When to Use a Series LLC | Mark J. Kohler FULL Live Stream

Hey, everybody. Whoo. I'm just prepping the broadcast today. Listen to a little 80s Scorpions, man. It's good stuff. If you're not an 80s rock fan, you got to get there. So I just paused my music. Got to get in the zone. Thanks everybody for checking this out for a minute. I'm a CPA and attorney and yes, I was born in the late 60s. Late 60s. I know I look like a millennial, but I'm a product of the 80s again. A little bit of Scorpions, Def Leppard, Van Halen does everybody a little good. Alright now, today we're going to talk about when to use a series LLC in your business structure. S Corp. Llc. Series llc. What are these things? Well, I'm going to break it down in any Q and A on structure. I'm here for you. We help clients all around the country setting up their entities, doing their tax returns. I've got a new book out the Tax and legal Playbook. The game has changed. That's right, people, always new content, 30 to 40% new content in the book. But we got a new tax law that everybody's just kind of figuring out now after the GOP and Trump plan hit us. So small business owners, there are a lot of opportunity to save taxes. So we can talk taxes, structuring and especially the series llc. I got my whiteboard here. We're going to rock. So I'm also going to give away some books. So if you share this broadcast on raffle off books right after the show. This is live. It is. What is it? It's August 31st. No, July 31st. It's going to be August tomorrow. The summer is going by so quickly. So it's July 31st at 3pm Mountain. We're here live, so throw down some questions. We're on Entrepreneur Facebook Live, YouTube Live. Mark J. Kohler, Facebook. And also we are running a survey for the hottest, sexiest man or woman? Man and woman. We're going to do both. That Played a lawyer in the movies. I've got my vote. I'll tell you my vote here at the end. You can get to my Facebook page to make a vote on this later. We're starting that survey this week on next week's Podcast Live. Every Wednesday we're doing the Q and A live podcast on Refresh youh Wealth. And we're going to announce the winners. Maybe we'll get lucky. We'll have our winner come on the show, accept an award. This could be a big deal. Alright, okay, so let's break down Series llc. So everybody out there, hopefully you're watching because you're a small business owner, you're an investor and you're trying to figure this out. Type your questions below. Rosalie and Maria, they're going to throw those questions out at me. We don't have a live mic for them right now, so they'll throw it out, I'll restate it and we're rocking. So if you're a small business owner and I get on the phone with you or one of my tax attorneys or CPAs, and we're going back to the office right after this broadcast, just across the street, I'd like to split clients lives into two sides, short term and long term. This is ordinary income, this is passive income. This is the operations in your business and this is your investments. Now, anybody that's seen me live or watch my workshops and I've got all sorts of videos on my website, markjkoler.com tons of content. Once you buy those videos, you get access. I've been doing it for nine years, updating videos. There's probably 60 videos in there you can start watching immediately. Now you've seen this before. If you've seen any videos of mine or read my books, this is where I go the Series LLC really lives over here. Now let me explain why. When you're running your business, you're going to generally start out as a sole proprietorship or maybe an LLC. But once you start making 30 or 40 grand net, which all of you want to make a lot more than that, you're going to shoot over and become an S corporation. Now this could be LLC taxed as an S corp, but we want to business as an S corp. You got a question, we can hit that, but where the serial see comes in is over here with your assets. And so what I want to do is figure out, okay, do I set up an LLC for every rental property? I'm doing investments, I'm doing lending, I've got all these different assets out here and this is where the LLC primarily lives. So I'm going to set up an LLC to own that rental. If I live in California, but I have a rental in New Jersey, I'm going to have a New Jersey llc. If I live in Florida and I have a rental property, Alabama, then this is going to be an Alabama llc. So you set up the LLC where the asset is. Now this is where we're going to focus today. So before I take any live questions, let's blow this side up. Now we can Come back over here if you got questions. I'm here for you. But let's blow this up. So over here we've got our operations, over here we're not going to focus on that. And you've got four ways to structure your LLCs. And I'll tell you right now, I'm going to get some hate mail. I do not care. There are those fly by night call centers in Nevada that are going to freaking sell you a Nevada llc. And they're probably down in south and southern Utah to selling garbage and I should say Utah county especially. Sorry, but it's true. And they're going to sell you an LLC in Wyoming, Utah or Nevada and then register at foreign wherever you're at if you're lucky. Hopefully they don't sell you a C corp along the way. And some of you have been through this mess and they're going to charge thousands of dollars. Wrong scam crooks. And I don't care. I'm calling you out. What I want to do is make sure you talk directly with a lawyer. Not a cpa, but a lawyer. And not someone in a call center that says a lawyer's looking over my shoulder. A lawyer that's going to look at your situation with your assets and set up the right structure. You can have a follow up call maybe once a year. Keep it affordable and simple. You do not need an LLC for every freaking rental because that can be very cost intensive. And you're like, well Mark, I can set up an LLC for 50 bucks online at the state. Really? Did you get your