Strategies for Building Your Business in the Wake of COVID

Building the dream, making money, protecting it, saving taxes, all the above. This is dedicated to all you geeks out there like me, that have a small business and you're sick of your accountant and your lawyer not speaking English. And you're like, I need answers. Well, today we're going to do it. I've got my team of lawyers. I was able to wrangle two of them out of the office today. They were like, it's Friday afternoon, get me out of the frickin office. So I've got Max, our lawyer in training, he's coming over. He's awesome. Sitting for the bar this month, so. But he's still pretty smart. And we got Allison here, she's amazing. I was like, we need cameras on these teams. Dave Ramsey does. I don't know why I can't have cameras on my team, but we're gonna get there. So anyway, trust me. They're off to the side here answering questions of yours, typing as you type them down below. We're live on YouTube, Facebook, Instagram, and we're live on Facebook, Entrepreneur Mag and my own. And I'm here for you Today we're going to give away a bunch of stuff. We're going to give away books. I want to answer questions. I want to talk about building your business. After Covid. We're here for an hour in pen drop. It's going to rock. It's going to be good. So if you type down a question below and you have someone answer it and, and they say this is Max or this is Allison, then you know it's my team. So you're going to get a Mark Kohler answer. And if they're. And then Corey and the team, they're going to throw it at me to talk about questions that they think would be great for the live audience. So please, I'm here for you, so get engaged. Share this link I'm here for you. I'm going to try to do my best. I'm a CPA and attorney. If you haven't watched before, I'm all about Main street business. I hate Wall Street, I hate taxes, sports. Going to pay our fair share. I don't want anybody going to jail. But we're only going to pay what we have to. And I don't want some someone freaking suing you and taking your money. So we're going to build the trifecta. Your master plan for your structure. We've got an estate planning special that ends this weekend. It's Father's Day. Little promo code for some Father's Day. Bling. That what we call it, Jack Bling. Merch. Merch. Call it merch. So I'm here for you. I was jamming out to some Van Halen before the show, but I couldn't play Van Halen because I haven't paid Van Halen to play their music on YouTube and podcasts. But I'm going to get there. Someday I'll be a big enough deal that Van Halen's paying me to play their music before my podcast. So hang tight. All right, well, here's my take on post Covid wealth building. It is now estimated over 40% of working Americans have a side hustle. It was under 30% right before COVID hit. And more Americans, millions of Americans, realized I gotta have my side gig cranking because I can't depend on my employer. And what the freak, if some massive pandemic, heaven forbid, hits the world stage, how am I going to pay my bills? So my number one admonition to all of you watching today is saving taxes, building wealth is have a side hustle. Have a side gig, which is the gateway drug to having your own business pay all the bills. But if you're married, it's a great gig because you can have your spouse doing the day job, the benefit thing, and you're running the small business together. You're doing something you love, you hope, and if you're not, don't do it. That's the beauty of having your own small business. You get to choose what the freak you want to do. So I want to talk about that structure. So what I call it, my claim to fame, whatever is, I call it the trifecta. And this is. Well, I help my clients that are making millions and the clients that are just brand new, starting. My daughter, who's a realtor out in Orange County, California, looking little shout out to Sydney. I love her. She's my little small business owner. She has her own little L.L.C. s Corp thing. She's got a side gig. That's her thing. She's learning how to be a realtor. She'll wait tables, she'll do some marketing. She'll do other things to make ends meet. Because she's young and this is her college experience, she's hating that I'm talking about her. And so, guys, she's unavailable right now, so stay away. But here's how the trifecta works for her and for my 10 million dollar clients. Whatever, everyone in between. What I do. Can we see this? Everybody? Cory, this is good, right? Okay, what we do is we take our revocable living trust. This is our trust foundation. This trust is not about saving taxes and it's not about asset protection. It's about privacy. It's about hiding. It's about having a little more privacy in our life with this Internet world. This trust kicks into effect, if anything happens to you, it's going to have your will. It'll have your powers of attorney, pull the plug if I'm a vegetable, blah, blah, blah. This is your estate plan. That's the foundation. You got to have a foundation. What the freak? If something happens to you, where's all your money going to go? All this small business stuff you're building. Then I divide your life in half. And I want to put your operations over here, your ops. Got a rock star going today. Little sponsorship there for my people that I love. Rockstar. Rockstar recovery. Zero sugar, 10 calories. Is that what I'm supposed to say? They never told me what to say. I just like rock stars. All right, I want to be your tax lawyer. Rock star. Okay, so over here is your ops. Now here's the combo. This is what I've learned, even more so after Covid, but I've been teaching this for years and I love it, is I want to take your day job, W2, and combine it with the small business. This is the combo. This is what I want to have in all of my clients lives. This could be an llc, it could be an S corp. I don't know, it could just be you. You could be married, partner, who knows all sorts of variations. But this is your small business that's generating revenue in combination with your day job that's generating revenue. This gives you job security. It gives you wealth security. So many people say it's too risky to have a small business. I say it's too risky not to have a small business. Now, my little, you know, speech here is going to end in a few minutes and then I'm just going