{"id":6814,"date":"2020-03-13T07:09:09","date_gmt":"2020-03-13T11:09:09","guid":{"rendered":"http:\/\/privacyfight.io\/?page_id=6814"},"modified":"2023-06-22T11:45:14","modified_gmt":"2023-06-22T15:45:14","slug":"3-using-your-llc-part-1","status":"publish","type":"post","link":"https:\/\/privacyfight.io\/3-using-your-llc-part-1\/","title":{"rendered":"P3 &#8211; Using Your LLC &#8211; Part 1"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"6814\" class=\"elementor elementor-6814\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4b74278 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4b74278\" 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-43af39a\" data-id=\"43af39a\" 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-11a6cae elementor-widget elementor-widget-shortcode\" data-id=\"11a6cae\" data-element_type=\"widget\" data-widget_type=\"shortcode.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-shortcode\"><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\/733232042\/?\" 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            0:04\r\nOK, well, this is the next segment, and we're gonna talk about the specific use of limited liability company when using cryptographic currency. Now you'll find out, as I explain this, you'll see where it can be used with other assets in cash flow, so we can talk about that. There's some really...        <\/div>\r\n        <div class=\"vidseo_collapse_content\" style=\"\">\r\n            <p>0:04<br \/>\nOK, well, this is the next segment, and we're gonna talk about the specific use of limited liability company when using cryptographic currency. Now you'll find out, as I explain this, you'll see where it can be used with other assets in cash flow, so we can talk about that. There's some really basic things.<br \/>\n0:28<br \/>\nAlright, Once, once you get your file number from the state, you've filed the articles, you've approved the Operating Agreement, you understand about the abstract, you're gonna get with the abstract.<br \/>\n0:39<br \/>\nYou're gonna get the banking resolution, which basically says that you're authorizing yourself to be a signer for the company, yourself and someone else possibly. And then there's the certificate of beneficial interests.<br \/>\n0:53<br \/>\nThis is something new, the bank started, I believe, in the beginning of 2018, where they want the account holders to certify their interest in the account. If it's a business. So sometimes, believe it or not, your interests can be zero. It could be 100%. Most of the time, I do these at 100%. We can change that. I'm going to introduce some new strategies later on.<br \/>\n1:14<br \/>\nBut for right now, it's just enough to use a single member LLC in which you're 100% beneficial interest or you are somebody else have more than 25% beneficial interest.<br \/>\n1:26<br \/>\nAnyways, these are the documents the additional document may want to look at is it's about 12 pages. It goes inside the opening agreement, it's the blockchain tax immunity trust.<br \/>\n1:39<br \/>\nAnd that's simply pertains to the cryptographic currency that's held in the exchange while it's in the exchange. If you exhaust the private key, the wallet in the exchange by transferring it out or selling it for dollars, trust no longer applies.<br \/>\n1:53<br \/>\nSo, if I moved it from Coinbase to my Tracer or Coinbase to exodus, that trust would not apply.<br \/>\n1:59<br \/>\nSo, it's only about, when you have the wallets in the cryptographic currency exchange. All right?<br \/>\n2:08<br \/>\nAgain, so, I mentioned this in the, in the previous video, but we're doing this as a single member LLC, OK, you can do this as a multi-member. The reason why we're using multiple member is if we need to separate the company from the signer. So if I so it goes back to the old concept of divesting my Rights, and I'm sharing them into the group.<br \/>\n2:28<br \/>\nSo if I need to make it a group, I need to have more than one member.<br \/>\n2:32<br \/>\nIf I have a married couple or one individual, that's not more than one member, that's still a single member, so you can add your Uncle Bob in there or something like that, and each of you has stated interest, It doesn't mean either or both of you are gonna get paid anything, it just means that you can say to the bank, whatever interest you want to tell the bank that each of you has. All right?<br \/>\n2:59<br \/>\nNow the reason to do that is if you're undergoing active levy's, there's judgement liens being executed against you or your assets than that will be useful. Having a multiple member LLC is not the time to set that up during a bankruptcy proceeding or before you go into bankruptcy. So that's, again, another reason why you shouldn't file bankruptcy. Connecticut.<br \/>\n3:23<br \/>\nSometimes, once you set these up, OK, you get all your documents, and sometimes the bank is going to want a certified copy of the articles.<br \/>\n3:30<br \/>\nThe articles are a little bit different than the operating agreement.<br \/>\n3:32<br \/>\nThe articles are published, and those create the framework within which the company will operate.