operating agreement to get your corporate book? Did you get your membership certificates? Did you do your minutes? Are you maintaining it? Did you transfer title for your rental into the llc? Do you have a tax ID number for your llc? Did you open up a bank account for your llc? I can go like this all day long, blah blah blah blah blah. Here's the point. An LLC is a lot more than one freaking piece of paper on LegalZoom. And Legal Zoom does a great job if you know what you're doing. But if you're new at this, you want to take your time. So here's four options that you might like. Four options, that how I do it. You might have one llc and this is for the brand new investor out there. They maybe have one, two or three rental properties. I might register this in Arizona, Alabama, Florida. It depends on where your rentals are and if this total equity is less than 2 or 300 grand, I'm going to do one LLC. I don't want to set up a new freaking LLC for every rental. But now you've got rentals in different states and they're worth a lot of money. So maybe I have an Arizona llc, I have an Illinois LLC and I have a Texas LLC and I've got my rentals 4 Plex. And I've got rentals all, you know, renters all over in here. So I want to have some separation because I've got multiple assets and I want to have my eggs in different baskets. Now this is where most people stop. Let's take it to the next level, baby. So this is where the series LLC comes in. We set up one LLC and we have Baby llc. And these are called sub series. You file. The nice thing about the sub series LLC is you can have multiple subs. It generally does not cost you any extra money. In some states like Illinois, you got to pay a $50 filing fee for each sub. But that's cheap compared to setting up a new llc. When we set up a series LLC for clients, we give them the documents so they can create as many subs as they want on their own. But generally each sub could have its own tax ID number in its own bank account because you want to keep separation here. But it's one tax return, one filing. Now not all the states do these, so I'm going to go straight to the playbook. Before I take any questions here, let me just say here are the states that allow you to do a Series LLC. Let's go through it. Alabama, Delaware, Washington D.C. illinois, Iowa, Kansas, Missouri, Montana, Nevada, Ohio, Oklahoma, Tennessee, Texas, Utah and Wisconsin. Now this is my book. I update this table every time it's produced. This is the newest table, updated in the last six months. Freaking awesome. Now look what happens if I've got rentals in Arizona. I cannot do a series LLC because Arizona doesn't have series law, but Illinois and Texas do. So I can do a Texas sub series LLC or an Illinois Illinois Subsidies llc. I could do a series LLC and register it foreign in both states. So I've got Texas and Illinois. Now I've got a fourth option. I'll blow that up in a minute. But this is where most of my clients live. This is 90% of my clients. And you're not going to go anywhere crazy like Nevada or Wyoming yet. We might add that to the mix when I have a client worth a lot more money with a lot more rentals. Alright, let's hit some questions. What do we got? Okay, Jose and Janet. Okay, Jose and Janet. Said can I do a series LLC that I created in Nevada but then I'm registering it in California. Or better yet, he said can I use it in California? We have two problems, people. If you live in California and you go to Nevada and set up your llc, you've got to register it in California or it's no good in California. You're going to get into a lawsuit in California and it does you no good. So you're paying for this Nevada LLC to turn around and register it foreign in California. Now does Nevada have great laws for LLCs? You betcha. If you're doing business in Nevada or you're trying to protect assets and that Nevada LLC owns other assets, but you're going to have multiple LLC structures and I've still got to pay for freaking Nevada. So Jose, Janet, when I have a client that just has a couple rentals, I'm not going to set up in Nevada first, I'm just going to go straight to California and set it up now second part to their question, can I do a series LLC in Nevada but use it in California? Sure. Guess what California has done. And this is a direct statement from the from the Franchise Tax Board of California. You're going to pay $800 for every sub plus the parent. That's right. We do not use sub series LLC in California because it are freaking expensive and a waste of time. Now Jose and Janet and others of you that are watching this, you may have been sold a Nevada structure and paid thousands of dollars for it. And I seriously, my heart goes out to you. I have written so many articles on this topic and videos trying to warn people about that strategy when it's too expensive for what they're doing. So Jose and Janet, what I would normally do is dissolve your structure in Nevada, get you set up in California properly and unless you're worth millions and you got multiple assets and operations, there's no need to be in Nevada. If you want to call my office, what we'll do is we're going to set you up with a paralegal who can do the disillusion and then get you set up properly where you need to be with a one hour consult with an attorney. We set up entities in all 50 states for 800 bucks. That's it. 800 bucks and you get to talk with a real lawyer worried about you, one on one over the phone, Skype, zoom, whatever you want and plus the filing fee of that state and you're good to go. Now if you want to do registered agent, some mail Forwarding two or three hundred bucks a year if you need it. So anyway, we're very affordable. Jose and Janet look at getting out of Nevada. You may not need it. Now, I don't know how much you're worth and how many assets are involved, but you're pro, it's probably overkill and you got taken advantage of and I'm sorry, some of you may be in the same boat. Okay, what do we got?

