Mike Minutes Mastermind 12/30/2022

Hey, everyone. Hope you're doing super well. I'm gonna get started. I'll explain where I'm at in just a second. Let me just go ahead and throw this on here.

Facebook group.

All right.

All right. So right now I am at place that we are moving into the week or two after conference for Command center. Kind of see it behind me or this might look somewhat familiar. Behind me here is Bob's Burger and Brew, where we all went for.

Sorry, I'm literally pointing there. That's Bob's Burger, where we went for training lunch. This is the building. It's about 5,000 square feet.

So should be able to easily get 40 to 50 in here pretty comfortably, honestly. So very good. We'll get conference out of the way, then we clean. We'll have the cleaners come in here and everything. And then the week after we move in, it'll be great.

I am on hold right now. That's why you're probably hearing me from my regular speakers. Because I have a transaction I need to go through today, and Chase is blocking it and it needs to go through today. So last. This is the last business day of the year. So if you need to hold on the checks for till next week, not a bad idea if you're gonna be paying a lot of taxes this year. That is.

If you need to make any purchases in the calendar year, good idea to make them today. It's the last day of the year, last business day, so. All right, let's go ahead and get started. Again, I have Chase's background music going and someone telling me every 10 seconds that I'm still on hold because I have been on hold for 50 minutes. Then they told me that they can't verify things over the phone. Then I called my bank and they said, that's not true. And then now I'm back on the phone with Chase. It's great. Okay, I think there's some questions that came in. Present window chrome. There you go. All right. I'm bopping my head because there's music going on in my head, making my ears. Brian, we have formed our LLC for our second location. Oh, very cool. Let's see here. Pull this down.

We have. We already have all the equipment, trucks, mower equipment, etc. We set up an S Corp. A.L.C. s of the Southeast and have the Augusta location LLC and the North Augusta location under S Corp. Okay. We may have been a bit earlier with form the LLC or the S Corp, but we decided to do it in order to save on taxes. What are your Thoughts on the move? I have attached our projected liability. I think it's fine, totally fine. Especially because your goals, you're going to be scaling up, right? So it'd be different if you just were going to two locations. I'd probably just say just stick with your two LLCs to get started and then when they become profitable, do a Form 1120s and be taxed like an S corp. But nope, you're setting it up perfectly. And that is an actual S corp at the top with LLCs underneath. And then you just pop a ton of LLCs into it. That's literally why I'm trying to move this money right now, is because I'm taking my corporation and I'm taking money from one LLC to another llc. And unfortunately they're at different banks right now. So no, that's fine. We'll be using profits from the main location and other locations once they are profitable to open all future locations. Would you structure a payback for the new location to pay the escort back for the initial cost to start up? So yeah, talk to a CPA here. This is not what I'm doing. I don't like having loans between different companies. It just muddles up the balance sheet. So if you have an S corp and you're actually filing one tax return with a bunch of LLC underneath it, you should be able to move money between these. LLC is very easily. It would be owner's investment when you put money in and there'd be owners withdraw or owner's dividends or owners compensation coming out. Both of which are just balance sheet items. Oh, one second, I apologize.

Yeah, yeah, one second here, let me pull up my account number.

Okay.

My account number, My account number. My account number is.

Let's see here. One second.

Michael andes.

Sorry guys, I have to get this done. It'll take me two seconds.

Yeah, it's Augusta Lawn care of Mooresville llc.

The address.

It'S probably 8115 birch bay square street, suite 133, blaine, wa 98230.

Yeah, I called this morning about it and they said that I had to like my bank, Whatcom Educational Credit Union would not do over the phone verification. However, I called Wiku and they told me that they do and I have someone specifically that you can talk to. Their name if you would like.

I. They just have a general number for everyone to call. I can give that to you. Yes.

Okay, one second, here it is.

360-676-1168. And then if you just type push in the word type in zero, it'll go right to the operator. And then Courtney is the person that I talk to.

Correct.

Thank you. Man, it's amazing how just getting a different person changes everything. I've literally been trying to get this to go through now for two and a half hours. It's so stupid. Okay, I apologize. Sorry, everybody, but I have to get this done today. And I'm waiting for the Comcast guy. That's why I'm here, too. Okay. We will be transferring. We'll be transferring initial 5 to 10k from the Augusta bank account to the new Northeast Augusta account. Does this doing so bring impact on our taxes? Would you transfer tomorrow or into the new year? Great. So it does not affect your taxes. It's just going to affect your balance sheet. So especially when you're moving money between accounts inside of One S Corp. Again, talk to a CPA. But if you're moving money between different LLCs inside an S Corp, again, it's going to be owner's distributions coming out and owner's investment going into another one. So it's going to like cancel out. And remember, whether you're doing S Corp or you're doing an llc, it's to pass rent.

