\r\n P4 \u2013 Using Your LLC \u2013 Part 2\r\n0:00\r\nSo, the trade name is useful when I, the way I use it is like this, if I\u2019m gonna receive mail for a company, Let\u2019s say it\u2019s a limited liability company, I don\u2019t designate that as an LLC on the 15, 83 form.\r\n0:12\r\nI don\u2019t indicate that as a company.\r\n… <\/div>\r\n
\r\n
P4 \u2013 Using Your LLC \u2013 Part 2
\n0:00
\nSo, the trade name is useful when I, the way I use it is like this, if I\u2019m gonna receive mail for a company, Let\u2019s say it\u2019s a limited liability company, I don\u2019t designate that as an LLC on the 15, 83 form.
\n0:12
\nI don\u2019t indicate that as a company.
\n0:14
\nInstead, what I do is, I use the company name as if it\u2019s a trade name, as if it\u2019s a sole proprietorship or a DBA doing business as So, if it\u2019s, um, XYZ company, LLC, when I do my 1883, I\u2019m going to writing the XYZ company as my trade name, not XYZ Company, Cama, LLC, because there\u2019s no reason I need to disclose that information because the Postal Service will want information about the company. It may want to copy the articles and all this other stuff, just like a bank would.
\n0:48
\nSo, just avoid that and use your company name as a trade name.
\n0:52
\nAll right.
\n0:52
\nNow, there\u2019s another thing in here, and this is a trade secret that I have.
\n0:57
\nUsing a re mailing service.
\n1:00
\nThere are services all, you\u2019ll get your mail, they\u2019ll open the package, you\u2019ll have a payment on the inside of the envelope to do this service.
\n1:08
\nThey\u2019ll take the payment out, or maybe you\u2019ve done it online with a credit card, or PayPal, or they\u2019ll take the money out of the envelope and they\u2019ll have another envelope that you\u2019ve already addressed And inserted into the first envelope.
\n1:20
\nThey\u2019ll throw away your old envelope, take out the money and take the envelope you included and drop it in the mail, that\u2019s a re mailing service.
\n1:28
\nThose are kinda split, those guys destroy records as they go.
\n1:31
\nSo if you really want some privacy rebuilding as a way to go, there\u2019s some expensive ones and there\u2019s some cheap ones.
\n1:37
\nSo, those companies, those services, do not require 1083.
\n1:42
\nIt\u2019s not necessary. You can get it. You get what you need, either way.
\n1:46
\nJust just to let you know, all right?
\n1:48
\nSo, let me go into some more detail.
\n1:55
\nI\u2019m going to talk more right now about the structure we\u2019re using for the kryptos, limited liability companies.
\n2:02
\nAnd not filing the tax return, here\u2019s why.
\n2:05
\nYou\u2019re going to illegally.
\n2:06
\nyou\u2019re going to legally avoid the reconciliation process and the accounting. So filing a tax return is just an accounting function.
\n2:16
\nThe IRS has its own accounting function.
\n2:18
\nSo it has a business master file, an individual master file. It has something called a non master file.
\n2:25
\nIt has all kinds of files are nothing more than accounting ledgers.
\n2:29
\nWhen you apply for an EIN, no file is created.
\n2:33
\nWhen when the thing that got the EIN gets a 1099, no file is created at the IRS. The IRS doesn\u2019t care.
\n2:42
\nWhen the thing that got the EIN and got the EIN files, a tax return, now the IRS cares.
\n2:50
\nWhat\u2019s going to happen is the IRS is going to create an accounting, what\u2019s called a ledger.
\n2:55
\nA book, something, it\u2019s going to create an accounting ledger, and it\u2019s going to measure it against the tax return you\u2019re filing.
\n3:02
\nAnd based on how you\u2019re filing or the tax treatment and what you\u2019ve filed, it\u2019ll do what\u2019s called a reconciliation now. I may be speaking out of school here. This is the language I use. I don\u2019t know if an accountant wants to use this language.