So he or she goes with your band. Subs 2002 do each of the series have their own individual EIN? What are the advantages and disadvantages of having active series and passive series under the same parent llc?

Okay, now your band sucks. 2002 I like it. I don't have a band, so I'm not personally offended, but I like your call sign. Okay, so your Bandsuck2002 says first, what are the advantages? Or does each sub have to have an ein? And number two, can I run passive and active operations through the same series llc? I love this question. This is tricky. First of all, let's do our split. So we got operations here and we have investments here. You know what, let's do the EIN thing first here with your ein. What I want you to do is have a sub series llc, a sub series with the same EIN for the parent and the subs. Now that's the easiest way to go. I've seen it both ways. It really comes down to your bank. Sometimes your bank is a pain in the butt. They want a different EIN for each sub. But you're going to file the SS4 and our paralegals can do this for you. File this, the SS4, which is the EIN request so that it shows it's a subsidiary of the parent. Because I don't want you to have to do separate tax returns here. That's one of the benefits of the series LLC is it's one tax return, one ein. But if you go to the bank and they're freaking out and you know the 19 year old that's opening up your bank account behind the desk, freaking out, you may have to go get ein, that's an electronic identification number for the subs. It's not the end of the world. It's just an extra step. So it's not bad, it's not good. It's just more freaking paperwork. So you're good there. Okay. So they said your band sucks. 2002 said, well, I'm just going to have one LLC, I'm going to have one LLC and I'm going to have Subs that over here are doing operational business and I'm going to have subs over here that are doing holdings. So I've got rentals over here and assets and then I have business going through these two and I'm going to put it all through the same LLC first. Could you do that? Yes, but it would be a nightmare and I never ever, ever recommend it. And your CPA that you go work with is going, their brains going to explode because here's the problem. This income, and I'll use a red pen here, this income is subject to self employment tax. This income is passive. So now you've got it. Operational income and passive income in the same entity. Well, do I, how do I get around self employment tax? By doing an S corp. You cannot save on self employment tax in an llc. So the first thing I would do is rip those operations out of that LLC immediately and get you into an S corp. We could take this LLC and make it an S corp and set up a new LLC for your holdings. But, but you got to have two entities get the hell out. And the second problem is, is asset protection. Look it, you're running your business in the same entity, you own assets. And so now I've got a liability concern. Now it's true that there is protection from this sub to this sub, but why go down that path? Because if you do an S corp, I don't want rentals in an S corp. So you've just got a major tax headache. So do not do it. Your band sucks 2002, you can do it better. Your band rocks. So let's rock it. Okay, we got Mark on the line. What do we got?

