \/>\n21:45<br \/>\nLet\u2019s have it to where you and your customer don\u2019t have a competing interests because right now, it looks like you do, Let\u2019s make it to where you each mutually indemnify and hold harmless, each of each other nally that, let\u2019s put, you know, put some money on this. basically.<br \/>\n21:58<br \/>\nLet\u2019s, let\u2019s make it to where, if there\u2019s a dispute that it has to be, if you can\u2019t resolve it, it has to be worked out through a mediator, and that\u2019s the third party neutral party, OK? And you have to do that first. And if that doesn\u2019t work out, then you get to sue either party, consider either party, but I said in the contract, Make it to where if the if, if one of you SOOs each other without go into mediation first, then you lose your Right. To Sue. The case gets dismissed, and you can\u2019t resolve it anyway.<br \/>\n22:24<br \/>\nThere is no remedy that way. You have to just do something else. So it is very strict about not going to court. So that just killed like 90% of the risk.<br \/>\n22:34<br \/>\nAnd then I said, Let\u2019s do just one more thing.<br \/>\n22:36<br \/>\nNow, this is what I want to share with you all, Because you\u2019re all. I know you\u2019re saying, What\u2019s this guy talking about? I just want to know about taxes.<br \/>\n22:43<br \/>\nI showed him how to export the risk of being sued in the first place. But let\u2019s just mitigate it. Let\u2019s just bring it down to where we have a small risk now, right? There\u2019s a teeny tiny risk now.<br \/>\n22:52<br \/>\nDo we need that attorney anymore? Probably not.<br \/>\n22:55<br \/>\nSo I said, then make your contract with your customer, not with your core company because it\u2019s one thing.<br \/>\n23:00<br \/>\nLike if your customer sues you and let\u2019s say it\u2019s completely out of his mind and he\u2019s going to lose and maybe your attorney will defend it for free, OK, here\u2019s the problem. You have a public perception. Maybe.<br \/>\n23:12<br \/>\nMaybe you have a good name, and a good reputation. And maybe, you know, people\u2019s stereotype perception of being sued is that you must have done something wrong. That\u2019s why Sujit, right, you don\u2019t want that. You don\u2019t want that lawsuit to interfere, and maybe your vendors are going to say, Hey, look, man, we\u2019re going to cancel our contract because your customers are doing it right. You don\u2019t want that. You don\u2019t want that drama.<br \/>\n23:29<br \/>\nSo, what we can do is export that relationship from your core company, two over here, Set up a company and make that company, the contracting party with your happy customer.<br \/>\n23:40<br \/>\nAnd if he becomes unhappy one day and ends up in court, it\u2019s between the customer and your no name company, which you have to deal with. But the rest of the world doesn\u2019t get to see that.<br \/>\n23:50<br \/>\nSo, that\u2019s an, that\u2019s an example of how to, let\u2019s look at intelligently.<br \/>\n23:54<br \/>\nLet\u2019s look at what the risk is, and then let\u2019s find the proper tool to reduce it to nothing, OK.<br \/>\n24:00<br \/>\nThat\u2019s why I do like to say what I\u2019m doing is bullet proof and taxes, really?<br \/>\n24:06<br \/>\nAllright joke, as far as risk, that it\u2019s such an easy thing to deal with and you\u2019ll find out that actually the tax collector, at least in the states I can tell you, is actually as evil as the IRS is. They\u2019re actually one of the friendliest creditors, OK, If you know the system, it\u2019s not bad.<br \/>\n24:21<br \/>\nI\u2019m not saying invite them to Thanksgiving dinner, though, but still.<br \/>\n24:24<br \/>\nSo, how, quick question. Yeah. What if you don\u2019t have the Curly and Larry and you\u2019ve only got Mao OK? You can name a group.<br \/>\n24:34<br \/>\nAnd the group doesn\u2019t have to actually be like, you can tap on the shoulder. They can exist. So, the common group I always go to unless you tell me otherwise is your whole family.<br \/>\n24:44<br \/>\nSo, imagine, like, you probably have 57 people alive in your family, you can call right now, they\u2019re somewhere on the planet, OK?<br \/>\n24:50<br \/>\nSo, I\u2019m gonna just give that family named John Smith\u2019s society and so there we go. That becomes the managing member, single member of your LLC.<br \/>\n24:59<br \/>\nAll right.<br \/>\n24:59<br \/>\nAnd so now I\u2019ve I\u2019m sharing that those property rights in a group and I still have a single member LLC, but it\u2019s not me.<br \/>\n25:05<br \/>\nI have an innocent party now I do not have charging order protection charging our protection prevents a creditor from reaching into the company. I don\u2019t have that, but it won\u2019t matter, because the owner of the company is a completely neutral party.<br \/>\n25:19<br \/>\nGot it.<br \/>\n25:21<br \/>\nUm, I make the relationship look very much like you are working for your church and you might have a lot of debt, but your church is not responsible for that. And the creditor cannot reach into the churches money for your personal debt.<br \/>\n25:34<br \/>\nSo, that\u2019s the way it looks Right. All right.<br \/>\n25:38<br \/>\nYeah. So, let\u2019s see.<br \/>\n25:41<br \/>\nYeah, OK, as far as auditing, I mean, don\u2019t be afraid of an audit. Yeah. It\u2019s a nuisance.<br \/>\n25:47<br \/>\nI have my own strategy on doing audits. If you guys want, we can cover that.<br \/>\n25:50<br \/>\nBut I know it\u2019s not really pertinent to this call, but auditor, manageable, And what are the chances of this structure being audited?<br \/>\n26:00<br \/>\nThis structure can be pulled into your personal audit, but it\u2019s not likely going to be audited. I\u2019ve never seen it anyways. I mean, it could be, I suppose the iris cannot add anything on the iris. It\u2019s not the audit.<br \/>\n26:11<br \/>\nIt\u2019s the the ability of the IRS to summon things and then if the things aren\u2019t delivered, the IRS can go into the district court and get a contempt order against the custodian of the records.<br \/>\n26:23<br \/>\nThat\u2019s what people are concerned about.<br \/>\n26:25<br \/>\nAnd it\u2019s not a problem to produce records to the IRS at an audit, Even if, like, set up Brad situation. And two years from now, he gets audited, and he just lays out everything we did in front of the IRS, which he would never have to do, by the way.<br \/>\n26:39<br \/>\nBut if he did that, it wouldn\u2019t matter, because there\u2019s nothing unusual about what I did.<br \/>\n26:44<br \/>\nSo, that\u2019s why I just say, you know, don\u2019t be afraid of the IRS. Just be pragmatic, don\u2019t lie to them, and tell them, you know, tell the truth and do the right thing. So, if you have a personal gain on something, just report it. It\u2019s easy.<br \/>\n26:55<br \/>\nDon\u2019t go out of your way to structure a one thousand dollar cash amount from the sale of your asset so that you can buy something with it and then try to make it look like it\u2019s a loan or something. It\u2019s just too complicated, right? But when it comes $2 million or $100,000, those are real easy to structure in a way that\u2019s not taxable.<br \/>\n27:17<br \/>\nSo, yeah, anything can be audited.<br \/>\n27:19<br \/>\nI have not seen anything I\u2019ve done be audited.<br \/>\n27:22<br \/>\nIn fact, um, a lot of the methods I used get people out of the audit.<br \/>\n27:26<br \/>\nWhat happens is, a lot of times, I only give the IRS 1, 1 hearing.<br \/>\n27:31<br \/>\nI give them one meeting, OK, with my client, and a lot, Sometimes it depends on the situation, Sometimes, I\u2019ll do a, um, a transcript of the audit so that, I have better control over what they do, but, um, they do that and they end up with, let\u2019s say my client has a huge bill, like, sometimes I\u2019ll have penalties. They\u2019re just really unfair instead of arguing with the penalty.<br \/>\n27:51<br \/>\nI just want to make sure my client is going to be filing timely and stay current going forward, and then he might have a big debt. I\u2019ve got some clients right now with huge debt. Like, half a million dollars or so. And they\u2019re literally running the clock on the IRS, so they\u2019re not going to pay the debt, they\u2019re uncollectible.<br \/>\n28:05<br \/>\nAnd their current, going forward and for and for 10 years, it will be like that, but in 10 years, that large amount of money will be zero, it will, it\u2019ll timeout.<br \/>\n28:13<br \/>\nSo, that\u2019s what I\u2019m concerned with, I\u2019m not concerned with the audit because a lot of times, the purpose of an audit is just to try to get more money out of you.<br \/>\n28:20<br \/>\nThe reason why I don\u2019t care about that is because I can make my client uncollectable, OK? And even if you can\u2019t, sometimes I cannot do it totally.<br \/>\n28:29<br \/>\nIt is still manageable, so even if they come up with a debt, we can still do things.<br \/>\n28:35<br \/>\nThe steps to do it correctly, OK?<br \/>\n28:36<br \/>\nSo if you\u2019re going to manage something that\u2019s going to produce money, or income, or, or you\u2019re gonna buy a big asset, or sell a big asset, look at what your risk is, and then decide how you\u2019re going to manage it, because sometimes you can do it very simply.<br \/>\n28:49<br \/>\nUm, I\u2019ll give an example.<br \/>\n28:52<br \/>\nYou guys want to talk about taxes.<br \/>\n28:54<br \/>\nA, gentlemen, I set up a few years ago, a company, and then, about a year or so later, his partner decided to buy him out, and it was over a million dollar purchase.<br \/>\n29:04<br \/>\nBuying out his half, half share of the company, 50% ownership, and his attorney told him that there was no possible way to avoid capital gains tax. And, of course, he called me. And so, I asked to look. I already knew what I was going to tell him, but I didn\u2019t want to tell them.<br \/>\n29:16<br \/>\nFirst, I wanted to show him in the company documents that I didn\u2019t even look at yet. I just ask them, Can I, can you get your partner to send me the contract for the your company? It was, I think it was. Yeah, it was an LLC. His company was an LLC or an S corp.<br \/>\n29:30<br \/>\nSo anyways, I went through there and I showed him there was a two page section and, and it was all the rules about stock, ownership, and the company and all the tax situations, OK?<br \/>\n29:41<br \/>\nAnd in spite of all those rules, the very last line of all those two pages it said if the conveyance is for estate planning purposes, disregard the foregoing.<br \/>\n29:54<br \/>\nIt\u2019s like I showed a mic look, liquid. It\u2019s saying here.<br \/>\n29:57<br \/>\nIf you can pay the stock for estate planning purposes, you can disregard all those rules pertaining to taxation and that\u2019s right there in the document. I didn\u2019t tell you that.<br \/>\n30:06<br \/>\nAnd he goes, OK, so what does that mean?<br \/>\n30:08<br \/>\nAnd I was explaining, estate planning means that, you were doing something where your, your property rights are not going to.<br \/>\n30:16<br \/>\nEven though they may be retitled, your interest in them will not change. So it\u2019s called the beneficial interest.<br \/>\n30:22<br \/>\nSo if he had the beneficial interest, 100% in his 50% of the company, and he conveyed that before the sale before his partner bought him out, he conveyed it over to a new company that, we just set up.<br \/>\n30:34<br \/>\nAn innocent neutral third party, kinda like we\u2019re doing for the kryptos.