\n3:13
\nHe may agree, or she may agree. I don\u2019t know.
\n3:16
\nBut this is what I say, OK.
\n3:17
\nSo the tax return creates a reconciliation process, and so the IRS is going to see, all right, one of the one of the things it looks for is to make sure that the return being filed, matches all the reports given to the IRS.
\n3:29
\nSo, if 6099 were filed and the tax return does not include all six, there\u2019s going to be, someone\u2019s gonna get it get, noticed at the IRS, and someone\u2019s gonna have to look, a human being, is going to have to look at that, otherwise, it\u2019s all software just churning through this stuff, OK?
\n3:45
\nIf everything matches.
\n3:48
\nYou can avoid the reconciliation if you just don\u2019t file a return, But just keep in mind, you, most people have already filed 10, 40.
\n3:55
\nSo, if you\u2019ve already been falling 10 forties and you\u2019re doing that on a regular basis, and you\u2019re still, you know, needing to do that, then continue reporting any personal use of this LLC money, gave it goes to cash, report it on your 1040, OK?
\n4:11
\nThat\u2019s just in the event, you get audited and the IRS is all this money out there.
\n4:14
\nAnd wonders how you\u2019re getting like, how you got a new boat and it doesn\u2019t match your income status, your income bracket, right?
\n4:21
\nSo, just be, just be aware that do the risk, do the right thing.
\n4:27
\nWe use the LLC for disqualified escrow. This is a bad use of the term. I\u2019m just going to use it that way. I think you guys know what I\u2019m talking about is not escrow, OK, it\u2019s just a way to move the money in a way where you\u2019re not gonna realize again.
\n4:42
\nIt avoids the personal gain, that\u2019s the idea, So there\u2019s no statute.
\n4:45
\nAll right, there\u2019s no regulation, and there\u2019s no assessment, nor will they be an assessment because you didn\u2019t follow return. When you file the return, that the return is the assessment now.
\n4:56
\nThe assessment doesn\u2019t become the assessment in IRS records in its system until an IRS employee, a fixes, a file number to the face of the tax return you filed, whether electronically or by paper, it doesn\u2019t matter.
\n5:10
\nSo, at that moment, an assessment is created, there\u2019s an accounting entry, OK. It\u2019s called an assessment.
\n5:17
\nBy not filing, you\u2019re not creating the assessment, therefore, there\u2019s no reconciliation!
\n5:21
\nBut, again, there\u2019s no obligation until there\u2019s an assessment.
\n5:26
\nThere\u2019s no assessment until you file.
\n5:28
\nSo it\u2019s weird because once you file, you\u2019ve created an obligation to file for that period.
\n5:35
\nSo think about that for a minute.
\n5:37
\nOK, furthermore, the types of asset we\u2019re talking about here cryptographic currency.
\n5:42
\nNowhere in the tax regs, in the statutes, case law, nowhere is there describe any type kind or class of tax?
\n5:52
\nCryptographic currency, Yes. It\u2019s defined as property. Lately they\u2019re talking about. It\u2019s going to be defined as intangible property, OK, fine or intangible assets. That\u2019s fine too.
\n6:05
\nBut again, there\u2019s no taxing statute.
\n6:08
\nThere\u2019s no tax table, there\u2019s no tax rate for cryptographic currency. They cannot tax the kryptos, and I\u2019m gonna give you an analogy real quick.
\n6:16
\nBut let me get into this.
\n6:18
\nThere\u2019s no regulation that describes the type kind or class of tax for a cryptographic currency transaction unless it\u2019s sold, dispossessed for US dollars.
\n6:34
\nThat\u2019s the difference.
\n6:36
\nSo, here\u2019s why I explained earlier, in a recent interview, we don\u2019t have the infrastructure to tax kryptos. Here\u2019s why, if you were to tax kryptos, then you would have to pay the tax in kryptos.
