How To Appear Broke To Lawyers And Creditors

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In this video, I share three strategies that can help protect your assets and thwart BS lawsuits. The strategies are designed to prevent attorneys, creditors, and snoops from taking your investment, personal residence, or business.
Learn what a creditor can collect against, such as garnishing your bank account, obtaining a prejudgment lien against your property, and foreclosing on your assets. This video explains how to make yourself appear broke so you can hide your assets from creditors and the importance of using strategies that make it difficult for someone to find assets in your name or business.
I break down the strategies for protecting your business by distributing cash out of your entity and into a separate LLC, creating a banking entity to hold cash used in your business, and entering into a line of credit agreement with your existing business to make it appear fully indebted.
“I want to talk about what a creditor can collect against because that is going to play into how we set up structures for you to avoid attorneys, creditors, and snoops from getting into your actual affairs and taking your assets.” 0:27
The important thing to remember is that even though you have assets today, they can be gone tomorrow if you don't take the appropriate steps necessary to appear less affluent.
By following our tips, you can avoid probate and protect your assets from creditors. Learn how to protect your personal residence, business, and investments today
If you have any questions or comments, please feel free to leave them below.
If you enjoyed our content, then be sure to subscribe and share it with your friends!
Show Notes:
0:00 Intro
0:26 What Can They Do?
2:22 #1 Mistake
4:50 Considerations
8:41 Personal Residence Trust
10:04 Protecting Investment Real Estate
13:09 Recap
13:53 Outro
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ABOUT CLINT COONS
Clint Coons, Esq. is one of the founding partners of Anderson Law Group, Clint has grown his legal and tax firm to over 400 employees by assisting real estate investors with creating and implementing solid entity structuring plans. His success in these regards is in large part due to his personal investing experience. A successful attorney, real estate investor, and speaker, Clint has used his innovative and dynamic strategies coupled with knowledge borne from experience to help thousands of people save millions of dollars and build real wealth.
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The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.
#assetprotection #clintcoons

[@ClintCoons]

Schedule a complimentary consultation with our experts today! aba.link/bqy

[@illgx3446]

Can a judge force you to submit your tax returns which would include all the businesses/trusts you owned ? 🤔

[@ClintCoons]

@@illgx3446 Possibly if you are in a debtors exam.

[@masonsmith9619]

Man this would be super useful if I weren’t actually broke 😂

[@seanwilliams3309]

I know right. Same here

[@lpmazariegos1996]

Me watching this with a $5.23 net worth. Oooooof

[@darbyl3872]

​@@lpmazariegos1996 Dude, don't get an overdue library book. You'll have negative net worth. 😅

[@vanesslifeygo]

Do some good things with your status. Go after litigious people. They can't get anything from you. Go after the people no one else wants to go after, and help the faceless that way.

[@kwiztas]

I am so good at pretending I am broke that I am.

[@sidtanec969]

this is such a boss move. something that was an asset becomes a liability to someone else who wants to forcefully take away your business. 🤣

[@robertkreamer7522]

Clint as a retired lawyer your advice has a degree of merit , but you and both know in a deposition you will be asked about any LLC you own or manage . Their are ways more sophisticated than a double llc or trust . More costly yes but useful if the asset base is large enough . A few pointers : rent you house , long term lease for stability Sat 2 to 3 years auto Renew . Lease your vehicles Gold and silver and appraisal art Bermuda captive or any insurance entity that you pay premium to and are a shareholder. I am afraid most courts will pierce the fiction of your second llc . And any state can be ordered by the Feds to cough up your name . So offshore area that has No treaty with US . Lots more to discuss but in general your idea works to stop Nuisance suits . But if the Feds are after you , well that’s a different game 😎. Always pay your taxes and then play with the net . The post tax money is what you shield from spurious lawsuits .

[@MrHowzaa]

The only surefire method I see is to gift your assets to somebody you trust.

[@ClintCoons]

Good comment. Thanks for watching.

[@jasonlmarsh]

@@MrHowzaa Until that person you trust gets sued...

[@indo3052]

Why not just put it all in eth on a hardware wallet?

[@bigjakex]

@@indo3052 why not at least make a bon fire with your money and stay warm for a few minutes, or put it in crypto as suggested and watch it go to zero

[@JoeR203]

I don't have to TRY to appear broke.