to take questions from around the country and I'm going to give away books every freaking 10 minutes. And if you say out there on the chatter, give me a book, I'm not going to give you a book. So just chill. No. No spamming. Give me a book. As much as I appreciate your enthusiasm, people just, you know, just ask good questions. Corey is going to randomly choose winners here, guys and girls. East coast, west coast, international, national. Okay, so here's your combination. I want you to be building wealth with the day job and the small business. If your small business Gets so successful that it's costing you to go to work, you get rid of it. If your small business is there for earning extra money and happiness and enjoyment and it works with your day job, then cool. Don't, don't get rid of the day job. Let's, let's do it all. Let's just be careful. Where do I want this? I want this down here. So we want to keep the day job if it works in our master plan. Because here's what's cool. This is our operations side, the ops. But this is our asset side and this is where we really build the wealth. And so what I want is the day job, maybe funding a 401k, your small business funding a 401k. You can have two 401ks, you could have a Roth IRA RA over here you could have an HSA. You could be building tax free or after tax money, investing in crypto, stocks, ETFs, real estate, whatever you freaking know best. This is your kind of after tax or pre tax money here where you're like doing different strategies. But you can fund it with the day job and your small business. See again we're hedging against a crisis. This is what Covid taught us. Crisis has come, shiz happens. We need to have something to fall back on. That's the small business. This is the day job. Let's use both of them. Okay then over here we build pre tax real estate investments, land, second homes, farms, real estate, whatever you freaking love, but you want to use it personally. See over here, these types of assets you can't play with. I can buy an Airbnb inside my ira, but I can't go stay there. But over here I might put an Airbnb. The cash flows and I can go stay in it, I can fix on it, I can do travel, write offs, all sorts of cool frickin strategies. So over here we might have LLCs. And check out, here's the trifecta. Boom. Boom. You've got your operations, you've got your holdings and it all flows down into your privacy types trust where we bring everything together. This is your 1040. Now simply what happens a lot of times is this is what it looks like is this is my kind of like a little face there, okay? This is my realtor, this is their rental, this is their trust. Boom. This is their S corp, this is their llc. This is my dentist, and this is my crypto and this is my trust. This is the restaurant, this is the building, this is the contractor, this is the duplex. This is. See, this is where we're building up all of our wealth. And we're building the wealth, living conservatively, paying off our debt, staying out of debt. And we're getting every freaking write off we can. Paying the kids. Travel, dining, home, office, computers, laptops. This is rock star 100% write off, baby. Okay, I want my headphones. Bose right off a speaker, right off my glasses. Write off through an hsa. My laptop write off. I mean, you see what I'm saying? This is going to be my Tesla. This is 100, 164 ratio. This is. Someday I'll have my Tesla truck. All right, there's my motivational speech, everybody. I love small business. Love the American dream. Is it hard? Yes, it's freaking hard. I worked till midnight last night, but I got to choose the hours I worked was my business people. We're going to work hard. It's not a get rich quick scheme, but you control your destiny. And that's what small business is about. But getting a straight answer on what I can write off and how to structure it and how do I protect myself? It's crazy out there. It's a jungle. But not here. Not at KQS, lawyers, not at K&E. CPAs directed. Ira, my team, how are you? Answering bunches of questions. We rocking. Okay, Max and Allison over here taking care of you guys. I'm gonna start answering questions. I'm here for you for the next 45 minutes. Just having fun. We take a swig of Rockstar. Okay, Corey, who am I answering first? You tell me, Alex. Thank you. I love you, Robert. I've seen you here before. Thank you. I love it. Look at the Cato twins. They're here. Okay, I'm going to the Keto Twins, all right, over on YouTube. How would a trust work if you have an LLC partnership? 5050 with my sister Donnie. We were talking about this last night. Boom. The Cato twins are sisters and they have an LLC partnership. We are thinking about a trust for privacy, like you mentioned. Okay, you guys ready? I love this topic. Because when it comes to partnerships, we got to be careful. We unravel this crap all the time. Okay, I'm going to go to a little thinner pencil here. Okay. For all of you out there that might have a partnership. And we're talking to the Keto twins. Kato. Keto twins. Okay, here's how it works. Now, this is tricky. Let's put our operations over here. Why is this gray? I didn't want gray. I just want a thinner Pencil. Do I do this? All right, whatever. I guess I just don't have to push as hard. Okay, here's our operations. Now let's say the Keto twins are doing an operational business. Let's say they're going to do online store, they're going to do affiliate marketing. I, I don't know, they're just going to sell crap on ebay or Etsy, whatever. So we got the keto twins 1 and 2. Do I set up an S corp and let them both own the S corp because the number one tax. I'm worried about everybody. What is it? I'm worried about self employment tax. And so with the partnership, I'm worried about tax. Right girls, that's my first concern. And then they go, whoa, whoa, whoa. We want the trust in there too, Mark. So I want my trust to own RLT Revocable Living Trust. And I want my trust to own the other part. Okay, cool. The privacy trust, that works. But the problem is you've jacked it up with an S corp. Now some of you say, well Mark, you preached forever that we need an S corp to save on self employment tax. Yes, but that if it's, if it's your S corp or you're married. I got two different twins. Let's say one of the girls wants to write off cell phone, travel, home office. The other girl, she bought a new