Structure Your Partnership the right way!

Hey everybody, thanks for watching this. Facebook, YouTube Live, don't go anywhere. Let me tell you what this is about. It is the last minute tax filing weekend. Many of you are stressing out thinking you've got a file by April 15th. That's okay. We're going to talk about it. I want to answer any of your last minute tax questions. I'm an attorney and CPA helping clients around the country with my amazing team doing taxes and legal planning. I also want to talk about structuring your partnership with. So we're going to get into the meat of partnering. How to structure maybe a long term hold and a business operation online or selling a product or a service, consulting, whatever. But last minute tax filing. Let me make a couple important points. First of all, do not stress about extending. It is okay to extend. You actually reduce your chances of an audit to extend. So if you're going to blow your weekend and freak out and cut corners and not do a good job prepping your taxes, don't do it. File an extension and take the next few days to do it. Now if you have some last minute tax questions, I'm all yours. Type them down below in YouTube or Facebook. I will field those questions throughout this Facebook Live and YouTube Live. And also I'm going to give away two books. So if you stay online here with me, I'm going to give these away. I do it every week and give them away randomly. You're going to love it. Now if you are going to file your taxes online and for many of you that's a perfect fit, you get over to taxslayer taxslayer.com they rock. I love those guys. I hate TurboTax. So get over to Taxslayer. And I shouldn't say I hate TurboTax, but I love Taxslayer and the team out of Augusta, Georgia, family owned. Their prices are fantastic, the online support's fantastic and hey, it's the Masters weekend, right? And it's Tax Slayer all in one. So get over there and slay your taxes. Okay? Okay. Now, tax questions coming. But let's talk about partnering. There's really two types of partnership structures you're going to have. Now you might have an operational partnership like say you're going to call me up. In fact, I'm going to do three partnerships. You're going to love this. I'm going to ad hoc here. Okay. First partnership is you're going to do an operational business. You're going to sell a product, a service. You're going to Go online, you're going to be brokers, agents, develop real estate, fix and flip, whatever. I'm going to call it an operation business partnership. The next one is some of you might be doing a hold. You're going to go in on a rental property. You may have a brother, a sister, a mom, a dad or whatever and a best friend. And you're going to go in and buy a rental property or piece of land. It could be a VRBO or Airbnb. I'm going to call that a holding partnership. The third one is an IRA partnership, maybe with a 401k or an IRA. Some of you may just be recent followers of my YouTube with my YouTube Live last week where we talked about building a million dollar Roth ir. So you might be able to do a retirement plan partnership and get 10, 20% returns or better because you're using your IRA to do deals. So I'm going to call this the IRA or the 401k partnership. So you've got these three different types of partnerships. How are you going to structure it? Well, the first rule is never go into partnership with family. No, I'm just joking. That was my inside voice. I'm just playing around. Okay, but you could partner with family if you really want to. Just get it in writing. Okay, now here's the deal. An operational partnership. What we're going to do here is we need to worry about self employment tax and we want to be careful of this because when you form a partnership and say we're going to sell a product of service, we're just going to go into business, we're going to get killed with the Obamacare, the suta, the futa, the fica, the Medicare, the Social Security, all that's going to kill us before we even get to state and federal. So let me tell you how I do this. I love to use the S Corporation is a partnership. So let's say you and I are going to go into partnership. What I would do is create an LLC for the project and this is where we're going to make money and we're going to have expenses. But then when we make our profit, I'm going to funnel it through my own S Corp. Now in my life I have 1s Corporation. That's it, 1s Corporation. And it's a partner in all my different LLCs. My LLCs come together into 1s Corp. And this is where I take my salary and my K1. If I just was to take the money directly out of an LLC, I'm going to pay self employment tax of 15.3% right off the top. So I want to have an S corporation to funnel it. So in this partnership, in an operational partnership, what I usually do is have an LLC with 2s Corps. I know this may be hard to see from far away, but what I'm trying to say is these S Corps partner. So you and I don't partner together. My S corp partners with your S Corp and I save more in taxes. Now, if you have questions on that, write them down below. I'm all yours. Now, on a holding partnership, we're going to use an LLC and each person's going to use their trust rather than an S corporation. Now, I'll come to the holdings and we'll come to the IRA in a minute. Let's take a couple questions. Praveen, what do you got?