[@indo3052]

I was just gonna say that lol

[@vanesslifeygo]

Rob a diamond business

[@LifeUnlocker]

1:40 appear worthless & indebted 2:25 3:45 4:30 UCC one 7:10 8:10 personal residence 8:50 personal residence trust

[@NoSpam1891]

I'm always amazed that people like OJ Simpson don't do this stuff to protect their assets. There was an Australian lawyer who came up with some wonderful stuff to avoid paying taxes which is usually harder to do. I have a copy of one of his many books, "How To Not Pay Taxes"

[@stephenyardon7552]

Thanks!! Clint thanks for sharing this valuable Information. Continue the extraordinary work.

[@ClintCoons]

Thanks, will do!

[@user-kk3kc5zq9r]

Clint once again your dropping solid gold nuggets for free. THANK YOU!!!

[@ClintCoons]

Glad you like them!

[@user-kk3kc5zq9r]

@@ClintCoons I k ow you must already know this,but some are satisfied sitting in the covered wagon and some like us dare to push ahead and scout a safe route for others. See you in a few hours. I signed up.😎

[@clallen2000]

National Enquirer did something similar to this. They had a primary corporation that had loaned money to the National Enquirer at an absurdly high-interest rate. The National Enquirer would borrow money each month to do a print run and then pay their staff and other operating expenses and all the profits flowed back into the primary corporation. The Primary corporation even sued the National Enquirer and anyone who later sued the National Enquirer had to just get in line and wait to be paid. Everything was owned by the primary corporation including the equipment and all the trademarks. If anyone ever did get the National Enquirer they would find out that it was just an empty shell that didn't even own the name The National Enquirer.

[@kairi3177]

Lots of useful information. A lot of the questions I have as a wet behind the ears and still broke (lol) small business person were answered.

[@kandylandfarms9898]

Clint as a insurance agent here in Ohio ,you would need to name the LLC's as "Named Insureds" all and all good info.

[@mikeflair6800]

I believe I am naturally protected, as best I know. 1) Rent My Home. 2) Drive 15 year old cars. 3) As I am retired now, Income is 100% based on IRA, SS, ACA Tax Credits...hard for others to break into those. My assets are good, 90% in the IRA - stocks and bonds. I can only see some exposure in checking / savings (small) and a Vanguard Traditional account (6 figures).

[@ClintCoons]

Nice. I would say it would be very hard from someone to collect against you with the way you have structured your life and assets.

[@mathgasm8484]

I was an auditor for a hotel management company and they have a series LLC setup.

[@user-gw8hm9ve3m]

YES!!! I needed this. Thanks

[@R1M1r1m1]

This man is smart.

[@alb33]

Clint, you're the man! My thanks!

[@ClintCoons]

Any time!

[@georgebrunelle3785]

That was a very enlightening presentation, but it covered only one side of the issue. I would love to see a video from the creditor's point of view -- addressing the countermeasures available to overcome these strategies. As the old saying goes, "Any fool can get a judgment, but it takes a real lawyer to collect on one."

[@Donkeyearsa]

Oh its easy just look at any LLC that the company or owner deals with and run a check if the owner of the LLC that is being sued is owned by the same person. Of coarse that does not mean you can sue the other LLC(s) also you would have to prove in court that the other LLC is involved in some way in the wrong doing that the first LLC is being sued over. Now no matter how many LLCs someone may have that will not protect the owner of the LLCs if they are being sued personally. But to sue an owner of a LLC personally you would have to prove in court that they personally are at fault and not as an employee of the LLC.

[@davidquinn9676]

@@Donkeyearsa He said that with a Wyoming LLC, they could not find out who the owner is because Wyoming does not collect that information. On the other hand, in the house example, if there's a lien from a Wyoming LLC for just about the equity in the house, it's easy to suspect this strategy is at work. And then would a judge force the debtor to divulge this information, given the clues that make it look like the strategy is being used?

[@johnhaller5851]

It means the creditor has to have enough money to pay an attorney to get a claim. They won’t get an attorney to work for a percentage of the claim, such as a personal injury lawyer or a divorce lawyer. Lawsuits are expensive, and lawyers want to be paid. Giving the appearance that they won’t be paid in the 10 minutes a lawyer spends on financial diligence will lead to settling for what the insurance policy will pay. Even a creditor with money is likely to get legal advice that the person has no assets and is judgement-proof. If a creditor does get a large judgement, and is persistent, it will be hard for the creditor to have a normal life as the constantly have to hide how they spend money. Who is paying their mortgage? How did they pay for that car?

