They're LYING To You... Stop Setting Up LLC's

[@ryanwilliams989]

Nice content! Few years back I was assistant to a wealthy pen artist and within the short period I worked with him I observed that he had quite a chunk of investment everywhere, stocks, crypto, dividend investing to name a few, so he had revenues coming in from all angles. And in a year his worth doubled. With this I learned that the rich stay rich by investing.

[@StellaMaris-lv2uq]

Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.

[@maryHenokNft]

I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.

[@maggysterling33254]

@@maryHenokNftI actually subscribed for a few training courses but it didn't help much, been getting suggestions to use a proper financial advisor, how did you go about touching base with your coach?

[@maryHenokNft]

*Gertrude Margaret Quinto* is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@BiancaSherly-qt6sb]

My needs are kind of unique and complex. I'll contact her nonetheless, and I hope I'm able to make something out of it.

[@panama2468]

I love when experts come on here and try to tell laypeople what to do or not to do. "Dont open an LLC, your social security is fine", or "dont open an LLC, use an S or C corp", despite Corps being much more complex to manage. The fact remains that any sort of legal shield is better than none. Telling people that LLCs dont go far enough or that LLCs are basically worthless, are incorrect, and are just ploys to try and make themselves appear smarter on social media than they really are. The average person cannot manage an S corp or Trust. Using your SSN is a dangerous game to play online. LLCs are the perfect go-between bc they do provide that security and liability shield without being overly complex.

[@rvhiii76]

I don't think this guy watched this video.

[@beavinator420]

It costs $ to maintain each LLC so it's probably not worth it unless you're doing good in business

[@degreaseLLC]

Based on my experience in the business world you are correct. Most people do not have the discipline to run an S-Corp. Stick with your LLC until you have a lawyer and an accountant to ensure you're doing things correctly.

[@panama2468]

@beavinator420 if you are a single owner of each LLC, it also goes on your personal tax return. Besides separate banking accounts and perhaps accounting services to figure out expenses, there are no separate returns like there are with S corps and Trusts

[@panama2468]

@degreaseLLC exactly right. Bc LLCs are hardly difficult, I always recommend them. But seeing the requirements and procedures for S corps, most people are not disciplined or knowledgeable enough to operate them.

[@lucyferina]

You don't get an LLC to pretend you are rich, you get an LLC because you want to limit your liability in case something goes wrong.

[@Notme-tq4xs]

And that doesn't actually work. Single member LLC is just a person who get sued anyway. Buy umbrella insurance, be smart.

[@EarlHayward]

@@Notme-tq4xs State laws generally provide the same corporate protections of a traditional corporation to limited liability companies! The corporate veil can be pierced, regardless of entity type, for a number of reasons - and corporate protections were never for protecting individuals from negligent acts!

[@6thface]

Exactly. These guys make bank when you get sued personally because you didn't shield yourself from liability.

[@6thface]

​@@Notme-tq4xsthese guys are talking about setting up llcs for nonsense like covering you from traffic accidentsin cars. They are not suggesting that you should run a business as a sole proprietorship.

[@kateruterbories2692]

That's not what it means or how it works.

[@Michael-u8p9h]

I opened an LLC after watching a few videos, one from a Lawyer. Thereafter, I called the U.S. Tax department and a nice lady said it was fine. I only paid the State where I registered. At the time, I paid $125.00. In addition, and it took a little more studying, I filed a Trademark Resgistration with the U.S. Patent and Trade Office. They have great videos. In addition, there are many videos presented by Lawyers to teach you how to do it. I watched 3 videos in full and filed without a Lawyer.

[@stevebuss69]

You don’t need anybody to get an LLC… Go online and get one for about $100 in Ohio anyway… No annual fee . No state tax by the way on businesses under certain amount . There I just told you some more practical info than all this blathering these guys are doing. I’ve had 3 successful businesses never had a CPA, never had an accountant, never had an advisor , always had an LLC.

[@jamesbond-xl3xs]

Is this on turbotax?

[@mrsd2143]

Nice! But if you live in CA it’s $800/year & if we open out of State, we still need to register at CA and pay $800/year 😢

[@stevebuss69]

@@jamesbond-xl3xs yes I use TurboTax for taxes

[@valerpol5468]

Stevebuss69 what you thinking about Wyoming they keep saying is the best in terms of to open an LLC? Do you know if he has any annual fees?

[@hp7639]

These guys talk about putting 10 rentals being worth only 10k each as an example under 1 LLC because they aren't worth much (bad example as most real estate is over 100k). At what value should a single rental be separated into another LLC? 100k+? 200k, 1M?

[@rexpope980]

Thank God! Finally a voice of reason out there. I tell this to my clients all the time!

[@NotCommon_Foh_1795]

Thank you gents for this! Very insightful! And helps protect people who want to move up in life but are susceptible to be taken advantage of.

[@rseltd]

Very good information, but i couldn't stop laughing at how much Mark was touching the microphone and Mat could not stop looking at it. Like he wanted to say "Stop touching it!!!" hopefully when I watch the rest... he will lol. It's nearly off-screen by the end lol.

