They're LYING To You... Stop Setting Up LLC's
Mark J Kohler・32 minutes read
The text emphasizes the overselling of legal strategies in business structuring, cautioning against unnecessary purchases influenced by aggressive sales tactics. Experienced business and tax lawyers recommend tailored legal strategies to avoid overspending and maintain compliance with regulations such as the Corporate Transparency Act.
Insights
- Overselling of legal strategies, particularly in business structuring, leads to individuals purchasing unnecessary legal structures due to aggressive sales tactics, highlighting the importance of choosing the right legal strategy tailored to individual needs.
- The text underscores the significance of annual paperwork filing to maintain active status, warns about the penalties for failure to register under the Corporate Transparency Act, and stresses the necessity of tailoring tax and legal structures to specific business needs through professional advice.
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Recent questions
What is the number one oversold legal strategy in America?
Businesses buying unnecessary structures.
When should LLCs be used according to the text?
For rental properties and real estate businesses.
What is the Corporate Transparency Act?
Mandates LLC registration with FinCEN.
What are the considerations when deciding on asset protection strategies?
Risk levels and asset exposure.
Why is it important to seek professional advice for tax and legal structures?
To ensure efficiency and tax savings.
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Summary
00:00
Avoid Overselling: Tailored Legal Strategies for Business
- The text discusses overselling of legal strategies, particularly in the realm of business structuring.
- Many individuals end up purchasing unnecessary legal structures due to aggressive sales tactics.
- The authors, experienced business and tax lawyers, have set up numerous entities and estates.
- They emphasize the importance of choosing the right legal strategy tailored to individual needs.
- The number one oversold legal strategy in America is businesses buying unnecessary structures.
- An example is given of a client with an excessive number of LLCs due to overselling.
- The text highlights the prevalence of overselling by companies pushing unnecessary legal structures.
- Specific advice is given on when to use LLCs, such as for rental properties and real estate businesses.
- The importance of considering equity when deciding on the number of LLCs for properties is stressed.
- The text concludes by cautioning against overspending on unnecessary legal structures and emphasizes the value of consulting with a law firm for tailored advice.
13:01
Essential LLC Registration and Asset Protection Strategies
- Annual paperwork filing is essential to maintain active status and avoid fines and penalties.
- The Corporate Transparency Act mandates LLC registration with FinCEN, requiring disclosure of managers and members.
- Failure to register incurs a $500 daily penalty and potential jail time.
- Entities not in use must be closed to comply with the Corporate Transparency Act by January 1st, 2024.
- Wyoming-type entities offer asset protection and privacy benefits, but may not be necessary for all.
- Consider risk levels and asset exposure when deciding on asset protection strategies like land trusts.
- Irrevocable trusts are oversold and may not be suitable for everyone due to high costs and complex tax reporting.
- C Corporations are often touted for asset protection and tax benefits but may not be ideal for small business owners.
- Foreign LLCs can offer asset protection but come with additional reporting requirements and high costs.
- Joint venture agreements can be effective but should be approached cautiously due to personal liability and tax implications.
26:14
"Protecting Business Name with Trademark and Taxes"
- Filing for a trademark is crucial for protecting your business name, even if you have secured the URL; it can cost under $1,000 for one mark, including filing fees and attorney costs.
- Setting up a nonprofit requires a genuine charitable purpose and intent to comply with IRS rules; it is not a tax strategy or a way to redirect charitable deductions for personal gain.
- Consider an annual review with a tax lawyer specializing in small businesses to tailor your tax and legal structure; this comprehensive service costs around $1,500 and provides a personalized game plan.
- Tailoring your tax and legal structure to your specific business needs is essential, as one size does not fit all; seek professional advice to ensure efficiency and tax savings in the right structure.