[@expletivedeleted]

They never look for anything leading to Wyoming...cuz nobody knows about it, right? lol

[@wessunde2801]

​​@@johnhaller5851 the house is owned by the trust, which owes the bank for the mortgage & the LLC for the line of credit. So they aren't paying a mortgage, they are paying rent to the trust so it can pay the mortgage. Oh, and it's a company car.

[@jmaldo68]

Excellent and thanks.

[@brad6742]

It's worth noting that this anonymity is not absolute, as law enforcement agencies and courts can compel the disclosure of ownership information under certain circumstances. E.g., if the LLC is involved in a legal dispute, a court may order the disclosure of the owners' identities.

[@vanesslifeygo]

An experienced lawyer will ask enough questions to uncover all of this information. Doing all of this forces the other party to do their job, though

[@afmccad]

Great content, thanks for sharing! Any tips for a Canadian to avoid being double taxed when using LLCs?

[@ClintCoons]

Don’t use them. I prefer to use limited partnerships for Canadian’s investing in the US

[@edlauren9434]

thank you! Very helpful video!

[@ClintCoons]

Glad it was helpful!

[@mrgqsmooth73]

Great info!!!

[@huwhitecavebeast1972]

Excellent!

[@sdcleaners7687]

Thank you for all your information

[@ClintCoons]

SD Cleaners Thanks for watching.

[@ClayJitsu]

wow, this is some gold content

[@ClintCoons]

Thanks

[@arikjohnson412]

Great insights! So… if I’ve had you guys setup my WY LLC (the “blocker” holding company I’ve heard you call it) that’s where I should be doing these LOCs to my other entities, right?

[@ClintCoons]

Yes.

[@user-te1nu7pv3m]

Hey Clint, this vid is great. One question: If I have a LLC in Wyoming, and I open a bank acct with that LLC, can creditors see my name associated with the bank? Or can I open the bank acct without "associated persons" on it?

[@ClintCoons]

Creditors can not see your name on the account and you can not open an account with "associated persons on it" (to my knowledge)

[@nicksgarage8295]

this is awesome!!!

[@Frankiep72]

Great Video! I assume that changing title of your personal residence from your name to your living trust, it won't offer asset protection, correct?

[@ClintCoons]

You are correct

[@MartinZanichelli]

Excellent !! I have smashed the "Suscribe" botton that I almost break it!

[@ClintCoons]

Nice.

[@laughinatyou63]

Great info thank you

[@ClintCoons]

Thanks for watching!

[@fudogwhisperer3590]

Do you assist people with international trusts? For example, if you wanted to politically diversify and hold assets, cash flowing managed rental real estate and bank accounts in Mexico, where you have residency. How would that be done? Would there be a multi jurisdictional international master trust of some sort? If so, what kind of firm would set that up?

[@ClintCoons]

Yes we can.

[@affordablevoices]

Okay Clint, I must put the cards on the table, show my hands and let someone else cut the deck. I hate lawyers because I know way to much about them and what they have done to the judicial system. That said, if I had a flat tire on a lonely highway I would not refuse one who assisted me in fixing it and getting on the road. And I would offer to pay him. This information you just gave cut to the quick in navigating the treaturous waters of the Gov. A lot was said in a brief time and illustrated well. The drawing part is actually better and more easily absorbed than a pre arranged chart. The strange thing is the more knowledge one accumulates the more it boils down to basic principals across all documents. The pieces are interchangeable and when done with at least a modicum of skill become nearly unchallengeable. Thank you for your knowledge presented here.

[@ClintCoons]

Affordable Voices Thanks for watching.

[@singmenow4u]

@@pietmondrianstudent6984 Dear piet there is much in what you say as a pendulum swings back and forth. Competent and IN competent are brother and sister in the grand scheme of ALL. I will not Boar you with what you already know. THEY (Attorney IN law and Attorney AT law) both must make a living also. So said, the Creator of This world and all the rest gave us many gifts, besides WHO gives you the authority there is the right to question EVERYTHING. Find the best for your situation and question everything that is WRITTEN on it.

[@has25252]

One very important thing to remember is that any asset protection measures need to be taken BEFORE a lawsuit. Otherwise, it looks like a Fraudulent Transfer and a court can nullify transfers of assets, corp structures, etc. if certain criteria are met. Single-member LLCs are problematic. If you are the only person in the entity it can be considered an alter-ego and can be subject to enforcement of a judgment. All in all, these are reasonable strategies for discouraging nuisance lawsuits since most attorneys and creditors buy a canned asset check through Lexis, CLEAR, IRB, an inexperienced PI, etc. and don't hire a competent asset investigator - who would pick all this apart in an afternoon. That being said, even if it's not "judgment -proof" it does provide a degree of incentive to reach a settlement rather than go to court and unwind it all.