[@Dekka915]

Remember you need an entity to offset taxes and provide protection. If you aren't in a position where your tax bracket is affected by your business income then the extra cost to maintain an llc is likely more expensive. Also, your kids don't need an llc. It costs more and is more complicated to file for them, just to give them a retirement account. You can simply roll a 529 over to a roth ira under the new tax laws, which will be simpler and more cost effective. This video is extremely grounded.

[@PatrickCharlesjpc]

I've been saying this for years: Not all businesses need an entity. You don't need to create an entity immediately, especially when you just started the business, and the company is not profitable for a few years.

[@codeman99-dev]

Profit is not a requirement for liability. Providing a *service* is when you want that protection. Yes, you want a profitable company. Absolutely. A roofing company can be sued regardless of profit or loss.

[@tommyjones1357]

Create an entity. Personally guarantee a business credit card with a high limit. Have a trusted associate send you an invoice for $25K. Pay it with the card. No interest on the card for 12 months. Request a refund. The refund is returned as a check rather than to the card. The card is maxed out but this is not reflected on your personal credit. Use cash as down payment on an investment property. After six to eleven months, cash-out refinance. Pay the business card. Continue your project with the property. Leave a paper trail for everything. Step Three: Profit.

[@MicDropBBQ]

Facts. Folks be making tacos for the office and selling them at work on Friday. You don't need an LLC for that. People been selling cupcakes and cookies and tacos to coworkers for generations. Now we got folks learning the letters "LLC" because they heard it from some "guru" and now they think people selling wrist beads for kids at school should start an LLC. LOL! Folks getting outta hand with these LLCs. Be on Facebook like, "My kid is only 13 with her first LLC!!! She's going places, ya'll!!!" hahahahaa!

[@tommyjones1357]

@@MicDropBBQ but you lose the tax deductions!

[@MicDropBBQ]

@@tommyjones1357 You only pay taxes on NET income, not GROSS income. So, if you have enough to keep you from paying taxes, you don't need the deductions.

[@ScottJLetourneau]

All great content to evaluate when you need and don't need another LLC. Funding is another consideration, along with branding and overall risk. Remember to close (dissolve) out any unneeded LLCs before January 1st to avoid another Corporate Transparency Act filing in 2024. These guys are great!

[@candycane5077]

Ya I just heard about that too

[@NoDebtNoDrama]

The companies registered prior to 2024 have a year to file with fincen. Or dissolve.

[@aaronautry1981]

So what is a new upcoming entrepreneur to do as a small business that is operating by oneself? Like say a notary signing agent? Or just simply a general notary biz?

[@ScottJLetourneau]

@@aaronautry1981 Start as a single-member LLC disregarded in your home state, then when your profit is close to $40K make a late S election. If you are in a state such as California with the $800 franchise tax fee, you might want to just operate as a sole prop. The key is to focus on the strategy to build clients at no cost to you. The best way is to develop a relationship with those who already have ideal access to your clients and offer them something above and beyond. For example, you have extended hours for real estate agents or work from 4 pm to 12 pm when your competition does not.

[@NoDebtNoDrama]

@@aaronautry1981 yes, get an LLC. watch the entire video how individuals have LLCs they do not need.

[@trancedrones]

Just starting out, it seems difficult to get a mortgage company to finance a property in an LLC. Advice given to me was once the property is owned, transfer the deed to the LLC; if the bank tries to call in the loan balance just transfer back into your name.

[@konkolaboxing4013]

With that strategy watch out for high transfer taxes in some jurisdictions.

[@LeverPhile]

Transfer tax or property reassessment. Sounds like bad advice.

[@JuanGelogo]

First mistake don't use banks use credit union. Then they won't give a dam.

[@martyburbank3356]

I don’t always agree with you guys on everything, but thank you so much for putting this out there. I see this everyday where someone has come to me and told me then NEED and LLC or worse, they already have them and they don’t need them at all. When someone needs them they are great, like you we have been setting them up for 20 years. But so many people have been sold something they do not need at all. In CA, if we are setting up an LLC for most things we set it up in WY and then register it as an out of state entity for the outside creditor protection. But I end up talking people out of setting up LLC’s at all more than not. Great, and needed program. Like the first year of law school, we all learned - it depends? The first thing I always ask is, how much insurance to you have? Probably 90% of asset protection risk can be resolved by a good conversation with, a good insurance agent. Marty Burbank, JD, LLM, California

[@rehousethehomeless1925]

🤔🤨90% asset protection risk can be resolved by an insurance agent?🤔How?

[@LuxeprivaeMedia]

There are products that have multiple benefits for the policy owner...​@@rehousethehomeless1925

[@dtrelzmusic]

@@rehousethehomeless1925 Right he selling right now

[@martyburbank3356]

@@rehousethehomeless1925 buy working with an insurance agent to make sure you have adequate insurance to cover your foreseeable risk.

[@hp7639]

I get you sell insurance but I have a question may be you can answer. Or someone can answer. He talks about putting 10 rentals being worth only 10k each as an example under 1 LLC because they aren't worth much (bad example as most real estate is over 100k). At what value should a single rental be separated into another LLC? 100k+? 200k, 1M?