He said, sounds like Virginia doesn't allow serious llc. Is there a difference of similar strategies used for us here in Virginia?

Okay, so Mark says great name Mark. He says, hold up Mark, I'm in Virginia, I got lots of rentals and I wish I could use the series llc. What's my next option? Let's go over here now here's where it gets good. I'm going to actually use either option 2 or 4. So if you're in Virginia, I'm going to look at these two options. I might set up multiple LLCs and put rentals in each bucket. It depends on if you have partners. Is it just you and your spouse? Are you single, are you married? And how much are the rentals worth? What's your long term plans with the rentals, how much equity is in them, how many mortgages are involved? That's why we're going to do a consult Mark. That's why we do it. I can't give like a simple answer that's going to solve everybody's problems on this. Now this is giving many of you enough information to know if you've got a good advisor or a bad advisor and if you're maybe need to get a consult. But here's what I do option that's a charging order protection entity cope and that's where Nevada and Delaware and Wyoming and Utah have good laws and that's where I might use Nevada. Wyoming's cheaper and easier so why not go to freakin Wyoming. So that's where I like to go. So I use Wyoming as your holding company llc. Then you set up baby LLC all in Virginia. So These are Virginia LLCs owned by one parent company. This is where I would do either a two member LLC and file a 1065 or I do a single member LLC and just put it on your schedule E. But this is what I'm going to consult with you about. This is an extra cost and I want to make sure it's worth it. So when I have clients that are worth More than $1 million, that's when I use number four. So that's what I do. Okay Diego, what do you got?

Is there a limit to the numbers of sub series that a series llc?

Great question. Diego says is there a limit to the number of sub series you can have in Texas? And the answer is no. And that's the same for all the states. You can set up as many subs as you want. Now let me tell you, I don't know if that's wise. I've got some clients in Oklahoma. They are a wonderful clients. I won't say their names but they're older. She was a schoolteacher for 30 years, he was a contractor. They now have over 35 rental properties. They're wonderful clients of mine. They're in Oklahoma. All of the rentals are in Oklahoma. Oklahoma allows for a series llc. So what we've done is we have a parent with five properties in it and then we have five more subs with five properties in each bucket. They don't want more than six bank accounts. And so the six bank accounts 35 rentals approximately. And they can put all of it into one tax return at the end of the year. They're doing great cash flow wise. They lose their Social Security check from month to month sometimes and they'll say oh it's okay because they have 10,000amonth in cash Flow from their rentals. This is a retirement plan strategy. People. That's huge. Love rental real estate. Wonderful strategy. Okay, now I am. Thank you. Thankful. I am thankful is the handle. Okay, what do you got? I am thankful. Handle says, can I sell my LLC to someone else? Sure. It's not typical. That's considered like a stock sale. I'm going to sell you the stock of my llc. I don't want to do that because if I'm the buyer, I want to get stepped up basis on the assets inside the llc. Now you can make a special election. It's complicated partnership tax law. You're going to need a really good partnership CPA that knows what they're doing to go that path. What we normally recommend is an asset sale. So what you do is if I want to buy your rental properties. Oh, lost it all. Alright. If I want to buy your rental properties. So here's your LLC and you're the owner and I'm over here and I want to give you money and I want you to sell me your two or three rentals. What we normally do is an asset sale agreement. We can help clients around the country do this as attorneys and sometimes you can do the closing through a title company or attorney's law office. Closing this agreement is part of a number of parts and pieces. Usually you're looking at a thousand to two thousand bucks to get all the legal work done. And sometimes it can be more if you fight. But what I want you to do is sell me the real estate. You keep your own freaking llc. I don't want it. I just want your real estate. So under this asset sale agreement, I buy your real estate. I get stepped up basis to the amount I paid and then I set up my own LLC and my LLC gets the ownership of the new properties. This is more typical, very common. And get a consult with an attorney and get a price of how much it might cost to do the deal and. Very good. Okay, Alexander with a series.