[@BrutusPalmeira]

Time to subscribe...

[@bobbyvee8941]

I learned much more from the "comments" than I did from this presentation!

[@JustinDeRosa]

Follow up video chapters could include impacts of doctrines around fraudulent misrepresentation and division of entities.

[@Younes07770]

Great information as usual. I presume a property deed would not work if the property in question is outside of the USA?

[@ClintCoons]

Not sure

[@flandmore9247]

Robert Kreamer Addressed the flaws I saw coming. Fl land trusts are not recorded and the homestead exemption is unlimited. South Dakota has interesting Legacy trusts with significant protections. In my experience LLCs are recorded in the home state domesticated and any other state as foreign entities. A serious draw back to your strategy is refinancing. Quite a collection of documents at closing and the new lender will wonder why you have a substsntial 2nd mortgage. Also where did the funds come from to settle the 2nd at closing. Then the IRS becomes real interested when the title company files a report with them from settlement docs. You may be considered for money laundering and so it goes....

[@ZAPATTUBE]

That is a great video!

[@ClintCoons]

Thank you!

[@DavidNovaa]

Ok, so do you use the Wyoming llc ein to open a separate bank account. Or how does this actually work ? Because banks require SSN or EIN to open a bank account no matter what

[@ClintCoons]

Yes you must provide your personal info to the bank but this is not available to the public.

[@Donna777]

This is brilliant.

[@ClintCoons]

Thanks

[@waynecmontgomery]

Hey Clint, What do you think about charitable immunity? My wife and I operate a nonprofit in MA, we donated our house to the nonprofit to get the charitable immunity protection as well as the real estate tax exemption. We hold 2 events in the backyard to benefit the charity every year. We use a foreign UK subsidiary as a lien holder against the property and bank accounts. Also, when we sell the property there is NO capital gains due.

[@ClintCoons]

Sounds interesting but outside of my lane. I will look into it though.

[@practicaldeen5333]

Interesting....Mr. Montgomery, what book can I read to learn this process? Thanks.

[@waynecmontgomery]

@@practicaldeen5333 Hello Deen, There is NO book perse I am a former 20-year plus attorney that has worked in the nonprofit and tax-exempt field. I would look into your state law to see if they offer charities in your state charitable immunity if NOT you can incorporate in a state that does and then do a foreign incorporation in your home state. The other thing you want to look at is local tax exemptions for real estate and equipment you can donate and yes you can personal deduction to donating to the charity once you obtain 501(c)(3) status. Again there are NO capital gains once you sell your organization is a nonprofit.

[@newmonengineering]

This sounds great where do I sign?? Seriously I need to hire someone and sort this out. It I could donate to my own charity and save on property tax that would be huge!

[@waynecmontgomery]

@@newmonengineering All you need is a charitable cause that you support once a year. I would recommend researching your state laws for incorporation guidance and your local real estate laws to make sure that tax-exempt organizations can get and receive the Real estate tax exemption. My wife and I incorporated in MA because the state has a charitable immunity cap for nonprofits. I would recommend incorporating in a state with charitable immunity and then doing a foreign incorporation in your home state. charities are very effective tax vehicles even if your NOT getting paid by them. All you need to do is operate one. The work is very minimal and brings a number of benefits. This will also benefit you once the Trump or TCJA tax cuts expire and we go back to normal tax rates.

[@jm7974]

IANAL, but wouldn't they be able to file discovery for bank statements and tax returns which would show all the money coming and going and where to and from?

[@ClintCoons]

Not until they get a judgement against you. Here is the thing - the strategies are meant to discourage lawsuits or the pursuit of judgements.

[@mrvincentpcspes]

Great Video. But the same rule applies. "They'll only sue you if there's money."

[@DMS20231]

If you have a Wyoming LLC that has a lien against your rental property (or domestic LLC), can’t the ownership and exact relationship between the entities (and with YOU) be determined during discovery? It seems like such an arrangement *might* deter a suit in the first place but once filed, would provide little protection. Maybe that’s the point?

[@ClintCoons]

Correct. It must be disclosed during discovery however, this only takes place AFTER the creditor has obtained a judgement against you.

[@allshoulders9624]

Clint, at the end, you have one WY LLC with all the spokes as the owner of the multiple non WY LLC’s. Is that your intention or are you suggesting individual WY LLCs for each asset? I’m seeing one WY LLC with ownership of: banking llc, investment real estate llc, llc/trust personal property. Thanks!