[@ArmandoMartinez-nf9ir]

I tried doing an LLC S-corp but I ended paying more in taxes than if I just would've been a sole prop. Plus all the extra time, paperwork, & effort, it just wasn't worth it. Make sure you're netting (not grossing) 60k a year after all expenses before going this route. The QBI deduction gets all screwed up by the payroll thing inside an S-corp.

[@candycane5077]

I heard if you make over 30,000 then have a S. Corp then pay your self what you need so you only get taxed on that not the whole amount that you made that year .. it’s all a headache. I just stay sole proprietor with good E&O insurance and write everything off

[@glennallan8630]

did you do a solo401 k @@candycane5077

[@tammygonzales-eastman1564]

If you’re just starting out just doing small arts and craft stuff, I don’t craft shows and possibly going to sell online. What would be the best way about doing that legally I know this is probably more for people that are big but just asking.

[@truthseeker1532]

@@candycane5077I couldn’t agree more. I’ve been a Sole Prop for 12 years as a small service based contractor. I asked my accountant “when should I get an LLC?” He said “maybe never”. Such a simple answer really stuck with me. Low grossing business, no real assets to speak of, we do much better filing personally and taking deductions. And my taxes are super simple

[@themartdog]

Problem is as a sole prop you need to carry so much insurance it becomes expensive in a different way

[@tomasgonzalez4819]

Finally, what needs to be said is being said! I'd like to piggyback on the irrevocable trusts and add that the annual administration fees are also worth considering (especially for the those offshore ones). It may indeed cost 10s of 1000s of dollars to "setup". Agreed. But, let's not forget that you'll also need an _independent third-party_ trustee - offshore or not - to actually get the oft-touted "asset protection". That'll run you well over $5,000 a year. Again, _in addition to_ all the other costs associated with maintaining such a structure.

[@sonya5568]

Too bad I didn’t see this a few years ago. Can’t regret it but moving forward, I’m glad I stumbled in this.

[@aking032962]

I owned 14 businesses and I kept everyone a SOLE PROPRIETOR and was able to keep all my profits and NEVER paid income tax!! They cannot tax your labor! Nor can they tax your profit if you pay for your inventory and pay sales tax up front. I did pay sales tax and my 941's for my employees.

[@k9legendfamilydogtraining]

You can have employees as a sole proprietor?

[@OSHA_Violator1]

👀​@@k9legendfamilydogtraining

[@FanF-xp3th]

Can you hire independent contractors as a sole proprietor?

[@suzanacarey]

Does that mean you gave each employee a 1099?

[@JuanGelogo]

​@@k9legendfamilydogtrainingyes

[@gaiustacitus4242]

If all corporate formalities are not maintained by the owners/managers of LLCs, then the corporate veil is easy to pierce, and the assets of the owner(s) can still be taken to settle a judgement. Most people who place their business assets in a LLC do not even know anything about corporate formalities, much less how to maintain them in the management of the business. In my experience, I've found that the majority of attorneys do not understand anything more about maintaining corporate formalities than the average man on the street.

[@GODHATESADOPTION]

Thats why you go S corp

[@gaiustacitus4242]

@@GODHATESADOPTION An S Corp is no better when it comes to isolating the assets of the owner(s) from liability. The structure alone does absolutely nothing to protect the owner(s) if the corporate formalities are not fully maintained. The root problem is that owners of small businesses do not understand how to properly manage a business using good governance practices. If I wanted to go after the personal assets of the owner(s) of a small business, then it would take very little effort to tear through the legal illusion that the business is distinct from the owner(s) in more than 99% of all cases.

[@ultravioletiris6241]

@@gaiustacitus4242 what are some of these corporate formalities? Could you give some examples?

[@gaiustacitus4242]

​@@ultravioletiris6241 I'll provide a few key points: 1. Electing a board of directors, maintaining a corporate minute book (i.e., a record of all meetings of shareholders and the board of directors). Note: A well run company will have external directors who can maintain objectivity about operations of the business. 2. Strictly abiding by the Articles of Incorporation and ByLaws of a corporation or Articles of Organization and Operaing Agreement of a limited liability company (most business owners never read these documents (which are drafted by attorneys), do not understand them, and do not adhere to them), and corporate policies. 3. Upholding the fiduciary duty to the corporate entity. For example, an officer, director, or owner is not allowed to expend company resources to acquire personal items (the majority of small business owners violate this duty). 4. NEVER comingle personal and business finances (i.e., do not pay personal debts from a business account or business debts from personal accounts). There are entire courses on the duties of officers and directors, and how they are to maintain corporate formalities. Breach of the corporate veil is the number one issue faced by business owners today, with 44% of owners losing these lawsuits and having their personal assets attached to satisfy debts of the business. As I said, were I to bring challenges in court against the owner(s) of a small businesses, I could pierce the corporate veil in more than 99% of cases.

[@GODHATESADOPTION]

@@gaiustacitus4242 not if you have a board and lawyer in your members you cant have a C or S without 6 or 12 others colluding in crime

[@FresitaDM]

Thank you for this video, Mark. I hope one day I can attend your seminars. I have a pretty good idea what company he is referring to. I almost fell for that company but when I heard about all the packages they offer and try to scared me saying I need to hide my assets in Wyoming and that I need this and that, then I have the feeling they prey on fear and I walked away.