Can I deduct my state taxes from previous year along with standards?

Oh, Praveen, he says, can I deduct my state taxes along with the standard deduction? No, under the new Tax Cuts and Jobs Act. Now again, I know many of you are filing your taxes this weekend, so, so I want to help you out under your 1040. Now, a lot of people used to itemize, which is called the Schedule A. And the Schedule A, you do your property taxes, your income tax, state income taxes, charitable medical loss, you know, casualty losses, unreimbursed employee expenses, those are now gone. People no longer in 2018, you're going to take usually the standard deduction now, which is $12,000 for last year if you're single or $24,000 if you're married. And then the head of household I think is 18. Sorry, I don't use that one a lot. Sorry, my head of household out there. But these are what you're looking at. And this is your standard deduction. If you take the standard, you do not itemize. If you try to itemize, the biggest killer, the SALT limitation, that's state and local taxes. So state income taxes, local property taxes, things like that is limited to $10,000. So many of you, Praveen, you might be in California, you might be in Illinois or New York and you've got huge state taxes. Those are limited to $10,000 now. So you might pay more in income tax because your Schedule A is now limited. Okay, now let's get back to our partnerships. So what's very common in a holding partnership, you're going to hold your rental properties in an LLC and your trust is going to be a partner. Another way of Looking at this is if I'm helping you on a consultation, your operations are going to be over here, and you might have an S Corp where we do your salary dividend split. I call it salary dividend split, but it's really kind of the K1 salary split. And then over here in holdings is where you put your rentals. If I'm going to have a partnership, I'd have an LLC where my trust is the partner and my other partner, I'm the partner with my trust, and then my partner's over here. If you have your own LLC that you own 100%, that just goes straight into your trust. So you can have an LLC that you own 100% of, and there's your one rental that you own. But if you have a partner, then you set up a separate LLC for that. Then my partner's over here and my trust is the owner of everything. So you want everything to go down into your revocable living trust at the bottom. That's how you structure it. Okay? Now if we're not, and no other questions, I'm going to move to the third strategy, which I love, which is called the 401k or IRA. If I have an IRA structure, I use an LLC and an IRA or a 401k can be a partner with a regular person going to share my structure that my son and I were working on yesterday. He's got a rehab that he's doing, and this will blow your mind. This is so cool. What he's got is an LLC and my son owns 20%. He's behind the camera right now. I hope this is okay. I'm not going to tell you the name of the partnership or where he's doing this because it's such a cool deal. But he's got an LLC and he owns 20%, but he has an investor that's in for 80%. His investor is an IRA. The IRA put in approximately $120,000. They're going to bring in another 20, $30,000. They're going to be into this with this as a loan. They're going to loan in about 30 grand. They're going to put in 150 grand, then they're going to sell this thing for probably 210, 220, and they're going to net $50,000, and then they're going to split that. So Dylan gets 20% of $50,000, which would be $10,000, and his partner gets $40,000. Well, his partner is going to get $40,000 of $120,000 investment. That's a 30% return. How would you like a 30% return in your IRA? That's what they're doing. This is very, very common. So some of you might have a question on that. Okay, I've got a question here, Shrink.

How do I add into my traditional IRA for the business if I've already filed and received my 2018 return?

Okay, so Shrink said he's already filed his 2018 return, but he wants to contribute to a traditional IRA for last year still. And that's okay, Shrink, what you have to do is an amended tax return. So that's called a 1040 X. You can even do this at Taxlayer. Give them a call and say, I want to file an amended return to, because I'm going to go put money in my traditional ira. Now, if you want to self direct your ira, that's my directed IRA Trust company. I'll just give you the website. You can go there right now, this weekend, go to directed ira.com and you could make a 2018 contribution. So you open your account, put in your contribution, maybe it's anywhere from zero to $5,500. That was your rule for 2018. So you could put anywhere from zero to $5,200. If you're over age 50, 50 or over, you could put in an extra $1,000. So that's what you could do for last year. Go open the IRA this weekend, put your money in, and then go back and amend your tax return for 2018. Because you'll get a deduction for this. Assuming you don't make too much money, you'll get a deduction, your refund will go up and you'll get a bigger refund. So Shrink, you can do that, head over to Tax Slayer and do it yourself and call our office to set up a directed IRA account. And then your IRA could be a partner in someone else's llc. Okay, what do we got? Another question. This is Jose.