laptop, a new Bose headset and a phone, all for business use. Well, they can't write those off in the same S corp without it being unequal. It's all jacked up. One of the girls wants to buy a new car, the other one doesn't. What do you do? You can't. Unreimbursed employee expense doesn't work. Now we got different salaries, we got the W2 thing going on. It's a freaking mess, girls. So what do we do? Here's the solution. We get rid of everything but the partnership. Look it, but we don't do an S corp. We do an llc. Now you're going to say, well Mark, now the girls are going to get screwed with self employment tax. That doesn't make sense. They own a restaurant. You've got a partner, you own a restaurant. Together you're doing real estate flips, together you're doing online sales. You're gonna get killed with self employment tax. So what do we do? Each girl sets up their own S corp. Okay, now I know you in California. You're freaking out going Mark, An S corp in California is $800. You're stupid. That's gonna cost me two. Do you think if I could write off your cell phone, your computer, and your. Your car, it's gonna be okay to pay 800 for your frickin s corp when I saved you 5 grand in tax? People quit stepping over the dollar to pick up a stupid nickel. I know it sucks in California. I lived in California. I know the routine. The $800 sucks. But don't run away from it. Run to the light, people. Run to the light. I want to save you taxes. So each daughter, each girl, each sister in this, the twins, then they set up their own trust. Oh, their trust owns their own S Corp. And let's say one of the girls says, oh, well, I'm going to do some other stuff on ebay that's my own or I'm married. And my husband, he's going to do some contracting and I've got another 1099 because I'm a realtor on the side. And the other sister goes, well, I'm not doing any of that crap. My only income is the 50% from the LLC. Okay, that's cool. Each of you can set up your own W2 set, hire your own kids, write off all the expenses that relate to you because you've got separation. Now, this is a chapter in my book. Okay, where are my books? What am I giving away? Cory, where are my books? Hook me up. Okay, they're down there. Okay, so in my book, the Tax and Legal Playbook, I have a whole chapter on partnerships. All right, thanks, guys. Okay, we're going to give away some books. Corey, I need names. So this is the book and I have a whole chapter of on this issue. And I've got videos on YouTube on this. Okay, so what's the chapter on partnerships? It is documenting a partnership, bringing on investors. The how to set it up. This is chapter 22. Okay, I want to do 22 on this. And yep, I also like the S Corp in chapter four. Okay, Corey, I want to give away this book, my financial freedom, and what your CPA isn't telling you right now. So give me some names. Who are we giving away to? Quinton Mason. Quinton Mason, you have just won the Tax and Legal Playbook. And I just saw your note. People are spamming your live with fake bitcoin ads. Could you. You need to block them. You were blocking them. We're working on it. Thanks, everybody. Just. Just enjoy the live. You don't need to spam a bunch of crap on there. I love bitcoin. I own Bitcoin. Let's just save it for another day. Okay, so this goes to Quentin. Now you're writing down these names so I can personalize this book. Okay. Who gets CPA book? Kyle Bender. And he asks, is there a benefit to setting up a living trust before marriage? Can it protect your assets in the event of a divorce? Kyle, I literally walked in five minutes before the studio show today, did I not? I had a phone call. I had a phone call consult with this cute girl, 21 years old, dating a guy. She's got money and she might get married. That's what I talked about, Kyle. So we're going to go to that next. You're going to love it. Prenup, but avoiding the prenup. Okay? Prenup avoidance. Kyle. We're going to talk about it. Okay? Who gets my financial freedom book? Yvette Jones. Yvette Jones. Yvette. Now, all of you that just want a book, you've got to email Corey. He's got your name, so if you're not those people, please don't email and whatever. Corey is a good looking guy. Are you. Are you available this week? Are you still unavailable till further notice? He's still. He's on the rebound, ladies. Give him. Give him some chance, you know, Give him a chance. Okay. Corey's not happy with me at the moment. Okay, Corey@markjkohler.com Corey Markj Kohler.com. you email Corey, give him your name. Freaking. He'll make sure your book goes out to you. He'll get your info. All right, Now I got to finish with the twins. Now their main concern was privacy. You still get the privacy at the trust level. I want the trust to own their home. I want to not use their personal address on all their documentation. I want to do mail forwarding. We have a mail forwarding virtual scan service where we get your mail at the law firm. We scan it, we protect it, we give you an email, check your mail. No one knows where you live. The trust is on public records for all your information. We don't want your name or your address out there as much as we can. That is the revocable living trust. And each girl, the twins can have their own revocable living trust, which owns their own S Corp, which maximizes their write offs, which does their own W2 for self employment, tax planning, and then their S Corps own the LLC. 5050. This is the partnership. So I talk about this all the time. We love the structure. Even if you're in freaking California we make it work. And if I'm worried about the gross receipts tax, I'll just do a general partnership up here in California that avoids the gross receipts tax. But I still pay the. The net tax down here, which is okay because you're not going to get killed with it. And it's worth it for the self employment tax. Savings. Okay, now, Kyle. Okay, can I take Kyle's question real quick? Corey, I'm just going to say this real quick. Like I said, my consult before this broadcast was on this very issue. I'm going to use one of the twins, my keto twins. I hope you're okay with this. Kyle said what happens when. If sister number two wants to get married and she's built up some wealth, what do you do? Can the trust help protect that money from a potential divorce? Yes, it can, but it takes some advance planning here. Now, I'm