[@kimberlindy]

Exactly, I hate the "fear selling" that lawyers and insurance guys do with a passion. And the fact there are a bunch of clowns all contradicting each other on youtube turns it into a total circus.

[@jaycjas3143]

Honestly just set up a c-corp for and put all your assets in this corporation. Under this corporation you set up an LLC for rental property. Its really not that complicated

[@imxlnt2]

llc is to make a youtube channel. llc is complicated, because you have to get the license, get the win and then go set many things up with your bank. then you get to spend the money on the business.

[@jaycjas3143]

@@imxlnt2 what? No LLC is a limited liability corporation of which you can see all kinds of businesses that are llcs. Not just KZbin. It protects you from excessive financial damages in the case of injury or closure.

[@scottedwards6117]

Dude a c corp is terrible. You aren't selling stock, you don't need an LLC

[@jaycjas3143]

@@scottedwards6117 it's clear you don't know what you're talking about. You don't need to sell stocks for a c corp to be viable. Having separation from yourself is crucial. Especially to cover yourself from lawsuits. Also since it's separate from you c Corp will have its own tax info as well as better loan options for reality. LLC limits the amount you'd be liable for. If you don't plan on having multiple assets then you don't need ANY type of corporation.

[@scottedwards6117]

@@jaycjas3143 if you owned a c corp you would know none of that is true. A C corp is taxed on all profits, and you still have to be the guarantor personally on any loans, meaning you either take all the profit out at your personal tax rate, or pay state and federal corporate tax rate, before you pay dividends and then pay another state and federal capital gains on top..... So you are wasting money and giving bad advice.

[@Johnslist]

Ah hah! I've been suspicious as a real estate investor who started looking in LLCs. Like insurance and (now) warranties, someone will sell you anything. New subscriber.

[@quitethecontrary1846]

why are people selling LLC's and Corporations when they can file for them themselves at their local state officials office? I understand consulting...but why is it NOT common knowledge that anyone can file for one for next to nothing themselves?

[@willn8664]

Because some people have other things going on in their lives and are not able to file for themselves?

[@BARBIEBABII25]

Alot of ppl do NOT KNOW they can FILE for FREE. So it's pretty much of ppl NOT DOING THEIR OWN RESEARCH!! I did NOT and wld NOT PAY somebody to mk me an LLC &, file Secretary of State for me whn I can do it myself for free (LLC) SOS yes u hv to py but whn someone else does it u hv that SOS FEE plus the fee of tht person or company charging you to do it! Whn u cld hv saved some money!

[@Johnslist]

@@willn8664close, and cute typical reply, but in reality I think most Americans like to handoff authority to others. Lots of exploiters out there to take advantage of that.

[@willn8664]

@@Johnslist lol its called common sense. When you do the research with who you're actually working with you don't just hand off authority to just anybody. The people who actually do that blindly are the idiots. Plus at the time I had another full time job while trying to start a new business. You may have a a lot of free time and unlimited resources but not everyone has that privilege to be able to do it themselves. That's just the real world.

[@Johnslist]

@@willn8664We agree on this: "When you do the research with who you're actually working with" - the rest were Internet assumptions and my bias being in CA with everyone deferring expertise willy nilly (lawyers, auto repair, handymen, 'whatever they say.') Delegating is proper, but just going with a sales pitch is not, it's everywhere out here.

[@Firebird2001]

I sell small twisted yarn bracelets online and make less than $600 a year. Due to the risk of frivolous lawsuits, I incorporated as an S Corp. I have 27 employees, who are actually all of my daughter’s sixth-grade classmates, twisting bracelets at very low cost., allowing me to write off an unbelievable amount of money. Every year, I receive a “sympathy” check from the IRS for $100,000, which I find to be insufficient. You never know when someone’s circulation could get cut off from a bracelet and they decide to sue, but I am protected.

[@kauigirl808]

Thanks. I constantly tell people that an LLC isn't necessary. Especially if you need to deduct expenses. It's not necessary to set up an LLC. It's just a waste of money.

[@amels4620]

You are correct. When I purchased my first semi several years ago, all of my trucking buddies were telling me to get a LLC. When I approached my long time CPA that I wanted to get a LLC, she laughed at me and said that I would be better off just staying a Sole Proprietor. After explaining and a few examples, I was convinced that it was a waste of money.

[@rcppop3090]

@@amels4620agree 100% I’ve been a sole proprietor for 19 years as an owner operator in the concrete pumping business. I get tired of explaining myself to my friends that get too much advice from TikTok and KZbin so I just say ya I have an LLC 😂

[@gamesmoney1025]

Wow I don't know who to believe... I read from a book by Robert Kiosaki that LLCs are a must I'm just trying to learn all these terms. Arent LLCs supposed to protect you from being sued?