<br \/>\n30:38<br \/>\nHe conveyed it with a contract, then his partner bought it from that company, not himself.<br \/>\n30:44<br \/>\nThe conveyance was for state planning, which I put in the contract.<br \/>\n30:48<br \/>\nIt was funny, because, after all this, you know, drama and the attorneys saying, No, you can\u2019t do it.<br \/>\n30:53<br \/>\nAnd I send them the contract, and then I got this e-mail back saying, Hey, give it to my attorney. He said, Yeah, great, thanks, this will work. You know, after all that, they\u2019ll never work.<br \/>\n31:02<br \/>\nAnd just one little thing is conveying property for estate planning is 0 taxable 0 tax liability, OK, that\u2019s another reason why for example.<br \/>\n31:12<br \/>\nIf you don\u2019t know, Brad, explain this job.<br \/>\n31:13<br \/>\nBut if you get, let\u2019s say you\u2019re, you have a Coinbase account and you\u2019re trading a coin to coin to coin and you hear all this news oh my gosh, if you\u2019re doing that no. It\u2019s taxable. Trading between coins is taxable.<br \/>\n31:24<br \/>\nWell it is as soon as you report at the moment you report it.<br \/>\n31:27<br \/>\nBut I can I can show you, if you go look at my site, ACEP coins dot com. You\u2019ll see there\u2019s a there\u2019s an example in there.<br \/>\n31:32<br \/>\nI\u2019ve got about 15 of these and people that have received 10 ninety Nine\u2019s from Coinbase.<br \/>\n31:37<br \/>\nNow sometimes they\u2019ll have sold some of the coins for dollars and that\u2019s taxable then for the most part they haven\u2019t. in some cases they sold nothing and they got a 1099 for a certain dollar amount.<br \/>\n31:46<br \/>\nOn the 1099 the IRS cannot write this or the company.<br \/>\n31:49<br \/>\nCannot write a dollar amount.<br \/>\n31:54<br \/>\nOn the 1099, they cannot write it in terms of cryptographic currency.<br \/>\n31:57<br \/>\nThey have to write it in dollars, so it\u2019s erroneous if it\u2019s written in dollars.<br \/>\n32:01<br \/>\nPlus, the trades between coins is with the same owner.<br \/>\n32:05<br \/>\nSo for example, if I go into my Coinbase account, and I train traded back and forth I\u2019m going from litecoin and bitcoin, but I\u2019m owning those accounts. Those are my wallets.<br \/>\n32:14<br \/>\nI\u2019m the beneficial owner. That beneficial ownership did not change.<br \/>\n32:18<br \/>\nTherefore there\u2019s no tax liability.<br \/>\n32:20<br \/>\nThere\u2019s no disposition of assets, and to correct a 1099, all I do is write to the IRS. I use their form letter, I asked him for it.<br \/>\n32:29<br \/>\nI think it was in 20 14.<br \/>\n32:32<br \/>\nI asked the IRS for a form letter to ask them the Secretary of the Treasury for a determination letter.<br \/>\n32:39<br \/>\nSo, they sent me a six page letter format that I can use and I basically retype everything. And I, I put it in the form that I needed, and I put my legal memorandum in there, and I sent to the Secretary of the Treasury. And I include the 1099, and I include the Client\u2019s 10 forty\u2019s, whether or not they\u2019re filed, because sometimes it\u2019s before they file. So if it\u2019s before they file, we just send a copy of it.<br \/>\n32:58<br \/>\nAnd we tell the IRS, we are asking you to determine the following.<br \/>\n33:04<br \/>\nThis 10 99 is erroneous, and it will not be included with the 1040 and therefore, it\u2019s not taxable, and the IRS writes back and says, Take no further action, that\u2019s there cryptic way of saying.<br \/>\n33:13<br \/>\nYeah, you don\u2019t have to do anything else, what you said is correct.<br \/>\n33:17<br \/>\nSo that\u2019s how I know. I mean, it\u2019s nice to get confirmation and what\u2019s funny is sometimes Iris does not write back, but everything else is same.<br \/>\n33:24<br \/>\nBut sometimes they do.<br \/>\n33:26<br \/>\nUm, did you want me to pause for a second, Brad?<br \/>\n33:29<br \/>\nAnd maybe you guys want to, it\u2019s like I get a tendency to talk really fast and I\u2019ll never stop.<br \/>\n33:36<br \/>\nYou guys want to ask me some questions. Any other, any questions thus far?<br \/>\n33:40<br \/>\nIs that what you\u2019re saying? Yeah, and I\u2019ll just, if you can, yeah, Robert\u2019s asking about deferral and avoidance. Yeah, you\u2019re avoiding taxes and you\u2019re deferring attacks, as long as you want.<br \/>\n33:50<br \/>\nSo if you\u2019d like that idea that you can defer this initial, let\u2019s say, windfall, and you want to re-allocate or spend the money or whatever. And you want to avoid the tax on that.<br \/>\n33:59<br \/>\nYou can do that. And then, at the next event, where there\u2019s going to be a tax, you can do that again. So, you can continue that deferral as long as you want.<br \/>\n34:06<br \/>\nYou choose. Now, when you take some of your profits and you buy your house or pay off your mortgage, which I don\u2019t recommend, by the way, or you buy some assets, you have to do it a certain way. So that you don\u2019t create a new tax liability when you went to all the trouble of avoiding it in the first place. So that\u2019s another thing that I show people how to do. We can talk about that, too.<br \/>\n34:26<br \/>\nYeah, OK, I can put the website in there. I don\u2019t want to distract too much. But, um, there\u2019s an article I wrote.<br \/>\n34:33<br \/>\nI\u2019m sorry, I don\u2019t remember. I think it was July of 2019.<br \/>\n34:38<br \/>\nIt was requesting it a determination letter, or the question of the article was, did you get a 1099 from the, from Coinbase or something OK?<br \/>\n34:44<br \/>\nSo in this I\u2019m showing you an example.<br \/>\n34:50<br \/>\nIt\u2019s on the blog there on the website, eisa coins dot com.<br \/>\n34:54<br \/>\nThis is an example of their response when they do respond.<br \/>\n34:59<br \/>\nAll right, so, let\u2019s see in this. Yeah, so yeah, you\u2019re going to avoid it and defer it for as long as you want, you control that.<br \/>\n35:07<br \/>\nAnyone else?<br \/>\n35:08<br \/>\nIf you could just raise your hand. Do we do that here?<br \/>\n35:12<br \/>\nThere\u2019s no raising hands that I have ever found, but you can just unmute yourself and jump in.<br \/>\n35:20<br \/>\nAnd that\u2019s a good question. Rich is asking about the stable coins when I, when I suggest taking profits.<br \/>\n35:25<br \/>\nA stable coin is just like any other coin, that is not a disposition of assets. Remember the beneficial owner stayed the same.<br \/>\n35:31<br \/>\nYou went from your holdings to your stable coin to wait to go buy a backend.<br \/>\n35:35<br \/>\nFor example, that does not create a taxable event, that is not a disposition.<br \/>\n35:42<br \/>\nAnd here\u2019s a, um, an example. So let\u2019s say I go to Coinbase.<br \/>\n35:47<br \/>\nSo I buy only true UST, stable coin. I do not buy any other coin when I go to Coinbase.<br \/>\n35:52<br \/>\nThen I move my true USD off to my favorite hardware device, bit phi, whatever.<br \/>\n35:58<br \/>\nAnd then I allocate to the coins I want.<br \/>\n36:00<br \/>\nSo it\u2019s on my device, It\u2019s not on Coinbase.<br \/>\n36:03<br \/>\nAnd then, when I want to take profits, here\u2019s two ways to take profits.<br \/>\n36:07<br \/>\nI can go back to Coinbase and I can sell and take dollars, I can do it in my name or my LLC LLC name.<br \/>\n36:14<br \/>\nOr I can go from my ledger, I can isolate the coins I want to spend.<br \/>\n36:21<br \/>\nSo I\u2019ve gone into Coinbase, bought $2, Gone to my hardware with my ledger, re-allocated, made a bunch of money, took a portion of that.<br \/>\n36:31<br \/>\nOpen escrow made an offer on some real estate. Opened escrow put my Bitcoin in escrow.<br \/>\n36:38<br \/>\nHad the escrow agent Selle for dollars in escrow which does not create a tax liability for anybody and then pay the seller and then I take the title to the property.<br \/>\n36:49<br \/>\nSo the only trick on that is either I take the title as a borrower, or I take the title as the trustee of the owner.<br \/>\n36:57<br \/>\nSo that way, I don\u2019t take the title in my name and leave it like that.<br \/>\n37:01<br \/>\nThat\u2019s an example, without even really using a structure and a fancy bank account, you just do in your personal name.<br \/>\n37:13<br \/>\nBrad, if you heard this before I probably told you these stories. Right?<br \/>\n37:17<br \/>\nYeah, somebody.<br \/>\n37:21<br \/>\nUm, But yeah, the escrow. Yeah. The ESCO is a great example.<br \/>\n37:25<br \/>\nI mean, you\u2019re coming to me for having me sell you a company. I\u2019m more than happy to do it and I love doing it and I\u2019m available for the whole year. That\u2019s the deal. I mean, you can set up a company that\u2019s easy. You\u2019re paying me for the service. I charge 697 has set up.<br \/>\n37:37<br \/>\nThe company, includes a whole year of consulting one-on-one and you include the fees to the state fees. You can make it to where there\u2019s no annual state fees and you can also make it to where I like to do it. So, there\u2019s no registered agent fees every year.<br \/>\n37:53<br \/>\nIt\u2019s kind of a trick, but I like to do that.<br \/>\n37:57<br \/>\nBut yeah, and so I want to, I want to explain it that way, Any questions?<br \/>\n38:03<br \/>\nBecause if not, I\u2019m going to, I\u2019m gonna go through one of my stories.<br \/>\n38:08<br \/>\nExample, you were so my mom not moving into your house. Was that the example, you just don\u2019t know?<br \/>\n38:16<br \/>\nWell, I was just saying how to move money out of Kryptos into something, buying something without creating a tax liability. And the way you would do it is to sell your kryptos while in escrow.<br \/>\n38:29<br \/>\nSo you\u2019re converting your property, your, your crypto property into some other kind of property without taking a gain.<br \/>\n38:39<br \/>\nSo, let me, let me just let me jump in there and just save because you and I talked about this on the phone a couple of weeks ago. So.<br \/>\n38:50<br \/>\nWhat John was suggesting that if you can find an escrow company that will take, let\u2019s just say, Bitcoin, it could be stable coin, it could be, but he likes to use Bitcoin just because it\u2019s the industry standard.<br \/>\n39:04<br \/>\nYou give them your Bitcoin, they transfer it into cash, when it happens in escrow, nobody\u2019s liable, But it\u2019s finding the escrow company that will do that once the escrow company realizes, Wow, this could be a big market for us.<br \/>\n39:20<br \/>\nKnow, they\u2019re much more willing, but it\u2019s finding that escrow company who knows that it\u2019s, you know, it\u2019s, it\u2019s gonna be really good for them because a lot of people are coming into money here with, with, with this bull market. However, aside from that, John does have, his partner bought an exchange in order to set up, you know, their own escrow company, she can take it and do it himself. He just did a little while ago a million dollar deal, right and in bitcoin by some real estate, it goes into escrow.<br \/>\n39:56<br \/>\nYou give them the bitcoin, they transfer it into cash and you know And then the property either goes into your LLC\u2019s name or stays in the LLC unable to because the bitcoin went out of your LLC. Or if you want it to go into your name and you have to have it in your name.