How The Rich Use LLCs To Hide Their Assets And Avoid Taxes

[@markopolo897]

This is rather interesting. I have a Individual Banker EIN. It is a private bank. Then i have a irrevocable foreign grantor trust. "98ein" i am trustee, then i have estate EIN as executor. I use 1041 forms with 56form fiduciary. Then iset up llc. The trust holds assests, the estate settles debts using tax forms or other negotiable instruments and the llc is my public employee or my front guy. So im set upa little different and treesked it up. This is my first time on this channel and your info was educational and deserves a subscribe

[@eaglepride211]

I've been trying to do this but I can't get to n find anyone that wants to open a forgien business trust account but Wells Fargo

[@popeantichrist8847]

@@RobertBrown876 hOW SO?

[@BeyondTheBoundsOutdoors]

This is why there are haves and have nots. Those who do the work reap what they sow. This one video is worth a ton.

[@KJInvesting]

I totally agree

[@JoaóMiranda-k6b]

I wasn't financial free until my 40’s and I’m still in my 40’s, bought my third house already, earn on a monthly through passive income, and got 4 out of 5 goals, just hope it encourages someone's that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made.

[@BeeKaye]

This is the second video of yours that I watched. I subscribed because of your enthusiasm and because I’m learning A LOT! I’m not a small business owner, but there’s no reason not to learn about taxes and how they affect us. Thanks so much for sharing your knowledge!

[@thebryantedwards6220]

I live in Virginia and followed this strategy and now I have to pay twice the tax. If you pass through from llc 1 to llc 2/s-corp the state considers them separate entities and the llc gets taxed and then pushed through the s-corp and taxed again

[@ejayanderson9584]

I think you are supposed to convert the LLC1 into LLC1-SCorp not open a whole new LLC2 on that operational side. LLC2 would be on the separate holding side of the equation.

[@jeremiahwilliams2090]

lol 😂… Yeah he missed the point! Bottom line is.. the video was meant to intrigue people to contact the person running the channel and pay for his services to help accomplish these things and avoid such mistakes! But some people are very slow Learners!!😂😬🤷🏽‍♂️🤦‍♀️💩

[@jeremiahwilliams2090]

I completely understand everything discussed here in this video and have a pretty good understanding about such topics. However, the only part I’m not understanding is.. Why would I want to put my HSA in an LLC or even my Roth IRA in an LLC if you don’t take from the Roth until retirement the idea is that your already on a lot lower tax bracket and the HSA just really leaves me scratching my head! 😂🤷🏽‍♂️..ate you saying to do that just incase someone sues you and you need to protect your Roth IRA and HSA accounts from them!? And even if you are say that… the problem is an HSA is not enough to consider for a law suite, plus I’m not sure it’s legally allowed to be considered as an asset in a law suite, right!? It’s a very limited amount that you can contribute from your paycheque throughout the year (before tax dollars) to use on qualified medical expenses only… and honestly unless you just have a ridiculous high income with little to no other ways to lower your taxes it’s really a dog shit deal/idea I don’t even like using an HSA! 😂🤷🏽‍♂️…

[@MagnumSteele]

Each LLC has a minimum tax / fee $1,000 - $1,500 per year to the Franchise Tax Board. Wealthy use irrevocable trusts, not llc's. Ten LLC's would cost thousands per year in minimum taxes and fees.

[@ejayanderson9584]

Interesting. You live in CA right? Here in VA the annual fee is $50. So quite a difference. Therefore, where you are incorporating could be a determining factor as to whether it's worth it or not.

[@RC-eb5hq]

When I lived in Cal, most businesses there incorporated, etc. In Nevada because of liberal incorp laws and low rates.

[@livingstone1974]

the IRS is targeting Trusts for tax invasion even more today than ever. Just passed a new law going after tax evaders

[@bdmonist]

When you have one asset, LLC, owning another asset, LLC, don’t you lose some asset protection by structuring it that way?

[@attilakondrath8512]

This has been by far one of the best educational videos I’ve seen on KZbin in a very long time!