going to give you option one. Option one, just freaking do a prenup, blame me, say my lawyers. Allison over at the law firm said you can't get married without a prenup. Will you take the heat, Allison? Yeah, she's. Yeah, she'll protect you ladies. She's sharp. Okay, so Alison Neff, she's one of our attorneys. You can meet with her. She'll help you draft a prenup if you need to. Your prenup, you make the guy sign it before they get married. And Alison will freaking hold your feet to the fire. You make the guy sign it. And this, sister number two is protected. Now, guys, this works for you, too. So option number one is a prenup. And then once you get married, we redo the trust and we do a marital revocable living trust. Frankly, they're cheaper, they're easier, they're simpler. You're going to be married, but we protect this sister's money from a divorce. Okay, that's option one. Now, many of you don't want to talk prenup with your lover because it's no fun. I thought you loved me. You know? Right? No. Good. Okay, so option two is I convert this trust to irrevocable. Okay? Now, Max, he's good at this. Max can say, oh, yeah, I know what to do. We'll take the revocable living trust, make it irrevocable. We're going to convert it to an irrevocable trust and carve out the money you earned before marriage and lock it down. So we're going to lock down that money. That money is locked down. And then you go get the marital Revocable living trust for all the crap you're going to earn together. Now you have two trusts, no prenup, that, that saves the argument. And so you use the revocable living trust converted to irrevocable, lock down the money that you want to protect from a future divorce, and then you do a marital revocable living trust for all the future marital assets. As long as you keep those assets separate and you respect the irrevocable and the irrevocable trust, you're going to be good. You'll be good. And this is a grantor irrevocable trust. So there's no extra taxes. You can use privacy, the whole nine yards. Keto girls. Thanks for letting me use you as an example, Big stuff. Kyle, we answered your question. Next question. Corey, where am I going? Joshua Sharps from the bay Facebook says, hey, Mark, we have an LLC partnership, three partners and plan to designate it as an S corp. Wrong. Right, Josh, you just saw what I said. Look at. Josh said we have. Look at this. I'm going to use a little straighter line. Okay. Boom. Joshua says we have an LLC partnership and we're going to make it an S corp. Now why is Joshua going to do that? If Joshua was right here, I know he'd say, mark, we got to do an S corp to save on self employment tax. We're each going to do a W2 and we're going to make an S election to save on tax. Yes, you would save on self employment tax, but you've jacked up all of the partners individual write offs. Terrible. Not good, Joshua. Okay, but he says we plan to do this. We plan to do this when we designate when we surpass 40 grand. Is that 40 grand each? That's when it would normally make sense, Joshua. So he's saying once we start making 120 grand, we're going to make the S election and do 20 grand salaries and 20 grand K1s. See how that works, everybody? I've got 60 grand here. I've got 60 grand here. It totals 120. Boom. Okay. And Joshua was like, mark, we're saving self employment tax. But again, you've screwed up your write offs. Today is all about partnerships for some reason. We'll get on to a new topic, but Corey chose this question. If you don't like it. Okay, our question is when it does make sense for each individual partner to assign their ownership in an LLC to their individual S corp. Thanks for all the great knowledge. Thank you. Joshua, when do we do this? Right from the beginning. If you're ready to make this an S corp, don't just set up your three individual LLCs at that moment when you think it's time to make this an S corp, don't set up the 3s corpse below. That's when you do it. And Joshua, I want to see 40 grand net at each level. Now, what I would normally recommend. Again, Donnie, this is what we talked about yesterday, right? If you've got enough write offs to turn this 40 into 30 or 20, just do an LLC. Let each partner make the S selection when the time is right. See, one of the partners may say, I have no other freaking write offs. I better make my S election. Boom. The other partner goes, I got a bunch of write offs. I just bought a new freaking truck. Oh, I don't even need the S election. I'll just stay an llc. See, each partner can make their own decision. That's why you do it this way. Joshua freaking rocks. All right, next question. Where am I going? Corey. Okay, Richard asks, how does it work with a charity? Richard, that's like a whole other conversation. How does what work with a charity? A trust. Let me tell you, everybody, once you're making enough money that you can form your own charity, I'm all in. We set up 501C3s and charitable remainder trusts. But everybody get your own crap put together first. Buying your rental, funding your 401k funding your Roth, your backdoor roth, the mega roth. You've got your S corp, you got your llc, you got your rental, you got this, you got your trust. Then you want to do a charity, call me. Don't do the charity before then, Richard. You may be ready for the trust. The charity, Richard? I don't know. But I'm just warning everybody, don't think charity until you've got your own house in order. That's how it works best. Nurender. Okay, let's give away some books. Cory, I need three new winners. Did you do guys last time? Are we doing ladies this time? Is that what you were doing? I got two guys and a girl last time. Oh, you did two guys and a girl last time. So we're doing two ladies and a guy. Two ladies. First Tax and Legal Playbook. Let's go with Lori Barefield. Lori Bayfield. Barefield. Lori Barefield. Lori, you just want a book. Tax and Legal playbook. You're going to freaking love it. Second edition. I will sign it for you, Lori. Any of you that win a book, remember, email Corey. C o R E. Yarkjcohler.com he'll hook you up. Okay, my next winner, CPA Book. Terry C. Terry C. Look at that pretty picture. Terry C. Terry C. Oh, keto twins said this is awesome. Thanks for the info. We appreciate it so much. You girls, you bet. Be good out there. Be safe. Okay, so Terry C. Now a guy wins the financial freedom. Who's