Yes. Is the operating LLC you mentioned a C or F port?

Oh, Jose says, is the operational LLC a C or S corp? It is not either. So Jose, your S corp, and this is Jose right here is an S corp, but he's going to partner with me. Jose calls me up and says, mark, let's fix and flip a rehab property. Or let's go open a little sandwich shop. Or it's summertime. Let's go open a snow cone shack down the street on the corner. Well, we're going to open an LLC to go do our snow Shack his S corp is going to own. Maybe I'll give Jose 40% and then my S Corp is going to own 60%. Is that okay, Jose? I'm just joking around. We'll go 50, 50. Okay. All right, so we're going to go 50, 50, 50, 50. Well, my s corp is going to partner with his S corp and the LLC is going to run the Snow Shack. Now see, it has nothing to do with rental property. Rental properties over here, operations are over here. So the Snow Shack is an LLC owned 50% by Jose's S Corp and 50% by my S corp. That's going to allow us to save self employment tax and get the 20% pass through deduction, which is the new big one. That freaking rocks. All right, next question.

Matthew says, Matthew said, I'm 62 and live in Idaho. Rent out two rooms. Do I claim rent?

Okay. Matthew lives in Idaho. He's 62 years old. He loves long walks on a beach and he's looking for a beautiful real estate professional. I'm just joking. Sorry, that's my taxmatch.com I'm trying to match people up to save taxes and find love. Would that be nice? Taxes and love all in the same package? No, Matthew, sorry, I'm playing around. Matthew is 62, lives in Idaho, and he says, I rent rooms out of my house. Now, Matthew has two choices. If he is honest and ethical, he is going to fill out on his 1040 A Schedule E. That's he is an echo. And he's going to claim the income from his little rental operation in his house and he's going to depreciate part of his house. So he's going to take his house and carve out, oh, this part is rental. And he's going to do a Schedule E. And this Schedule E, he's going to claim the rent and he's going to claim depreciation and he's going to write off some mortgage interest and property taxes and blah, blah, blah, blah, blah. And he's going to have either a net loss or a net gain and that's going to fall onto his 1040. So Matthew, the technical rule is you claim this income, you treat part of your house as a rental and you claim it on a Schedule E and you report on a 1040. And then when you go up to heaven, you're going up the escalator and St. Peter's going to be there. And he goes, matthew, did you cheat on your taxes? And he goes, no, I almost did. I almost didn't claim this because it was just under the table, but you don't. You want to be squeaky clean. Matthew, when you go to the pearly gates and you're going to say, Mark Kohler saved me, then I'm going to get some extra brownie points when I go up the pearly gate. So I'm going to be okay. Because Matthew, you did the right thing. You don't want to live under the table. It's scary down there. It's scary. Okay, next question. Ramsey says, do you have an interest

to the IRA account for borrowing money from there?

Okay, so Ramsey says, mark, your son Dylan is doing this fix and flip with an ira. Okay, so let's go to this example. I got to find my right paper here. Okay, so my son Dylan is a 20% owner in an LLC. The IRA is an 80% owner. And Ramsey says, would you have to account for the interest because you borrowed from the ira? No. No. Everybody pay attention. There is no borrowing going on. The IRA invested in the llc. There's no tax, there's no penalty, there's no borrowing. It's an investment. So Ramsey, what's going on here is Dylan's partner had an IRA that was over at Merrill lynch and he was in this cool ETF that was paying 4%. No, I had an S&P 500, you know, mutual fund and it was paying 7%. I was kicking butt. But he didn't like that. He rolled the IRA to a self directed IRA and his IRA became a partner in an llc. So he sold his mutual fund and bought into an llc. There's no loan, there's no interest, there's no tax. Dylan's partner is going to get $40,000, a 30% return tax free because he self directed. That's the magic, my friends. There's no loan, there's no borrowing. Brady, what's your question?