\n6:49
\nJust like if the government were taxing trees, you would have to pay the tax in trees.
\n6:55
\nSo the tax assessor would come out to your tree and cut off some bark or a branch, right? Get his pound of the tree, right?
\n7:03
\nThat\u2019s not how we do things.
\n7:05
\nAlright, we do things in dollars, US dollars, Federal Reserve notes, whatever you wanna call them. That\u2019s why there are no taxes on crypto is we don\u2019t have the infrastructure for it. Right now, Wyoming is leading the way, probably California\u2019s next. They\u2019re probably trying to create public policy or public opinion to influence people, to accept.
\n7:23
\nThat kryptos could be taxable if everybody goes along with it.
\n7:26
\nThen yeah, sure, they will be OK, but right now they\u2019re not.
\n7:33
\nSo moving kryptos from wallet to wallet if you still own the wallet or if you control the access to the wallet.
\n7:42
\nMoving kryptos from wallet to wallet is not a taxable transaction.
\n7:47
\nThis is the same thing is trading between kryptos, OK wallet to wallet that\u2019s not taxable now.
\n7:54
\nI am spending money if I spend it from my wallet to some other guy\u2019s wallet, right, to a business owner. That is spending money.
\n8:01
\nAgain, it\u2019s not spending dollars I\u2019m just spending to another wallet Yes, I\u2019m dispossessing assets at that point but if I\u2019m going from wall to wall and they\u2019re my wallets I\u2019m not dispossessing assets.
\n8:15
\nI Think you can look at the case law for gold and silver, right? That\u2019s a good rule of thumb to follow.
\n8:20
\nLikewise, if I take cash in my LLC, a Coinbase exchange, and I transfer the cash dollars let\u2019s say it\u2019s $500,000. Let\u2019s say, for example, I move $500,000 through a wire.
\n8:36
\nOr, I do it through a Certified funds, whatever, or write a check.
\n8:40
\nAnd I move it to another LLC account.
\n8:44
\nThat\u2019s my account on the signer for it. I\u2019m the owner of the company. Or it\u2019s another person\u2019s account. He\u2019s the owner and I\u2019m not either way.
\n8:51
\nIt doesn\u2019t matter, I can move cash or kryptos from my LLC account to another LLC account. That\u2019s not a taxable transaction all the time.
\n9:03
\nI can move the money over there to fund the purchase of another asset.
\n9:08
\nAlright, so we\u2019ll get into some more details on how to do the contracts and this sort of thing. I\u2019m gonna give you some contracts, there\u2019ll be connected, some templates you can work with.
\n9:17
\nAnd of course I\u2019ll help you with it, just let me know, but I want you to see it\u2019s pretty easy to do this stuff.
\n9:24
\nI want to get rid of dispel some myths so you don\u2019t make mistakes.
\n9:29
\nAll right, so, let\u2019s see here.
\n9:35
\nAll right, so we talked about that. Alright, good.
\n9:39
\nSo, this gets it, gets us into, is the issue of how to move profits, right? So, what if that cash, I just used to fund another company was profits.
\n9:46
\nSo what, I just funded another company If I If I put in my personal bank account or I bought myself a house and put the house in my name, OK, that\u2019s profits.
\n9:55
\nLet\u2019s report it on my 10 40, right. I think we all understand that much.
\n10:01
\nSo, if you want to buy a liability like house, car, boat, whatever, or you want to pay off some debt, you want to pay off some personal debt with your windfall from kryptos, you want to go into cash or whatever. It doesn\u2019t matter how you do it.
\n10:13
\nIf you pay off personal debt with any asset, it doesn\u2019t matter if the asset went through an LLC or was in gold, It\u2019s still income. It\u2019s still personal income because it was a personal debt. Even if your Uncle Bob paid it off. It\u2019s still personal income, so, keep that in mind.