our winner? Ben Harris. That sounds like a girl's name. I'm just joking. Ben Harris wants business owners guide to financial freedom. He also asked about captive life insurance. I talk about it in this book Ben and I would recommend my co. Ben, life is weird. Like literally that was meant to be the. You won the book and it relates to your question you asked about captive life insurance. Randy Luebke, my co author of this book which you're going to receive. Have a free consult with him or pay him for a half hour an hour. He knows captive insurance backwards and forwards. Now what I tell people about captive insurance, that's the dessert menu. For those of you that have been to a big buffet before COVID after you get all the other food and then you want to get serious with some additional tax planning and wealth building, that's when you talk about captive insurance. And you better be have money coming out of your butt. That's when you go talk to Randy and about captive life insurance. Ben. Okay. All right. What should I talk about? Any questions you guys are liking that I should talk about? Alison Max, where can you buy a book? Well, wouldn't that be a great idea? You can go to markjkohler.com and get the four book combo. Get all of my books. The four book combo which includes. I got to give one of these away. Corey, eight steps. This is a $99 workbook. I want to give away a couple of these during our session today. I wanted to give away a bunch of stuff today because I wanted to say thanks to all of you. I had 150,000 subscribers on YouTube and I want to say thanks. Just trying to spread the good word. And all of you that say great comments, I really, really appreciate it. My marketing team shares a lot of comments with me that people are making. I make a lot of return comments that are technical and need to my comment and I just want to say thanks. Please keep sharing the content with all of your friends and business owner friends and networks. But go to the get the four book combo. And Jack just told me if you write in the promo code dadsspace no space Dad's day. Even if you're not A dad. Even if you just want it, it's $10 off. And that's a lot cheaper than freaking Amazon when you add up the four book combo. So if you want to put that in@markjkohler.com you can get the four book combo, which is this book. No, not this. Oh, it's Matt's book. Can you hand me one? It's right up there. So you get financial freedom, CPA book, and the self Directed IR handbook written by Matt Sorenson himself. If you ask, I will sign it. It'll make the book more valuable. Matt hates it when I say that. Okay, all right, next question. Oh, no, no, no. I need to give away this. Corey, who's the winner of the eight steps book? Mommy Birkin Life. Mommy Birkin Life. Very unique handle. God bless you. So, Mommy Birkin Life. 8 Steps Workbook, 60 videos, lifetime access. I update the videos all the time. Comes with a business plan, a marketing plan, a strat plan, a kind of a town hall workshop for all. Eight steps of an hour and a half each. You'll love it. Mommy Birkin Life. Okay, all right, what's the question, Corey? Suburban homestead, foster ranch. How do we buy a rental home inside of an hsa? Is it possible to buy a rental in my name and deed it to the hsa? Okay, everybody, Health savings account. My health savings account owns cows, it owns rental property and it owns stock. You could own all of that in your own health savings account. Now, I've got articles and videos on this. And this is a big part of Matt Sorenson's book, the self directed IRA handbook, which you can get in the four book combo. 10 bucks off this weekend. Okay? Now here's how it works. I want to answer the question, how do you do this? All right, let's go through it. Step one, you open a freaking health savings account, okay? You got to open an account. Now you have to open an account that lets you self direct. So I would recommend you go to ww.directed ira.com go to directed ira.com you can have your HSA set up tonight. This year you can fund it if you're married or single. I just had a consult with a client today about this. This year if you're married, you can put in 70. So step two, you got to put some money in there. $7,200. Or if you're single, it's $3,600. Now if step three is. If you're like, well, Mark, I need more money to go do real estate. Step three is you can roll over any other HSA money you have laying around. Even if it's an employer, it's your money, it's an hsa. So go rollover any other freaking HSA money you might have into the account. All right? So step one, open the account. Step two, fund it. Step three, rollover any other HSA money. Okay? Now when you go open your account, you're going to open a regular HSA self directable account, not a crypto, because you're not buying cryptocurrency. So don't open the crypto hsa, just open a regular hsa. All right? You'll see that at the new accounts they have a chat line right there on the website. The team is wonderful there. If you get confused, just Mark Kohler said a regular HSA account that I can self direct. Okay, step four, I've done this. I've done this. I've been doing it for eight years. It's just, well, Merrill lynch and all the banks won't tell you because they don't make money off of you because they're evil. Okay, step four, you open an llc. So let's go to black again here. You're going to open an LLC. Now, the LLC could be owned 100% by your HSA. It could have partners, it could have IRAs in it. You could have a 401k partner. I don't care. Whatever. What you want to do is figure out how much money do you need to go buy the real estate? Because I'm going to ask you, and this is what Allison or Donnie or any of the attorneys are going to ask you. They're going to go, what are you going to buy? And you're going to say, well, I'm going to buy rental property in Tennessee. I need $20,000. Well, say, well, you only got 7,200, so you need 15 grand more. So where are you going to get it? Oh, well, I'm going to get my mom's IRA, my dad's 401k, my sister's Roth, and we're going to form an LLC and go buy a rental in Tennessee. Okay, cool. So we get on the phone, we set up your llc, there's your Tennessee. You meet with a lawyer. You have to have a lawyer involved. This is not a legal zoom freaking entity. This is a self directed structure. We charge 1500 bucks. It's not bad. Plus