Brady says we have an LLC tax as an S Corp partner is not active in the business. I am. I was bable distribution tracking out bad advice.

Yes.

Any thoughts on an unequal distribution?

Okay, so Brady gives us a good example of ways not to do it. And Brady admitted it. I'm not beating him up. Brady is an occurrence. And I'm going to go from this is current situation and then we're going to do a proposed solution. Proposed solution. All right, so this is good for everybody to learn. Brady went to an accountant or an attorney or legal zoom and they said, oh, oh, you need an S corp to save on taxes. So we set up an LLC Taxed as an S corp. But he has a partner. So his partner doesn't participate in the business. Brady's over here and Brady's doing all the work. And so now we're in this S corp and it's clunky. Brady wants a W2, but they want to split profit and there's this unequal distribution thing that they want to do but they can't do. The S corp does not work for a partnership. Brady knows this. He said he got bad advice and he's jacked up. People don't do this. What we want to do is transition to the a new solution. And this is where I want most of you. What you want to graduate to is an LLC taxed as a partnership. And we're going to give this S corp to Brady. Brady's going to take this S corp and it's going to be a partner for whatever their percentage is. Let's say it's 50, 50, I don't know. But this S corp is now going to be Brady's 100%. So Brady's down here, he owns this S Corp 100%. And then we're going to slide this partner in here is an individual. So the individual's passive. He's a partner in an llc. And then Brady takes the S corp and Brady frankly, I backdate the s Corp to 1119, set up a partnership effective 1119 and then create a new LLC for asset protection. You're going to have to work with an attorney to do this. And you'd probably spend 1,000 or $1,500 to get it reorganized. Don't spend more than that. But the beauty is Brady's going to save a ton more in taxes. Far more than it's going to cost to have two entities. And it's going to save him a ton. And his partner is going to be fine. It's not going to cost his partner anything, but it's going to save Brady a lot in taxes. Get a consultation, Brady. You could call our office if any of you want to work with our law firm. Our phone number is 888-801-0010. So it's 888-801-0100. That's KKOS Lawyers. This is not an infomercial. But I'm telling you, if you're looking for a law firm, our lawyers kick butt. Okay, Sean's got a question. What do you got, Sean?

What should you invest in when you are starting a self directed Roth IRA and don't have enough For a down payment on a rental property with a.