<br \/>\n40:15<br \/>\nYou do a mortgage back um through the escrow company or from the LLC. Well, why don\u2019t you take that. Once you take the title. Within a short period, you want to record a mortgage on the property, and so you decide who, that lender is going to be, it can be your same company, your trust. It could be a new company. It could be your Uncle. Bob.<br \/>\n40:34<br \/>\nJust, it has to be real, the numbers have to be real and you have to have a record of the mortgage payments, right? Which is easy to do.<br \/>\n40:42<br \/>\nAnd that basically transferring money from yourself to yourself in one way or another.<br \/>\n40:46<br \/>\nYeah, there is an arm\u2019s length there, I mean, it is still arm\u2019s length. There there are more sophisticated ways of doing it. But that\u2019s the general idea, You can do. The same thing with a car.<br \/>\n40:56<br \/>\nThe biggest risk, I think, I mean, that\u2019s an easy transaction.<br \/>\n40:58<br \/>\nAnd like Brad was saying, yeah, there will be, escrow agents, that they\u2019re going to see this is a niche market. We can do it right now. We can clear. we can buy or sell coins or dollars.<br \/>\n41:08<br \/>\nWe can do $7.5 million worth per day per client.<br \/>\n41:13<br \/>\nSo if you\u2019re liquidating or whatever buying real estate and you\u2019re just go get your own escrow agent, OK. And if he or she or that company cannot do it, they\u2019ll just call us and we\u2019ll do it.<br \/>\n41:23<br \/>\nWe will source it, We\u2019ll sell it back to your agent and there\u2019s a fee of course and you\u2019re gonna, it\u2019s it\u2019s going to be, you\u2019ll save a lot of money doing it that way.<br \/>\n41:32<br \/>\nSo yeah, now, um, kind of go on.<br \/>\n41:36<br \/>\nIs it absolutely.<br \/>\n41:40<br \/>\nSure and Andres is asking about so this is the pitch, OK, I\u2019m going to I\u2019m just going to quote him here.<br \/>\n41:45<br \/>\nHe\u2019s asking in the chat window, you know, reading IRS website It says that trading coin to coin should be treated as coin to fiat fiat coin Sure, and if you have a $100 bill in your pocket, you should put it in my pocket.<br \/>\n41:58<br \/>\nYou just should do that. That\u2019s a sales pitch having come on.<br \/>\n42:03<br \/>\nYou Let me just give you an example here. This is maybe a funny story you can have with your conversation with your accountant.<br \/>\n42:11<br \/>\nImagine, if you\u2019re so smart that you took 50 grand and you went into Kryptos, and you traded back and forth, and you knew when to buy and sell, at what time. And now, a year later or so, or nine months later, you\u2019re 50 grand is worth $2 million.<br \/>\n42:25<br \/>\nSo, you tell your account, and that scenario, he\u2019s gonna say, Well, yeah, you gotta report it, man. It\u2019s taxable, OK, fine.<br \/>\n42:31<br \/>\nSo how much tax to IO and he\u2019ll tell you like a percentage or or a dollar amount, Whatever the conversation is, going to, you know, move into it.<br \/>\n42:37<br \/>\nAnd then you ask them, OK, so how do I do that? How do I pay the taxes I owe on it?<br \/>\n42:43<br \/>\nAnd he says, Well, you\u2019re. You\u2019re going to have to just, you know, buy your 10 40 and write them a check, and then you say, Well, I only have crypto coins.<br \/>\n42:49<br \/>\nI don\u2019t have dollars, Am I required to go get some dollars or sell my coins? Am I required to sell my coins to pay this?<br \/>\n42:57<br \/>\nAnd you start realizing that the coins are not being taxed.<br \/>\n43:01<br \/>\nIt\u2019s the dollars, because you cannot pay the tax on the coins.<br \/>\n43:06<br \/>\nLook at all your taxing rigs. They all have rates on dollars.<br \/>\n43:13<br \/>\nThat\u2019s probably, That\u2019s my analogy anyways. I don\u2019t know if that\u2019s.<br \/>\n43:18<br \/>\nThe best one. But I was talking with an accountant in the UK about a year and a half ago and he was just going up and down all the rules for HMRC, right? This is their IRS over there.<br \/>\n43:30<br \/>\nAnd after he was done I said OK so that sounds pretty strict.<br \/>\n43:35<br \/>\nIt\u2019s like yeah and I said where are you reading that from?<br \/>\n43:39<br \/>\nAnd he started laughing and he said well it was the HMRC website. I said, OK. Well what laws have imposed new taxes on cryptographic currency?<br \/>\n43:48<br \/>\nAnd he couldn\u2019t tell me.<br \/>\n43:50<br \/>\nAnd I said, so what are we talking about here? What\u2019s changed?<br \/>\n43:55<br \/>\nIt\u2019s, your perception has changed.<br \/>\n43:57<br \/>\nAnd he admitted that.<br \/>\n43:58<br \/>\nHe\u2019s, like, Yeah, you know, you got me, after all that ranting and raving.<br \/>\n44:03<br \/>\nAll right? Let\u2019s see.<br \/>\n44:07<br \/>\nSo, what does the IRS looking for here?<br \/>\n44:12<br \/>\nTell the truth to the IRS if they if they ask you on a tax form if you got crypto say, yeah.<br \/>\n44:17<br \/>\nEven if you did it, technically, it\u2019s not yours because the way I write these things is not yours. I would still say yeah, because I still have the beneficial interest. Just say, yeah. Here\u2019s the one thing I would say be aware of.<br \/>\n44:28<br \/>\nIf your accounting person wants you to fill out disclosure forms regarding kryptos, do not do that. you\u2019re not required to, especially if the form involves saying it under penalty of perjury.<br \/>\n44:39<br \/>\nHere\u2019s why There are severe penalties for lying to the IRS. It\u2019s like five year prison sentence.<br \/>\n44:45<br \/>\nI think if you\u2019re convicted, on a 10, 40, 10, 40 are filed every year under penalty of perjury.<br \/>\n44:52<br \/>\nThat alone is your one thing you have to do.<br \/>\n44:56<br \/>\nYou\u2019re not required to do it twice.<br \/>\n44:59<br \/>\nYou testified to something once, and that\u2019s enough. If someone else asks you to fill out a form \u2026<br \/>\n45:04<br \/>\nperjury or another type of disclosure, no, you do it one time on a 1040.<br \/>\n45:08<br \/>\nThat\u2019s what I tell the IRS when they want to audit my client, I tell them you\u2019re gonna get, you\u2019re gonna get to audit. I\u2019m not gonna, I can\u2019t fight you on that, but you get one meeting, and you better make sure you get all the documents, Because we\u2019re not gonna do this again.<br \/>\n45:20<br \/>\nAnd I transcribe it.<br \/>\n45:22<br \/>\nAnd that\u2019s the end of it.<br \/>\n45:23<br \/>\nThat\u2019s all they get.<br \/>\n45:24<br \/>\nSo just know that if you\u2019re already on the hook for the 10, 40, every year, you\u2019re not on the hook for something else.<br \/>\n45:30<br \/>\nThat\u2019s another penalty of perjury situation.<br \/>\n45:34<br \/>\nSee what you have, everything in the LLC, OK?<br \/>\n45:38<br \/>\nNot saying, let\u2019s put everything in there, but where you want to minimize risk, yeah. It\u2019s a great tool to use. I use one LLC for different types of cash flow, so I don\u2019t have to set up all kinds of bank accounts for all kinds of companies, and I can own assets in different ways.<br \/>\n45:51<br \/>\nSo, um.<br \/>\n45:54<br \/>\nHow do you use the money? How do you cash out?<br \/>\n45:56<br \/>\nOK, like, I, like Brad, and I explain on buying the House, you could do it that way.<br \/>\n46:00<br \/>\nYou move the money, you can literally sell your coins in the LLC account and then spend the money from the LLC, and then the trick is how you take the title, you can take the title in your name, or whether it\u2019s a vehicle, vessel, aircraft, real estate, an investment, a new house.<br \/>\n46:15<br \/>\nEven paying off the mortgage, which is a different type of risk.<br \/>\n46:19<br \/>\nYou either take the title of the thing in a company or a trust, or when you put it in your name, you put a lien on the property that\u2019s legitimately and it has to be have let\u2019s call it economic reality, OK, It has to have a real interest rate, real terms, and all this stuff.<br \/>\n46:39<br \/>\nThat I don\u2019t want to get into too much detail, but um, The big risk and paying off your house For example, a lot of people want to pay their mortgage I don\u2019t know why, but I think paying off a big chunk of it is a good idea.<br \/>\n46:50<br \/>\nI think having 25% mortgage is a pretty good idea, 50% is OK, 80% is not necessary. Really, I think that\u2019s too much debt to have on a personal liability, a house is a liability, and be clear on that.<br \/>\n47:03<br \/>\nKnow what a liability that asset is, So something you\u2019re living in and paying for, and that\u2019s costing you money as a liability, Instead of paying off your mortgage, let\u2019s say I\u2019ve had lots of clients come to me with like, I just got 50,000. They would tell me, I just got 50,000, $150,000 from inheritance. My friends had to call you.<br \/>\n47:20<br \/>\nAnd they\u2019re like, I\u2019m gonna pay off my mortgage, but he said, No, I should call you first, because I said, OK, my typical conversation is out of the 150 set that aside, and take out 2 or 3 or $5000 of that, and let\u2019s work on a plan, which will take us literally about an hour, to buy an asset. Depending on your needs and your lifestyle, and what kind of asset we\u2019re talking about, this asset will be enough to partially or fully offset your mortgage payment.<br \/>\n47:45<br \/>\nSo, now I\u2019ve got a debt over here and I\u2019m not going to pay it off. I\u2019m going to acquire an asset and I\u2019m going to balance it off, right? So, zeros out or close to it.<br \/>\n47:53<br \/>\nAnd then when I\u2019m done paying off, selling the debt, I\u2019m still going to have the asset.<br \/>\n47:58<br \/>\nHopefully, this is a very good habit.<br \/>\n48:00<br \/>\nAny, any good banker who\u2019s willing to tell you, the truth, will tell you it\u2019s a bad use of capital to pay off personal debt early because you miss out on something called internal rate of return or net present value of your cashflow and you give it to the bank. And the bank will even make more money than you could have made with the, my name is got. It\u2019s like a gift to them.<br \/>\n48:21<br \/>\nYou would, you\u2019d be shocked. You\u2019d be angry to know how much money they make when you, when you pay your mortgage off early, when you refinance your house.<br \/>\n48:27<br \/>\nOh my gosh, it\u2019s like stealing, It should be illegal and state taxes. OK, state tax different from Fed, OK, well, we\u2019re talking about Fed. Usually we\u2019re talking about income tax, state tax. You have your income tax. You have your conveyance tax. Or give an example, in California.<br \/>\n48:41<br \/>\nAnd Florida, if I\u2019m gonna sell a house that I live in in one of those states, California, or Florida, they have this huge. It\u2019s a documentary stamp tax.<br \/>\n48:50<br \/>\nNow there\u2019s a video on privacy fight on the YouTube channel.<br \/>\n48:53<br \/>\nPrivacy fight is one word. Go there, search on it. It has to do with the PMA.<br \/>\n48:57<br \/>\nI used, it was in Oregon, real estate, residential real estate, and it was a New Mexico LLC.<br \/>\n49:05<br \/>\nAnd because the LLC was out of state, the title company was trying to create a tax situation which it was taxable, but we actually were able to get out of the tax situation legally and we did it twice in like six months. It was amazing. And they try to, they try to finagle it in a way where they could create the tax liability, it didn\u2019t work, and they had to give my client all the money. So.