Can you have subs with different partners and specific allocations on the page?

Oh my gosh. Alexander. So Alexander says can you have separate partners in the subs and, and can you do special allocations? I wonder if he's trying to trip me up because he's throwing down some big words there. So we're going to skip his question and go to someone else. No, I'm just joking. All right, Alexander. Okay, first, let's think about it. Alexander. I don't like it and I normally don't do it. But here's what you have to do, if you want to is so here's your parent llc and then here's your subs down here. And say you've got a partner here, partner number one, for 50% you've got over here a partner. Number two, they own 30%. And then you've got a partner over here, number three, that owns 40%. So your LLC owns 50% of this one, 70% of that one, and 60% of that one. Well, okay, that's a mess because here's what happens. Oh, Alexander says, I'm sorry, too late, doesn't do me any good. I'm answering his freaking question. All right, now here's what the deal is, is what happens here is whenever you have a partner, you have to do a tax return. So I have to do a separate tax return here, which is a 1065. This is absolutely going to have to have its own ein number in its own bank account. And then my 50% would be a shareholder in this 1065 and I would issue K1s this way. And if we'll come back to special allocations. So every partnership has to do its own 1065 partnership tax return. And then, and then you're going to get K1s back up and you could do special allocations probably out of a thousand ten partnership returns we do, we may only do two of them with special allocations because whatever. What Alexander means is I'm going to give him all the cash flow and then she's going to get all the depreciation and this person can get all the sales price upside, but then they get the cash flow and then this person gets all the losses and they get all the game. I mean you can do play games like that, but there's a day of reckoning. The day the property is sold, you have to equalize everybody. So special allocations only work as long as the partnership survives. And then once you sell and close down the partnership, you got to make everybody equal. So it's really a time value of money that you're saving taxes in the short run, but you're going to have to give that money back in the long run. So I'm not a big fan of special allocations and don't get me started with IRAs and 401ks because I do not want IRAs in this deal with special allocations. So this makes for a really clunky series because now I've got to have a different operating agreement for each one of these. I just don't like it. So Alexander What I recommend is in your deal, you might have your S corp over here or your day job, and then over here you have an LLC that you own 100% and you're doing all your little real estate. And then over here, an option as you go down this path is you have an LLC that's your parent LLC, and this parent owns your share in other LLCs. So it's kind of like the Virginia example where you have one LLC that owns all of your other partnership deals. And I don't think I'd use a sub series LLC for it because it's just clunky in the operating agreement with the other partners. Okay, Melanie,

if you have an LLC in one state and then have it in another, how do you connect them? One is the Main LLC or LLC.

Okay, Melanie says, what happens if I have LLCs in multiple states? How do I connect them? And she's assuming that an LLC cannot own another llc. So if that's what you're saying, Melanie, you're wrong. You're going to love this. So what I do is again, you can have one LLC that's your parent and it owns pieces of other LLCs with your partners in other states. So if you live in Arizona and then you're going to have part of a Florida LLC and a part of a New York LLC and part of a Alabama llc, that's cool. This LLC actually owns your share of these other LLCs. Another option is if you have LLCs in multiple states, you just own them 100%. And how I own them is I want your trust to own them so that everything goes into your family trust and it all ends up down on your 1040. So you might have an Arizona LLC and Alabama LLC and a Florida llc, but they all flow down to you. You don't have to have all these LLCs own each other, they just own by you and then they all go into your tax return. Now, one other side note is an S Corp, an LLC cannot own an S corp, only people can. You and one S corp can only own another S corp if it owns 100% of it. So, Melanie, I think this rule here is what you're maybe confusing with this rule. LLCs are very flexible. S Corps are not. Okay, Bishop.

Bishop B asks, at what point should we consider using a Wyoming holding llc? I only have three properties right now. Also, what's the reason for not converting a holding of a student to an export if the net income is over 4%?