[@jaredtippets6255]

@@gamesmoney1025I think an LLC is good if you do services. Aka a plumber, electrician, mechanic, car detailer etc. Businesses where you provide a service for one thing and a person could sue you and say you broke something else. If you’re selling items online, you probably don’t need one as far as I understand

[@Charlesofoldremond66718]

@@jaredtippets6255unless what you sell could pose some sort of health risk or be considered offensive.

[@Dbb27]

In Florida one can just go online and set up an LLC. Then you go to the IRS and get your EIN. Not sure why anyone needs help setting this up.

[@Martin-og9zg]

Starting an LLC to put investment properties under means thr individual can't be sued for $$ or assets protected under the LLC.

[@thetalkingboard]

I kinda like the pothead vs cokehead chemistry you guys have. Excellent topic as well. Thank you.

[@shallowgrey]

These guys are definitely on drugs lmao

[@G.U.A.P.OGangllc]

Which ones which lol?

[@shallowgrey]

@G.U.A.P.OGangllc probably a sh*t ton of pills and maybe coke. It's an open secret that a lot of these fast-paced finance/real estate types are

[@amandapruitt7366]

😂

[@muahdusa]

@@G.U.A.P.OGangllccoke is definitely on the right, pot is left

[@thecasualrver]

Setting up an LLC for people that have RV's (Recreational Vehicles) seem to be big Montana and Wyoming LLCs are most common, especially if their permanent residency is in a high tax State. They license and register their RV, motorhome under that Montana or Wyoming LLC, to avoid the annual State taxes where they live. But most states are now catching on to the tax avoidance scam, and it is a scam. I don't like to pay any more taxes then I have to, just like the next person, but it's not worth getting caught and the fines that come along with it.

[@TruBlu65]

What if that is their home!??!

[@jufra89]

That is one of the best pieces of advice I have heard so far: just because it works doesnt mean you need it! Thank you guys

[@censoredeveryday3320]

Enjoy getting sued for your personal assets

[@romoore2094]

i tried to follow what you guys are saying but every topic ended without explaining the reason for having an LLC or an SCorp. etc very frustrating

[@cooperdeniro9189]

Accountant here since 2016, the simplest explanation I can give is: 1. Wait until you need an LLC to actually file for one, that usually depends on what your actual business is & how much money you make. There are plenty of reasons to get your LLC immediately but without guidance it’s a waste of time and potentially a lot of money. No one could give you a straight answer bc it’s all situational, but for most ppl Sole prop > LLC > S-Corp once/if you grow large enough. Incorporating your business basically stems from separating you (the person) from you (the business). That can be a great thing, and that could also be the worst decision you can make.

[@greatestever495]

What if I'm trying to start a Turo renting car business. Purchase my car through LLC and it's over 6500 towing capacity??

[@danielhurst8863]

Watching this, and all the ads were for buying LLC packages.

[@ObscurelyTitled]

the main advice for anon music registration via copyright office and publishing (BMI/ ASCAP) and The MLC) is to set up an LLC in NM or WY anon then registed uinsg only anon info. If you can do a video on wheather your claims of "stop llc" pertian in that situation. you would help millions of authors, musicians and writers

[@harleysmith1857]

Love this info! I am grateful for finding this podcast!

[@brendarivera3600]

Thank You Soo Much....for this information it's helped so much in understanding a bit more of what to do and not do. I'm pretty sure I'll be watching this video a bunch more times, so it sinks in.

[@BLVCKSUITE]

I agree with this video. For me in 2020/21 I was seduced by influencers like never before saying get an LLC, get your EIN/Duns and Bradstreet numbers, get a business bank account or funding and make this money. Sounded great! And I got my LLC and followed the steps… BUT There’s no point on getting an LLC if you don’t have an actual business with a business plan. Also per your state there are time restrictions one when you can start getting business funding based on the age and tax filings of your LLC. I’ve had mine 2 years now with nothing to show for it. And I’m considering dissolving it as I’m not built for building a business from scratch. I however am better suiting into buying existing businesses and building them back up to profitability.

[@hp7639]

He talks about putting 10 rentals being worth only 10k each as an example under 1 LLC because they aren't worth much (bad example as most real estate is over 100k). At what value should a single rental be separated into another LLC? 100k+? 200k, 1M?

[@texaswoody1]

My God you guys are such a blessing! Thank you for all the time and info tou guys share FOR FREE!! I hope you get customers through this channel, and make money off of those. More power to you guys!!!!

[@save_from_comments]

His book said to expect up to $300 for llc setup, here $1200. Must be inflation

[@Smartsystem5958]

😂😂😂that's what I was saying because for me just getting my LLC's EIN and a agent address to work with its gonna cost me 1200 😢 I can afford 2 -300 but not 1200

[@BARBIEBABII25]

LLC is FREE to setup YOURSELF on the website which is when u SETUP YOUR EIN those come hand in hand. SECRETARY OF STATE is the $300-$340. Depending on your STATE. It is not $1200 to set up..

[@jimflask1164]

I need an LLC for funding. I hear they can get loans without proof of income. I have no income without the loan. I walk into the bank they say they've heard it all. Being human is an automatic loss. Using a faceless corporation, no one builds jails for companies. They can do anything.