Just looking at the bottom of your profit and loss and whatever profit is there you're getting taxed on. Moving money between the two different accounts, two different locations doesn't is not a taxable event. So unless you take it out as distributions and then like, then you put in your personal account, then you take your personal account and put the money in there, then you potentially could open yourself up some tax liability. So I'd be careful about that potentially. But again, talk to a CP about all of this when you start moving money between accounts, especially large amounts. Like what I'm doing about today.

I'm moving all the money into Mooresville. And then we're using Mooresville as kind of like the head to branch into all the different other locations. Like, I'm splitting the money through that one bank account. So we have made all purchases that we anticipate needing for the next year. We have decided to turn on profit mode for next year and we'll be only growing the new location to capacity. With one truck and two team members, we have decided to sell off a small service area that is 20 to 30 miles away from our shop and eliminate another service area that is an outlier as well. Okay, let me go ahead and show this attachment that you have here. See what it is. Oh, wow. Cool. You're sharing everything. Let's go. So this looks like what your approximate tax liabilities are. Looks like you haven't included the sale of the spray stuff, which is I'm assuming that part piece you sold off of looks like you got your business business dividends. Yeah. So you're going to definitely want to be taxed as an S corp. Whether that's doing L1120s or if you're actually doing it. Sounds like you're doing an actual S corp. Fantastic. Plus you're getting your W2 in there. So you've already paid a little bit of federal taxes.

So the profit of the business + + your distributions and your payroll. Yeah. So you're definitely gonna be wanting to do a an S corp and file as an S corp. Just remember at the end of the day profits is. It's a pass through entity. It's not a C corp. We're keeping money inside. The corporation is going to save you on taxes. That does not happen in an S corp. All profits are still taxed as if it's your income. So just keep that in mind.

All right. Share screen.

And just be careful when people start talking about like they keep money in their corporation and they pay it out to themselves, things like that. Because that is a C corporation. Typically larger corporations will do that. But S corporations, the reason you do an S corporation is to get around self employment tax. And that's what you have to pay if you're an llc.

But again a, an LLC is easier because of the schedule C on your tax returns instead of a whole separate tax returns. Whole separate tax returns. So once you start becoming more profitable though typically in your second year and beyond, want to file at least a Form 1120s of tax with your CPA. Again, this is a great time to point out the fact that only 25 of you booked a call with Brad prior to the end of the year. That's not good. It's extremely important to get in the habit of talking to a CPA before the end of the year. I tried to push this pretty hard. Didn't push it hard enough. Very, very important.

Especially as you grow. This is something you gotta do before the end of the year and talk to a cpa. So yeah. Are there any specific groups we should be in on the WhatsApp? Also, what's the best form of communication with the Augusta team? Correct. Thanks. Any specific groups we should be in the WhatsApp? No, not specifically Landon. When you come to conference, it'll be your first one. That's time if you want to get into other WhatsApp groups or other circles inside of Augusta totally feel free to do so. We don't have a WhatsApp group as all the franchisees. It would get chaotic honestly when there's that many people instead of a group. So the Facebook group is really the best place for the entire Augusta Nation.

We are not able to access our Google business account from Moore or Norman to get the review link and make changes. It says the account is owned by Augusta Lawn Care. I asked Lawn about and she mentioned to ask you about getting access. You should have access. I remember sending you this directly. Let me make a note. I will double check but you should have access more and Norman access Google listings. I know sometimes if you potentially changed addresses and then they banned you, sometimes they remove they strip all our users away outside of the account inside Google. So I'll take a look at it and follow up on that. So all right everyone, have a fantastic new year. Have a great weekend. Let's hope that this 40 this second long hold time pays off and that the Comcast guy gets here on time, which is not going to happen because he only has 20 more minutes out of his two hour window that he's supposed to be here. And this is why you never show up to estimates outside of the allotted time. They give two hour windows of time. I'm very tempted one day to try that. But it is nice for the customer sake to only have one hour. So. So anyways, have a fantastic weekend and cannot wait to see you guys next week. It's going to be great. Take care.