[@allshoulders9624]

Good morning Clint.

[@ClintCoons]

Yes that is the intention. The WY LLC is a holding company that protects your various other LLCs

[@allshoulders9624]

@@ClintCoons Thank you for clarifying. In terms of banking, Would you have: A: WY holding LLC > WY banking LLC > bank account Or B: WY holding LLC > bank account.

[@chuckcarlson7940]

In California, if you deed transfer your house, you lose Prop 13 tax base and your house gets assessed at market rate, which means your property taxes will go up a lot.

[@ClintCoons]

Not if there isn't a change in beneficial ownership. So long as the members of the LLC or beneficiaries of the trust are the same as the grantors on the deed it is non taxable.

[@daleparkes1570]

I understand some states such as Texas and Florida are such that creditors cannot touch your house no matter what.

[@ClintCoons]

Correct but when you sell the proceeds may be able to be attached.

[@mathgasm8484]

I done this like 10 years ago.

[@ppumpkin3282]

In some states if you are being sued don't you have to file a statement of your net assets? I heard this recently in the Murdaugh case in South Caroline where he had to file for the boating accident judgement. So if you need to file with the court don't you have to disclose all these secret LLC's?

[@ericblank9956]

at 0:08 "These strategies are designed to thwart B.S. lawsuits from taking your investments, your personal Residence or your business" at 1:46 the "goal is to make you appear worthless because no one wants to go after somebody that does not have assets" You are correct but the goal is to not get to that point in the lawsuit

[@ClintCoons]

Yes if a judgement is entered against you then you must disclose your assets. As @Eric Blank mentioned, the strategy is to minimize the risk you find yourself in that situation.

[@kolobkolobkolobkolob]

SUPER GOOD QUESTION HERE!!! WHEN PUTTING A HOUSE IN A TRUST AND NOT USING YOIUR OWN NAME WILL MOST INSURANCE COMPANIES STILL CONSENT TO INURING YOUR HOME???? I spoke one one and they stated they would not unless Tue trust was in my own name! So concerned abt Home owners insurance in this regards. Any suggestions or comments that might be helpful in this regards. Thank you very fine and informative video.

[@ClintCoons]

List yourself as an additional insured under the policy. Sometimes you may have to find a different insurer.

[@cvcoco]

Ok fine BUT.....people have to know that timing is a critical factor, maybe more important than a specific strategy. Do these things the night before youre sued, the night before you file bankruptcy papers, its all going to be overturned as fraud. Second, the veil of like a WY LLC can be pierced easily in court when you are asked on the stand "just who is this entity?" In fact, because of how WY operates, doing this becomes its own red flag to a creditor. So as for timing, do the strategies when you absolutely are not under any threat of suits and hopefully years go by before they are tested. Regardless of the strategy, taking steps today and being chased 5-10 years from now make it very tough for anyone to claim you did it to escape debt and allegations of fraud are not going to be an issue. Last, do the strategies as a practical layer of insurance but never as an excuse to be shitty in business. Conduct yourself honestly and correctly always.

[@matthewqtran1318]

Thank you for the video. Good points. Question for liability. Wouldnt creditors/people suing you just go after the LLC instead? How are the assets held by the LLC protected. What's stopping them from doing so?

[@lpmazariegos1996]

The anonymity of it all. By making the LLC in wyoming it is not attached to your name, it would take a lot more digging to find out the actual members of the Wyoming LLC

[@ClintCoons]

The LLC would not be a party to the lawsuit unless the LLC caused the harm. For example, you own stock in Microsoft so if you are sued for not paying a business lease can the lessor sue Microsoft because you are a shareholder? Make sense?

[@matthewqtran1318]

@@ClintCoons My rental property is owned by my LLC. If a delivery person slips on the front steps, they can sue the LLC directly. You're saying that by having a secondary WY based LLC extend a line of credit to the LLC holding the property, it could make it look like it's not capable of paying out any judgement. What is stopping them from suing anyways? Surely they know that the line of credit could be an internal transaction.

[@michaelgeorge4643]

@@matthewqtran1318 That's the whole point. They can't see it's an internal transaction because the WY LLC doesn't bear your name on it. To the person suing, it looks like a random company that lent credit. Now, it's not entirely foolproof as the government can force WY to turn over identities, and more serious lawsuits will uncover this, but for any frivolous lawsuit, this will stop it dead in its tracks

[@ClintCoons]

@@matthewqtran1318 Nothing but it helps convince the other party to take your policy limits and not seek further recovery.