filing fee, plus IRA, registered agent if you need it, and mail forwarding if you want the privacy. Okay. This person might use their trust. Isn't this cool? This is like high tech, you guys. This is freaking. You asked a question, I'll answer it. All right. Okay. So step four is you create the LLC and you have to create an LLC that has enough money to do it. Now, Suburban Homestead Foster Ranch says, can I buy the property in my own name first and deed it over. Now why is Suburban Foster Homestead Ranch asking this? It's because they want to get a loan in their name. I know them. I've had this question answered question for 20 years. No, you cannot get the loan in your name to buy this rental. Now let's say you go, well, Mark, why don't you do it with this? You've got good credit. I'll use my HSA for 80% and we'll use your credit for 20%. Okay, that's cool. I can go get the loan in my name and deed it to the LLC right after closing. Because it wasn't my hsa, it's not a prohibited transaction. That's a whole chapter in Matt's book. We have a two day summit. You can buy for 199 on the website and watch it for two days. We go through strategies like this and when you meet with the lawyer, the lawyers will meet with you and they'll be like, we have 12 lawyers at our office. Make an appointment, they'll walk you through it. So you create the LLC and I'm going to put step five. You fund the llc, step five with the money you need. And if you do need to go into debt, it's got to be a non recourse loan or a partner that doesn't have their retirement account in the deal. So you can't, you can't put it in your name because of the loan and then deed it over. So think through that and then step six, go buy the freaking rental. Buy it and just follow the rules. I bought a little rental in Chicago about eight years ago in my hsa. It's the cutest little meth lab. It's adorable. Guys are great. They're so kind. They paid rent with cash in a little bag every week. They're just nice guys, lots of bling, but they really look out for me and I love them. Anyway, it is a section 8 rental and it only cost me 40 grand. I put down 5 grand with a non recourse loan with my HSA and it paid for my daughter's braces. Boom. In my HSA, baby, you can do it. I bought five cows three months ago in my HSA. The five cows. Had five baby cows. Now I have 10 cows in my HSA and I'm going to sell them this fall and make 10 to 20%. Boom. Because I watch Yellowstone and I love Kevin Costner, and I named it the Kohler Dutton Ranch because an homage to Yellowstone. All right, that's how you do it. Okay, next question. Where do I go? Corey. Coverdales. Man, you guys are killing me today. Mommy Birkenlife, the winner of our book. She says, can I please get a shout out from Seattle, please? Love you, Mommy Birkin Life. I grew up in Washington state. I love Seattle. And because I grew up in the Northwest, I am a believer. That's Bigfoot. You know, I am a believer in Sasquatch. I've been squatching on. Oh, which island did I go to? And anyway, so a little shout out. Mommy Birkin Life's regretting the shout out. Now she's like, we don't believe in Bigfoot. Mark, you were a nut. But, hey, I've had a Bigfoot experience, so I'm just throwing that out now. If you haven't seen the documentary, here's your homework, everybody. This is a documentary that you will become a believer. You need to go watch. Oh, what's the name? Oh, my gosh, I just forgot it. What's my. With John Lithgow. My Bigfoot documentary. Oh, what is it called? Okay, I'm gonna get it for you while we're here, okay? She says, as far as getting my two girls ready for uw. Love the Huskies. Boom. Love it. Uw. Should we go do Coverdale plus ugma, huh? Harry and the Hendersons. That's right. Harry and the Hendersons. Okay, everybody, that's your homework. Now I know Mommy Birkenlife. She's seen this. When you see this documentary, some people call it a docudrama. I'm just going to say that. But when you see this, you'll be a believer. So, okay, now, Mommy Birkin life says we have two girls. Now I see a little picture. So there's. There's the little husband, wife, and husband, wife and two little girls. And these two little girls, they want Coverdell ESAs to go to UW someday. And I love UW. That's University Washington for those of you that don't know U Dub and the. And that's the Huskies. Their stadium's right on the water in Seattle. Gorgeous. Love it. Okay, they want a Coverdell. And I would tell all of you, in my humble opinion, and I might piss off some other people, but I don't care. I think the Coverdale is the way to go. I hate 529s because you can't invest in what you want. And I hate UGMA accounts because once the kid turns 18 they can do whatever the frick they want. So I don't trust 18 year olds. And I hate 529s. So I love the Coverdale. Now some of you may go. Well Mark, you can only put two grand in a Coverdale every year. Yes, but you can invest the Coverdale and whatever the hell you want. And if you would have bought dogecoin of two grand in January of this year, what would it be worth now? Jack? Two grand. What's your guess? Dogecoin in my Coverdale. My Coverdell self directed Coverdell. Two grand in January. What would it be worth today? What do you think? 500,000. 500,000? I don't know. Something probably crazy. I'm with you. I believe you. 500,000. Could you do that in a 529? Hell no. Could you do that in an UGMA account making 1% at Wells Fargo? No. That's why I love the Coverdell, because you can self direct it. The last question we had about buying a rental property with your hsa, buy it with your Coverdale. You can buy a rental property with your Coverdale. Child number one. Child number two, HSA Roth. That's the beauty of the Coverdell. And you can buy cryptocurrency with your Coverdell. Now I know some of you are like Mark. Cryptocurrency is highly volatile. It's highly risky. Yada yada yada. I get it. I'm with you. I'm joking around a little bit. But if I bought some coins, sure. Did I put all my inheritance in coins? Hell no. But why not put 5% of your wealth in a little bit of cryptocurrency? Stan, Morgan Stanley, all the big banks, Visa, everybody's getting behind it. It's going to be around. Why don't you set up a couple Coverdales for the girls and throw in a couple grand and start investing it. And what you know best, that 2 grand over the next 10 years. And