<br \/>\n49:23<br \/>\nBut what we do in California is we would convey the property to an LLC for estate planning purposes, and just so you can check this out, there is a cyclic. three page form. You fill out with your quitclaim deed. The quitclaim deed is how you got the title to the real estate, OK?<br \/>\n49:39<br \/>\nYou quit the claim on the real estate, and we transfer the title with a quitclaim deed. And when we read, when we recorded it with the county, where the property was, in California, we included this exemption form.<br \/>\n49:53<br \/>\nAnd the exemption actually says on there that the conveyance is for estate planning purposes.<br \/>\n49:58<br \/>\nEven the government recognizes, so if you have an estate tax situation like that, it would be, um, a documentary stamp tax, which is really a tax on the Disposition of Assets. It\u2019s a sales tax, OK. It\u2019s an exaggerated sales tax.<br \/>\n50:12<br \/>\nYou can deed the property to an LLC, let the LLC get whatever income is gonna come from the sale and then the deed that the conveyance itself.<br \/>\n50:23<br \/>\nThe tax can be avoided just by filling out the proper exemption form. And you\u2019ll find sometimes in some of the counties, you have to be up on your game a little bit. Some of the carriers will pretend that, it doesn\u2019t exist.<br \/>\n50:33<br \/>\nI don\u2019t know why they do that, but, uh, I mean, like, what\u2019s it to them? But anyways, just be aware of that.<br \/>\n50:39<br \/>\nUm, when do I need to get my coins into the LLC?<br \/>\n50:44<br \/>\nLike it\u2019s just like with real estate, when I went to dispose of an asset and it\u2019s in my name. I want to take it out of my name, for estate planning purposes, and then I want to dispose of it. So the place I put it, is the thing that can handle the liability. So, I\u2019m gonna put the thing I\u2019m going to sell, I\u2019m gonna conveyed over to the limited liability company, or the trust or whatever vehicle I found, it\u2019s the best way.<br \/>\n51:02<br \/>\nThen I\u2019m going to Dispose of the Assets. So, same thing for coins. You can just go in and best and bind, buy, buy, buy, and trade, and and your account can triple and \u2026, and all this stuff.<br \/>\n51:11<br \/>\nAnd then, when it\u2019s time to liquidate and take profits, do it in this way. Use a company or an LLC or some vehicle whereby you can pass on the liability or defer it forever, OK?<br \/>\n51:25<br \/>\nAlright, and there\u2019s some good questions here I\u2019m going to jump to that real quick.<br \/>\n51:29<br \/>\nKnow it was a shortlist Brad, and I\u2019m looking at your list of questions, which is ideal, but it\u2019s going to take a lot of time to do this, which is fine if you guys are in for it. I went for it. All right.<br \/>\n51:42<br \/>\nUS based Yeah. You can do this in Australia.<br \/>\n51:45<br \/>\nI don\u2019t even know what the tax laws there. You can do it in the UK.<br \/>\n51:49<br \/>\nThis is why, OK, there\u2019s a 30 minute video on Privacy fight, it has out on the thumbnail. It has a picture of the globe.<br \/>\n51:55<br \/>\nSo, so watch that video. I forget the title.<br \/>\n51:57<br \/>\nBut um, the reason why I do it, I explain it this way. Because I want people to know they can use it in other countries.<br \/>\n52:03<br \/>\nSo, yeah, we use an LLC here and I will use an LLC as much as possible. Because I just like those, it\u2019s easy, everybody recognizes it. If I, if I can\u2019t have one, I\u2019m gonna use a partnership.<br \/>\n52:13<br \/>\nAnd the whole idea is that I want to divest my exclusive rights and something now if, like because I fell 10 forties if I get money direst once it\u2019s cut.<br \/>\n52:23<br \/>\nBut my brother and I never filed 10 forty\u2019s together, right?<br \/>\n52:26<br \/>\nSo if my brother and I make a bunch of money, we wouldn\u2019t have a tax liability. We could put $100,000 into a deal and make a million dollars the same week and still not have a tax liability.<br \/>\n52:35<br \/>\nUntil we take our shares out, you can ask any accountant.<br \/>\n52:39<br \/>\nThere is no tax liability now, if we didn\u2019t take our portion out, and we just file the tax return to the IRS and said, Hey, we are a partnership, and here\u2019s our tax treatment. And the irises will say thank you very much and take its cut, no problem.<br \/>\n52:55<br \/>\nOr we could take our new found well and roll it over into another deal as a partnership.<br \/>\n53:01<br \/>\nIf we want to do that, we can do that, So we can do in any country.<br \/>\n53:07<br \/>\nOK, and switching over to SBAR.<br \/>\n53:09<br \/>\nSo F bar Filing for $10000, for an account, it\u2019s not 10000. Go. Look at your rules, here\u2019s what you guys want to do.<br \/>\n53:17<br \/>\nGoing off shore.<br \/>\n53:17<br \/>\nOK, if you\u2019re a US citizen, you are never offshore and I have an article on this to US citizens or never offshore.<br \/>\n53:25<br \/>\nGo to ace of coins dot com on the block, be very careful about this. This is way worse than the IRS. F bar is under the Financial Crimes Network.<br \/>\n53:34<br \/>\nFinancial Crimes Network brings in total 18 implications, OK?<br \/>\n53:39<br \/>\nAnd I believe Title 31, which is Civil Penalties and Criminal Penalties, for not disclosing foreign interests.<br \/>\n53:45<br \/>\nAnd those include being a signer on a bank account.<br \/>\n53:49<br \/>\nBeing a board of director member on a corporation off shore.<br \/>\n53:54<br \/>\nI don\u2019t believe it includes owning real estate offshore.<br \/>\n53:57<br \/>\nSo be very cautious about having any off shore companies or financial interests or corporate interests. If you really need to do things like that, there are ways of doing it legally.<br \/>\n54:09<br \/>\nLet me know, we can talk about that, but most everybody I\u2019ve talked to, it\u2019s not necessary. You don\u2019t need to go off shore unless you really actually have a project off shore. OK, if you\u2019re making money off shore. Great, There\u2019s some structure that I could recommend to you.<br \/>\n54:21<br \/>\nAnd there\u2019s \u2026 Brown.<br \/>\n54:23<br \/>\nYeah, considered.<br \/>\n54:25<br \/>\nYeah, that is for right now, and for the foreseeable future that organization Legally does, not is under no obligation to report on anyone, and it does not report on anyone, even if it wanted to report.<br \/>\n54:36<br \/>\nIt wouldn\u2019t be recognized ironically. So if Caleb and Brown took your account information like Bank of America would If you went to Hong Kong at Bank of America, they would definitely report on you. You know that. But Halem of Brown would not, and even if it did the, Iris wouldn\u2019t touch that information, because it\u2019s not under a treaty.<br \/>\n54:52<br \/>\nIt\u2019s not under some sort of relationship, OK, for right now, I don\u2019t think it will be. I don\u2019t see that happening. I don\u2019t think it\u2019s regarded as a financial institution, yet. Maybe they want to be, I don\u2019t know. So it\u2019s, it\u2019s that one.<br \/>\n55:05<br \/>\nKnow, that one situation, where it\u2019s really unique, and I just am an advocate of Calama Brown for that reason, OK.<br \/>\n55:12<br \/>\nSo, um, but F bar, aye.<br \/>\n55:16<br \/>\nI\u2019ve had a couple of cases on this. It\u2019s ugly, they\u2019re just, they\u2019re there. You can never comply, OK.<br \/>\n55:22<br \/>\nSo, what you want to do is look up the, form 5, 471, PDF, IRS Form 5, 471, and not just the form.<br \/>\n55:32<br \/>\nYou want to look up the instructions for the form.<br \/>\n55:36<br \/>\nAnd just to validate what you may experience, I\u2019m going to say this.<br \/>\n55:40<br \/>\nI\u2019m gonna put this here.<br \/>\n55:42<br \/>\nYeah.<br \/>\n55:46<br \/>\nWhen you go look for the instructions, and I believe it\u2019s about six pages long, the first page should make you angry. Because you\u2019re going to conclude very quickly that they wrote this in a way to just say, F, U. If you go offshore if you\u2019re a US citizen and we\u2019re gonna beat the **** out of you and that they will do that. So, that\u2019s what this is for. I\u2019ll tell you, if you think you, do you think you can comply, and you don\u2019t mind filling out these disclosure forms, You know, that\u2019s fine.<br \/>\n56:10<br \/>\nBut they have the ability, and I have cases right now where they are doing this. People came to me. They\u2019re on fire with this.<br \/>\n56:18<br \/>\nThe Iris can at anytime in the future in the next 99 years, if they want, say that you didn\u2019t do them correctly and void the statute of limitations, the IRS can do that unilaterally as if there was no statute of limitations.<br \/>\n56:35<br \/>\nSo be very cautious about the off shore stuff.<br \/>\n56:37<br \/>\nThere is a right way to do off shore.<br \/>\n56:43<br \/>\nYeah, and the in the UK as well, I mean, Australia, Canada. I kind of cheat in Canada, here\u2019s what we do.<br \/>\n56:51<br \/>\nWell, UK two.<br \/>\n56:52<br \/>\nSo in UK, Canada, for eat, for convenience, we use an LLC here in the states.<br \/>\n56:57<br \/>\nWe do our accountant, Caleb and Brown, and then later on, we take our time and do our banking. Sometimes with the LLC, we domesticated in Canada.<br \/>\n57:05<br \/>\nNow I\u2019ve done those and we don\u2019t go to the government or service. What we do is.<br \/>\n57:10<br \/>\nOnce everything\u2019s running fine, the way you want it. I have you go to a bank that you want in Canada, for example, and ask what the bank would want to see in order to do business with your limited liability company.<br \/>\n57:20<br \/>\nAnd then most of the time, it just says you have to register with your province as what\u2019s called an extra provincial company.<br \/>\n57:28<br \/>\nAnd that\u2019s called domesticating your LLC, and then the bank will deal with you in Canada, even though the Canadian laws do not recognize an LLC, but you can still do it. Same thing with the UK, and anywhere in the UK, and in Europe, actually, if it\u2019s not friendly where you are, I mean, probably most countries, modern countries, recognize LLCs, but if it\u2019s not easy to do, you can actually go to online.<br \/>\n57:52<br \/>\nYou can go to I believe it\u2019s the Republic of Ireland. I could have that mistaken with Northern Ireland. I\u2019m sorry if I mix that up.<br \/>\n58:00<br \/>\nBut in Ireland, it\u2019s very friendly to register a limited liability company.<br \/>\n58:05<br \/>\nAnd bank there, where you\u2019re located in Europe, wherever you\u2019re located in Europe, they\u2019re very friendly to people in Europe.<br \/>\n58:11<br \/>\nSo if you really want to do that, check that out.<br \/>\n58:16<br \/>\nAlright, I hope that helps you guys in the UK.<br \/>\n58:19<br \/>\nMinimum investment for crypto is when you would say, worth moving it.<br \/>\n58:22<br \/>\nOK, um, but for me, personally, I just use an LLC for everything.<br \/>\n58:29<br \/>\nSo what\u2019s the minimum amount of money then I\u2019m going to use an LLC to manage to avoid risk.<br \/>\n58:37<br \/>\nI do it as a matter of course, but if it\u2019s, I don\u2019t know, I can just make up a number $50,000.<br \/>\n58:44<br \/>\nLet\u2019s say tax on $50,000.<br \/>\n58:46<br \/>\nIf you Don\u2019t like paying tax on something, or if you think there\u2019s too much of a risk on something like, for example, maybe you don\u2019t like $50,000 in your name, For whatever reason, like I wouldn\u2019t be comfortable with $50,000 in my name.<br \/>\n59:00<br \/>\nI don\u2019t mind a million dollars in my company.