<br \/>\n3:40<br \/>\nSo, when you, when you answer the question to the bank, or whomever else is asking you what the tax treatment is.<br \/>\n3:45<br \/>\nIs a C corp or an S corp or a partnership, you could tell them anything you want, when I tell people is, just just tell whoever's asking that the LLC that you're setting up.<br \/>\n3:56<br \/>\nNow, I'm talking about those we're using for cryptographic currency accounts.<br \/>\n3:59<br \/>\nJust tell anybody who's asking that it's an S corp, doesn't mean you have to file any type of return or choose any type of tax treatment. It doesn't mean that you have to do that. If you tell the bank, it's an S corp, OK.<br \/>\n4:13<br \/>\nJust do and get past that. Don't tell the bank. I don't have to answer you. Right? That creates a whole new set of problems.<br \/>\n4:20<br \/>\nHmm, if you're asked what the purpose of the LLC is, remember this in the articles? I've already stated the purpose, the purpose I always put in there unless you tell me otherwise.<br \/>\n4:30<br \/>\nThe purpose is going to be for all lawful purposes and I add a little clause in there, including, but not limited to real estate investing.<br \/>\n4:41<br \/>\nOK, I add that in there Just: because, last year, Pennsylvania said: Hey, you gotta tell us more than for all alpha purposes, so, now I add that in there, you may hate real estate. I don't care.<br \/>\n4:53<br \/>\nWe're not going to do real estate if you don't want to. It, doesn't matter. I'm just saying it in the articles, OK?<br \/>\n4:58<br \/>\nSo, if the bank wants to see the bank and see what you told the State, good enough, it doesn't bind you to anything.<br \/>\n5:05<br \/>\nSaying, what you're investing in, doesn't bind you to anything. But if you're setting up a church or you're getting a 501 C 3 classification, that's a little bit different.<br \/>\n5:14<br \/>\nIf you're setting up a foundation that's a little bit different, whatever you, the reason why you set the foundation up, you have to stick to.<br \/>\n5:21<br \/>\nSo because we're doing this and we're just generically saying it's for all lawful purposes.<br \/>\n5:25<br \/>\nIncluding, but not limited to real estate investing We could do none of that and we could just sell flowers at a flower shop if we want, OK, so it really freezes up to anything we want.<br \/>\n5:36<br \/>\nSo If anybody asks you like if you're having a conversation with someone at the bank.<br \/>\n5:40<br \/>\nYou go open the account, and they liked it.<br \/>\n5:42<br \/>\nThey act they act like your friend your friend And you're asked this question So what? Do you doing? What does your company about?<br \/>\n5:51<br \/>\nSo you give them an answer They will end the conversation the answer is something like this.<br \/>\n5:56<br \/>\nWell. I'm learning to invest in real estate.<br \/>\n5:59<br \/>\nSo what that tells The person is you don't know anything about real estate Or you're not interesting You're not worth talking to, right?<br \/>\n6:05<br \/>\nAnd it's real estate. Everybody understands what real estate is are they think they do, right?<br \/>\n6:08<br \/>\nSo that's enough to answer the question without really answering the question, and you could do whatever you want. at that point.<br \/>\n6:13<br \/>\nYou're not limited by what you tell the bank, OK?<br \/>\n6:17<br \/>\nAll right, so sometimes once we set these up, the Secretary of State notifies another division of that government.<br \/>\n6:25<br \/>\nUsually the tax division, employment division, business regs Witter, and you get a letter or the contact person at the LLC. We set up. We'll get a letter. Maybe it's the agent, maybe it's you.<br \/>\n6:38<br \/>\nMaybe it's by e-mail, I don't know, asking you to file additional forms regarding employees, or pay the payment of wages or things like that. So it could be as simple. As?<br \/>\n6:50<br \/>\nCall them up and saying, yeah, we don't have any wages, you can say, we don't have wages at this time.<br \/>\n6:54<br \/>\nYou can also say, we don't have employees at this time. You can also say we're never going to have employees. You just tell them, we're not paying wages, we don't have employees, this is just a holding company.<br \/>\n7:03<br \/>\nI wanted to hold title to my grandma's house right to keep it out of her stays for it. We were using it for our, I'm using it for estate planning purposes.<br \/>\n7:11<br \/>\nYou can say something like that.<br \/>\n7:13<br \/>\nSometimes I make it complicated and I write a letter to the state, and I say, OK. Interesting. So how did you determine that we were paying wages?<br \/>\n7:21<br \/>\nSounds kinda controversial and we don't want to do that, but if you asked me to write a letter, I don't mind doing that. but it could be as simple as making a phone call and just saying, Look. We don't have any employees, or we're not paying wages.<br \/>\n7:31<br \/>\nDo not file those forms, because once you do that, you just create all these new obligations, and they're not, it's not necessary. I don't care what you're told.