Cleaning Up Your DIY Entity with Mark J Kohler | CPA | Attorney

Two. Hey everybody, my name is Mark Kohler and before you scroll past this, please hear what the title of this little video is about. More than just clean up your DIY entity. If this is important, if you have set up a corporation or an LLC with an online service or on the state website, or maybe you set one up five or 10 years ago and it's collected dust somewhere, is time to clean it up. Look at my props here. I'm pushing a vacuum, I got a broom, I got to get props in the mix of this because I'm just a boring CPA attorney and I've got a very, very, very important message. Your entity is not worth what you paid for or worth what you did. If you don't have all the pieces and parts, that's it. And I'm a partner in a law firm, accounting firm, best selling author. I have a podcast every week. I've been helping clients around the country for 20 years and we've seen clients get into problems in a lawsuit because their entity isn't worth even what they paid for. It's not worth the paper it's written on. So I've got 10, 10 little problems that could go wrong with your DIY entity do it yourself entity. And I want to say this. Is it wrong to set up your entity? Is it bad that you did your own entity? No, it's fine if you have all the pieces and parts. So I'm going to throw the broom away. I got my vacuum here. I'm going to push that off to the side and let's get into it now. This is live and I'm taking live call questions down below. I do this every Thursday at 4 o' clock on Entrepreneur Facebook, Mark Kohler Facebook and on Mark Kohler YouTube live every Thursday at 4pm Mountain. So Mark it on your calendar. So you're here every week. You can. Thank you much. Now, we're being really cautious of my audio. So if there's any problems, don't panic, don't go anywhere, just patient. We'll get it fixed. Okay, so there's 10 problems that you could have with your DIY entity. That's your do it yourself entity. And I'm talking LLC or corp, LLC or corporation. So I want to give you these 10 problems that you could be having and I want to field any of your questions from around the world, around the country. Just give us your first name and where you're from and I'll. I'm here for you. We'll be about a half hour on this and then pay big money to a lawyer, CPA to try to get some of these answers. Throw them down below and I'll do my best to answer them. Okay, number one problem. And some of these, I'm just going to rattle them off because they're really quite straightforward. These are all problems that we have clients face in this situation. I've got a paralegal team, literally two full time paralegals and all they do is clean up and fix entities. People set up years ago or this last month and it's jacked up. So here's the 10 things that could go wrong. Number one is you have the wrong entity to begin with. You may have set up an LLC and you need an S corp, you may have an S corp, you may have set up an S corp and you need an llc. You may have set up a C corp, you might have a limited partnership, I don't know. Now the general rule is just so that some of you might be like, what's going on, Mark? You've seen my live podcast before. Hopefully you've caught my videos on YouTube. You've got your ops on the left, you've got your assets on the right. That is asset Protection, Tax Planning 101. So over here is where you might start with a sole proprietor, you might start with an LLC. But if you're making more than 30 or 40 grand a year net, you're going to want to graduate to the S Corporation, not a C Corp. And if someone has talked you into a C corporation, get a second opinion. That's all I'm saying. Pay someone a couple hundred bucks to review. Is it really in your best interest? I'll give you my law firm website, accounting firm website. Below you can get a consult with a CPA or attorney that knows S Corps and C Corps backwards and forward. And we can analyze your little situation. And if you don't like us, that's fine. But get someone. You've got to have an S corp for your operations. When you're selling products or services, Internet marketing, labor marketing and services and products, and you're selling crap on ebay, you're a dentist, a doctor, an engineer, you're a plumber, an electrician, S corp's where you're going to want to be. Now if you hold assets, that's where you typically have an llc. And if you have partners, you need to have a partnership, llc, not a single member llc and yada yada yada. So this structure, if this doesn't make sense to you, you may have the wrong entity. So that's number one. And I know questions are flying in already. Be patient. I'm going to hit them. And let's get rid of this right here. Boom. Let's stay efficient. Number two, you may not have just the wrong entity, you might be in the wrong state. Now what do I mean by that? Someone may have sold you setting up in Nevada or Wyoming. And if you're in California, some someone's trying to sell you an entity so that you don't pay the California minimum tax. Watch out. Get a second opinion. Now again, here's a couple points. If you have Tennessee rental property, then you need to have at least a Tennessee LLC or an LLC registered in Tennessee. Now if you want to have something in Nevada and registered in Tennessee, that's okay, but you're paying extra, you better have a good reason. I'd love to know the reason. Let's talk. And I set up Nevada entities and Wyoming entities for my wealthy clients with lots of rentals. But a brand new investor doesn't need that crap. So be careful over here. If I live in Arkansas and I'm doing business in Arkansas, then