[@philippedros7752]

Hi Clint, what would I state the purpose of the Wyoming "Banking LLC" as and could you give me a few tips on things I should have in my operating agreement?

[@ClintCoons]

If you would like a FREE 30-minute consultation, you can request one here - aba.link/30minSession

[@PrimalNaCl]

Wouldn't any suit lawyer know this and upon seeing WY LLC on anything just understand that there's a good/excellent chance it's just the target obfuscating things? What happens if it's pursued anyway? Can plaintiff ask the court to compel the defendant into full disclosure? Lastly, can this be used for avoiding asset halving in marital dissolutions?

[@ClintCoons]

An attorney would not know you have a WY LLC unless a judgement is entered against you and you are forced to disclose during a debtor exam. This will not help with asset halving in a divorce.

[@BPTtech]

Basically setup a shell account to reduce liability. Sweet!

[@jeanalexandre1105]

How would this work when centralized banking digital currency is introduced

[@ClintCoons]

I don't think it will change anything.

[@amp7816]

Should I remove my personal checking acct money and place into my existing WY Holding LLC account that I have in my real estate structure or should I just start a new WY LLC for this purpose only?

[@ClintCoons]

You need to keep your personal checking account in your own name but you can place your savings account into a WY LLC. I prefer to keep my savings/brokerage WY LLC separate from my real estate holding WY LLC.

[@kriskris5989]

How about repositioning the cash we have in our savings account into a cashvalue life insurance policy like Whole Life or Index Universal Life? Don’t they have asset protection from creditors in most states? Plz let me know..

[@seanmclaughlin7415]

Absolutely you can

[@ClintCoons]

Yes - great strategy

[@kriskris5989]

@@ClintCoons thanks Clint..I hardly see any attorney mention about asset protection for a Cashvalue life insurance policy, without getting into too many details about cashvalue life insurance,if you can cover this topic, it would be very informative for a lot of people.

[@ClintCoons]

@@kriskris5989 I will add it to my list.

[@kriskris5989]

@@ClintCoons thats awesome..thanks,looking forward to it

[@mikezero7422]

If I’m not mistaken, Nike does this same strategy but uses their LLC from another country.

[@AnimalFarm341]

What if you need to show you are making payments to the “loan”? So that it’s an encumbrance on your income? Would the stream of payments to the LLC trigger taxes within the LLC?

[@ClintCoons]

Interest payments to the LLC is income to you and a deduction to the business.

[@cleveland3357]

I am so good at this everyone thinks Im broke

[@albertein3963]

Checked on setting up a Wyoming LLC. You have to be a resident of Wyoming to do it..What is the work-a-round?

[@ClintCoons]

You do not - you only need a registered agent in WY. If you would like a FREE 30-minute consultation, you can request one here - aba.link/30minSession

[@dasfliegendeauge8238]

You can also move a part of your portfolio into BTC transfer into your hardware wallet and never show the private key.

[@berntout3697]

PERTINENT ADVICE!How about usibg a New Mex ico vs Wyoming private LLC? Just asking. I think NM doesn't gather information either?

[@ClintCoons]

Correct NM works but NM does not offer charging order protections as the sole and exclusive remedy so we limit its application in the overall planning.

[@AlanCraft55]

good stuff

[@WilliamDunn1]

But what do you say during the legal process when they ask you to provide details on your assets?

[@ClintCoons]

You only answer after a judgement is entered against you.

[@marileschamberlain5609]

You can open WY llc whenever you live in The United states? Like if Youre in California ?

[@ClintCoons]

yes you can

[@JtotheRizzo]

Regarding protecting your personal residence, would a Land Trust work the same way as a Personal Residence Trust? Is one more beneficial over the other?

[@ClintCoons]

Yes they work the same way but the residence trust is designed to preserve homestead exclusions.

[@thetourminator]

Question: why do you specify a WYOMING based LLC ? And, how would we outside WYOMING open a LLC based there? I would assume we can only open a LLC based in the state(s) that our business does primary work.

[@rightwingsafetysquad9872]

Watch the video. He answers the first question multiple times. As for the second, the United States Postal Service will deliver documents from your house to the Wyoming DoS corporate registrar for a small fee - very convenient.