<br \/>\n7:39<br \/>\nI've never seen a situation where you've had to file these forms.<br \/>\n7:42<br \/>\nSo, anything that has to do with the state contact, and you are an agency contact and you, for licensing.<br \/>\n7:49<br \/>\nYou pretty much don't have to do it now, sometimes.<br \/>\n7:52<br \/>\nSometimes, if you have an office space that's a little bit different, so we could talk about that.<br \/>\n7:56<br \/>\nThere's a ways of dealing with that, but basically, if if you're getting a letter, referencing workmen's compensation, or employees or the payment of wages, it's not going to apply to what we're doing. We're just setting this up as an investment. I can give you a couple of examples. They may send you some forms and so forth.<br \/>\n8:12<br \/>\nI had written up a really, the complex letter involve letter in regard to one of these, because what I want to do is, explain to the client, explain to you what that the issues are, and how to address them.<br \/>\n8:26<br \/>\nSo, the reason why I wrote this letter for the client end in addressing the issue of the request to file additional forms regarding the payment of wages for employees, so that he could understand the issue better. And also, I can have a document for other people that want to have it. And, and I am going to make those documents available on this website is going to be near the video, so you'll be able to see what I've done in the past. A lot of references there.<br \/>\n8:50<br \/>\nThat's another reason why I might write a letter up in the beginning so that you'll have references so that, like I said, if I'm not around in a couple of years, and you go back to that letter, there's actually some legal references in that letter. So, you can actually show it to an attorney, and he'll say, Oh, OK, well, that was the issue, let's dial it is, and focus on that.<br \/>\n9:06<br \/>\nBecause it's sometimes if you don't tell the attorney, if you need it, if you need an attorney to help you, if you don't tell them what to do.<br \/>\n9:13<br \/>\nAs funny as that sounds, he may not do the right thing.<br \/>\n9:16<br \/>\nA lot of times, attorneys will just, they'll fill out a form thinking that's going to solve your problem. And it just creates more controversy, which creates more billable hours. All right, which helps them, it doesn't help you.<br \/>\n9:27<br \/>\nSo I try to end it. All right.<br \/>\n9:29<br \/>\nSo enough of that.<br \/>\n9:32<br \/>\nOK, I think you get the idea, We're going to use this as a pass through.<br \/>\n9:37<br \/>\nWe're going to use this company as a pass through. It does not file reports with any state or federal.<br \/>\n9:44<br \/>\nIt doesn't file tax returns. It can do 1065, I'm going to recommend that you don't do 1065.<br \/>\n9:49<br \/>\nThere's no need to file anything.<br \/>\n9:50<br \/>\nIt's just passing money through, it's as simple as that.<br \/>\n9:55<br \/>\nKeep accurate accounting.<br \/>\n9:56<br \/>\nDon't do accounting, just say because you have to file a tax return, and if you don't have to file a tax return, they just don't do accounting. That's that, That doesn't make any sense. What you want to do is keep track of your money, find out which of your assets and N kryptos, for example, which is paying better.<br \/>\n10:11<br \/>\nAnd the way to do that is to do proper accounting.<br \/>\n10:13<br \/>\nLook at things in terms of net present value, cash in and cash out, cash out, look at your risk, OK, These are all done through accounting statements. So you definitely want to keep some accounting.<br \/>\n10:22<br \/>\nYou definitely want to keep track of, like, let's say you have an LLC account at Coinbase and you take out $300 at an ATM.<br \/>\n10:30<br \/>\nAnd you just go out to dinner with it, if it's not deductible or something you want to.<br \/>\n10:34<br \/>\nYou want to include that as income.<br \/>\n10:36<br \/>\nRight, you want to account for that as personal income.<br \/>\n10:40<br \/>\nIf I take out $300 in cash, and I pay for advertising, which is unusual, but let's say I did that, then that's business.<br \/>\n10:47<br \/>\nI don't have to talk about that because it's, it's all the LLC doing something with that with that cash, OK, and yeah, there are tax benefits to it, But I'm just gonna say you can get your tax benefits later, just use the LLC for what it was intended, and you'll, it'll be, it'll work out really well.<br \/>\n11:03<br \/>\nUm.<br \/>\n11:06<br \/>\nThe abstract that I referenced earlier, that is what you're going to use to open your bank account.<br \/>\n11:11<br \/>\nAnd any other third party account at Coinbase Crack. And whatever else.<br \/>\n11:14<br \/>\nOK, use the banking abstract, the reason why you don't use the entire Operating Agreement, because it has all kinds of other provisions in there. And in many cases, you're going to have your blockchain tax immunity trust in there. And the bank is going to ask all kinds of crazy questions. They're going to want to see all kinds of additional documents, you're not even going to have, and you don't even need to have them.