[@ianbelletti6241]

I learned the hard way that you do not need to incorporate your business until it's making enough money. Yes, LLCs do separate business liabilities from personal liability. However, it will not separate the liability if your assets are so small that they are intermingled with the business. LLCs are only for protecting personal assets from business liabilities but is a costly waste if you are in a state where assets cannot be separated and the company is not making enough to pay for the assets.

[@hp7639]

He talks about putting 10 rentals being worth only 10k each as an example under 1 LLC because they aren't worth much (bad example as most real estate is over 100k). At what value should a single rental be separated into another LLC? 100k+? 200k, 1M?

[@ianbelletti6241]

@@hp7639 talk to an attorney for that advice. Generally, if you're running rentals as a business and have a dedicated account just to handle the business keeping the funds separate an LLC will be beneficial. Just keep in mind that you will have to pay yourself dividends and labor rates while keeping enough funds for operational costs in the business accounts. If you're stripping the business accounts of all funds it will be considered intermingling of funds and strip you of the LLC protections. The most common mistake is intermingling personal funds with business funds.

[@littlebrotha123]

@@hp7639no he said $10k in EQUITY not the market sale price of the rentals. he said $250k in equity/asset value is a good benchmark for when you should start seperating assets into other LLCs

[@Daniel-hb3tu]

Appreciate your honest & valuable information.

[@JakeTraver]

Pretty sure Financial Advisors at banks are pushing this also. I currently work as a Teller, and we have clients come in with 3 - 15 Business checking accounts, all under different business names.

[@danawaldrop4930]

I think a lot of people will setup the LLC because they think it's the way to protect a catchy business name from being taken. Then they never get around to doing actual 'business'.

[@dalemotley5239]

Love you guys, first time watcher, learned so much, liked and Subscribed!!!

[@jlegal1]

Pushing use a lawyer use a lawyer, but then saying it's hard to find a lawyer is the epitome of the doublespeak that is the legal industry. How about everything is overcomplicated to keep dudes like this rich.

[@robertmcmahon1221]

Thanks, I watched you previously and found your style.

[@NoDebtNoDrama]

Thanks. I watched Mark with Karlton Dennis which led me here. Great info because I am easing into S corp now. I got a great new local accountant/tax professional. Luv your breakdown!!! ☺Very helpful. I like when you say tailored to you!

[@Melodyed]

Thank you for the information. Earlier this week I listened to someone sharing a giant legal structure for LLCs. I only have 1 LLC so 2 days ago I started stressing, WHAT DO I DO? After listening to you two, I have a plan.

[@victorrader4349]

Rentals in Tennessee; it appears that by putting rentals into a Single Member Non-Corporate LLC, I will now have to pay the Franchise and Excise Taxes, which is significant, and it does not seem I'd qualify for the Family-Owned Non-Corporate Entity, because (a) apparently this is only for ancestors of the individual and (b) the rental income is not passive since I'm a Real Estate Professional. I'm thinking I may be better off with a large umbrella policy. Am I missing something??

[@ZekeBrewer]

So basically…DO set up an LLC, but wait until your business is profitable enough to get sued to do so?

[@dtrelzmusic]

Lol

[@BxNERD]

Thank you so much! As I start my small behavior analytics business I am being told all sorts of things. I am in NY and some people say that licensed practitioners need to be a PLLC. I wonder if there is a way to just get an EIN and DBA while I build. This is all another language to me at the moment.

[@quandingleberry445]

You can get an ein and dba as a sole prop.

[@BxNERD]

Thank you so much! @@quandingleberry445

[@phatboom]

unfortunately without an ein it’s difficult to get loans or wholesalers to work with you.

[@edselsledge2940]

Which I’m not understanding why they say it’s not needed. As a sole proprietor with excellent credit I can’t get any funding till I LLC so this video seems condescending to me

[@SteelWolf13]

Retirement persons would put their home in a Trust"?" at least 5-6+ years before retirement?

[@frenetic1000]

Mark and Matt… you mentioned the approx cost for a single trade mark and single LLC; what about a registration mark? The cost for one and under what conditions should be implemented? Thanks and greatly appreciate your content!

[@daneshskater101]

20:20 Trust taxes? failing to mention the fact that a Trust can also be held my a Holding Company that the individual can be a beneficiary of

[@marcusd6096]

The FNCN thing i keep hearing about, do they notify business owners of this "new law" ? ...... Thats not fair to pass a law and not notify business owners with a letter or something, setting folks up to fail.

[@Dbb27]

You’ve been notified. 😊

[@RyanEthan-wl9zt]

I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Michelle Stewart.

[@NicholasClones]

Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been super.

[@liammason1303]

She is my family's personal broker and also a personal broker in many families in United States, she's a licensed broker and a FINRA AGENT in United states

[@Nickheartly]

You trade with Michelle Stewart too? Wow that woman has been a blessing to me and my family.

[@MonicaHerbert989]

I'm new at this, please how can I reach her?

[@SteveLorenzo794]

I was skeptical at first till I decided to try. Its huge returns is awesome. I can't say much

[@ashersdad1755]

The only trust ive ever set up is the legal owner of all of my firearms and only because the process of making sure my kids get all my guns not the government was through this process.