[@joeglennaz]

Do you have a package for someone with the rental property? I’ve got a rental property that only has about $80,000 mortgage balance it’s worth about 500,000 minimum and I’ve got a primary residence paid off. I don’t have a lot of cash less than $20,000 but I have often worried about a renter trying to sue me for my equity. I’ve been lucky I’ve been renting property for the last 20 years and never had an issue but I know all it takes is one time

[@ClintCoons]

Joe Glenn Thanks. If you would like to learn more you can register for one of our upcoming Livestream 1-day Tax and Asset Protection Classes for Real Estate Investors. Here is the link: aba.link/KZbinAP.

[@cexcaffeineaddict]

yes!

[@mr.c.3926]

Don't I need a security agreement between the two LLC's? Also, who does the security agreement get filed with?

[@ClintCoons]

The state where the debtor LLC is registered.

[@livingvertikalradio]

Clint what about this new Digital Systems banks are going to do we need to worry about that?

[@ClintCoons]

I am not up on this. Could you direct me to some information on the topic?

[@AmarAmte6644]

is filing UCC1 or DoT a taxable event in any state?

[@ClintCoons]

It is in Florida

[@New-bw4kz]

Interesting but complicated

[@tigreytigrey8537]

You said in a previous video that you NEVER want to put the Wyoming or Delaware LLC in your name and to put it in a trusy name because it defeats the purpose and they can simply perform a search to see who the managing member or registered agent of the LLC is? Now you're saying to self manage the LLC? Are you "conveniently forgetting" that rule for the sake of the strategy? Or is there something we are missing?

[@Jussomerando677]

He never said to self manage. He said that you can set up the WY LLC as member managed or manager managed. Neither option breaks anonymity, WY doesn’t record who the members are but it does record the name and address of who created it. Don’t let it be you.

[@ClintCoons]

Kevin provided the answer. Well put sir.

[@tigreytigrey8537]

@@Jussomerando677 ahhh ok. Makes sense!!! Thanks!

[@jjac108]

@@Jussomerando677 well said!

[@frankmartinez2987]

@@ClintCoons I learn so MUCH from your videos and the comments. Thank you for all of this!

[@JtotheRizzo]

I presume you are recommending us to form a WY LLC (disregarded entity), file for an EIN and open a new bank account under the WY LLC name. Then transfer all our personal funds from our personal checking/savings accounts to the WY LLC bank account. Is that accurate?

[@ClintCoons]

Partly. Only transfer your investments not your personal checking account. You must keep your personal checking account in your name or a Privacy Banking Trust.

[@speeddaemon6557]

If lawyers are searching you for owned assets, do they not also search ownership history? It seems to me that any competent lawyer would notice two properties owned by me were both transferred/sold to LLCs whose only member is the same WY LLC at about the same time, and immediately assume that I control those LLCs, and also that if I'm playing that game, I almost certainly have enough assets to be a worthwhile target.

[@ClintCoons]

Great point. You are always in the chain of title on searchable assets i.e., real estate. One can assume the LLC owning the property is in fact your LLC but they have no way to verify this if the LLC is set up with anonymity. Remember this is just a smoke screen and the real protection in your example comes from having your real estate held by separate LLCs.

[@creativeconciousness5492]

Do you have to use a Wyoming address to start the LLC, they'll need a driver's license to open an account.

[@ClintCoons]

No use your personal address.

[@freddyrosenberg9288]

If all the accounts link back to the same or several WY LLC isn't that a giveaway that you are "structuring" your finances to make it look like you own nothing? How hard would it be for a good PI to find out about the WY LLC and who owns it?

[@ClintCoons]

This information is not publicly available so a creditor would not be able to search it.

[@Donkeyearsa]

There is one big assed problem with this and that is the really high tax rate for LLCs verses personal income tax rates. If you make millions in profit after deductions yeah this is totally worth it as you will be paying a lot in taxes anyways. But if you make like $100k a year in profits after business expenses you will be paying a but load more money in taxes. There is no standard deductions or progressive tax rates for LLCs you pay the same tax rate if you make one dollar or a billion dollars in profit, and that tax rate is not low in any stretch of the imagination. Oh and states that have low to no personal income tax may have a high income tax rate for LLCs. Before creating a LLC talk with a lawyer and tax professional if its even worth it to create a LLC. The only reason to create a LLC in the first place is if there is a decent chance of being sued over something in the operation of the business. Now if you need a LLC to protect your self from lawsuits there is really no difference if you have one LLC or a couple LLCs as you will pay the same in income taxes. Now a LLC will not protect you personally from lawsuits. If someone sues you as Mr Joe Public and not your LLC they can still collect anything you collect from that LLC as a dividend or as a wage. Don't go out and create a LLC just because someone on a youtube channel or anywhere else for that matter says you should create one as they don't know your personal situation, talk with a lawyer and a tax professional if its right for your specific situation.