<br \/>\n11:34<br \/>\nSo, keep it real simple. Make it minimize everything.<br \/>\n11:37<br \/>\nSo you decide who's going to be the sign on the account.<br \/>\n11:40<br \/>\nWhen you figure that out, that is the information that goes in the abstract. And that's what we use to open the accounts and leave it at that.<br \/>\n11:47<br \/>\nAnd, by the way, do not tell the back that it's an abstract, because the person at the bank might be smart enough to ask you, OK, well, this is an abstract, where's the whole document?<br \/>\n11:57<br \/>\nDon't get into that conversation, You just tell the bank, like, this is my operating agreement. What you see at the title of the document, it'll say Memorandum of Articles and Operating Agreement. What you see is what you get.<br \/>\n12:09<br \/>\nRight? That's what you tell the bank personnel.<br \/>\n12:14<br \/>\nYour LLC, when it opens an account, and you're going to be the signer, let's say, When it opens account at, crack and, or Gemini are some of these places.<br \/>\n12:23<br \/>\nIt does not need to have an organizational chart. It does not need to have a business plan, does not need to have a website.<br \/>\n12:29<br \/>\nYou're welcome to do all those things, and if you want, I can show you how to do those things for five bucks, OK? There's people that'll do it for you. You don't have to do all that work, But what would your organizational chart look like if you're a single member?<br \/>\n12:41<br \/>\nIt doesn't make any sense, right?<br \/>\n12:43<br \/>\nSo, it's not necessary, So you simply answer those requests for information.<br \/>\n12:47<br \/>\nYou just say, I don't have those records, or I don't have those records at this time, or it's not in my company, plan to create these records. There's another response you can give. it has to do with disclosing trade secrets or disclosing terms that are not able to be disclosed.<br \/>\n13:02<br \/>\nYou could say, I'm not permitted to disclose that specific item of information, either by an agreement that you've already made like a non disclosure agreement. You can see there's a penalty, and I'm not able to do that under the penalty.<br \/>\n13:15<br \/>\nOr it would breach the contract, or you'd be liable or whatever, or I'm not able to disclose it because it's a trade secret. And it would be a huge cost to me. If I did that, it would jeopardize a lot a lot of things. So there's a legitimate business interest and not disclosing some information, Some of it you're going to have to disclose.<br \/>\n13:32<br \/>\nBut for the most part, you can pretty much get through all these questions.<br \/>\n13:35<br \/>\nJust like I said before, you're not gonna have a problem opening the accounts. I mean, you know, sometimes they ask you some wacky questions. We will have an answer for everything.<br \/>\n13:43<br \/>\nAnd at the same time, we're not going to disclose unnecessary information. Put it that way.<br \/>\n13:50<br \/>\nThe use of the LLC at your crypto account.<br \/>\n13:54<br \/>\nIt's nice to take out a few grand to do something with.<br \/>\n13:58<br \/>\nMaybe you want to take out a few thousand dollars in cash, and from that account, Maybe you want to buy some silver, alright, and take possession of it.<br \/>\n14:06<br \/>\nThink of it, like this, if I took cash on my LLC, Coinbase account and I bought I moved it. Let's say OK, So I bought, Let's say, I bought some silver and I put it in my vault.<br \/>\n14:19<br \/>\nWell, for all anyone knows, that Silver is owned by the LLC, right?<br \/>\n14:23<br \/>\nIt's not really titled anywhere.<br \/>\n14:25<br \/>\nIt's not in a third party, I'm actually in possession of it but for all anyone knows if I ever want to do something with that Silver, let's say I want to take that Silver and I'm gonna go buy an asset a big asset with it and I'm gonna go through escrow for example.<br \/>\n14:37<br \/>\nWell, I would just tell the escrow agent that the owner of that silver is this limited liability company. Right, That's how it'd be used.<br \/>\n14:43<br \/>\nSo, if I, if I do the same thing, if I take cash and I go buy, let's say I buy a paper wallet and it's worth the same value as my cash at that time.<br \/>\n14:54<br \/>\nAnd it's a Bitcoin right, I can do that, too.<br \/>\n14:56<br \/>\nSo, just look at my transaction, is I'm going from my crypto into my LLC with cash, I just saw my crypto for cash. It's now on my LLC account.<br \/>\n15:06<br \/>\nI can then buy whatever I want. If I buy something for personal use, I need to report it on my 10 Ford it just keep that in mind.<br \/>\n15:13<br \/>\nNow, there are ways around not doing that, and we'll get into that in a second.<br \/>\n15:17<br \/>\nSo, let us say, I want to make a large ticket item purchase. Let's say I want to buy a car, right, So, I, but made lots of money in Bitcoin this week, for example.<br \/>\n15:28<br \/>\nAnd I want to take some profits, and I really need a car.<br \/>\n15:31<br \/>\nSo I can walk into a car dealership. I can make my deal. I can tell the dealership I've already got financing. He'll say, fine, I make my contract. He's gonna say, OK.