[@TumaMa009]

@markjkohler so, this may be total blasphemy and would love to be corrected but it would appear that the Trifecta has a major design flaw when it comes to privacy. If my estate (RLT) owns the LLCs directly, especially the ones that have risky assets like rental properties, then in the event of a lawsuit my info (I would be the trustee and I hear that would be in the deed of the property) will be part of the public record as to who owns that LLC. That then would lead the potential plaintiff to pursue me personally (a RLT has zero asset protection as it is all about bypassing probate). Why not instead have a WY holding company own the local LLCs that operate or hold property, and then that WY HC is in the RLT? That way, in the event of a potential frivolous lawsuit, when someone looks at the public record as to who owns the LLC that owns the rental property, they will not see my name but will see it is a WY LLC and that, on its own, may deter from even suing since that state will not reveal who owns that WY HC LLC. Kind of making oneself less attractive when an ambulance chasing lawyer is assessing if suing you is even worth it.

[@kevkev7164]

I'm new to this... WY = Wyoming; HC - Holding Company? Just trying to understand what you are communicating. thx.

[@TumaMa009]

Correct

[@ScottJLetourneau]

Good points. Keep in mind that you first want rock-solid asset protection. In the 90s, I learned from Dr. Arnold Goldstein, an asset protection attorney from Florida, that you should assume you have to turn over your entire plan to the judge and see if you have any protection. Privacy is like icing on the cake; that comes second. There is a blended point of view. Both of you have good points. I have seen several advanced seminars that use multiple land trusts, owned by LLCs, owned by other trusts, in multiple jurisdictions... It all starts with the basics of moving real estate out of your own name personally (all in my opinion and not legal advice).

[@DevineDestinysTarot11]

First of all, thanks for all the valuable information. I know I'm going to have to watch this again. Lots of information. I've been looking for the right way to set up a Trust and LLC that's going to more so protect my assets and me as well. I've heard of the S-Corp however I didn't completely understand how all this works. Can you just start off with an S-Corp if you receive a large sum of money and put the LLC in a RLT to cut back taxes?

[@nihilgeist666]

Ceteris Paribus. Just because you convert to an LLC doesn't mean you're going to become a billionaire overnight. LLCs have just as many problem as non-LLCs... it's a different set of problems...

[@davidlee50]

My CPA told me of a person in my Mother's trust taking money and he turns out to be an Assistant DA. Him and his uncle have been stealing for 30 years.

[@thisotheroneguy6]

This sounds like what happened to my family.

[@MyfaceurASSistance]

Outcome?

[@NaveDelAmor]

😮😮😮😮

[@MyfaceurASSistance]

Never happened

[@JimmyLeeJr]

I've heard about this who actually robbed everyone's retirement money. His name was federal reserve. I can't believe he keeps getting away with it.

[@andyhawaii2819]

Good stuff. Talk about the reasonable income and how to qualify for a mortgage.

[@DelcoBasso]

Well explained. Thanks for bringing up the videos financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject.

[@MJonBenj]

This is so interesting. I'm amazed that this wealth of info is free via this video. I'm dirt poor and my main skillset is art, so I doubt I'll ever be able to effectively actualize in this way, but it is certainly interesting and Mark seems great. I'm envious, but with respect!

[@Liz-ic6jb]

That's too bad you've decided you will always be dirt poor.

[@bethvandereems8021]

Thank you. No one has ever explained this so succinctly. I appreciate your knowledge and delivery.

[@ccornell7337]

If you pay less self-employment tax doesn't that mean you'll get less social security benefits too?

[@bby-nk5wr]

I have heard from many professionals that a single-member LLC has a much higher chance of being audited than a multi-member LLC. Does anyone know if that is true?

[@Volpe2025]

Before I watch the entire video, could you please confirm if this all applies the same way to Canadians?

[@RobertTaylor-eg5kq]

I have watched many of your videos regarding asset protection using LLCs and a RLT. I think there may be a downside to placing multiple stock investments in an LLC owned by the RLT of the joint spouses upon the first death. I believe the step-up in basis will be on the LLC basis - not the individual stock basis. This situation would cause subsequent gain on sale of an individual stock to be calculated on the "internal" cost (not the stepped-up cost basis) of the stock. The K-1 would show the taxable gain without any regard to the step up. The step-up upon the first death would only affect the sale or dissolution of the LLC. Do I understand this correctly?