I better have an Arkansas S corp or an Arkansas LLC taxed as an S corp. So set up your entity where you're doing business. That's the second problem we see all the time. Number three, the wrong tax election. Wrong tax election. Now this could be a situation where you, you have claimed an S corp in a partnership. And if you've claimed an S corp in a partnership and it's not husband, wife, you got the wrong entity. So I want to get away from the S corp being in a partnership scenario. And if you have rental property, I don't want an S corp. And just today I was on a phone call with a client that had this. They had an entity in the middle doing everything. So they had an S corp that owned their rentals and it was doing their operations for their Internet sales. Not good people. Tax mess and an asset protection headache. So we want to make sure that we're making the right election. I'm going to get to number five and then we'll do questions. Sound good? We're ready to roll. Okay, number four, any of you with an entity out there and have a question about it? That's what we're talking about today. Number four is missing the internal docs, internal documents. Now I don't want to be one of those talking heads that doesn't give you the facts. So let's just do it real quick. Let's get another piece of paper here and I'll tell you what you should have with an LLC or a corporation. Alright? If you have an LLC or a corp, here's what it looks like. They each need articles, articles of organization, articles of articles of incorporation. Now 80% of people that mistakes in this area, they stop right there. I got my entity, I'm done. No, you're about 15 to 20% of the way done. And if you get into a lawsuit or get into a tax audit with the IRS and that's all you've got, you could very well be screwed in a bad way. So this is not everything. In an LLC you need an operating agreement, op agreement. Even if you own it 100% yourself, you're going to go, well Mark, I own the entity all myself. It doesn't matter. Okay, so you're sitting in a foxhole and you're like, hey Mark, I don't need a helmet, I'm in a foxhole. Well, when you stand up and the bullets are flying, you're going to want a helmet. This protects you people. That's the point. In a corporation you're going to have bylaws. You're also going to have minutes. Now these are kind of the notes of setting up the entity. You're going to have minutes in a corporation. That's shareholder minutes and director minutes. Shareholder and director minutes. Then you're also put Mr. They have stock certificates and membership certificates. So you've got certificates of ownership. Now I just going to give you a quick example. Some of you like Mark, I don't need that with an llc. I still get the protection. I don't need it. Okay, let's say you want to do the home office deduction. Let's say you want to do the auto deduction or write off any computer expenses up to $500. You have to have that accountable plan verbiage, the minutes of the organization of your LLC or corporation or you don't get the write off. The IRS has given notice after notice on this. So if you get in on audit and you don't have these pieces again your sol. And I'm not talking statute of limitations, you know what I'm saying? Okay, so these are the things we've got to have to have a proper entity. And I know some of you are like, Mark, it's 50 bucks on a website. No, there's more to that. If you check all the boxes on LegalZoom that you're supposed to check, you're going to be out three or four hundred bucks. I have a service at my law firm that's just the same price as all those online setup companies. If you check all the right boxes. But they go, oh, I can do it cheaper. Be careful. Be careful. Okay, number five. And then we're doing questions. Number five, where's my sheet of paper? Here. Okay, number five is. Let me see. I want to make sure I get this right. Missing IRS documents. Missing. So we have missing internal documents and missing IRS documents. Oh, man, I am right and bad today. I got to get better IRS documents. Did you request the right tax ID number? Did you check all the boxes on the SS4 that you were supposed to when you made your S election to be an S corp? Did you sign the second page? If you didn't, your S corp is not effective. Do you have a Q sub? An S corp owned by an S corp? You have to have a special form for that. Are you filing the taxes the way you were supposed to? So you've got all these IRS documents that are part of a package. When we set up an entity for client, we include everything. And you get an hour with an attorney talking about your situation, not some flunky sitting in a cubicle in some headquarters in Nevada. I need you to talk to a real lawyer that tells you what to do to how to maintain it. Then you're done, and you've got it right. That's it. And it can be affordable. I just. On this note, I just was talking to someone here locally in my little Main Street America in Idaho, and there was a law firm in Idaho Falls. Their cost to set up an LLC was $2,000 and an S Corporation, 2,500. They're not even tax lawyers. I'm like, you've got to be kidding me. We're 800 bucks, any entity, any state, and you get an hour with a real attorney. We've kept the same price for the last nine years. We love small business. We are an advocate for Main Street America. We're not charging the big city prices, but you get big city quality. So shop around again. This is not an infomercial for me. But I'm just saying that's what's out there. You got to be careful. So Those are the five problems. I got 10. Let's throw down some questions. What do you got, Rosa?