<br \/>\n15:41<br \/>\nIt's X dollars, he's going to give me piece of paper, or whatever: the bill, the sale, the contract.<br \/>\n15:47<br \/>\nAnd I'm going to go to the bank where I have the LLC account.<br \/>\n15:51<br \/>\nAnd I'm going to have the cashier issue me certified funds, from the LLC to the dealer.<br \/>\n16:00<br \/>\nI'm going to give that information before I go into the back, I'm gonna go back to the dealer, and I'm gonna give him the check.<br \/>\n16:07<br \/>\nFor the funds.<br \/>\n16:08<br \/>\nNow, we're, he'll do, is write up the contract, showing that this company, which is your company, is the lender on the paper.<br \/>\n16:15<br \/>\nHe's going to send the company the certificate of title, just like you would any other lender, and he's going to do the same thing for you. He's gonna give you the contract, the paper, and all these other documents.<br \/>\n16:24<br \/>\nHe's going to give you whatever he needs, right, So and he does. It doesn't matter if he knows that it's your company, he doesn't care.<br \/>\n16:31<br \/>\nHe just wants to close the sale right.<br \/>\n16:34<br \/>\nKeep this in mind too. Now I'm not going to give you all the detail on this, because I don't do very much but it is interesting to notice. When car dealers sell the financing to a lender, this is what they do. They get a discount rates and lender pays a discount rate off the face value of the of the obligation.<br \/>\n16:51<br \/>\nSo, let's say bought a car for $30,000, the dealer might get $22,000 or something like that.<br \/>\n16:56<br \/>\nI don't know, I'm just making up a number. I don't know what those deals are, so.<br \/>\n17:00<br \/>\nthere is some room in there when you're, You're in control of the lender, so, yeah, the lender could just now lend the face value, But why not try and work out a discount rate?<br \/>\n17:12<br \/>\nSo, like, what you would do is you would you would ask that once you make your deal right for the car.<br \/>\n17:17<br \/>\nYour price is the same, but your lender may send a letter to the, the dealer, or maybe you might have a friend, or you can even do it yourself call in and say, Look. What's the discount rate? Maybe, maybe I can get a discount on buying this paper from you.<br \/>\n17:31<br \/>\nSo I don't know what what arrangements you can make but just keep that in mind.<br \/>\n17:34<br \/>\nYou, because you own the lender, you might be able to work out a further discount on the paper, right. Even though the consumer you are the buyer, you're going to still pay the face value of the contract.<br \/>\n17:44<br \/>\nThe loan actually may be for less, so. if your loan on its face is 30,000, you might be able to get the contract down to the lender.<br \/>\n17:52<br \/>\nYour company would pay like 28,000, I don't know, Just something to think about.<br \/>\n17:57<br \/>\nAll right, you get some more leverage this way.<br \/>\n18:00<br \/>\nAlright, so the LLC is kinda nice to use for, for larger ticket items, like I just showed you.<br \/>\n18:04<br \/>\nYou can, you can borrow the money out and just by simply words, you just go in there and talk to the dealer, right? He'll do all the paperwork. You know, there's nothing fancy there, right?<br \/>\n18:14<br \/>\nI can also use qualified escrow.<br \/>\n18:17<br \/>\nSo the way that works is I have cash in Coinbase, for example.<br \/>\n18:22<br \/>\nAnd I want to buy, let's say I want to buy a house, many people ask me about this So how can I buy a house? This is a liability, right? Just like a car is a liability, it's money that I Oh, if I buy a house, I'm not going to make money from it. It's going to cost me money so it's a liability. Your house is not your asset.<br \/>\n18:38<br \/>\nIt might be somebody else's but it's not yours.<br \/>\n18:41<br \/>\nSo, I would go into Open. A qualified escrow Now asked me about qualified escrow because I've got some connections, I can hook you up with them.<br \/>\n18:48<br \/>\nI could just tell you off the top of my head, qualified escrow, a good company we bid Pay, Right?<br \/>\n18:54<br \/>\nYou can check with bit pay, they know how to do this but I have some other referrals I can give you. So just asked me are you may see a connected to this video. You may see the other links. I'll give you, their website links to other escrow agents. You can call them ahead of time and find out what's required to do qualify escrow transaction. So, it's kind of nice because I can go from an asset in most any form. I can go from Bitcoin. I can go from cash, I can go from real estate and I can go into another asset or property.<br \/>\n19:23<br \/>\nSo, let's say I want to sell my Bitcoin.<br \/>\n19:26<br \/>\nI don't want to trade my Bitcoin for a new house for my family so I can open escrow. I already made my deal right. I went to the seller.<br \/>\n19:35<br \/>\nI made an offer, he accepted, we have a closing date.<br \/>\n19:39<br \/>\nSo, I take my Bitcoin and I know how much is worth approximately dollars.<br \/>\n19:43<br \/>\nI get ahold of my escrow, agent, qualified escrowed now and I'll tell you what those in a second.