[@johnnycasteel7]

It’s not hiding and it’s not avoiding taxes, it’s incentives to stimulate the economy.

[@breonmitchell2443]

This should be crime how rich stay rich

[@johnnycasteel7]

@@breonmitchell2443 why? Because you’re too lazy to read up on it?

[@JackVitick]

@@johnnycasteel7 I dont think he's necessarrly lazy, but not circulating money back into the economy is when it becomes a problem, which is what most people do...

[@clemclemson9259]

@@JackVitick what's wrong with that? the govt pisses it away by the billions. circulating back into the economy is not our responsibility

[@JimmyLeeJr]

​@@johnnycasteel7 I've been doing some reading up on this, and I really learned a lot when I started asking who owned the slave ships.

[@l0I0I0I0]

What if I just want to keep my physical address private to open a bank account for now? Opening a farm next year.

[@CryptoVibesHub]

seeing it visually is SO helpful. thank you sir

[@a1isrising]

this is not an investemnt and or crypro channel and you have 95% of comments scammers scamming utube should do more.about this instead of blocking freespeach about comments they dont like

[@jmm1817]

Perfectly said

[@robert549]

Wrong. People involved in this channel are involved in crypto, and id you read the description you will see.

[@a1isrising]

@@robert549 they talk about asset protection and taxes its not a crypto channel or what to invest in channel is my point, they dont talk about tradding or what to buy , so i was saying dont listen to the comments about what to buy and or invest in , see you are just looking to be contrarian to what ever it is so to have an arguememt but if you would have read what i wrote it clearly says utube should do more about scammers scamming instead of blocking those who just have opinions that the algo flags

[@kiddcosmos]

When the new tax laws are in place can we use them in 2024 or have to wait for 2025? Such as buying equipment and getting the bonus depreciation? This question written after his election.

[@Takkaho]

thank you, lots of clear information explained with examples in such a short video.

[@ajmedina78]

What if you have a 6 figure w2 and a side hustle making over 50K? Does the s corp still make sense?

[@GemmaWeirs]

Fab, but what about the Brits / the UK-based super wealthy? I'd like to see a video like this for us entrepreneurs and investors in the UK.

[@normbograham]

There are tax rules, and tax laws, and some people have been either lucky, at increasing their wealth. If you could put money into a 401k, then you can avoid taxes until you cash out. This is where a few, have hit gross wealth, as unrealized capital gains are not taxed until they are realized. Also, a grossly successful guy, bought a company that was losing money, and turned it around. When he sold, he sold it for $120-$132 million (depending on future sales), note, he sold it 25 years later. But, he also used the success, to buy a business for his son, and his son owned and ran a successful 1950's style restaurant, in a busy location. But, that guy, realized his gain, over two years, and was grossly taxed for those two years. But, as an owner, he was also able to move to a state, that did not tax personal income, by buying a house there. So, he was able to pay less in taxes, for the 25 years of equity, that he cashed out in two years.

[@TomBTerrific]

Wondering how this applies to assets in foreign countries?

[@flaron352]

Why would the tax return be 1040 as it should be a 1041 being a trust. Exposing it in a 1040 exposes assets. A foreign grantor trust would eliminate taxes.

[@shenlaw]

RLT is a grantor trust. Usually no 1041 needed.

[@TheRealLifeSonicTheHedgehog]

Is that not cheating?

[@davidm.howard9992]

@@shenlawthe LLC’s would each be filing their own 1041.

[@DuceTreyPoker]

What type of LLC can I start to use for day trading? I currently live in Michigan and I'm using prop firms, which are companies that fund traders with an account to trade with specific rules and earn payouts I believe it counts as ordinary income but I'm wondering if I can start an LLC for this purpose to save on taxes. Appreciate your help!

[@bryanp8010]

I’m in about 28 minutes here- so your flow chart is showing your s corp putting $ into your investment LLC for Roth, 401…. Is that the case? Your s corp can invest the $ into your investment LLC? I didn’t think that was allowed. It looks like one company paying another and getting nothing in return. Can you explain this some?