\n10:30
\nSo, how would I get around a situation where I want to buy a new house and I got a mortgage on the one? I\u2019m in now? I got a nice way to fall and I\u2019m a multi-millionaire, right?
\n10:38
\nAnd I want to pay off my mortgage for, let\u2019s say, I just wanna buy another house and sell this one.
\n10:43
\nWell, there\u2019s a better way to do it, instead of paying off my mortgage, or having someone else pay it off, is two finance, the payment of the mortgage.
\n10:56
\nSo there\u2019s a couple of ways to do it, a simple ways.
\n11:00
\nInstead of paying off my mortgage with my windfall, I would simply set up a company.
\n11:05
\nFund it with cash now, and use that company to get a payoff statement on my mortgage.
\n11:11
\nAnd I would pay off the mortgage with this, the second company.
\n11:16
\nNow that moment, if I stop there, I\u2019m going to have a tax consequence, right? Like I said, doesn\u2019t matter how you\u2019re going to paid off, it\u2019s a tax consequences for paying off a personal debt.
\n11:26
\nBut if that second company now records a mortgage lien, a real one, it has to be real numbers.
\n11:32
\nAre real interest rate, and there has to be a payment history and all this stuff that I set up, uh, and it has to be for fair market value, whatever works.
\n11:41
\nThen I\u2019ve just refinanced the old mortgage, I didn\u2019t just paid off with a windfall. OK. So I\u2019ve taken my windfall and I refinanced an old debt.
\n11:51
\nThat\u2019s a really clever way of doing it. You can do that for a car. You can do that for credit cards.
\n11:57
\nA lot of you know my opinion on credit cards.
\n12:00
\nI don\u2019t like to pay them off, if they\u2019re old, unless it\u2019s gonna benefit me going forward. Like, if I\u2019m going to get into a business venture and by paying them off, yeah.
\n12:08
\nIf I\u2019m gonna make some money with the debt.
\n12:09
\nYeah, good idea, Just to pay him off, so I can feel better or keep my credit, it\u2019s up to you, and for me, I\u2019m not going to do that. I don\u2019t care.
\n12:19
\nAll right, So we can do real estate vehicles.
\n12:23
\nI can also use my limited liability company to own other valuable properties, like things that are normally title.
\n12:29
\nI wouldn\u2019t try to title gold, unless I\u2019m holding it in a vault.
\n12:34
\nIf I\u2019m holding in a fall, OK, maybe the account holder is going to be my LLC. It doesn\u2019t have to be, but it can be.
\n12:41
\nLet\u2019s say I want to own a registered patent or registered intellectual property, right? Then I could use my limited liability company to do that.
\n12:50
\nLikewise, I could, I could be the owner of the patent.
\n12:52
\nAnd I could then license out to my company, the right, to sublicense out that my patent use, right?
\n12:59
\nAnd the company can then receive the cash flow and disburse it according to, however, I want to do it, but I can own the patent rights.
\n13:07
\nThat\u2019s an example of how to do something.
\n13:09
\nSo, there\u2019s different ways of structuring this.
\n13:12
\nI mean, I\u2019m, we can talk about it personally so that way.
\n13:15
\nYou\u2019re not just watching a video and hope he guessed, right, So we can definitely talk about it. But I want to share with you some of these strategies I\u2019ve used over the years. OK, so yeah, you can title. You can title, I think property that is going to be titled. You can use a limited liability company for that. So if I want to buy some property let\u2019s say again, I want to buy a house. I can title it in an LLC. Just keep in mind about the state where you\u2019re doing this in the state and the county have certain tax benefits to homesteading. Some are better than others. Some are negligible, so won\u2019t matter. Some are so good that like, in Texas, for example, I think Texas is pretty good for homestead exemption, homestead exemption will protect you from creditors. So it may be worth it to do it and make sure you do it right. Make sure you have all the proper forms, and I even consult with a real estate attorney, right, to make sure I do it right.<\/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