What if you are licensing partners to offer your methods, what entity would that be?

So I'm licensing partners to do what? Sell what?

To offer your methods.

Offer my methods. All right, let's play with that. So, Rosa, Says she's licensing partners to sell their message. Okay. All right. Now a couple things. Rosa, now this is why a consultation would help you a ton of because in an hour with an attorney we're going to get this stuff going out. You threw out three words that are really hard to deal with. Partners, license and they're selling your message. Okay. If they're a partner. Okay, I'll throw out a couple ideas and many of you watching, you're going to love this. So if I'm selling a product or service, as for some sort of consulting service, that sounds what Rose is doing. She's going to be out selling. So this is her entity that's going to sell services out there to people. Alright, that's cool. But she has partners and it's operational now. If you've watched my other videos, she's going to have a self employment tax problem, big taxes. If I just do this in an llc, oh, but I have partners so I want my partners it have their own S corp. So in a real estate brokerage, brokerage is an llc. Every realtor or broker is an S corp. In a dental office, dental llc, each dentist is an S corp. In a law firm, law firm, llc, each partner is an S corp. Now that's part of says, well, I'm licensing people to sell my message. Well, that means they're not partners. That means they're subcontractors. So they're out here selling your stuff and you're going to have a subcontractor agreement and you're going to 1099 them. So that's what I would typically do. Rosa, you don't want partners. You want an S corp up here for you and then you're going to have licensing people out there. So I think Rosa's done us all a big service here. You see how her question was? She almost doesn't know what questions to ask. But she might click around on the web tonight and then set up an entity on a website. Sounds really sexy and cheap. That's the type of work we do every day, cleaning up entities for people. Now in the month of September every year we have a special where we do cleanups. I'll tell you about it at the end. It's a great price. You're going to love it. Also, I'm going to give away three books today for free. I'm going to give away Business owners guide to financial freedom, a book on where you deploy your profits in your business. What your CPA isn't telling you. A story where I Actually trick you strategies. And then this is the creme de la creme, My eight steps workbook on how to start a business or grow your current business. 50 plus videos, podcasts and webinars. QR codes so you can start watching these videos immediately. A business plan and a strap plan and a marketing plan, all delivered to you normally. 99 bucks on Amazon if you share this video. We're going to off. We're going to randomly choose three people to win these three books. Last week's winners were Janelle Schwenskoski. You poor girl. Miretta Martinez and Kendrick Faison. Three winners that won these books. I personally sign them free shipping. So congratulations. Janelle, Meretta and Kendrick. Okay, now back to our questions. What do we got, Ricardo?

Ricardo from YouTube says hello from Chicago. In short term rental operation, what is the best entity to rent it from? I hear S Corp. I already have an S Corp for my painting business.

Okay, and he's talking VRBO and Airbnb, right? That's what he said at the first. What's the best entity to use for rental arbitration? Rental arbitration. Boy, I don't know if I've ever heard that word in my entire career. Rental arbitration. Ricardo, we're going to have you make another note there, will you look for that rental. There's attorneys that do arbitration, judges do arbitration, but I've never heard of rental arbitration. I mean, are you solving problems with renters and their landlords? But you're a painter, so you're not licensed to be an arbitrator. So let's. Let's figure that one out. Now, was there a follow up to Rosa, did you have a follow up? Okay, good. All right, what do we got?

Matthew asks, should I renew an out of state LLC or register in my home state? My organization is formed in Utah and I live in Pennsylvania.