[@ddddame1]

Amazing content

[@mekbeb]

Insightful. I have just ordered your book.

[@NoTreadingOnMe]

So the sole owner of all the Entities in the Trifecta is the Trust, and generally you as an individual are the sole Trustee?

[@williamcox3709]

A bunch of people tried using LLCs during covid when they got their money now the IRS is after all of them😂😂😂

[@BobsterAction]

if my grandma had wheels she would have been a bike... so what does that have to do with this video?

[@habibifather7681]

No they didn't. That's why they got busted. They bought a bunch of expensive stuff.

[@ccornell7337]

Probably because they weren't even real businesses, so they were just defrauding the govt.

[@jeanalice4732]

They WHO? And WHAT money for what?

[@47Moonflower]

@@BobsterAction funniest reference ever 😂😂

[@dailyrant4068]

If you are already grossing over the FICA limit on your regular W2, does S-corp still save you for side hustle income? I'm thinking no since you won't save the 7%-ish (Employers always pay the FICA share anyway?).

[@sue299]

Thank you for explaining and this displays your integrity. If people dont sign up and go with someone else they need thsir head read..

[@carols8482]

Can you have your stock trading under a s corp to save tax payments from stock gain?

[@robyee3325]

wouldnt you have the holding company own the operational company, and the trust own the holding the company?

[@Ovalrapture]

What do you think of Ron LeGrand's entity structuring for building & protecting wealth and minimizing taxes?

[@wtpwtp]

Why not just start off with an operations S-Corp LLC (#3) rather than starting off with #2 operations LLC & then converting it to type #3?

[@jrank3288]

Thank you so much for the video... And I don't think it's a get rich slow scheme and is a get wealthy incrementally plan

[@NGF-Life]

@11:43, you mentioned a property management Operation LLC in California. Let's say you have Florida and Tennessee holding LLC to take title of investment properties. Can you use the CA LLC to be the manager for FL and TN investment properties? Can CA LLC receive rent, sign leases and etc?

[@notmyrealname977]

Cant your ownership of llcs be seized in judgements ?

[@peterg7302]

Don't you run into UBIT tax for businesses in a retirement plan like an IRA LLC?

[@danmurad8080]

Shouldn't every rental house be part of two LLC's? One to hold, one to rent. Mark you never explicitly mentioned this for folks. You need an LLC to manage the properties. Two is enough for a few rentals. Once you grow, start S-corp but don't do W2. Have a regular W2 job

[@bryanburtonnyc]

On the #2 operational side, I don't understand why you wouldn't just start as an S-Corp?.... Starting as an LLC (unless you have multiple employees) over just starting as an S-Corp - regardless of your revenue - never made any sense to me.

[@danmurad8080]

Tax efficiencies differences. S makes sense , cost wise , to start with LLC first. Rarely businesses are profitable first year.

[@oldskoolfunk71]

Great video thank you sir

[@ElektroKinetik]

too many llcs end up costing a lot of money for example in calif its 700 yearly...so it's ongoing expense

[@JMooney-e6k]

What happened to the w2's mentioned in the beginning

[@JamesonSharp]

Mark! I am a Complete Tax, Finance, Tax Law Geek and NERD!! Love your content Man. - I am going to write a Article about you on my High Finance Blog. Will be intouch. 👍

[@thegamerboneless2864]

I do t wanna sound ignorant, I have been in those shoes, but if you can’t afford to have you entities done correctly professionally then you probably don’t need any of these. Good luck folks

[@robert549]

If you cannot afford it then this isn't for you. Learn how to make money first.

[@BrigetteWaltershield]

One of the most brillian investing advice i have ever gotten on youtube came from watching an interview with Julianne Iwersen Niemann. Indeed, A solid investment strategy is like a well-planted tree-it can withstand storms and still grow strong

[@Guillermina-w8d]

That's great advice! Julianne Iwersen Niemann's perspective on investments as a long-term growth strategy, much like a well-planted tree, is a solid analogy. A good investment strategy should be resilient enough to endure market fluctuations while still growing over time. It's essential to have a strong plan that balances risk and reward, much like cultivating a tree that thrives even in tough conditions. Working with a seasoned expert like Julianne can help ensure your financial decisions lead to sustainable growth.