[@crystalsalton]

Would'nt a banking llc be the same as a holding company?

[@ClintCoons]

It depends. I have a separate banking LLC but some use the same entity.

[@tremerefury]

So if you record a loan to yourself, can you report said loan in good standing to also increase your own credit?

[@ClintCoons]

Not sure

[@benpracht2655]

Do these work for NC residents? Are you licensed in NC?

[@ClintCoons]

Yes this strategy works in NC. We have extensive investments in NC.

[@simplereef4854]

Hi Clint, I have a few properties under my name that I am planning to rent out. How could I get in contact with your firm to set up that protection strategy? Also, the properties are already under my name, so how can I move these properties into Wyoming LLC without actually selling them?

[@ClintCoons]

If you would like a FREE 30-minute consultation, you can request one here - aba.link/30minSession

[@-JonnyBoy-]

You would have to transfer them to the LLC. If they are taxed as a normal residence that would likely change when it goes into an LLC and you will likely have the properties put in a higher tax class as it becomes evident that the properties are been rented.

[@victorial.4345]

If we registered a WY Llc , do we need file tax return to WY state ?

[@ClintCoons]

No

[@brandyruiz6319]

What are the tax implications? Interest being paid from one entity to another?

[@ClintCoons]

Deduction in one pocket and taxable to the other - I.e., Wash.

[@positivevibes7131]

Does this new law requiring disclosure of these LLC entities effect this strategy?

[@ClintCoons]

Yes you must disclose to FINCEN

[@Viviko]

Interesting.

[@TheJagjr4450]

I am the trustee of the entity holding the mortgage on my brother's properties and he on mine... both of us are in default and upside down to one another as for some reason the lenders keeps advancing funds to the other.

[@danas.8977]

Interesting. How so, what do you mean lender is advancing funds?

[@timothyweers8054]

First of all, if you create an LLC, in order to use it, you need a taxpayer ID, in order to get a taxpayer ID you need to supply, depending how many owns or will own it, a Social Security number. If you open an account in a bank as an LLC, you still have that taxpayer ID which can be linked to your and possibly others Social Security number, so in affect your assets and the partner's assets can get frozen until the lien is satisfied. So basically you just created a more complicated situation.

[@ClintCoons]

If a judgement is entered against you personally it will not attach to the LLCs assets I.e., bank account. A creditor could move for a charging order but that would only affect distributions from your LLC and not the bank account.

[@ObscureManifesto]

I've seen this strategy used and it was easily pierced through because it was a single-member LLC. They used the alter ego doctrine.

[@georgescott6049]

Irrevocable trust would be better

[@JohnSmith-sr2kb]

Simply put, put everything you own in a trust to where you dont own anything anymore. Then You Controle Everything. If the Court or another Entity comes to lean against TRUST property, you as the Executor of the Trust are not leined against and they cannot controle your assets because you dont own them the TRUST does. You dont need to own you just need to controle the assets. Then Demand of the opposing party or the Judge to prepare a 1099 IOD used as a foia for finances to see the boinding information of the the opposing party, or judge himself.

[@pamholloway8924]

How is this impacted in light of the FINCEN? Will that then give creditors the ability to get around your privacy?

[@ClintCoons]

It is not impacted.

[@sofbebe1]

If the registered agent is your nominee officer in NV do they have to reveal true ownership of your corporation if they were served in a lawsuit or subpoenas when an indemnity agreement was signed?

[@ClintCoons]

Yes they do.

[@mondavou9408]

@@ClintCoons If the registered agent is your nominee officer is in WY do they have to reveal true ownership of your corporation if they were served in a lawsuit or subpoenas when an indemnity agreement was signed?

[@ClintCoons]

@@mondavou9408 If a person is subpoenaed they would be required to disclose any information pertaining to the request. The indemnity agreement has no bearing.

[@mondavou9408]

@@ClintCoons Thank you.

[@davedriscoll6324]

@@ClintCoons Does this mean any potential creditor could get your ID / info just by starting a lawsuit even if they don't plan to win (that case)?

[@MartinDezion]

looks like a good way to manage assets, EXCEPT it seems like the WY LLC will at least need the name of a Registered Agent, so there is the problem, the bread crumb that leads back to the key person of all these LLC's and Asset entities.

[@ClintCoons]

Correct and that is why you never serve as your own RA.

[@alb12345672]

What about umbrella insurance?

[@ClintCoons]

I have a video coming out on that.