<br \/>\n59:02<br \/>\nI would move it into a company. So if you\u2019re not comfortable with it in your name, that would probably be the point at which you would use a company of some kind.<br \/>\n59:13<br \/>\nYeah, if you guys are in Australia, I can say, you know, show you a couple of things.<br \/>\n59:16<br \/>\nWhat I tried to do first is find out what you want to do if you\u2019re just investing in kryptos.<br \/>\n59:22<br \/>\nI would, I would use an LLC here in the states. I mean, for me, it\u2019s so easy to set up. I could do, like, an hour, you know, if you really wanted to, Or Colorado.<br \/>\n59:30<br \/>\nI mean, we have nice jurisdictions here, and the, uh, your local people, your bank there will just want, sometimes just a certified copy of the articles.<br \/>\n59:41<br \/>\nI mean, most banks are going to ask that anyways, and today they will accept the copy of the certified copy. And then in Australia, I think Australia does LLCs.<br \/>\n59:48<br \/>\nI don\u2019t remember, but I kind of don\u2019t care because I know that I can again, if I set up a company in the states, I know that I can get my bank in Australia to open an account and I believe your disclosure obligations are somewhat greater than in the states.<br \/>\n1:00:03<br \/>\nKYC is about the same, but I\u2019ve just seen them asked for more documentation on companies. Here in the states are pretty lax about that.<br \/>\n1:00:10<br \/>\nIf you have so you could probably get an account here.<br \/>\n1:00:14<br \/>\nAs a foreign sinor, I don\u2019t try that too much.<br \/>\n1:00:17<br \/>\nBut I know that they would recognize a foreign passport and they would do it over the Internet, not that it\u2019s necessary.<br \/>\n1:00:22<br \/>\nAnd so, you want to check your laws, too. Like if you\u2019re in the UK, Canada, United States, and probably Australia, New Zealand, you\u2019re probably having this worldwide surveillance of wherever you\u2019re using money and corporate interests. So, just be cautious about that. I don\u2019t know what the rules are over there.<br \/>\n1:00:39<br \/>\nYeah. And a lot of people wanted to do the company now. Sometimes it depends on how the conversation goes. I try to get a feel for what the person really would want to do. Because if you\u2019re not sure, Or you\u2019re kind of new.<br \/>\n1:00:50<br \/>\nI don\u2019t like to say, yeah, this is the best thing, ever, you know, Even though I think it is, I\u2019d like to let you think about it. And so, I won\u2019t, I won\u2019t push you. I\u2019ll just say, you know, It\u2019s one of the things you can consider.<br \/>\n1:01:01<br \/>\nSo, give yourself time. If you\u2019re new to these concepts, and you have 50,000 or $150,000 in kryptos, and look at, is, we still have a road to go before. We want to take some profits. That\u2019s my opinion. You have plenty of time to decide if you want to use a certain type of vehicle to manage that.<br \/>\n1:01:21<br \/>\nYou don\u2019t have to do it today.<br \/>\n1:01:23<br \/>\nYou can buy, buy, buy, and not have a liability.<br \/>\n1:01:28<br \/>\nOK, Let me go back to our list, Brad, and see.<br \/>\n1:01:35<br \/>\nOK, when do I need to get my coins into the LLC?<br \/>\n1:01:38<br \/>\nYeah, well, it\u2019s when you want to win, you\u2019re gonna start when you\u2019re gonna create a liability.<br \/>\n1:01:44<br \/>\nSo buying is not a liability.<br \/>\n1:01:46<br \/>\nSo you buy, buy all you want when it\u2019s time to take profits or move your property somewhere or liquidate you want to use a vehicle, an LLC or a trust or something so at the time you\u2019re going to have the liability, you can set that up.<br \/>\n1:01:58<br \/>\nNow, sometimes it might take a week or two, sometimes it takes a day, it depends on the situation. But yeah, when you\u2019re going to have that liability, put that company in its place.<br \/>\n1:02:08<br \/>\nYeah, you can, you can go to a stable coin, that\u2019s what I\u2019ve been doing and you take profits and stable coin and go back in, We\u2019ve got a long way to go. We got a year. It\u2019s going to, it\u2019s going to be nice.<br \/>\n1:02:17<br \/>\nYeah, guys, I\u2019ll just say to them, it took me, and John probably, two weeks, to set up my LLC. from the time, I said, let\u2019s do it, we got on the phone, he set it up while we\u2019re on the phone, he was typing away. He was in New Mexico, doing his thing set.<br \/>\n1:02:32<br \/>\nThe whole thing up, and then I think by the next day or two, you had the wretch number over. And all the documents poured into telegram. Here you go, download those. I got when I got my articles notarized, because I think kill them brown, wanted them notarized. I send it over to Caleb and Brown. It took us further two weeks from there.<br \/>\n1:02:57<br \/>\nAnd I got my account in the company name over there. So that\u2019s my first exchange that I\u2019ve got in the company name, but the fact is because you can trade in your own personal name, and you\u2019re just going coin to coin to coin.<br \/>\n1:03:12<br \/>\nAnd then when you\u2019re ready, all those coins are going to go over to Caleb and Brown and the exchange in the name of the LLC. Correct. I\u2019m just gonna transfer them over. Then, they\u2019re in there, let\u2019s say it\u2019s all in stable coin.<br \/>\n1:03:25<br \/>\nWould then, maybe I\u2019ll transfer one big wad of stable Coin over there, you know, and thrown. And then I just deal with it from there.<br \/>\n1:03:32<br \/>\nJohn, Somebody brought up and it seemed like a really good idea to me because Kale them brown will wyer your money.<br \/>\n1:03:42<br \/>\nThey\u2019ll do the transfer they\u2019ll go from stable coin, and they\u2019ll they\u2019ll they\u2019ll shoot the money over to you in USD What about that, it\u2019s the fact that it comes into your bank account. right? It\u2019ll, it\u2019ll go to the same named account holder. So it makes sure it\u2019s your LLC at Caleb and your LLC in the states. That\u2019s the only way they\u2019ll do it to the LLC.<br \/>\n1:04:04<br \/>\nThey won\u2019t do it to the bank account \u2026 account and I\u2019ve already I\u2019ve already set up a bank account in the name of the LLC. Which is my standard bank that I have all my companies in.<br \/>\n1:04:15<br \/>\nSo, it would just go into that. That\u2019s right. Another thing I like to recommend is, instead of wiring money, which is certainly fine. I don\u2019t like to do international wires just because the banks full with the money.<br \/>\n1:04:25<br \/>\nSo, we have a chance to avoid that.<br \/>\n1:04:27<br \/>\nWe can actually go, and this is why I say, move large amounts of money. It\u2019s easier to do that, then like one thousand dollars, it\u2019s easy to remove a million than a thousand. I can go from my Bitcoin, through escrow to an asset, and I don T have to wire money.<br \/>\n1:04:40<br \/>\nSo that\u2019s one way I would rather do that or I would move from my wallet in Kelvin Brown to my wallet Coin Base and sell for my thousand dollars.<br \/>\n1:04:49<br \/>\nI want that then wire the money or 50,000 or whatever.<br \/>\n1:04:53<br \/>\nJust keep that in mind.<br \/>\n1:04:55<br \/>\nJohn, can I ask a question? The question? Yes?<br \/>\n1:05:04<br \/>\nMy business, I have a regular business, person and business, whatever it. And it\u2019s added kryptos two expansions, you know, been doing it through, use the see through circle, and just adding some Bitcoin.<br \/>\n1:05:21<br \/>\nHow can we express that?<br \/>\n1:05:24<br \/>\nOoh.<br \/>\n1:05:27<br \/>\nYeah.<br \/>\n1:05:29<br \/>\nAnd, yes, you\u2019re breaking up. I think you\u2019re on your phone.<br \/>\n1:05:34<br \/>\nYes.<br \/>\n1:05:37<br \/>\nYes, I am the phone. I just, I just, I\u2019ll ask on reading, I write down, I\u2019ll write down. I\u2019m sorry.<br \/>\n1:05:44<br \/>\nPerfect. No worries. No worries.<br \/>\n1:05:47<br \/>\nCan you hear me? Now? Can you make this better?<br \/>\n1:05:49<br \/>\nOK, OK, I\u2019m sorry. What if I just, my regular business, is adding \u2026 to manage it?<br \/>\n1:05:57<br \/>\nHow can we transfer not to the LLC or the trust you are mentioned? That\u2019s going to require a disposition of assets?<br \/>\n1:06:06<br \/>\nYou can\u2019t get around that. Yeah. You can do it. Yeah, because I\u2019m assuming your current business files tax returns, so it has a different tax treatment.<br \/>\n1:06:14<br \/>\nIf you want to take that property under a different tax treatment, you would have to dispose of the asset an account for it and then you\u2019re out. You\u2019re out in the clear. That\u2019s like, kinda like liquidating your 400 and K and then you\u2019re out.<br \/>\n1:06:25<br \/>\nSo. Yeah. But it\u2019s possible. Oh, Yeah, There\u2019s a way to do it. And I would do it, too. I mean, I would get under a different tax treatment, as soon as possible. Yeah?<br \/>\n1:06:38<br \/>\nThat\u2019s a good question. I haven\u2019t heard that one a long time.<br \/>\n1:06:40<br \/>\nYes.<br \/>\n1:06:43<br \/>\nThere\u2019s something else I want to share with you guys. Just give me a second here.<br \/>\n1:06:51<br \/>\nYeah?<br \/>\n1:06:54<br \/>\nYou want to minimize taxes.<br \/>\n1:06:55<br \/>\nSo, OK.<br \/>\n1:06:59<br \/>\nWell, you can minimize taxes by not taking a gain. You can eliminate them.<br \/>\n1:07:04<br \/>\nSo you don\u2019t, you don\u2019t take a gain, You move the money over to another asset, and then you manage the cash flow in a different way, which gets into some detail You structure the transaction as well, alone or funding another party.<br \/>\n1:07:17<br \/>\nSo if I want to buy a house?<br \/>\n1:07:22<br \/>\nI\u2019m not saying you have to do it this way, but I have an LLC that has this coin, this coin value. Now it\u2019s a million dollars, OK?<br \/>\n1:07:28<br \/>\nAnd I just gonna set up another LLC and then I\u2019m gonna, I\u2019m gonna put this million dollars now.<br \/>\n1:07:34<br \/>\nI sold my coins already, It\u2019s in this LLC at Coinbase and I\u2019m gonna just write a check and deposit it into my new LLC and then that I\u2019m going to use to buy the house and I\u2019m going to title the house and the name of that LLC.<br \/>\n1:07:49<br \/>\nI can just do that.<br \/>\n1:07:51<br \/>\nI don\u2019t know if that, I mean, that\u2019s how you would minimize taxes.<br \/>\n1:07:54<br \/>\nIt\u2019s not your money.<br \/>\n1:07:55<br \/>\nYou\u2019re moving from one company to another, That official interest, a the same.<br \/>\n1:08:02<br \/>\nThe other thing is, you\u2019re not gonna get tax deductions on that type of structure because it\u2019s not filing, it\u2019s not going to do 1099.<br \/>\n1:08:08<br \/>\nAnd, the money you take out of the LLC for yourself, it has to be taxable if it\u2019s personal.<br \/>\n1:08:14<br \/>\nAnd how do you report it? Well, it\u2019s not going to be W two, it doesn\u2019t have to be 1099 because the LLC that doesn\u2019t file a return is not going to send you a 1099. That\u2019s your company.<br \/>\n1:08:23<br \/>\nYou would just declare the income however you would miscellaneous income, or whatever you want to call it.<br \/>\n1:08:27<br \/>\nJust don\u2019t lie.<br \/>\n1:08:29<br \/>\nSo, you have to decide what that is.<br \/>\n1:08:32<br \/>\nUm, there\u2019s another thing you can do.<br \/>\n1:08:38<br \/>\nInstead of avoiding the risk, now, this is for some places where it\u2019s not possible to completely avoid the risk, you could diminish the risk. You could diminish the taxable value. Now, I\u2019m going to explain it briefly.