[@Wlad-v2w]

⁠ her name is 'JULIANNE IWERSEN NIEMANN'. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.

[@JIN-u6t3t]

The thing is people often doubt the prospects of financial advisors like Julianne Iwersen Niemann in business/markets today.

[@JIN-u6t3t]

Well it gives me more time to get ahead while they stew in their own pity and doubts as they childishly complain about those spreading the word

[@user-fp7nz9rp1g]

Can I put my primary residence under an llc to protect it from personal liabilities?

[@wendyzhang9633]

Set up an Wyoming LLC as an holding company and transfer your residence to an land trust, then use Wyoming LLC as trustee

[@deepikapeters1582]

I LOVED this video! So easy to understand the different types of LLC. I’m an importer of stone and building materials, I’m now working off of one LLC but now I’m working on creating these different types. I was so confused and my tax advisors were confusing me even more but this video set me straight. Thank you!

[@AGhi-t2s]

Thank you for your videos on the Trifecta structure. I am looking for a way to deed my house mortgage debt into any pass-through entity constituted for the purpose of paying off the mortgage and generating some passive income, that I may not distribute to myself for some years, while fully reinvesting into the entity. Would the Trifecta help? Any advice?

[@Halfflip]

Question, if I have a ca. retirement from state and planning on investing in some rentals, do I open a llc to protect my state retirement from taxes? Rental?

[@robrushing2345]

You didn’t mention trustee or custodian that dictates what you are able to invest in with your ROTH IRA.

[@martinmontes6170]

very cool. one thingI didn't follow you. can my income for the llc ops be a W2? if yes that means I can do the s-corp and report that instead of w2 to IRS? thanks in advance for your clarification :)

[@ccornell7337]

no, it has to be 1099 / business / passive income. The company you work for reports your W-2 income to the IRS,. If you don't put it on your indiv tax return, you'll be getting a bill.

[@BeautifulEmpress333]

Don't you have to have a certain amount of revenue coming in to qualify for an S~Corp?

[@ZitroGeek]

Regarding the s corp distributions. Mark seems to be dismissive about paying a low salary and above and beyond that salary in distributions. The reality is that while he may have never had an issue with the IRS, the problem with his advice is not whether the IRS WILL question the salary, the problem is that they CAN question it. Once the IRS is looking at your stuff, they will keep digging. Not something most people want. My advice, do a reasonable compensation study and use that as your basis. Don't do things that can raise flags.

[@longwoodcurrencytrading]

First, thanks Mark for all of your great content. You've provided a map and I'm following along that path. Unrelated question: what digital drawing product do you use in these videos?

[@jun_buggy]

Microsoft Whiteboard

[@parranoya100]

LLC's and trusts have insane maintenance fees thus the title of his video, "How the RICH Use LLc's...

[@-Iam-1.]

Insane ? 😂 dude is nothing

[@parranoya100]

@@-Iam-1. The annual fee for a trust with $200k would be about $2000 a year.

[@6equj547]

If you have $200,000, $2,000 is affordable and if you don't have $200,000 in the account then you don't have to worry about paying $2,000. LLC maintenance fees are $500 a year... Anyone with a job should be able to pay $500 a year and if you're a veteran, you don't have to pay for your LLC for five years

[@marlenekaplan7695]

$200000 is a drop in a glass of water, just a Lowe income apartment will cost you 200k and you only can rent it for $1800 a month

[@jamesw796]

It costs $800 for each LLC /year in CA . He's not working reality for us.

[@mrmike115]

So you dont have yo file taxes on the other 2 llcs just the 3rd one or just the one you drw incom from and the 3rd one?

[@dfox9914]

Question- what does LLC 2 offer that an S Corp does not? In other words why not just have the S Corp?

[@hhygdfg]

Do all of these llc have different names? Is it possible to have 1 llc and file DBA under the one for the same outcome?