<br \/>\n19:49<br \/>\nAnd, I just tell him.<br \/>\n19:50<br \/>\nI've got a Bitcoin wallet, here's the information or heroes, they'll tell you what they need, then that agent will handle the closing all the way through So, if the seller wants dollars, your escrow agent will provide the dollars. He'll liquidate it somehow.<br \/>\n20:06<br \/>\nSometimes they want lately, I've seen signs in my neighborhood where the sellers want Bitcoin or offering bitcoin to some.<br \/>\n20:14<br \/>\nHere's what makes an escrow, contract qualified, and when I say qualified, I'm talking about, under tax rules or IRS rules, you can look this up to qualified escrow.<br \/>\n20:25<br \/>\nQualified escrowed just means it's not disqualified.<br \/>\n20:28<br \/>\nNow, there are a list of criteria. That would disqualify an escrow agent.<br \/>\n20:33<br \/>\nDisqualified means that, it's not an arm's length transaction. Now, that's not the tenant technical definition, you can go look it up, and you'll see for yourself, there's like 8 or 10 different criteria.<br \/>\n20:43<br \/>\nBut basically, it's not your Uncle Bob who's handling the money for the transaction, that would be disqualified escrow, you want qualified escrow, OK? You follow the rules, if you're not breaking any of the rules, is qualified escrow.<br \/>\n20:56<br \/>\nYou want to make it so that the gains you're transferring over to the next property or asset are never realized by yourself right, OK?<br \/>\n21:10<br \/>\nBenefit of using the limited liability company, you're gonna get this feature.<br \/>\n21:16<br \/>\nOf course, is a pass-through, we've covered that quite well, but the nice thing about this is if you have multiple members, now husband or wife or not multiple members, their single member, but multiple member would be you could be a real partner who's actually has an interest in the companies actually maybe going to get paid. It could be your brother, Bill, he's not going to get a dime, but he likes you thinks what you do is cool. And he says, yeah, you can put my name on the Operating Agreement.<br \/>\n21:39<br \/>\nAnd now your brother bills on there, and you got to members to make it work.<br \/>\n21:45<br \/>\nThe second member, or third member, those people need to be listed on your articles that are filed with the State. So if they're not now, you simply just need to file an amendment to your Articles of Association. It's that simple. You just found an amendment usually cost 20 bucks, the state usually has the form, Let me know, I can do for you. It's very easy. So when you're at a member, what happens is that all the whole world looks at that? Someone's trying to collect against you, and he thinks he's going to be able to attach your interest in the company.<br \/>\n22:14<br \/>\nThis would have to be an unusual situation because most attorneys don't do this. Most collection attorneys don't do this.<br \/>\n22:19<br \/>\nThe IRS doesn't even do this. But he can look on the Secretary of State's website. if he finds out where your company's registered, because sometimes you'll never find out, because he got 50 states, right? That could be anywhere.<br \/>\n22:30<br \/>\nBut let's say, finds out, he's going to look at the articles and see, there's more than one member. So what that's going to say to him, as he can't, he can't treat your company.<br \/>\n22:39<br \/>\nHe can't go to the court and get the judge to treat your company as a sole proprietorship which could happen.<br \/>\n22:46<br \/>\nAs a single member, I've never seen that, but I think the rules allow it.<br \/>\n22:51<br \/>\nTo make it certain, you want to add a second member, right? So, it's gotta be really another person. We amend the articles. Someone looks, A collection attorney looks on the county or the state records and sees that there's two members so he can still get rid of attachment from the judge.<br \/>\n23:08<br \/>\nSo, let's say, oh, $10000 to a creditor personally, the creditor can get rid of attachment. This is called a charging order, OK, against your interest in the company.<br \/>\n23:19<br \/>\nSo, let's say your interest in the company is 80%, just make up a number, right.<br \/>\n23:23<br \/>\nHe can get rid of attachment for your 80% of the company, but that his client can only collect when you get a disbursement from the company. And of course, you make those decisions right. I would think.<br \/>\n23:35<br \/>\nSo, you can decide not to pay yourself or distribute funds in a different way. It's something you can work out.<br \/>\n23:42<br \/>\nNow, here's the interesting thing and this is why I don't see this.<br \/>\n23:44<br \/>\nI think it's because if the creditor gets a charging order, let's say, it's $10000, right.<br \/>\n23:50<br \/>\nAnd the attorney wants to attach your interest, and, again, he can only attach if you get paid. So, he gets a charging order for $10000.<br \/>\n23:57<br \/>\nSo, the judge says, you can go take a $10000, wherever you can find it, and you can't find it anywhere, except the possibility that you're gonna get funds from the LLC that you're involved with.