Okay, this is good. Sean says, now this kind of goes with my have a million dollar Roth IRA video I did last week. Sean says, mark, what should I invest my Roth in? Now, remember, his Roth is a vehicle. So it's this cool little convertible. And his little convertible here is his Roth ira. And you want to think of your Roth as a vehicle, you're driving it. This is Sean right here. He's the driver of his Roth. Now, what he puts in the back seat is up to him. He could put stocks, bonds, mutual funds or. Or small business or even real estate, and he's going to get a big return. What's his percentage return? It could be 8%, it could be 10%, it could be 20% or more, depending on how he invests it. Now, when I shoot a video on this and say, you can get 12%, it was like I was a heretic. I was crazy. I was like. It was the Salem witch trials. Everybody was like, this guy is nuts. If you self direct, you can do better than the fricking stock market. That's my point. So Sean says, mark, what would you put in this? All right, I'll give you three ideas. I'm just going to pull these out of my hat, not out of that other place, okay? So I'm going to pull three ideas here. Here we go. Number one, why don't you take your Roth, okay? And we're going to create an LLC. So your Roth. And maybe there's only $5,000. There's only $5,000. You're going to take this Roth and you're going to create an llc. And you're going to be the manager. Shawn. This is Shawn over here. And Sean is happy. This is Sean's little happy face. Because Sean controls his own Roth and Roth. And he says, what can I put in my llc? I can invest it. Remember, his Roth is like a vehicle. So this is his little car down here, and he's driving it. And this is Sean down here. Well, here's the first one. Flip tickets on StubHub. I love that one. You could take this LLC and you could go buy five Selena Gomez tickets. Five Justin Bieber tickets. Oh, but this week on the news, I watched TMZ the news, and Justin Bieber said, I am taking a break because I need to be a better father and husband. And everybody's like, you're not even a father. What are you talking about? Anyway, jb, we love you, so hang in there. So you could buy JB tickets. Justin Timberlake's on tour. You could buy tickets to a concert in the LLC, then flip them on StubHub. I have clients do that all the time. That's option one. So I'm going to say flip tickets on stub hub. Another idea. Number two is I'm just going to. Oh, boy. What do I want to throw out there? Okay, you could be a partner. Now this is what I'd like. Say you've got three or four other people and you go, hey, you got five grand in your ira? You got five grand in your ira. Let's form an LLC and let's all put in five grand. And I have clients that what they do is go out with their partnership. Now you've got 20 grand. So that's one of the theories here, Sean. Don't feel like you're alone. Form an LLC with multiple partners. And I'm going to give you another idea. Flip mobile homes. I have clients that do RV and mobile homes. You could even buy a mobile home and put it into a rental pool. More and more people are renting their RVs like a VRBO. Or you could get a mobile home, do a little fix up and flip the mobile home. So I've got clients that do that. So even though you don't go out and buy an expensive piece of real estate, you can do it with just a mobile home. The third one is I could say you could be a lender. You could be bridge financing. Doing bridge financing. I have a client just yesterday. She. I talked to her yesterday. She's 30 years old. She has an IRA that she's doing short term lending on. Real estate. Investors need 20 grand or 30 grand. Now, I don't know how much you have in your ira, Shawn, but be a lender, you could. It's called hard money. You get points in interest. Most of my hard money lenders are making close to 20% on their loans with points and interest. And I'm just going to throw out a fourth one because some of you may think I'm crazy, but roll the dice, go out and buy some cryptocurrency. There are several other versions out there, you know, that are pretty cool. And crypto is a great idea. And it doesn't have to be bitcoin. There's other ideas out there. Why not throw a thousand at it? My son's got into penny stocks. You can do penny stocks. You can do some other things with your little Roth ira. Anyway, those are some ideas. Okay, what do we got? L train that sounds cool.

L train 01 if you make the IRA a partner in an LLC, will I incur an unrelated business income tax?

Okay. L Train says if I have an IRA and I go do an llc, am I going to have UBIT tax? It depends on the type of investment. So let's say when you do an IRA investment, you could do two types. It could be ordinary or it could be passive, just like you as a person. So if you do, now here's the rule, and we've written books and articles on this and we stand behind it. L Train, if you take your IRA and you go buy a little mobile home or do any sort of rental, you could do a rental of real estate, a rental of a mobile home, rental of an rv, a vrbo, an Airbnb, maybe you partner with others. The LLC doesn't cause the problem. It depends on what your LLC does. So if your LLC is going to do long term rental type business of property, then you're going to be okay. Another thing is if you flip tickets or you flip real estate, as long as you don't do any more than three, you can only do three or less a year. So three or less a year. If you do more than three, you're going to be considered a dealer. So I have clients that literally do rehabs and fix and flips, but they do three or less. Now, if you're going to do a restaurant, you're going to sell a product, or you're going to sell a service and you're going to do rehabs and do more than three rehabs a year. That means you're an ordinary income operation and your IRA is going to pay what's called UBIT tax. And if you're going to pay ubit, a lot of times we put in a blocker C corporation so that your tax rate is only 21%, which is pretty cool. Or you just don't do more than three rehabs. And some people are like, Heck, I'll pay UBIT. I still make 10 or 20% on my money even after UBIT tax. So it depends. It's not the LLC that causes the problem, it's what your LLC does. Here you have two different LLCs. One is doing no more than three flips a year or three ticket sales, or three horse sales, or three cattle sales. You're buying a product and flipping it no more than three times a year. Here you're doing a lot of it anyway. I hope that helps. Outrain my partner has a book. Many of you need to get there, it's called sdirahandbook.com S D I R A handbook.com and he's got a whole chapter on UBIT, a whole chapter on 401ks, what you can and can't do. Real estate notes. All these different ideas he talks about are a lot of fun. Okay, what's the. Alex. Alex. Alexis.