then good investments could end up being 50 grand to 100 grand at the end of their. I see the picture of these girls. They are young, five to six years old. You got 10 plus years. Good luck when they're teenagers. But that's a whole other topic. So if you make it through their teenage years without shooting yourself in the head. But Then, then, then this could work out. So fund the Coverdells and then they can go to UW and you can afford it because you're going to invest the Coverdell and what you know best. So go over to www.direct and you can invest in freaking a crypto Coverdale and get it going. I'm not a fan of the UGMA. Not a fan of the 529. I've got articles out there on this. Just Google Coverdale, Kohler, and you'll see what I got. All right, where are we at? On time too. We doing okay? Let's give away some books again, Corey, what are we giving away? All right, another. This is because I love you guys. I'm so grateful to be here today. Tax and legal playbook. Who gets it? Bob Ross. Isn't there an artist named Bob? Is that Bob? It's Bob Ross. Is it the real Bob Ross? No, I'm just joking. He died. Okay. Bob Ross wins the book, Tax and legal playbook. Okay, who wins? What your CPA isn't telling you. Juan Cazares. Juan Cazares. Juan Cazares. Mark is the man. Thank you for the great advices. Thank you, Juan. And I am learning Spanish. It's on my bucket list. So that's. How are you today? Just want to throw that out. I'm learning. Okay. And then who wins a financial freedom? Alison Neff. Allison Neff wins a book. Woo. You are lucky, Cory. You need a rock star, bud. It's been a long day. Has it been a long day? Okay. All right, whatever. Who's winning? Is this live stream every Friday? No, it's usually on Thursdays at four o' Clock Mountain. But I was in New York yesterday, and so we did it today. Okay. I'm at bank setting up a business account as we speak. Jamie Lewis Nolte. And she's a winner. She's a winner. You have won. The Business Owner's Guide to Financial Freedom. You're writing all this down, right? Okay. All right. And then let's give away eight steps, another $99 workbook. This is a big deal. Who are we giving it to? Someone that you want to go on a date with? This is. This is Corey flirting with you? Okay, who's the winner? Not Allison Neff. Okay. Okay. Nicholas. Nicholas Ramzhak. Defense wins championships. Nicholas. You're quoting me? I said that on my podcast this week. Defense wins championships. That's what I'm talking about. When you save taxes, you win. Because when your eye is on the ball with Your structure and your finances, you're a better business owner and you build more wealth. So, Nicholas, thank you. You win the $99 workbook. Any of you that just won, get over to coreyarkjkohler.com now. This is a good chance for me. Before we go into our last couple questions is please subscribe. If you're watching on Facebook, get over to YouTube, give me a quick subscribe, give me a like on Facebook. It helps other people find this information. And I'm trying to give away as much as I can every week for free. Just trying to help and we're affordable. There's a lot of companies out there that are scams and they take way too much money to help people with their small business. So please look us up. We're here for you. Yes, there's a wait of maybe sometimes a week or two, but we're trying to get to everybody as fast as we can. So I appreciate your help. Oh, and the estate planning special ends this weekend. So for the trifecta, if you call up and say, I need the freaking trifecta, Revocable Living Trust Trust owns your llc. Trust is the beneficiary of your Roth, and the trust owns your small business or S Corp. This estate plan, this estate plan, $300 off for the month of June. And, well, we start it in May, end it in mid June. We normally charge 1500 bucks. It's only $1200 right now. And you get an hour with one of our attorneys helping design it and build it for you. So if you want to get into that, get over to KKOS lawyers before the weekend is over. KKOSLawyers.com and the special will be over this weekend and then it's back up to 1500 bucks nationwide, any state, we will take care of you. Okay, question from x Chris Collins.sx xchriscollinsx. You suggest setting up more than one S corp that owns multiple LLCs. I already set up two S corps in an LLC. Can I convert it to just one S corp somehow? Yes. You're going to love this answer, Chris Collins. Okay, now everybody in here, I'll just use this diagram I just did. Okay. A lot of folks that end up taking their side hustle and taking it to the next level. You're going to go from your side Hustle LLC and you're going to convert it to an S corp. That's typical. So that's what Chris Collins has said he's done. So he's gone from the side Hustle up To the S Corp. Now, why is he doing this? Everybody, what tax is he trying to save? Self employment tax. Someone in the audience. Live audience, thank you. Participation. Okay? Live audience participation helped us out. We're doing this so we can do our W2K1 split. All right, Just a little review. Now Chris says, well, Mark, should I set up multiple S corps? Is that what. Should I. Should I be doing that? Should I have multiple S corporations? Guess how many S Corp side guys I have. I got paralegals at my disposal. I got a law firm, I got an accounting firm. So you probably think I have a lot of S corps, don't you? One. One S Corp. Now, Kris, I'll tell you how to combine the two you already have in a minute, but everybody first. Why do I have one S Corp? Because it's easier. I don't want another set of books. I don't want another W2. I don't want another board of directors. Now, my family, my kids that are all 18 or over now, Molly just turned 18, everybody. So if you've been a follower of me for years, Molly, my little paper Shredder is now 18. That's crazy. Time goes by. Board of directors. So I've got my own board of directors with my family. I write off home, office. I write off travel. I write off computers, electronics, cell phone. Da da da da da da da. But guess what? My S corp is the owner of every operational LLC that I get involved in. Think of it. This LLC is maybe the law firm. This LLC might be an accounting firm. I might have a trademark, I might have a URL. I might have a real estate development llc. But they all flow into one S corp because it makes my life easier. That's what I want. So I do 111 20s tax return. I get 1 W2. Guys, in all of the things I do in my Life, I have one W2. See, I'm trying to live what I preach. I want simplicity. Now, do I have multiple LLC's up here? Yeah, I do. If you call me up, if Corey, my wonderful producer called me up and said, hey, Mark, I want to start doing an online business and we're going to make freaking 100 grand and it's going to rock. And we're going to do this online business, is that operational or asset? It's operational. What tax am I worried about? Self employment tax. What entity helps me? S corp. Do I want a new S corp with Corey? Hell no. I set up an LLC with my S Corp and so I'd have my s Corp here, we'd form an llc, and then we'd have Corey's S Corp over here. And so size matters. So this is Mark's S Corp. This is Cory's S Corp. Even if it's 50. 