Matthew, I actually probably know what company screwed you over and set up your Utah entity when you live in Pennsylvania. Makes no sense whatsoever, right? Well, Utah is a great entity state and we're going to set up unlimited entities for you. Matthew, who the hell cares? You should have your entity set up where you're doing business. This stuff makes me want to cry. Okay, so Matthew, have a feeling. Well, let's go either way. Let's say Matthew owns rental properties in Pennsylvania. Let me see. I have Pennsylvania tenants, a Pennsylvania property. I live in Pennsylvania. I'm going to make ads in Pennsylvania. I'm going to collect rent in Pennsylvania. Hmm. Should I have a Utah entity for that? No, you need to be doing business In Pennsylvania. That's a technical term, by the way. So we're going to set up an entity in Pennsylvania. Or you can take your Utah entity and keep paying the stupid fees in Utah and register foreign in Pennsylvania. If you want to keep paying those fees, feel free, Matthew. Or you can do what? Some article of domestication. You can move the entity of Pennsylvania. My office, Susan. She's amazing. Susan Compey. Here's the phone number. If anybody wants it. 435-586-9366. Give Susan a call and say, susan, give me a quote. How can you fix this? You don't even have to talk to an attorney if you don't want to. And she'll help you out. You. But if you've got a lot of questions, she might recommend it. Now, if Matthew is an electrician in Pennsylvania, same story, he's doing work in Pennsylvania, shouldn't he be registered in Pennsylvania? That's right. Or you have no protection at all. It's really that easy. I know some of you are going, that sounds too easy. I know. Because these fly by night companies get up on a stage somewhere at a Holiday Inn this weekend and they sell everybody on their trap entities out of Utah, Nevada or Wyoming because they're great. They. They are great. But if you're not super rich or doing business in those states, it's not worth it. And I don't care about the hate mail. Send it on. I'm getting mad. Got to throw a broom at someone here. All right, what do we got? Carlina or. No, we got. Yep, there we go.

From YouTube. Says, I have an LLC that was sent. What? That was set up by some place in Nevada. It came with my Fortune Builders investment. I don't even know how to run an llc. It's scary.

I almost get emotional. And I'm not trying to act here. Carlina, do you know how many clients over the last 15 years we've helped unwind some entities set up at a Fortune Builders event? And I'm sorry, I think Fortune Builders education is fantastic. But then there's the follow up where they sell people entities they don't need. And I. And I'll say that I don't care. You go Google, search it, you'll see it everywhere. Carlina, we need to get you a consult and we'll make it as affordable as possible. Just set up a half hour with one of my attorneys and say, here's where I live. Here's the business I'm doing. What can I do with this entity? We'll more than likely close what you're doing in Nevada and move your entity to where you're doing business. Try to save you as much money as possible and just do it right now, guys. Hey. You've got 10 rental properties and you're worth a million bucks, and you want better protection? Shoot. I'll set you up in Nevada or Wyoming with a whole. I do this all the time. I did it with a client today. I'll set up a holding company in a state like Texas, Wyoming, Utah, Nevada. This is called a COPE entity. And I'll have own all your other entities around the country and all your rentals and investments. We'll do it. But I bet you Carlina doesn't have a million dollars worth of real estate in five different states around the country. But she got sold a structure like a Ferrari, and all she needs is a Honda Civic. So, Carlina, all my info's below. Look us up, check us out, or get somewhere safe and do a reorg and change this up. Okay, Kenny. And can you get me a drink? Rosalie, would you mind?

Okay, Kenny, I have an LLC that's holding ip, and we intend to sell our product online. I'm wondering if another entity to sell online. What's your take?

Okay, Kenny. Now, Kenny. See, if I was on the phone with Kenny, I'd be going, do you have partners? What other operations do you have and what other income? So I'm going to make a couple of assumptions here. Okay, so let's say Kenny, who he says. What did he say initially? He's got some operations, right, that he's doing. So I'm going to assume that Kenny's probably an S corporation or he's an LLC waiting to convert to an S corp. And here's Kenny, and he's down here. And then he said. He said we. So that kind of makes me nervous, like there's partners involved. But he's going to do IP intellectual property. So he's going to go create some cool thing up here, and he's going to want to sell it online. That's what I'm taking from this. Now, if any of you are selling product online, whether it's tennis shoes from Africa or some product out of New Jersey, I don't care. You might want to set up a subsidiary. It could be a wholly owned LLC, 100%. And this LLC goes and gets its own merchant account and its Amazon affiliate ID and whatever, and it could set up all those things. Thanks so much. I got a tone down my rhetoric today. I'm like so upset. This topic fires me up because I just feel so bad that sometimes people are sold entities they don't need. So anyway, Kenny, you could set up a separate entity just to sell your product online. I don't do that even myself. I just set up URLs and DBAs through these different entities. And we've got a problem with this light. Maybe my video tech and. Oh, it just popped, so we're good. Okay, so now I've got a separate entity, but a lot of times I don't have separate entities here, just run URLs and DBAs through that LLC. So that's what I normally do. I don't set up all these separate entities. So, Kenny, this is another good example of why you might want a consultation before you go. Just set something up online. You might want to double check a lot of that. Okay. Did we get any Carlina? Did she or no. Who was it that I wanted some back? Ricardo. Did we get some more info from him?