Okay, now I wanted to pull up my example here. Thanks. For letting me go off the camera for a minute. Okay, Bishop says I'm going to have you repeat the second part. But Bishop's first question was, when do I use a Wyoming llc? When you're here. So, people, if you just have one or two rentals, you're never going to go over here unless they're worth a million bucks. I mean like an apartment building or a restaurant or a strip mall or a storage facility. But I want. Most of my clients are going to be in 1 and 2. Even my Virginia collar. Today we're going to be in 1 and 2. If you're in a state with series law, cool, we'll throw in a series llc. But Bishop, I use the Wyoming LLC when we want privacy, want to hide you. We're going to use mail forwarding through our law firm and your name and address isn't going to show up anywhere. That only costs about 3, 350 a year. Then this Wyoming LLC is going to give you double protection. Read about it in my book Tax and legal playbook on advanced asset protection strategies. And look up the word cope. Cope. It's in the table of contents as well and the index. So that's where I would use it. What was the second part of his

question for not converting a holding LLC to an S corp if the net income is over 40k?

Okay, so I'm going to go back to this piece of paper here. Bishop says, why wouldn't I convert my LLC to an S corp if I'm making more than 40 or 50 grand? Here is why. And everybody pay attention. If you're multitasking, returning emails, this is the part I need you to listen to. Bishop just asked, why would I not convert my series LLC or my LLC to an S corp if I'm making more than 40 or 50 grand? The answer is S Corps. Save on self employment, tax the F word. Fica. I hate fica. FICA is why we do an S corp. Rental income in an LLC is not subject to fica. So Bishop, if you've got multiple rentals, it's all passive income. You don't even need an S corp. And you jack it up by doing an S corp because it's hard to get the property out. 10:31 Exchanges are hard. You're messed up. So what I want to do is keep my rentals and LLCs, run my operations through 1s corp. I, Mark Kohler, have 1s corp in my life and it owns all my other operations. So this is where I want the S corp with operational Income. Never convert an LLC with rentals to AN S Corp. 99 out of 100 CPAs won't even suggest it. It's like basic rules of being a cpa. Okay, Herb, what do we got?

Instead of llc, how about Land trust? Real Properties Trust, where the beneficiary is the llc. What are the closing costs?

Okay, Herb, I like this. Herb said. What about using land trusts or real property trusts? Skip the series. Freaking llc. I'll just do land trusts. What are the pros and cons? I've got a chapter in here called land trusts savior or snake oil. Well, here's the deal and everybody listening. And I don't care if I get some hate mail. Land trusts are oversold for asset protection. In fact, I don't think they give any asset protection at all. In fact, I know it, and I put my money where my mouth is. In my book, land trusts are great for hiding privacy and amenity. But if someone's pissed off enough and they got enough money, are they going to find you? Her? They will. They'll find you. And you're like, well, the judge has got to do an order for this and this and this and that. I know it makes it hard for someone to get at you. That's what land trusts are good for. They make it hard, but they have no intrinsic asset protection. So what he's talking about, everybody is he's saying, well, screw it. I won't set up a bunch of LLCs. I'll do one LLC, and I'll have a land trust. I'll call it LT. And I could have multiple. LT's. Multiple LT. And we set up. Lt's at my office. Land trust. We do. We help clients with land trusts for acquisition strategies, buy and hold strategies. Subject to strategies, but not for asset protection strategies. So here's a bunch of land trusts, and here's what you do is the land trust is set up, and the beneficiary of the land trust is the llc. The land trust is the recorded and deeded owner of the property. So on public record, all the public sees is a land trust. And you might have your lawyer, service trustee, so no one knows you own it, which is great. I have no problem with that. But if anything goes wrong here, they can get at any property in the llc. The land trusts don't give protection between each other. So once I find out the llc, I can go after everything in the llc, and all I have to do is file discovery and an interrogatory request for your tax return, and I'll find out what every LLC owns, and if the litigation is serious enough, they're going to find out. But I agree it does create barriers, but not intrinsic asset protection. Just kind of smoke and mirrors. Okay, maybe a couple more questions. We got Rachel. Rachel, Rach Rock. Rach Rake. All right, let's do it.