Alexis, I have a home based business. If I open an IRA this weekend, do I am in my taxes as well? Also, I filed a certificate of filing for my business in 2018. Should I have paid for a self employment tax, although I did not have a profit.

Okay, so Alexis said she had a small business last year. It sounds like she's already filed her tax return. She did not have a loss. I'm sorry, she did not have a gain. She had a loss. So she's not going to pay any self employment tax. Alexis, I would say this. Anybody watching right now, if you had a small business last year and you had a gain, you would have probably already reported that on your taxes or you will. But let's say you didn't have any income yet, you just had expenses last year. You should carry those forward to 2019. So think of it this way. You were in startup mode and I don't know, Alexis, if this was your situation, but anybody, if you had expenses in 2018 but no income, then what you do is you put these expenses in a startup bucket, we call it a startup, and you carry it forward into 2019. So when you make money this year I reported on your taxes. So Alexis, if you didn't have any income, there's no self employment tax. If you already filed, you're fine, it may be too late. Just carry those costs into 2019. And the last thing she said, is she going to go open up an IRA this weekend and then amend her tax return? I think that's great. Some. You might even qualify to put money in an HSA and then take it right back out and reimburse yourself for medical expenses. I love that idea. Okay, we'll just do two or three more questions and wrap it up. What do we got, Mallory? Shrink.

Shrink again. Okay, share it on Facebook. We had a question. How long do I have to write up the amended return to set up the self directed ira?

Okay, shrink says how long do I have to amend my return if I set up an IRA this weekend and want to get the deduction for 2018? Okay everybody, by the way, I'm going to tell you how to get these books here in two seconds. Shrink. Everybody listening if you open an IRA in the next four days, then you get over to Tax Slayer and you do your amended return on your own or you go down to H and R Block or whatever. If you're going online, I love the tax layer strategy. But if you're going to go amend your return, believe it or not, shrink, you have up to three years. Now, I'm not going to recommend that. Go open up your IRA this weekend and amend your tax return in two weeks because you want to get your refund. Because if you're going to open up an IRA and get an extra tax deduction, that means you're in for a cha ching refund. So let's get your return filed right away. But to be honest with you, you have up to three years. But don't do that. File it right away. Okay, now to win this book and Rosalie, she is going to give away these books tomorrow morning. Do you want to run out here and tell everybody? No, she's staying back there. Okay. Okay. Rosalie is going to give these away. All you have to do is share this video. So if you want to share this on YouTube or on Facebook, do so. If you and Rosalie will enter you into a contest, I will sign these and personally autograph them. I'll say anything you want on there, that you're amazing and just a great person, whatever you want. And then she's going to mail them to you free tomorrow. Now, if you can subscribe to my YouTube channel and hit the bell, that would be great. Every time I go live or shoot a new video, you get it and give it a like and a thumbs up. I would be so grateful. And if you get over to Facebook and follow me, I do daily tips, daily strategies, daily videos, and give you updates whenever we do things. And I've got a weekly newsletter that's free. You can get to that down below as well. And I've got merchandise and products and books and all that good stuff. Okay, now, last question or two, Kris. And then we're going to take it home, people. Isn't this exciting? It's tax weekend. This is better than the final four. Okay, I'm trying to sell taxes. It's okay.

Chris has a question. Hence you own more than one S Corp. Since s corp saves FB tax generated from an LLP. If I have multiple LLCs, how does an S Corp work?