Steve?

Nothing new. Okay, I'm going to go with our 6, 7, 8, 9, and 10. Okay, so here's where we go. I gave you five problems you could have with your entity. Let me give you 6, 7, 8, 9, and 10. And then we'll just do Q and A and rock it here. I really want to help all you folks. Okay, so 6, 7, 8, 9, 10, 10 problems you could have with your entity and not even know it. Number six, failed ongoing maintenance. So failed ongoing maintenance. Now, this could mean a number of things. I'll put ma I n t. That's why I got cleaning supplies up here. That's my prop. Ongoing maintenance means when you have an LLC or a corporation, you need to do annual minutes, you need to do a little meeting. And some people say, oh, I don't need to do that with an llc. Why not load up the fam, Your best friend, your girlfriend, your boyfriend, go to Vegas for the weekend and have your annual corporate meeting. It's a great write off. Why not? Also, when you do your annual maintenance, you can implement a board of advisors, a board of directors. Get some advice and support with your. I have a board of directors myself of people that have no ownership in my business that give me advice. Why not? And annual maintenance could also mean in a big way, making sure your fee is paid to the state. When you do a cleanup service with us, our paralegals check to see if your entity is even in existence in the right state and have you in your annual fee. If you haven't, it could be dissolved. Alright, number seven, partnership provisions. Oh my word. Partnership provisions. I'm just going to say this right now. I am dealing with my first text of the day before I even left the house before 8am was a partner, investor, lender mess on a deal across the country where these people got together to do a fix and flip rehab. There's probably 10 people involved, not one partnership agreement. It is a mess. There's threats of lawsuits every day and I'm trying to get everybody on the same page and settle this thing. And it's costing thousands of dollars to to try to wrap up a deal where if they just would have had the right partnership provisions, so many people go set up an LLC and then go sign a napkin at Denny's. That is not the right way to do it. Just an example, tomorrow at lunch I'm having lunch with two partners. We're calling one in on a phone call, we're going to have sandwiches and we're going to nail down the partnership terms and then we're going to sign it. That's what partners do, we nail down the provisions and frickin sign it. Okay, number eight, I'm going to do eight, nine, ten. Is that okay? We got Ricardo follow up. Okay, this is good. 8, 9, 10. Accountable plan. Ooh, I mentioned that already. Accountable plan provisions. So that kind of goes with the tax provisions. I really think it's 10. I wanted to come up with 10. All right, nine. I don't even know why I did it. That's the problem. And if you heard there I think it was, I can't remember her name now, but she said why did I even do this? If you don't know the why of why you set up your entity, you probably have the wrong entity and you want to get a consultation on that. And then Last 1, Number 10 is no bank account and or your rental property isn't even deeded to your LLC or your business doesn't own the assets on title that you wanted to have. And don't worry about the bank on the due on sale clause. As soon as you close, you want to deed your property into the right entity. I in 20 years I've only had one client in thousands and thousands of LLC deed transfers where a bank even cared. So get that property in your LLC as soon as you close on the property and get your LLC set up. Okay, that's my 10. So we're going to do some Q and A and then we're going to give away a book. I want to tell you about my annual September special so that you can get your entity cleaned up and some of you just need a consult for a half an hour and get it cleaned up. And that is included. Ooh, that's right. I can tell them it's included. I got my team over here reminding me this is good. Okay, what's Ricardo's follow up?

Okay, so his follow up is, yes, Airbnb. Not owning the properties, but leasing the units and putting them on such platforms like Airbnb.