[@exmx]

For anyone that owns their home and or has assets more than 100k you should 100% create a living trust. I know this from experience. Otherwise your loved ones will be forced to go through probate and will at minimum cost 50k for a simple cut & dry, with no problems.

[@KS-sz6ew]

How does an average home owner in California protect against future Medicare spend down? Is there another way then Irrev. Trust? Also there is no business or other entity.

[@timothyrussell1179]

I have had a business for 5 years, understood nothing about any of this, have finally started making money and I'm afraid to call a lawyer because of how much it might cost. I have never spoken to a lawyer before unless just as an acquaintance.

[@Johnslist]

Get referrals, that $180 or whatever an hour will be cheaper that $2000+$200/mo for 'as many LLCs as you want'....they often just outsource it to flunkees anyway.

[@timothyrussell1179]

@@Johnslist I made the LLC myself no trouble. That part is easy. Contracts are confusing and scary 😅

[@Johnslist]

@@timothyrussell1179 I wasn't touting getting a lawyer, just an alternative to this new breed of 'education peddlers,' 'influencers,' and 'subscriptions'

[@TaytaBug925]

Great interview! Thank you both!

[@ericbennett-wu4zx]

If I’m paying 3.75% mortgage on a rental, and now try set up a LLC, the bank can call due on loan. Why take that chance?

[@tomm.149]

Depends... how much equity are you carrying? What other assets do you own... and a thousand other questions. I would suggest talking with a local real estate attorney and see which entity would be best for you. There are ways to protect yourself without the bank calling due... your attorney should be able to help you.

[@TreasuresNetworks]

I have always wondered about this. This answered so many questions.

[@77Tadams]

Why do you need 1200 bucks to start an LLC? I started my three by myself for the filing fee.....then I paid my CPA to turn 2 of them into S corps.

[@5050johnsmith]

So tell me as lawyer attorneys when you go to represent you client and take them on you get a power of attorney so you can represent them correct.that being the sole tool used to stand up in court and say things file paper work on their behalf is that the sole Kegan tool that allows you to do that if it is define the writen instroments

[@richardmarkle-c3k]

Does having partner structured holding LLC in NC protect you from personal judgements

[@Morriganalexandros]

I’m still 😳 at the 15-20 LLCs with no business or properties.

[@Smartsystem5958]

Like why 😢

[@Sayrenad]

What? Why would anyone do this?

[@musicaltheaterforkid]

You must have a lot of money to pay for so many dissolve at once 😂

[@MelissaThompson432]

If you think you need somebody to _sell you_ an LLC, you don't need an LLC.

[@cobraspottedwolf8791]

I love when Mark gets pissed!

[@LivingonHiltonHeadIsland]

In SC, owning your vehicles in an LLC will prevent you from the benefits of insurance stacking. If you get hit by someone else, you might have really wanted to stack

[@wompol7117]

buying/building 20 houses (cash) in a trust for family…should a llc be inside the trust to hold the homes? what about a mgt co to manage all the homes ?

[@GranJacob1727]

I particularly need an LLC for one reason, I want to use Stripe as the main payments gateway in my website, the problem? : I'm non us-resident and Stripe is not available in my country. What does the LLC? I can use Stripe using the LLC, that is the only reason why I need the LLC.

[@xavierreyna3811]

Don’t you loose the timeframe of creation of the LLC once you convert to S-Corp. so if you have an aged LLC it’s starts over when it’s converted?

[@headlibrarian1996]

What starts over, the opening date of the LLC? That is independent of the LLC’s tax elections.

[@andrewsusen3154]

I didn't make it through the whole video yet, But when do you guys recommend turning a profitable hobby into an LLC or another type of small business.

[@glennallan8630]

What situation would you use a Wyoming holding company , you said there is a place for them ? How would get charging protection if not in a state that has them ?

[@unbelievable9750]

Let me preface this by saying I’m an accountant and tax professional. Before I give you any advice, I just have two simple questions. 1. How much money do you make and/or business make 2. What’s your net worth Answer those two questions and I’ll give you some free advice.

[@rtsuh]

5:44 Why does the LLC must be opened in the state where the property is located? I talked to another attorney and I was advised to select the LLC in the state where you reside (where the profit from the rental property is sent to) since my rental property is not located where I reside. Is my attorney incorrect? What are some pros and cons?

[@alexandrosrothenberg8781]

The profit where the property generate considering the income so for this reason this is why you should set up an corporate to hande and manage the profit and filing tax related documents The profit where is making form the peoperty is always need to be reported where the property is located first. No matter wehere you transfer the income after.

[@Johnslist]

Reviewing again after I had previously learned enough to dismiss these other 'influencers,' but found out a friend is getting in deep, based on hope, not need. I think you alluded to the setting up of multiple LLCs to seem like you are doing something... setting up checking account, website, biz cards....all on 'hopium'...I was initially cynical that you guys were just refuting the common others but you're actually verifying my initial concerns, and offering value to the community. Where are you located? I see you also confirmed my idea of just going to a good attorney. I was in legal services and the big marketing of law is really taking over, and charging premiums for what could and should be done by appropriate law firms, Mom and Pop, not BigCo.