<br \/>\n24:07<br \/>\nIf no funds are distributed to you, if that, if there's no money from the 10000 that's ever collected and we reached the end of the year, December 31st, his client, the creditors client, the creditor will have to pay taxes on the amount.<br \/>\n24:22<br \/>\nHe did not collect.<br \/>\n24:25<br \/>\nSo, if he did not collect the amount stated in the rid of attachment, the charging order, he'll be on the hook for that amount in taxes.<br \/>\n24:32<br \/>\nSo it's likely that attorneys don't want to lead their client down that path risking the possibility that nothing will be collected. And then putting their client on the hook for taxes when there's even nothing collected. And likewise, if he collected half of it, he would still be on the hook for taxes on the other half. Right? So that's really a nice feature and this is probably the reason why I haven't seen too many attorneys try to do, try to get charging order claims against interests and LLCs.<br \/>\n25:03<br \/>\nWith a client where there's lots of collections going on, I'm going to have a multi member, and I never, I never take an interest with clients who don't asked me to take an interest, but we do figure out how to do it. So it's pretty much we can always solve that situation, right.<br \/>\n25:19<br \/>\nSometimes, for limited liability companies, I use a registered agent address, OK, to meet the statutory requirements. It's gotta be a physical address, got to be a valid, physical address. Sometimes I will get an address. That's not professionally and registered agent, but where mail could be received or process could be perfected.<br \/>\n25:41<br \/>\nIt's not an address where you're ever going to get anything, but I actually pick a real address in the place where you're registering, So in that jurisdiction, so if I'm going to pick a New Mexico address for somebody in California, I would have a service where I can go and find an address that's a valid postal address where that someone lives.<br \/>\n26:01<br \/>\nAnd we'll add the company name to that address.<br \/>\n26:04<br \/>\nAnd sometimes that people don't like it. And most of the time, nobody cares, and because most of the time, nobody gets mail there. So, it's, it's kind of a tricky way to do something, but what happens is, it saves you a $150 a year, and having an agency when you're never gonna get process anyways because of the way we're using the company. If you're using the company for business, then, definitely. I'm going to pay a service to do to become the registered agent for your company. Or I'm gonna have you be the registered agent and address that works for you. Maybe it's a business address or a mailbox or can't be a mailbox, but it'll be possibly your home address. So whatever is going to work for you.<br \/>\n26:42<br \/>\nBut I just want to make that, I want to have the discussion, because some people don't understand exactly what I'm doing and why I'm doing it.<br \/>\n26:48<br \/>\nAlso, sometimes we just need to have, again, the same type of address for the principal address, for the business. It just depends on the situation. So sometimes, I'll do the same thing. Again, I'll get an address is not really an address. Because we're not going to get mail there, but it's going to show up in the articles.<br \/>\n27:06<br \/>\nIt meets all the requirements, but we're not gonna get mail there. And so what? Because the way you're going to use the company is you're going to tell whomever needs to send mail, either use e-mail, or here's another address to send mail at. The reason being, if I'm in California, and I use the California address as my Principal ..., which I can do for New Mexico company.<br \/>\n27:26<br \/>\nNew Mexico is going to notify California that you registered a company, that a California resident, it appears, organized a company in New Mexico. The state of California is going to send the company a bill, or it's going to send you a bill possibly.<br \/>\n27:42<br \/>\nFor $800, which is the filing fee in California, for not registering in California when you were a California resident.<br \/>\n27:50<br \/>\nThere's no need for that.<br \/>\n27:51<br \/>\nI don't agree with the legislation.<br \/>\n27:53<br \/>\nThis is reset for California, so with an easy way around it, without creating controversy without fighting anybody issues to use an address outside the state of California and always use that address.<br \/>\n28:04<br \/>\nSo for Californians, I'd just say, open up a mailbox address in New Mexico or the state where you're organizing outside of California.<br \/>\n28:13<br \/>\nOpen up a real mailbox service, where you can get mail there, and just use that for at least a few months until you figure out whether or not you need to get mail there, OK?<br \/>\n28:22<br \/>\nThe other way around it is, we can get into this more, we get into this, more on, when we implement some privacy strategies, is receiving mail, not in your name.