Got the playbook last week. Love it. What are your thoughts on having a Wyoming LLC for anonymity?

Okay.

Abusive path. The Wyoming LLC owns my Indiana LLC 1%, where I run an active business.

Where she runs an active. Everything sounded good until she said active business. She runs her active business through all that. Okay, so Rach Rake, R A, C H says she picked up my book last week and loved it. Thank you, everybody. And by the way, we're going to raffle off three books and I'll tell you who the winners are. From last week's broadcast, Rake says, I live in Indiana and she has a series llc, obviously Wyoming llc. And she lives in Indiana. And everything was going good because I thought she said, I have a Wyoming LLC that owns an Indiana LLC 100%. Where she runs an active business. Okay. All right. Now this is good. I'm going to give the pros and cons of Rachel structure. We're all jacked up here. This is not. And Rachel, it's not bad. And it's just I don't do this very often, and I try to be one of the most creative guys in the country. So we're not talking holdings. She doesn't have any rental real estate. She has an active business with an Indiana LLC, and she runs her business here and is owned 100% by a Wyoming LLC. So here's my Wyoming LLC. And for tax purposes, here's the problem. Everybody out there. If Rachel Rake is running an operational business in Indiana and he or she is making more than 40 or 50 grand a year, what tax are we worried about? FICA. FICA? Self Employment Tax. So what do we do to solve that problem? We do an S corporation. So what I want to do is I can't make this an S corp because an LLC can't own an S corp. So I've got to make her Wyoming LLC an S corp. And then this is where she's going to file an 1120s and do a tack and do salary. Well, the state of Indiana is going to want her to register a Wyoming LLC in Indiana. And so she's saying, well, I want anonymity, I want to hide. Well, not with an operational business, Rake. I mean, everybody out there, I want to hide you when I'm trying to hide your assets. See, over here, if someone sues you, I don't want them to be able to find you. I want to make it tough. And that's where that last person said land trust. What was her name? Herb. Herb was all about land trust. I get it. That's good for hiding and anonymity. And I could set up wyoming filing fees. 100 bucks. We. We can do your registered agent and mail forwarding for around 250, 300 bucks. No one knows it's you. But if you're doing business and you're taking payroll, then everybody's going to know who you are. And so the Wyoming does you no good on this side. I just don't see it. I don't ever do that, Rach. I do the Wyoming over here to hide you and your assets from a lawsuit or liability. But over here, I'm doing S Corps. Everybody knows I'm Mark J. Kohler, Inc. I want you to know that I'm marketing myself. I'm marketing my business. I'm not trying to hide anything. Now you may say, rake, Well, I get better asset protection. But if you're doing business in Indiana, I got to register my Wyoming LLC in Indiana anyway. So if I get into a lawsuit, I got to go to Indiana court. My Wyoming LLC does me no good. So I would be careful there, Rake. I'm not excited about that. Okay, last. Okay, now, before I do the last question, let me tell you who the winners of the books were last week. Now I have my financial freedom for business owners. How do you take the profits from your business and make best use of them? Where do you put it? What is your financial landscape? That is this book. It's doing great out on Amazon. Keith Nelson, on my entrepreneur Facebook, won this book, and we mailed it out to him last week. And the eight steps. This is my workbook with a business plan, a marketing plan, and a strap plan. 60 videos podcast. Sarah fumes won that on my Mark J. Kohler Facebook page. And then finally, my newest book, the Game has Changed. The Tax and legal Playbook was won by Jerry Nevis on MJK YouTube. Now, I'm going to give these away again right after this. Rosalie will do a little drawing. And if you want to be in the drawing, you have to just share this video, share it on Facebook, share it on YouTube, and just let people know that this was an informative little webinar, which I hope you thought it was, and then we'll get you in the drawing and I'll announce the winners next week. I usually do this Facebook YouTube live on either Wednesday or Thursday around 3 or 4 o', clock, mountain or mountain time. And if you're on my social media, you'll get a little post so you can mark your calendar. Okay, now the last question is from Derek. What do we Got?