Okay. Arbitration. I know it was probably a Siri problem when you were saying that, Ricardo. I knew rental arbitration did not exist. I assumed Airbnb. Thanks for clearing that. Okay, now everybody listening. This is a really wonderful strategy, getting an Airbnb vrbo. And instead of doing a long term lease, doing a nightly lease. And if you're in the right spot at the right time, you can quadruple your monthly rents by doing what's called a short term rental. Clients are doing it all over the country. And what Ricardo just said is, he goes, mark, I do even something better. I lease the property on a one or two, three year lease, and then I turn around and sublease it in a VRBO strategy. So I've got a long term lease, I don't even own the property. And then I turn around and rent it out in a short term manner. And whatever we make in the middle, get to keep. So that's a kind of a sub lease. VRBO is what we call it because you get a lease, sublease it, and you make the difference. Very common. Now, what Ricardo is saying is, Mark, you say this all the time. People are listening. I just tell you to put operations over here, right? I tell you to put short term operations on this side and long term operations over here, and a lot of people screw this up. This is why a quick half hour phone call with my team sets you straight. The IRS just came out with a notice last year that said, even though it's a short term rental, if you do not act like a hotel doing daily maid service and concierge services and daily hotel type services, you can still treat it as a long term rental. This is good news for you, Ricardo. So we don't even need an S Corp. We don't need any sort of operational entity. All my clients that are doing Airbnb and VRBOs, they're either buying the rental in the name of the LLC and doing a vrbo. Got to give Airbnb some love. Airbnb. Whatever. Okay. All right, now. Or I could lease A property and then sublease it and I get the revenue in my LLC even though I don't own the rental. All of this guys is passive. There is no self employment tax. So this is a really good thing. So Ricardo, I've got articles on this, I've got videos on YouTube on come out. Alright, maybe one or two more questions. How are we doing? Are we good? What do we want? Two more questions. My lady said Travis.

Travis says hi Mark. I have a Delaware LLC that I had set up for medical sales that I no longer use for med sales. I am now running a coaching practice from home in Texas but also with overseas clients. Do I need to make structural changes to my LLC and move it to Texas?

Yes, Travis. Very straightforward. I think everybody you'll love this. Is Travis doing rental property? No. Is he doing a VRBO or Airbnb? No. Is he doing duplexes, mobile homes, storage units? Nope. He is nowhere. Over here. Travis lives in Texas where there's no state tax and there's Buc EE's. Mmm mmm. Great barbecue. Get over to Bucky's as a little promo. Bucky's should sponsor me. Okay, so he's in Texas but he's got a Delaware llc. He doesn't live in Delaware and all he's doing is selling product. So what we want to do is take his Delaware LLC and move it to Texas. That's step one. And we can do oftentimes what's called articles of domestication. Now they're not available in every state. So you want to call Susan. I gave you the number earlier. I'll do it again. But you call Susan and go, hey, can I do articles of domestication in Texas? And for a couple hundred bucks you can move your Del Whale llc. That's number one. Now next question people. I'm going to ask you if Travis is selling coaching and he lives in Texas, that passive or active income? It is active income. Is it subject to self employment tax or not? It is subject to self employment tax. So he's going to pay 15% on every dollar of profit unless he implements what entity? Can I hear you? That's right, an S corporation. So we do not want his LLC doing business in Texas selling coaching unless step number two, we turn it into an S Corp. We charge 125 bucks to file it as an S corp. Done. And I want to Backdate it to January 1st, 2019. Travis, call me. We want to get this in as an S Corp. Start your W2 payroll and start creating passive K1 income. Every thousand dollars you make here, you save 150 bucks. Every ten thousand dollars that's passive, you save 1500 bucks. That ain't chump change. So we want to do, number one, get it to Texas. Number two, get it into an S Corp. Number three, start as payroll service. And I'm just getting rolling. I got 25 tax strategies I talk to about my. With my clients. Every time we do a consultation, we got to be thinking through that. I'm not going to list all 25. In every call, I figure out what works for that client, we go through it. Okay? Are we done? Oh, no. A.J. this is the last question. And then I've got an important final special to get your entity dialed in. Includes an half hour with an attorney. You're gonna. A.J. what do we got?

A.J. says, what can I do if I. Okay, sorry, let me repeat. What can I do if my address changed? And I would like to change the status of. To an S Corp.