50. All right, so I have one S corp in my life, and so that's cool. Now here's the problem. Kris Collins says, well, Mark, what the hell? I set up 2s corps. Someone gave me some bad advice. I've got 2s corps. Now I'm assuming Kris owns each of them 100%. Well, this is super easy. I go back and do an amended stock transfer agreement. Sorry. I do an amendment, and I do a stock transfer agreement. My stock transfer agreement is sta. Stock transfer agreement, dated 11 21. I backdated. I can do that. It's my S Corp. I can give away stock retroactively. I don't care. And who do I give the stock to? I give it to my S Corp. Now, my S Corp owns another S Corp. You can only do that under tax law. When it is called a qualified subchapter. S subsidiary, it's called a Q sub. Q subs. Q sub. So I make a Q sub election. We charge 150. How much do we charge for Q sub? 150 bucks. 150 back. So what we would do is a stock transfer agreement. Few hundred dollars. $200. Okay, $200. Is that Whitney over there? We still around 400? Do I hear 500? 600. Geez, I didn't know. My assistant Whitney's in here. She's throwing out numbers over there. Yeah, Whitney's available, so I'm just throwing that out. Oh, I'm not even going to say. Okay, now. Okay, now, here's the deal. Okay, so Chris Collins has two S Corps, and he has another llc. He said. Now, with this llc, he might have a partner. So let's say he owns 50. 50 with this other partner, but he has this other S Corp that he owns 100% of. So what I do is a stock transfer agreement, and I move the S Corp to a fully owned 100% Q sub, which is 100% owned subsidiary. Now, guess what? No extra tax return. It's a. It's a subsidiary, wholly owned. So I could do a consolidated 1120s tax return. Boom. So now I'm done, Kris. I can do my own W2. This goes away. I just got rid of a tax return. Now, some of you may say, well, why didn't my CPA suggest that? Because your CPA gets Paid less to suggest that. Or maybe your CPA didn't know. So I want to recommend what's best for you in the long run because I know you'll come back. I don't want to sell you extra crap you don't need. My attorneys have heard from me over and over, and my accountants over and over again recommend what's best for the client, save them money, and they'll come back, and a river runs through it. And that's how it works, Brad Pitt. So just throwing that out. Okay. All right. Well, don't go anywhere. You must be present to win. I'm gonna give away three more books. Four more books. I don't know. Are we good? Okay. Financial Freedom. Who's our winner? Vic. Just Vic with a hand. Little hand. High five. Vic on YouTube. Email. Corey, you got a book. Financial Freedom. CPA. Kenneth Brenner. Kenneth Bremer. Hi, Mark. Hi. Kenneth, you are a winner. You are a winner. Today, on Friday, June 17, 2021, you are a winner. You can put that in your journal tonight when you're journaling. What? Your CPA. Is it the 18th? Damn it, it's the 18th. You weren't a winner on the 17th. You're a winner on the 18th. Okay, tax and legal playbook. Vaughn Fersey. Vaughn Versey. Versi with a Vaughn Fersey with an F. He's the man. He's the man. Vaughn, Max called you out. You are a winner because of Max. So give him a shout out. Tell him, thanks. Max said, vaughn, you are winning. Make sure you email Corey arjcohler.com, give him your contact info. He'll hook you up. And in eight steps, the grand prize winner, another $99 workbook. I'm getting too crazy today, giving away way too much crap. Sheila McDaniel. Sheila McDaniel sitting in her pretty couch out on a green field. I did that once, Sheila. I did a post. I took a piece of crap couch. Your couch looks great. And I put it out in a field of wheat here in Idaho, because there's lots of fields of wheat. And we did a picture. Do you guys remember that? Wow, I just dropped my pen. Sheila, you're awesome. Don't drop your pen. You're going to lose it in that field you're sitting in. Okay, everybody. Hey, I want to say thanks, please. Next week, Thursday at 4:00'. Clock. Set your calendar. 4:00 clock mountain. I'll be right here back on YouTube and Facebook live. Maybe I won't be giving away as much stuff. But I will be answering your questions. And if I can talk Allison and Max and anyone else in the law firm to come over and help answer questions, we'll be here. Thank you so much everybody. Keep. Keep working hard. Work on your strap plan, Work on your trifecta. Have the day job, have the security. Have a part time job. Sometimes clients come to me and go, I quit my job to start a business. I go, whoa, whoa. Go get a job. Don't put so much pressure on your business to succeed. Have a balance until your business is strong enough to support you. Too many people put too much pressure on their business. Don't do it. Your business is like, no, don't do it. No. Take your time. It's not a get rich quick scheme. Your journey is different than my journey. Your journey is different than Max's or Alison's or Jack. We all have a different journey. It's okay. It's not a race. It's a journey. Get your water bottle, get your backpack, start walking and take a break once in a while and smell the flowers. Look up at the sky, everybody. Keep living the dream. Appreciate you. I'll see you next week. Thursday at 4. Please subscribe. Get your four book combo with the special and get the estate plan done. Get this crap together. Get your stuff organized. The more organized you are, the more successful you'll be. See you next week. I'm going to turn on some Van Halen now. Your S Corp is not bigger.