Okay, Kris asks a great question. He goes first, can I have multiple S Corps? And he goes, if all these LLCs are going to my S Corp, how does this work? Okay. I'm going to slow down here. I get excited. I love this. So I'm going to talk a little slower and a little quieter. Now here's how I do this. This is really important. If those of you that stuck with me, this is the technical stuff. If Kris just has a plain old LLC and let's say he's selling a product or a service online, he's doing a realtor, he's a plumber, he's an electrician, he's hanging drywall, he's an affiliate marketer on Internet for Amazon, don't care. Let's say he brings in 100 grand. He spends 25 grand on expenses, cell phone, home office, Internet, computers, a drone, whatever, and he nets 75 grand. Now, for any of you watching that would normally go on a schedule e on your 1040, you've got an LLC. You're 100% owner. I call this a single member LLC. And you may think you're saving taxes, but you're not. LLCs do not save taxes. So on this 75 grand, Kris is going to pay 0.153 in taxes right off the top. That's for FICA, Social Security and Medicare. That's going to be a $10,000 bill right off the top. Then he's going to pay state taxes. If he's not in one of the nine states that don't have state tax, he's going to pay state tax, then he's going to pay federal tax. He's going to get hit three times ugly. So what we do is we set up an S corporation. The S corporation, same math, same write offs. You get the same write offs people. Oftentimes it's the same cost to set up to bring in 100, spend 25, net 75. Now look at this. No self employment tax, no corporate tax, no this, this is crazy. And no Obamacare. This is just nuts, right? But some of you are watching and going, oh, Mark, you can't do that. You've got to take a salary and that's right, you've got to take a reasonable salary out of your S corp and S corps. Really start kicking butt when you're making about 30 grand or more. Now in this example of $75,000, I don't want to be too aggressive, but I'll just do this for the point of making sense of this. I'm going to probably take 25,000 as a W2, 50,000 as a K1. What I've done is split the income. And so using my red pen here what you've done is made the same 75,000. I've made the same $75,000, but I'm taking it in two pieces. So the W2 only pays FICA. This is why S corporations kick butt. Because I don't pay self employment tax, corporate tax, or Obamacare on $50,000. Guys, you made the same amount of money. You just have to file an S Corp tax return and take a W2. Yeah, look at this. The numbers. 15% on $50,000. You're going to save approximately 7,500. If you think I'm too aggressive, fine. We'll take a little more salary. You're going to save $5,000 in self employment tax. That's why we do S Corps. Now hear me out. What's cool here is you'll say, well, Mark, I got to do a tax return for the S Corp. I got to do payroll, and I live in Calif. And it's $800 a year. It sucks. You're stupid. I'm just going to do an LLC or a. No, no LLC at all. Okay, now hold it. You're right. You're going to pay a couple grand a year to do a tax return and set your damn S Corp up. But let me. Now, this is really hard math. Now let me see if you guys can do this math. This is hard. Spend 2,000, say 5. Now, hold it. I know this is hard math. Spend 2000, save 5000. I know that's hard. You save freaking money doing an S Corp. The more money you make, the more you save. So Sean says, mark, I've got all these partnerships. I'm Mark Kohler here. I've got one S Corp in my life. It owns part of a law firm, part of an accounting firm, part of a real estate deal. I sell my books, part of. I sell, you know, clothing online. I don't. I'm just joking. I've got all these LLCs and I've got partners in a lot of those. But my share of the profit drops into my S Corp and then I save. That's why we do it. Sean, you have one S Corp, no partners. The only partner I'm going to allow is your spouse. And if you're single, it's just you. But if you're married, I put both husband and wife in the S Corp. And I'm just getting started, guys. I have 25 tax strategies I teach my team on a regular basis. We've got 55 people in my accounting firm doing taxes all around the country. We've got over 30 people in my law firm with five or six lawyers, 10 CPAs. I'm not just a one man show. We're helping people save taxes, build their wealth and protect it. I'm not selling anything like an investment here or some boot camp in Vegas for five grand. We just do basic tax returns. We set up entities. Don't go online and set up your entity. Get a consult. If you don't have a tax advisor in your life, start following my newsletter, get my videos, just read my freaking book. Go online if you want to do your tax return, go over to Tax layer and knock it out. But if you've got a more complicated tax return, give us a call. That's all I'm saying. There's no other major sales pitch. And if you want to self direct your roth or your 401k, do it. But I'm not selling you crap to put in there. Invest in what you know best, guys. The American dream is real and I just love it. And I love Main street and I hate freaking Wall Street. So I'm going to be here every week trying to make your life a little better. And I appreciate the follows and the likes. And if you enjoy this, share it with your friends and family. If you don't have a CPA or a lawyer helping you in your life, give us a shot. Boom. There you go. Drop the pen. We're done. I'm out of here. See you next week.