<br \/>\n28:34<br \/>\nThat's a real, a concern, something that you should be thinking about. And ask yourself why you're receiving mail in your name at your house.<br \/>\n28:43<br \/>\nThat's probably not a good idea, There's lots of reasons for that.<br \/>\n28:47<br \/>\nSo for the people in California, Illinois, Texas, we're going to do the banking without a state residency. So it's gonna look like your resident. Now sometimes run into a hiccup where the bank wants proof that you're a resident there, like a utility bill, So we have to, we have to get around that. There's different ways of getting around that.<br \/>\n29:07<br \/>\nSo that would be one of the unique things, idea, where you're not going to find that with most services.<br \/>\n29:13<br \/>\nAnother one is OK, about receiving mail. That's not in your name, there's a whole process that I have.<br \/>\n29:20<br \/>\nYou can see some of it on ace of coins dot com, through my book called Bulletproof Banking.<br \/>\n29:27<br \/>\nThere's some sections in there. But if you're a client or you're watching his videos, you'll get more detail on how to do it and when. The last thing I want to cover, this may be in two segments, but I'm gonna cover this right now. Is going to be on the postal form, 1983. So you can look this up right now. Just go to a search box on your computer, on the Internet, and search on Postal Form 1583.<br \/>\n29:53<br \/>\nAnd it's a PDF document, So to add PDF to the search term, and then it'll show up when you're on your screen right away. I click on it and save it. You'll see I believe it's on Box seven on the right column.<br \/>\n30:05<br \/>\nTowards the bottom, there's a spot for trade name, OK, this is another word for an alias. So the trade name is useful.<\/p>\n        <\/div>\r\n    <\/div>\r\n\r\n    \r\n<\/div><\/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-d852ec4 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"d852ec4\" 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-4e50c64\" data-id=\"4e50c64\" 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-2200ab6 elementor-widget elementor-widget-spacer\" data-id=\"2200ab6\" 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-3188754 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3188754\" 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-45ff985\" data-id=\"45ff985\" 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-d6877d6 elementor-widget elementor-widget-text-editor\" data-id=\"d6877d6\" 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><ol><li>The discussion involves the use of a limited liability company (LLC) for cryptographic currency.<\/li><li>An LLC requires various documents including banking resolutions, the Operating Agreement, and the certificate of beneficial interests, with an option to include a blockchain tax immunity trust.<\/li><li>The LLC can be a single member LLC where the individual has 100% beneficial interest, or a multi-member LLC used to separate the company from the signer.<\/li><li>Banks have increased requirements for business accounts, requiring certification of interest in the account. This interest can range from zero to 100%, depending on individual circumstances.<\/li><li>The LLC can be used for a variety of purposes, including but not limited to real estate investing. This purpose doesn&#8217;t limit the potential activities of the LLC.<\/li><li>While setting up an LLC, it&#8217;s crucial not to create unnecessary obligations. For example, avoid filing forms indicating the payment of wages if your LLC doesn&#8217;t have employees.<\/li><li>Keep accurate accounting records for your LLC, particularly if you&#8217;re dealing with cryptographic currencies. It aids in tracking money flow and asset performance.<\/li><li>Use of an LLC can facilitate larger purchases, such as cars, by allowing financing through the company rather than personal assets.<\/li><li>The LLC can also be used to protect assets from collections, as a creditor can only collect when disbursements are made from the company.<\/li><li>Periodic renewals of the LLC may be required, depending on the regulations of the state where it&#8217;s registered.<\/li><\/ol>\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-1d5f497 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1d5f497\" 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-39e4b9d\" data-id=\"39e4b9d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\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>P3 &#8211; Using Your LLC &#8211; Part 1<\/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\/6814"}],"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=6814"}],"version-history":[{"count":11,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts\/6814\/revisions"}],"predecessor-version":[{"id":24895,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts\/6814\/revisions\/24895"}],"wp:attachment":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/media?parent=6814"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/categories?post=6814"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/tags?post=6814"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}