<br \/>\n1:08:50<br \/>\nAn example of how we do that here with a traditional S corp.<br \/>\n1:08:56<br \/>\nAnd I know there are structures around the world that you can do that. So if you\u2019re in the UK or something, you can talk to your accountant about this type of deal.<br \/>\n1:09:02<br \/>\nWhat we call it, here\u2019s a grant tour, Retained, annuity trust and I\u2019m gonna put the text here just so you guys can check it out, but it\u2019s a grand tour, retained, annuity trust. What you\u2019re doing is putting a windfall in there before taxes.<br \/>\n1:09:18<br \/>\nYou\u2019re diminishing the value over a period of one year.<br \/>\n1:09:22<br \/>\nThat\u2019s going to be your taxable amount is now half after the first year.<br \/>\n1:09:26<br \/>\nAfter the second year, you can get 100% reduction in taxable value. So your taxable value will be zero.<br \/>\n1:09:33<br \/>\nIt has to have it\u2019s an S corp with an annuity and I don\u2019t do those. I\u2019m not qualified to do them. Some CPA\u2019s will do them.<br \/>\n1:09:41<br \/>\nThey\u2019re known as a grad.<br \/>\n1:09:42<br \/>\nG R A T, OK, there are other ways to do it, to strip the equity of something that would be taxable, And we get into some complexities there, I rarely do those, but you can do it, where you\u2019re faced with a tax you can\u2019t avoid.<br \/>\n1:09:55<br \/>\nYou can strip the value of that and Well, there\u2019s some other mechanism, but I just want to share that one thing with you.<br \/>\n1:10:02<br \/>\nSo, if you want to have a discussion with an accounting person or do some research, you can check that out I would use it grat if like, for example, I want to give money in my Alyssa, my brother, and he\u2019s real queasy with this conversation, right? So I would just tell them, No worries. You\u2019d have to do what I do. I know a couple of years ago, I set some money aside for you from my windfall.<br \/>\n1:10:25<br \/>\nThe taxes already covered, because I stripped all the taxable value and here you go.<br \/>\n1:10:30<br \/>\nHere\u2019s a million dollars and I would literally give him the control of the grat, the S corp, it\u2019s after tax money and he can do whatever he want it. Now I can also give it to them.<br \/>\n1:10:39<br \/>\nSo there\u2019s all kinds of ways to use a graph.<br \/>\n1:10:42<br \/>\nLet\u2019s see here, because it\u2019s your LLC transfer from sandby. How do you minimize, yeah?<br \/>\n1:10:46<br \/>\nMinimized, by not having a gain, you can borrow money out, move from Company to company, company to trust.<br \/>\n1:10:54<br \/>\nThere\u2019s all kinds of variations.<br \/>\n1:11:00<br \/>\nYou guys want me to give me my contact info?<br \/>\n1:11:04<br \/>\nNo. Brad left that here.<br \/>\n1:11:06<br \/>\nYes.<br \/>\n1:11:07<br \/>\nDefinitely. How, how do you want people? I\u2019m sure a lot of people are gonna want to set up LLCs with you. I see that Andrus asked, what\u2019s the basic price to set up an LLC? I think it\u2019s like 700 bucks and you can order it through and fill out the form on, is it privacy fight?<br \/>\n1:11:22<br \/>\nWell, \u2026<br \/>\n1:11:24<br \/>\ndot com has a PDF order form, that\u2019s probably the easiest way, if you go to the bottom of the page.<br \/>\n1:11:31<br \/>\nJust open up the file, it\u2019s a PDF document, save it on your computer, check the 697, so cost $687.<br \/>\n1:11:38<br \/>\nAnd if you pick New Mexico, it\u2019s $50, there are no annual costs after that, no hourly.<br \/>\n1:11:44<br \/>\nI do whatever you need for the year, we can have private consultations.<br \/>\n1:11:48<br \/>\nYou can, the best way to get that to me is by Telegram.<br \/>\n1:11:52<br \/>\nYou can also send it by e-mail, but let me know I telegram, because I\u2019m paired an e-mail right now, so I\u2019ll have to go look for it. So, send me that, or here\u2019s what I really need.<br \/>\n1:12:01<br \/>\nI need to know what you want to call the company, the state you want to want to set it up, in, which I recommend, I\u2019m gonna give you a list of states I recommend, but tell me the name, you want to call, it, the alternate name.<br \/>\n1:12:12<br \/>\nTell me the legal name of the sign, or like, how does your name appear on your legal document?<br \/>\n1:12:16<br \/>\nSo when I write this up, the bank will accept all your documents along with my document, your driver\u2019s license, my documents.<br \/>\n1:12:22<br \/>\nAnd then that\u2019s everything.<br \/>\n1:12:24<br \/>\nI mean, unless you have, if you want to use an address you already have access to, you can do that. If you want to use a New Mexico company and you don\u2019t have any address in New Mexico, I\u2019ll get that for you.<br \/>\n1:12:34<br \/>\nIt doesn\u2019t cost anything. I actually use office space, It doesn\u2019t cost anything.<br \/>\n1:12:38<br \/>\nSo, then what I\u2019ll do is I\u2019ll write the documents and send it so you can look it over and make sure everything\u2019s good on your, you know, all your information.<br \/>\n1:12:44<br \/>\nWhen you approve it, then I\u2019ll go ahead and file it, give you thought approved documents, and then I give you a set of instructions with some video links.<br \/>\n1:12:52<br \/>\nAnd that helps you get through everything. And all the documents I give you are designed so that you can open your accounts with the least friction.<br \/>\n1:12:58<br \/>\nAnd trust me, you will have some friction because the banks, No, they\u2019re just, they\u2019re designed to defeat what it is that we\u2019re doing.<br \/>\n1:13:05<br \/>\nOK, we want privacy, we want some intelligent risk management, They don\u2019t like that.<br \/>\n1:13:10<br \/>\nBut, we will get our Accounts open, OK.<br \/>\n1:13:12<br \/>\nHe gives you two sets of, kind of, two sets of documents. one that\u2019s gonna go to whatever institution, and one that you keep for yourself, in a folder that says, do not send this out off, right.<br \/>\n1:13:27<br \/>\nAnd also, John, there\u2019s, there\u2019s a set of videos. I\u2019ve actually purchased the whole course, You actually have a course that walks through a whole bunch of stuff on this, On video, and you can do it in four parts. I think It is I I just bought the most, Because I figure.<br \/>\n1:13:44<br \/>\nYeah, When you\u2019re making so much money on crypto this, guys, this is peanuts. This is nothing to exactly, exactly, to try to protect from the tax. man. You\u2019re talking tens, if not hundreds, If not millions of dollars so much.<br \/>\n1:14:02<br \/>\nNo, there\u2019s no question.<br \/>\n1:14:03<br \/>\nCan you just go over that course a tiny bit, and yeah, what I want to show you is the boring mundane keystrokes you would use to enter a company and register it with the state and then get your account open. OK, then I talk about how you would select the data, so I\u2019ll do that again briefly here. You you want to decide who the owner is going to be. It can be a single member.<br \/>\n1:14:23<br \/>\nIt can be a PMA, it can be a trust, what you want to call it. Who\u2019s going to be the manager?<br \/>\n1:14:27<br \/>\nI like to use member managers, the address you want to use.<br \/>\n1:14:31<br \/>\nAnd once you have those ideas, then I like to write it down, keeping a file, and that way when I\u2019m sitting here preparing the document, I can just read, read everything, and type it in. That\u2019s what I\u2019m showing you in the video.<br \/>\n1:14:41<br \/>\nAnd then some of the videos I\u2019m showing you, examples of walking you through a transaction. And we were, we\u2019re gonna get into way more detail on that.<br \/>\n1:14:50<br \/>\nAnd we\u2019re gonna get into some more re-allocation strategies, which I\u2019ve never done before. So I\u2019m going to bring some people on board that that\u2019s what they do for a living. So this will be this will be learning for me, too. But, my videos, I\u2019m showing you, that just the basics of what everyone\u2019s concerned with is how to get out of the gate, and how to manage the basics of the tax situation, how not to get in trouble, What you don\u2019t have to do, and what you do have to do.<br \/>\n1:15:13<br \/>\nAlright. And, and realize that there are people around, that kind of push around.<br \/>\n1:15:18<br \/>\nSo, just, you know, when you\u2019re dealing with the rest of the world, kinda. And hopefully, you\u2019re gonna learn what you\u2019re doing, you\u2019re gonna know and have confidence in what you\u2019re doing.<br \/>\n1:15:26<br \/>\nSo, that\u2019s the purpose of my videos, it so that you\u2019re not gonna get easily push around by people that, you know, like attorneys who try to bully you around.<br \/>\n1:15:34<br \/>\nHopefully, that\u2019s what, know, we\u2019re going to cover. That\u2019s the boring stuff. That\u2019s what you got like, with four videos, I think it is right there.<br \/>\n1:15:42<br \/>\nMillimeter, hm, We\u2019re going to add a lot more, so, Yeah, I appreciate doing that.<br \/>\n1:15:47<br \/>\nSure.<br \/>\n1:15:50<br \/>\nYeah.<br \/>\n1:15:51<br \/>\nI want to remind you, again, check out that video on a privacy fight where I\u2019m talking about the woman in.<br \/>\n1:15:58<br \/>\nShe has a property in Oregon and in New Mexico, LLC, and, uh, twice we got around that whole issue. And so, this is the kind of thing, and I never had a case like that before.<br \/>\n1:16:07<br \/>\nBut because it was set up in a way that gave us the the versatility to do whatever we wanted, we were able to use residency and non residency together to avoid that withholding and the capital gains tax.<br \/>\n1:16:24<br \/>\nSo, Wow.<br \/>\n1:16:34<br \/>\nWell, I can\u2019t think of anything else.<br \/>\n1:16:35<br \/>\nI mean, John, thanks for everything you\u2019ve been sharing, and I think it\u2019s been great stuff, you mentioned, you\u2019d go over the states.<br \/>\n1:16:45<br \/>\nBesides New Mexico, OK, thanks, thanks for reminding me the best states in my opinion, and here\u2019s how I choose them. Those are the states that leave you alone, OK?<br \/>\n1:16:54<br \/>\nThey\u2019re state taxing authority, they don\u2019t bother you, like, the California Franchise Tax Board, run farhan fast, and those guys, if you\u2019re in California, and you have a California address, it\u2019s so bad in California that you cannot register in another state, and use your California address, because that state is supposed to tell on you. And then California will send you a bill for not registering in California, which is gross. It\u2019s, like, $800.<br \/>\n1:17:17<br \/>\nSo, the best states are New Mexico, I say number one, Colorado is like right next to them.<br \/>\n1:17:24<br \/>\nArizona, Wyoming, those would be the top four.<br \/>\n1:17:29<br \/>\nThen, Florida, and Georgia, and Pennsylvania. Now, Pennsylvania is like New Mexico. It has a one-time filing fee of one hundred $25, and there\u2019s no annual reports and no fees ever after that. It\u2019s always going to be good.<br \/>\n1:17:45<br \/>\nOhio, I believe there\u2019s no reports, but it\u2019s $99 a year.<br \/>\n1:17:49<br \/>\nThen let\u2019s see.<br \/>\n1:17:53<br \/>\nYeah, Arizona, I don\u2019t think there\u2019s a report every year.<br \/>\n1:17:56<br \/>\nSo, those are the best states, I think, is what six states?<br \/>\n1:18:00<br \/>\nPerson, Wyoming, Arizona, Colorado, New Mexico.