Okay, so his address changed, and he wants to do an S Corporation. So I'm going to say AJ and for everybody out there listening, these are two different issues. What you choose as your address is a matter of privacy. In fact, next week, my show on Thursday is. Am I doing it Thursday or Wednesday next week? Because I'm speaking in Seattle. Here's a little note. If you're listening and you're in the Northwest. My Seattle workshop is next weekend in Renton. 200 bucks includes lunch, and I think I have 10 to 20 seats left. If you're interested, get to markjkohler.com and I'll be up in Seattle. And I do leave Thursday afternoon for my flight. So I think I'll be doing this webinar broadcast next Wednesday at four Mountain time, if you want to put it on your calendar. Okay, now back to AJ Address. Next week, I'm going to talk about privacy. I'll be wearing camouflage. That's right, camouflage. No bulletproof vest. Because we're talking hiding very different than asset protection. So, A.J. i don't want your personal address out there. So depending on where you live, and if we talk about Travis here, he now lives in Texas. Well, when I register in Texas, maybe he doesn't want his personal address out there. So I'm going to choose the address that creates the right amount of privacy. That's our topic for next week. But the S election is completely different. That's a separate form. And I don't care what address you put on there. Irs Typically, I want a mailing address. I don't want a street address anyway. So we're going to do the address thing separate from the S Corp. And John is bugging for a question, Is that what you're saying? All right, hurry John.

John, is there a better state such as Delaware with its court of Chancery of its more affordable for an inter based company?

Inter based Internet, sorry, Internet company. Okay, John and everybody listening. This is so important. I want to repeat John's question and I'm not trying to be demeaning or rude to John, but this is really, he's coming at it the wrong way. So John says I've got a Delaware company and I do Internet sales. John, you missed the most important question or fact. Where in the freak do you live? That's what matters. And you go, well it's Internet sales, I can allocate it anywhere. No you can't. In the state of California, you, if you make the money and you're a California residents, you get taxed. Even if you have a Delaware entity, if New York and you have a Delaware entity and you have Internet sales, you can't say they're on the web, doesn't matter. You get taxed people on what state you live in. And there's only nine states that have no state tax. Let's see if we can do it. We're going to try Washington, Texas, Florida, South Dakota, Delaware has a provision. And Tennessee, we've got Nevada, Wyoming doing so well. Did I say Tennessee? Anyway, these are all in my book. I talk about this all the time. Get to my website, get to my blogs. But see John, I care where you live, then I set up your entity to save you the most tax. So Delaware shouldn't even be a part of the conversation. If you're selling products on the Internet, it doesn't matter. Now John, if you say oh, I have an apartment building that's worth a million dollars and I want maximum protection and it's in the state of Colorado, okay, Now I might do a Delaware entity to own his Colorado entity that owns the apartment building that's worth $1 million. Now I've got two layers of protection and Delaware kicks butt. But did I say Internet sales anywhere in there? Did I say state tax anywhere in there? No. If I'm doing Internet sales, I am going to be taxed on the net income in the state where I live. There we go. Is John got a comment?

Dallas.

He lives in Dallas, Texas. Oh, you are a lucky man. So he lives in Texas, no state tax. Again I say why does he have A Delaware entity. You don't need one. John, move the freaking thing to Texas. Do some privacy. Get it over there. Do your s election. It's going to save you some money. You're going to freaking love it. Okay, here's the last point, everybody. Every September I do a cleanup special. It's only 495 bucks. You get a half hour with an attorney. You get your entity minutes done for three years. We go back and back date them. Then we crumple them up and spit on them and pour coffee and let the dog chew on him. Put them in your book so they look three years old. I'm just joking. But we do your three years of minutes where you get a half hour with an attorney. You make sure your entity set up where it's supposed to be. We give you bylaws, operating agreements, articles, whatever you need to have your entity providing the protection you want. It's 495 bucks. And if you want to get over to kkos lawyers, there is a banner right at the top. Click on it and you're into our special. It's there. If you don't use us, it's fine. But go somewhere, clean up your entity and get it done. If you share this video, you're in for the drawing, for the books. You will love it. Follow me on social media. Please give me a like and my newsletter. You can sign up on any of my websites. My newsletter is free every week and it goes out tonight. Got some great articles and last minute tips. Oh my gosh. This Sunday. S corporations are due for last year. LLCs are due for last year. Your group 401k deadline is October 1st. Guys, there's questions you don't even know to ask. Let me be your source for tax and legal strategies. Free every week. Podcast, newsletter, blog articles, YouTube videos, Facebook Live. We got a team behind the scenes if you need us. Let me see clean up special 495 back. My business owner workshop in Seattle next week. If you want to come sign up, get over to my website, markjkohler. Com and thanks everybody. Keep living the dream. Don't give up. You need an entity. Just clean it up and get out and make some money. Thanks everyone.