Estate Planning, VA and own apartments in one of the management in another LLC and own land in different states in one llc. Is it logic school?

And he said have a LLC own his home.

Own apartments.

Own apartments, not his own home. Okay. All right. So here's what Derek said and he asked if this makes sense. Kinda this is good for everybody. So what you do is you set up your family trust, revocable living trust. We set these up for clients all around the country. 800 bucks if you're single, $1,200 if you're married. And we do all the moving parts, wills, powers of attorney, pull the plug if I'm a vegetable, donate organs. You meet with an attorney, we draft it for you, send it to you, you sign it done. Rest of your life you can maintain the same trust package. Very, very helpful. So what Derek is saying is this is the estate plan and the, this is the trifecta. And so what I do is over here he's going to have his day job or his S corp or his sole proprietorship or his llc, but this is his operation side and much like rake in Indiana. So this is operations over here and we want to save on self employment tax and do some strategic planning. Maybe set up a 401K. We set up 401Ks, we can help you get your IRA directed. IRA to self direct. Give us a call, we can do all this now. He's going to buy rental properties well before we even get there. I want your trust to own your home, I want your life insurance to go into your trust and any of your 401ks and IRA beneficiaries should be your trust. Very, very common you see through provisions in the trust. So any of you financial advisors out there, don't freak out. We're not going to have a immediate disbursement here. Now when it comes to rentals, the thing that concerned me of everything you said Derek is is I want one LLC to own all my rentals in multiple states. That brings us back to my four quadrants and here it is. I don't know Derek, if I would go see, I would take this and I'd have a phone call with you and I'm going to use one of these four options and put that right here. See, I don't know if you're going to be 1, 2, 3, 3 or 4. And so one LLC registered everywhere with all your rentals, and those are apartment buildings sounds a little too risky. I'd probably go to number two at the least. And then I'm going to see if there's series states. So Derek, this is where you would spend your time with one of the attorneys in my office. And you get an hour. We'll set up your entity, we'll set up the other entities at a discount and you get an hour with an attorney to design it. So this is where I'd focus, Derek. But whatever Derek sets up over here, the trust owns the LLC or llc. So that way everything funnels down into your family trust. And we have paralegals in our office that all they do all day long is Melanie's job is she makes sure that your trust is owned by your home. All the rentals are owned by your llc. Your stock is owned by your trust so that you're properly funded. And that kind of is a healthy process to go through every couple years. Well, anyway, I just want to say thank you everybody for listening. Now here's an important last call to action. I've got my five workshops this fall. Philadelphia, Chicago, Orange County, Seattle and Honolulu. And the last one is a live broadcast, all of them. You get the recording of the workshop and I give you lunch. And right now there's an early bird special for 150 bucks. That's. You can't even go to an Internet conference in Vegas for less than $500. You get my workshop all day long for 150 bucks and lunch included. And if you purchase a workshop ticket in the next 24 to 48 hours, I'm giving away a free copy of my book. Then at the early bird special last another month and then we're off to the races and it's $200. The virtual workshop is $99. And you still get a free book if you buy that the next 24 hours. So if you want to get the book or come to the event, get over to markjkohler.com markjkohler.com and if you cannot make the event, you get a copy of the recording and still in the next 48 hours you get a book. So anyway, please try to come out. I'm going to be in Honolulu in a week and a half on August 10th for our self directed IRA 401k summit, which is a whole day on the north shore talking IRAs and 401ks. I'll be surfing the night before, probably over at B Land or Freddy's for you surfers. You know where I'm towing. So those are easy waves for old guys like me. Well, V Land could rock. I've surfed V Land on some two to three foot days. I once got barreled there. Those days are over. I just go out and get beat up now. Okay, everybody, I love you. I love the American dream. I'm going to get back to some Van Halen. I think I'm switching over and I'm going to get back to work. So see you later, have a good day.