[@censoredeveryday3320]

A lot of distributors in my field will not work with sole proprietors. They only do business with corporations. Also, I'd rather have an LLC with an extra layer of protection than nothing at all and be sued personally for my assets.

[@YingjiYin-b6h]

But when I watch all the videos in your channel, at a point, i felt overwhelmed and oversold too! hahahahhaha

[@danawaldrop4930]

I'm noticing a lot of SCorp's are still registered with their state as an LLC. I would like to learn how to handle this in Georgia. Do you offer teaching services to non-lawyers who want to handle simple issues such as this? I work for very small businesses and most cannot afford attornies fees but I'm telling them it has to be changed immediately because of the BOI Reporting. Thanks!

[@MarkJKohler]

I have an amazing certification program that teaches cutting edge tax strategies to help build your advisory services. If you are interested in joining please contact my team at markjkohler.com/product/main-street-tax-pro/ OR to have a chance to get your question answered on a podcast, please submit it to podcast.mainstreetbusiness.com/ OR if you want to dive deeper into your question, please get connected with one of our Main Street Tax Pros at markjkohler.com/tax-advisor-network/ Thank you!

[@danawaldrop4930]

I was tired, lol... I had clients asking to change their name - didn't think it through!

[@QuyenNHokom]

Great content and they are funny with good energy between them 🤠

[@timbrown9305]

I owned lots and lots of homes. I set up an LLC and would put 10 homes in each (I had a lot of LLC's). It was just a buffer should I get sued.

[@curiouskoala411]

the reason i would imagine people setting up for example two llcs is for anonymity. if a music artist wants to release a song on spotify under a record label in florida, the owner of this LLC will be public on sunbiz, eliminating anonymity. two llcs (one in wyoming acting as a holding company) and the other in florida acting as the record label is actually a MUST in this case or any other case where the person desired to release goods anonymously to the general public but not to the IRS. for example, why would i care if the IRS knows who I am making beats or music on spotify? I just wouldnt a random person to be able to get my name. anonymity planning is essential in these scenerios.

[@butchgreene]

Crap. I just got sold a Wyoming holding company. Now what do I do?

[@RobertBullock]

What if you live in TX but have rentals in La for example?

[@bradbotsch8949]

Why not just use a unregistered trust? Tax free.

[@CHAMPDOGZ]

Not sure what this is but I'm going to look into it

[@bradbotsch8949]

@@CHAMPDOGZ look at weiss' concise trustee handbook. It will give you a great start. You are basically creating a non government entity. "He who created controls." LLCs, S corps, 501c3 all these are government creations and therefore controlled by the government. A private trust (contract/covenant) needs no government infiltration or taxation. It is a completely separated entity then from you, the person. No SSN, completely invisible/private. You can run a business, build credit, secure assets, really anything a person can do (literally anything but vote). It's spiritual technology recognized by man as his divine birthright: to be free from the authority of other man.

[@christianhelwig]

"You're driving a Datsun from 1986." LOL

[@amyhoneycutt6117]

Thank you for this video. I have one question, If a person has just started an e-commerce store selling primarily clothing, do they really need an LLC? (I can't imagine getting sued for clothing) I just don't see where that is needed. Please let me know your thoughts.

[@cleancutstacks2261]

How about an umbrella for all your properties and forget the LLC cuz they can still sue you personally

[@matthew_brown]

I heard each property should have its own LLC to make it easier to sell. Sell the LLC and the property is just an asset of the LLC.

[@Morriganalexandros]

The problem with that is that you might also be getting the liabilities of that LLC. What if someone fell a month before your purchase and the lawsuit has not been filed? You take on that lawsuit.

[@gogogo1064]

I think that would.limit your buyers. They would just have to get a hike loan and buy your home from you, pretty easy. If they going to buy your llc that only holds a mortgaged home, the bank might not be so hot to make the loan to an ordinary buyer.

[@Donkeyearsa]

This was many decades ago. The owner of a horse ranch that was open to the public with a string of hour horse rentals put the company into an LLC as her layer told her that she really needed to. Her son who ran the day to day buisness was really upset that she did that as he saw just the extra costs in taxes.

[@Isabella-wo9bg]

What if you live in the property and renting out the units, so basically you’re a live in host, would you still need an LLC for that property?

[@froman1960]

The new talk out there by many is to put your All Caps Strawman name as an LLC.

[@bungeebones]

I've opted for an "old fashioned" business structure know as "The Massachusetts Business Trust".

[@realWorsin]

Depends on the structure and the state you are filing in.

[@jaymay-wy8ye]

What if someone advertises a business under a LlC that is not registered with the state?

[@bonniej0]

People are getting them for the EIN. You know what what you need to do is get a commonwealth trust so that you're outside the country.

[@bongdallion3435]

SCorps will save you a substantial amount on self employment taxes, what are the downsides? costs an extra hundred bucks to incorporate? Why wouldnt you want that in your first year?

[@YoungBlaze]

Summary of this video in one sentence: Unless you are bringing in tens of millions of dollars You don't need a lot of LLCs for your assets You're not at that level yet