<br \/>\n1:18:05<br \/>\nNow you can go, there\u2019s probably 15 or 20 good states like, you can go to Utah and Idaho and, know, probably South Dakota. I don\u2019t use those too much, Michigan\u2019s OK, I would stay away from New York, Stay away from Illinois.<br \/>\n1:18:19<br \/>\nThey were from Texas, they\u2019re from California, stereo, from Kentucky, sometimes we do Kentucky, it depends on, you know? Just the state gets involved, right. The state starts sending all these forms to fill out and have to deal with the state.<br \/>\n1:18:32<br \/>\nUm, Oregon and Washington, I\u2019d stay away from those states.<br \/>\n1:18:39<br \/>\nThey\u2019re still OK, but, you know, the ones to stay away from California, Illinois, Texas, New York.<br \/>\n1:18:47<br \/>\nMost of the people I work with, I mean, we\u2019re like it looking at 80, 90% New Mexico. I love New Mexico because I can so I can just quickly registered. It\u2019s done.<br \/>\n1:18:57<br \/>\nColorados fast, Ohio\u2019s fast.<br \/>\n1:19:02<br \/>\nFlorida takes about a week to approve Arizona. It takes about a week, but they\u2019re also good states, Wyoming.<br \/>\n1:19:07<br \/>\nNow, Wyoming, That one, we have to pay a $25 a year, and this is because I found an agent that will do it for $25 a year, a registered agent service. The reason being is that they\u2019re always, they always go, go and check to verify that they have the, we have an agent that we have to pay. For some reason, they just do that in Wyoming this reason. So, I\u2019ve had to adjust. So, if you wanna go to Wyoming, My recommendation is, It\u2019s fine. It\u2019s a good state. It\u2019s just, there\u2019s a, there\u2019s going to be an annual fee of $25.<br \/>\n1:19:49<br \/>\nI\u2019m sorry. I didn\u2019t mean that, I didn\u2019t mean to leave someone out. He asked if I would do a call with his estate attorney.<br \/>\n1:19:55<br \/>\nI don\u2019t mind doing that, but I would like to know in advance what you want to discuss, because I\u2019m not a bar member.<br \/>\n1:20:00<br \/>\nYou know, I don\u2019t give legal advice, and I\u2019m not, know, by any means an account, so I don\u2019t know. I mean, I don\u2019t wanna get into a discussion. I\u2019m, I\u2019m not going to try to convince someone that you know of a certain thing, so if I can help solve something or clear up something, that\u2019d be great. I\u2019m more than willing to do that, John, That was me. It\u2019s Robert. So, maybe I should just talk to you first. Yeah, and then talk to him about this. Yeah.<br \/>\n1:20:26<br \/>\nEspecially since we\u2019re talking about And this is, Yeah, I did talk to one accountant, and in the end, she just finally said, listen, just agree to disagree. That\u2019s like, OK, whatever. That\u2019s fine, I mean, I haven\u2019t had a problem with the IRS.<br \/>\n1:20:43<br \/>\nI\u2019m always writing.<br \/>\n1:20:45<br \/>\nI used to write a lot of books on the subjects, and since the nineties, I\u2019ve been writing books on this, I don\u2019t publish anymore, but I would go travel across the country to go to audits.<br \/>\n1:20:54<br \/>\nIn fact, I\u2019ve been in district court on people that were going to be held in contempt because of an audit.<br \/>\n1:21:00<br \/>\nI was not representing them, but I was going there to talk to the judge about the whole thing.<br \/>\n1:21:04<br \/>\nAnd they know what I do. And, you know, they know that I help people. I guess, I like to call it helping people. They don\u2019t like to call it that, but, I\u2019ve not had any problems with them. So.<br \/>\n1:21:16<br \/>\nMaybe they just haven\u2019t gotten around to me, I don\u2019t know.<br \/>\n1:21:23<br \/>\nI\u2019m going to upload this to YouTube, just so you know, and I\u2019ll, I\u2019ll give you guys the link.<br \/>\n1:21:28<br \/>\nJohn, can you get it over to me?<br \/>\n1:21:29<br \/>\nI can, I will. I\u2019ll put it up in the group and make sure that people see it.<br \/>\n1:21:36<br \/>\nYeah, thanks. Yeah, in Washington, state is tolerable, OK? Washington state is tolerable. I believe the fee is $200 a year.<br \/>\n1:21:43<br \/>\nThey do kinda get in your business, but they\u2019re OK, I would do an in-state LLC if you\u2019re running a brick and mortar business in state because you\u2019re gonna have a need for that.<br \/>\n1:21:52<br \/>\nUm, and yeah, if you\u2019re in California, it\u2019s like I said, it\u2019s easy, you could just go on the internet and registered company in New Mexico. The problem is, if you don\u2019t understand what deals going on, California has a deal with all the states. So, if you\u2019re a California, if you have a California address, and you put your name and your address on it.<br \/>\n1:22:11<br \/>\nForeign companies, application for a company.<br \/>\n1:22:15<br \/>\nRegistration, that state will notify the Secretary of State for California And California\u2019s just going to send you a bill for not registering in the state as if you did register in the state.<br \/>\n1:22:26<br \/>\nThat\u2019s just how they do it. So, the way I do it, if you\u2019re a \u2026, when I see California address on your order form, I just ignore it. I just go and get you in New Mexico address.<br \/>\n1:22:34<br \/>\nWe just go with that.<br \/>\n1:22:36<br \/>\nSo that\u2019s how we handle them.<br \/>\n1:22:40<br \/>\nAnother question for you.<br \/>\n1:22:43<br \/>\nWhy don\u2019t you know, personally, one of my goals is to say, having Passerby, like everybody else, you know, we want to have class.<br \/>\n1:22:53<br \/>\nSo, let\u2019s say if you put $500,000 in Celsius, you SDC they give you 10% APY around $2000 a month.<br \/>\n1:23:06<br \/>\nYeah, we manage that on, on the, on the, on the LLC you trust. How can we manage that? We want to use that passive income that monthly, APY, you pay me for no monthly expenses, how do we manage that?<br \/>\n1:23:21<br \/>\nOK, the fact that you have personal expenses. I\u2019m gonna assume it\u2019s personal expenses.<br \/>\n1:23:25<br \/>\nthat is going to be taxable anyway, so it doesn\u2019t matter who\u2019s paying that, but if you want to have a choice, you can make your LLC the account holder, or the contracting party, so that way, when you get the dividends, or the income, or whatever money it is, that event itself is not going to be reportable or taxable.<br \/>\n1:23:40<br \/>\nBut the fact that you\u2019re gonna pay a living expense is reportable and taxable.<br \/>\n1:23:44<br \/>\nSo, ultimately, if it\u2019s for, like, paying the light bill or something, it\u2019s still going to be, you know, taxable income.<br \/>\n1:23:52<br \/>\nBut if I bought my Tesla with Bitcoin, since I can do that now, says Elon Musk. Yeah. Just, yeah. Do that. Is that taxable? It\u2019s not going to become a taxable income, if you title the vehicle in a company name or trust name.<br \/>\n1:24:08<br \/>\nThey\u2019ll copy, right?<br \/>\n1:24:09<br \/>\nOr you put a debt on it, like, the way you do it is you go to the dealer and tell him that the money being paid for it is actually a loan, and you\u2019ve given the name of the lender and he\u2019ll take care of all the paperwork for you.<br \/>\n1:24:19<br \/>\nSo, as long as you do it that way, yeah, you\u2019re fine.<br \/>\n1:24:24<br \/>\nJohn, in that scenario, can\u2019t you have the LLC extend you personally credit line, and you just draw a credit line personally and use that as your personal expenses? Yeah, you can do that. I just don\u2019t prefer that you could do that. I just, I just hate to be at an audit explaining that to the IRS because they see that so many times and they\u2019ll probably just it depends on the auditor, they might just disallow it or something.<br \/>\n1:24:46<br \/>\nSo, what I would suggest, if you\u2019re going to use a loan to pay living expenses, you want to use a whole life insurance policy because that is what it\u2019s designed for.<br \/>\n1:24:58<br \/>\nThat\u2019s why I say, don\u2019t borrow money and go on vacation. Don\u2019t make it a loan to go on vacation. That\u2019s not a usual thing.<br \/>\n1:25:04<br \/>\nYeah, take a loan to buy a card, that\u2019s a usual thing.<br \/>\n1:25:06<br \/>\nThat\u2019s just from my experience and seeing all the different cases, I\u2019ve been involved with the IRS. I would just avoid that type of situation. So a personal living expenses aren\u2019t paying my light bill, pay my mortgage going on vacation.<br \/>\n1:25:16<br \/>\nAll that\u2019s gonna have to be, if I don\u2019t wanna pay tax on that income, my Personal living expenses.<br \/>\n1:25:21<br \/>\nI\u2019m gonna borrow enough money from my whole life policy which takes 1 or 2 years to mature. I\u2019m gonna borrow enough to pay my annual living expenses quarterly or semi-annually.<br \/>\n1:25:32<br \/>\nSo that that way I can I can borrow the money out, pay the interest in advance. And then I\u2019m working with after tax money. And then I can do that and there\u2019s no loan situation needed because I\u2019ve already satisfied all that.<br \/>\n1:25:44<br \/>\nI didn\u2019t want to get into that too far. But that\u2019s like, wow, yeah, I\u2019m, you know, there\u2019s a lot here guys, I mean, we could talk for two days and we can go on for two days on this easily.<br \/>\n1:25:57<br \/>\nYeah, like our one?<br \/>\n1:26:03<br \/>\nI don\u2019t know why. You\u2019re asking me, I cannot canal on the US citizen any visa start?<br \/>\n1:26:07<br \/>\nYou can, you can be in another country with your foreign passport and you can, you can open a company here in the states and then you could probably open up a bank account for it.<br \/>\n1:26:16<br \/>\nIn fact, just check on it for me. Just go call up a bank and say, hey, I want to do this thing, and they\u2019ll tell you what\u2019s needed.<br \/>\n1:26:23<br \/>\nSo, yeah.<br \/>\n1:26:27<br \/>\nYeah, and I do accept payment by crypto. Make it easy on me though.<br \/>\n1:26:31<br \/>\nIf you would please bitcoin or litecoin, you know that the bigger ones that\u2019d be fine.<br \/>\n1:26:36<br \/>\nJust let me know, in the Order form or by the telegram will pay you a doge, OK. I don\u2019t know. I mean, like, you guys don\u2019t know what I do with it after I get it.<br \/>\n1:26:49<br \/>\nSo, it\u2019s just whether or not it\u2019s going to be convenient for me. That\u2019s all I care about.<br \/>\n1:26:55<br \/>\nKidding.<br \/>\n1:26:57<br \/>\nI appreciate you doing this, Brad. I hope it\u2019s, you know, answered questions.<br \/>\n1:27:02<br \/>\nPeople are great. A great start, I think, to understanding you covered so much, I needed it in a way that I think is mostly understandable. You know, you go all over the map. And it\u2019s hard but I\u2019m taking notes furiously And yeah. A couple of things. Are you OK with people? Can they join our Thursday thing where you answer questions and stuff for you. I\u2019m OK with that.<br \/>\n1:27:27<br \/>\nYeah, I\u2019m OK with that. If you guys want to someone\u2019s give me topics already. I Yeah. Please.<br \/>\n1:27:33<br \/>\nYou\u2019re welcome to send the link out. I believe you send the link out to others.<br \/>\n1:27:37<br \/>\nIt\u2019ll be fine. OK, I can do that.<br \/>\n1:27:39<br \/>\nAnd are you OK with people having your e-mail address over proton mail? Yeah, that\u2019s fine. It\u2019s singleton press at proton mail dot com. I already had it ready to go. Just yeah, just keep in mind. I\u2019m literally a 1100 e-mails behind.<br \/>\n1:27:55<br \/>\nI\u2019m doing my Dan just to catch up.