[@lettruthprevail9820]

I used the company to create an llc for a rental on AZ. It was filed as a partnership instead of husband and wife which has made my taxes much more complex then it would have it it had been a husband and wife LLC.

[@Rahayammakon]

Hey and thanks for the video, My question is if i have a duplex rental property that i live in one side and the other side is rented. I cannot put it under the llc as the house is homestead and by laws you can't have both the homestead and llc together. I'd appreciate recommendations

[@dcat3510]

Mark Kholer for president!

[@marcoglara2012]

An LLC is not worth doing unless you have a large business. Otherwise, it’s way more work than it’s worth

[@shredderdad6995]

I am so glad I found this channel. Thanks for all the information in just one video. It’s just what I need it. Success here I come! 💯

[@StarbShining]

I’m glad I found this❤I just started an LLC in 2023 with no help besides these companies like yelp and Angi who kinda put me in the hole.Having gotta business like I expected and still figuring out about this business journey. I’m also a notary which I want to become a loan signer officer and i recently completed my pre licensing course I want to do commercial and invest in properties but don’t have the right tools or people to help me succeed.I’m just trying to become wealthy and leave generational wealth for my children!!! How can I get more information about your company?

[@AndBusinessIsGood]

Don’t do this, you’ll only be over complicating your life and you’ll have to pay a bunch of fees.

[@davidlepold]

And ur suggestion?

[@AndBusinessIsGood]

@ don’t do this bruh

[@LLCmistakes]

Another banger.

[@Matt-y1p]

Thank you thank you thank you for your wisdom video is very good and your knowledge was very good

[@pmaiki6gee]

Hi Mark, I’d like to do what you are suggesting like in this video. Is there a number I can call and talk with you on setting this up?

[@YoRelG622]

I,m interested in converting to a S-Corp. How do I reach your firm for support?

[@Dekka915]

Isn't this void considering Beneficial ownership reporting?

[@pMetis]

At what point is something like this worth the effort thought?

[@AbdullahAlshehmani]

Hello Mr Kohler I guess my question is Even though it might be difficult to answer Or perhaps not Let’s say I setup an LLC And I have many side hustles Landscaping, janitorial work , Facebook furniture reselling Etc… Keep in mind the LLC has an ambiguous name and could attach Many DBA underneath Can I umbrella many of these side business under the same LLC ?

[@Pcoxproductions]

Where is your charitable remainder trust in your trifecta? The assets side?

[@sherrygorman9083]

THANK YOUUU MARK!!! YOU ARE AMAZING!!!!👏🏼❤️🤗

[@moneysignclubboss]

HOW DOES THE OWNER OF LVMH HOLDING COMPANY DO IT 🙋‍♂️🙋‍♂️🙋‍♂️

[@c3r0]

Video explainer on ROTH IRA - Crypto Mining so we can prepare for 2025 bull run ser, thanks

[@lara.hadjokas]

📣Smart people use the same tax system we all use, just better. I’m learning a lot! Also just learned about whole term life insurance being used as your own personal bank, and, the more years you have it the better off you are. Wish I learned about this years ago. Better late than never 🤩

[@saintbees2088]

What's a "registered CPA and attorney"?

[@makodaniel4885]

Yeah, try it and see how fast the irs comes breaking your door down. Its a big club, and you are not in it.

[@danimryolo9294]

Does a RVL use a ein or a itin ?

[@Philsbeacon]

This is informative really

[@mijoy1431]

Wow this was amazing information

[@amritraisingh]

How about if you have partner do you need two business account?

[@scottmcclain2918]

How does this apply to earned(W2) income? Is there a way to pass it thru and LLC scorp. Also what can you do with money mad trading in a taxable account?

[@Flawless_technique]

These video are great 👍

[@ThrowBackZone]

But isn't setting up all these LLCs just a way for the rich to avoid paying their fair share of taxes? 🤔 It seems like regular people are left to foot the bill.

[@OFFICEoftheMAN]

Can I do this from the UK? Mark

[@mandfmarine]

What’s k-1’s taxed at

[@jun_buggy]

A schedule K-1 itself is not taxed. Instead, it reports your share of income, losses, credits, deductions, and other distributions from a partnership, s-corporation, estate, or trust.