<br \/>\n1:27:58<br \/>\nI keep telling you, you need an old lady who has a really good account. I\u2019ve had that before. I\u2019ve had 30 people in my office, OK, doing stuff for me, and they were great. I can\u2019t, but it takes It, takes awhile to get that up there.<br \/>\n1:28:11<br \/>\nAnd there\u2019s this is such a specialized area that I don\u2019t want to ***** it up, and I\u2019m so there\u2019s a tradeoff So I know being patient.<br \/>\n1:28:18<br \/>\nThat\u2019s why I say if you do telegram.<br \/>\n1:28:21<br \/>\nLike with Brad. I know it took two weeks, but if we had that conversation, the day one, we could have done it.<br \/>\n1:28:26<br \/>\nI, in fact, I did one today in Colorado and in 20 minutes, so I can do that.<br \/>\n1:28:33<br \/>\nSo just, you know, work with me, a telegram, and when I see it, I\u2019ll do the best I can.<br \/>\n1:28:38<br \/>\nQuick question, real quick, I\u2019m going back to this one, but a quick example is trying to pay off a few properties or their home, or whatever they are.<br \/>\n1:28:52<br \/>\nProfits might be crypto, Instead of doing that, you know, you just took a percentage, maybe, so that you can pay off monthly, maybe borrowing, um, staking nodes. Or third example, you know, like this.<br \/>\n1:29:10<br \/>\nJust, Yeah, right?<br \/>\n1:29:13<br \/>\nIf you\u2019re willing to come off a lump sum of cash to pay off a debt, and let\u2019s just say it\u2019s an asset, an investment, Um, consider taking most of that lump sum and ask yourself, What can I do with it to make money with it? And like you said, take some of that money and make that payment.<br \/>\n1:29:30<br \/>\nIf that\u2019s what you want to do, but use that money.<br \/>\n1:29:33<br \/>\nMean, what\u2019s the point of not having that? You want to have debt? I\u2019m just give you a couple of numbers.<br \/>\n1:29:37<br \/>\nI\u2019m just gonna say, I\u2019m, I\u2019m gonna say on a, on a personal liability, like a house, like a big ticket item, I\u2019m going to have 25 to 50% debt on it, on a, on an investment, and asset, I\u2019m going to have 80%.<br \/>\n1:29:49<br \/>\nI\u2019m gonna have more on a business asset.<br \/>\n1:29:52<br \/>\nI think that\u2019s a better way to manage risk.<br \/>\n1:29:56<br \/>\nYeah.<br \/>\n1:29:59<br \/>\nIt\u2019s good, practical to, I mean, it\u2019s, Well, it\u2019s one that you could pay cash for an asset. Just don\u2019t keep, keep it like that. Because, think about this. If I pay $10 million for a hotel because I can, and then I just sit on it and I\u2019m making good money on it, what have I done? I bought an asset. Great, I\u2019m making money on that great, but guess what I am. I\u2019m, by default, my own lender. Am I qualified to be a lender know? heck, no. I don\u2019t know anybody in the lending community. I don\u2019t know it, underwriting, I don\u2019t know, I can\u2019t pick up the phone and get someone to reinsure me or anything like that. I\u2019m out.<br \/>\n1:30:27<br \/>\nSo, I\u2019m in dangerous water.<br \/>\n1:30:29<br \/>\nI may not see it, right, so just realize that, let the people who are taking a certain risk. Let those people take that risk.<br \/>\n1:30:37<br \/>\nI\u2019m not a lender, right.<br \/>\n1:30:40<br \/>\nI might be a real estate investor, so that\u2019s why you don\u2019t wanna pay cash for assets, Are questions. Yes.<br \/>\n1:30:49<br \/>\nSo, in the example that, that they were given just now about, you know, hey, an offer home, would it work if you had your LLC purchase the home from you?<br \/>\n1:31:03<br \/>\nYeah, you could do that, all, your, you don\u2019t.<br \/>\n1:31:05<br \/>\nIt doesn\u2019t have to be technically a purchase, You could just assign it to the company.<br \/>\n1:31:09<br \/>\nYou don\u2019t have to show money changing hands.<br \/>\n1:31:13<br \/>\nYou just follow quitclaim deed, I don\u2019t know why you\u2019d want to make it look like a sale.<br \/>\n1:31:20<br \/>\nI mean, is there other different owners of the LLC then, were the title holders of the house?<br \/>\n1:31:28<br \/>\nI mean, is it the same people?<br \/>\n1:31:32<br \/>\nRight? I mean, the idea is to be able to still accomplish the goal you know, and finding that loophole.<br \/>\n1:31:40<br \/>\nAnd being able to pay off your home for say no, but, you know, without having to actually, take income or take, like you said, again, you know, from, from your assets, in crypto and still be able to accomplish that goal of getting rid of that per se, under your personal.<br \/>\n1:32:00<br \/>\nBecause, you know, just to find a way to transfer. It, don\u2019t take again and make it disappear. Make a gain work for you for a long time. That\u2019s what you\u2019re doing, if you take a gain of half a liability will then it disappeared.<br \/>\n1:32:12<br \/>\nSo, did your liability, but now your gains gone, take that gain or part of it, and then improve your cash flow with it.<br \/>\n1:32:19<br \/>\nI mean, maybe not always you have to do that, but on big deals, on big ticket items I would.<br \/>\n1:32:27<br \/>\nYou want you want some debt?<br \/>\n1:32:31<br \/>\nSomebody is, Andreas has asked me, with a family trust, recommend, do I recommend open the LLC under the trust.<br \/>\n1:32:41<br \/>\nYeah, OK. You can use it trust as the single member owner of the LLC.<br \/>\n1:32:46<br \/>\nOr you can use a PMA I like using a PMA.<br \/>\n1:32:48<br \/>\nbecause I don\u2019t need a trust document, but yeah you can use your own trust if you\u2019d like your trust. Yeah.<br \/>\n1:32:55<br \/>\nTax free, if you sell the house, OK, yeah, there\u2019s there are exemptions too. So, if you retain the title, I don\u2019t know what the tax exempt thing is. If you sell your house, it depends on the, you know, the laws over there.<br \/>\n1:33:08<br \/>\nI mean, you\u2019d have to go, you know, read that and find out how that works.<br \/>\n1:33:14<br \/>\nIf the LLC bought the house, you could pay, or you could buy, with kryptos with the LLC and get the free of taxes.<br \/>\n1:33:22<br \/>\nUm, oh, I see what you\u2019re saying.<br \/>\n1:33:26<br \/>\nOK.<br \/>\n1:33:28<br \/>\nYeah, that\u2019s, I don\u2019t know. You could probably do it. You could sell it to you, Sell your house, to your LLC to get a tax benefit.<br \/>\n1:33:35<br \/>\nI suppose you could do that.<br \/>\n1:33:37<br \/>\nGuys, look, here\u2019s one thing I\u2019m gonna leave you with.<br \/>\n1:33:40<br \/>\nTry not to think about making financial decisions for the sole purpose of a tax benefit.<br \/>\n1:33:47<br \/>\nTrust me, you\u2019re gonna miss out on things, you\u2019re gonna miss some important things and you might get yourself in trouble, OK?<br \/>\n1:33:53<br \/>\nMake sure you\u2019re, Your decision is based upon return on capital period, not how to pay less taxes.<br \/>\n1:34:03<br \/>\nEspecially when you got lots of money, don\u2019t think like a consumer.<br \/>\n1:34:08<br \/>\nKind of like your your approach when you first started, not just go straight to what is going to be homework, just go on with it.<br \/>\n1:34:17<br \/>\nNo, yeah, you get right to the right to the punchline.<br \/>\n1:34:22<br \/>\nYeah.<br \/>\n1:34:25<br \/>\nAlright, guys. All right. Awesome. John, you have been absolutely the best.<br \/>\n1:34:30<br \/>\nI can\u2019t thank you enough for the appreciate that, Yeah, if you guys want to set up something else, We can go for specific things, But definitely I hope that gives you some good leads.<br \/>\n1:34:39<br \/>\nAt least.<br \/>\n1:34:41<br \/>\nYeah, This.<br \/>\n1:34:43<br \/>\nso, Brad, Brad, thank you so much for putting this together, man, John as well and it\u2019s been amazing and thank you guys spread Yep, absolutely.<\/p>\n        <\/div>\r\n    <\/div>\r\n\r\n    \r\n<\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-52f474e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"52f474e\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-62aaabb\" data-id=\"62aaabb\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-96aabca elementor-widget elementor-widget-spacer\" data-id=\"96aabca\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1f36428 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1f36428\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-875e1ae\" data-id=\"875e1ae\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e97ddb7 elementor-widget elementor-widget-text-editor\" data-id=\"e97ddb7\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Summary<\/strong><\/p><p style=\"padding-left: 40px;\">1. Brad and Kevin Cages, a popular Youtuber and crypto enthusiast, discuss managing risks and taxes in cryptocurrency through the creation of a specially-structured LLC.<br \/>2. The structure involves creating an LLC written in a specific way, mostly in New Mexico due to low fees, and includes a blockchain immunity trust to protect assets and defer taxes.<br \/>3. A key component of this structure is a private membership association (PMA), which provides certain rights and advantages.<br \/>4. John, an experienced professional in the field, discusses the importance of understanding how to use the LLC properly and the associated accounting practices to avoid liabilities.<br \/>5. The LLC doesn&#8217;t need to file a tax return if it significantly appreciates in value, a concept applicable within the 50 states of the U.S., though it&#8217;s unsure for other countries.<br \/>6. The structuring allows for tax benefits similar to those offered in states like Wyoming, without the need for litigation and associated costs.<br \/>7. John suggests that the LLC can function in different ways such as a trust or a partnership, providing flexibility in legal and tax treatment.<br \/>8. The strategy minimizes risks such as being sued or tax liabilities, by creating contracts with customers separate from the core company and setting up an arrangement to avoid having to produce records to the IRS.<br \/>9. This LLC setup can facilitate international transactions too, with the caveat that users need to be cautious of worldwide surveillance of money and corporate interests, and comply with local laws.<br \/>10. Ultimately, the goal of this approach is to protect cryptocurrency assets, mitigate legal and financial risks, and efficiently manage tax liabilities.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-fdf68b7 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"fdf68b7\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9091ce2\" data-id=\"9091ce2\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-14ec02e elementor-widget elementor-widget-spacer\" data-id=\"14ec02e\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>U24 &#8211; Cryptos and Risk Management<\/p>\n","protected":false},"author":131,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[124],"tags":[],"_links":{"self":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts\/15757"}],"collection":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/users\/131"}],"replies":[{"embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/comments?post=15757"}],"version-history":[{"count":7,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts\/15757\/revisions"}],"predecessor-version":[{"id":25281,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts\/15757\/revisions\/25281"}],"wp:attachment":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/media?parent=15757"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/categories?post=15757"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/tags?post=15757"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}