Have questions about this video? Sign up for a free consultation to get your questions answered by my team. Visit: aba.link/y18
@thymeparzival
4 ай бұрын
The 5 bank accounts of the Profit First Model aren’t the issue, the issue is that holding large amounts of money in your LLC increases liability risk if your business were to be sued. The solution is to hold monetary assets (over 100k) in a second LLC and loan money back to your first LLC with interest that’s paid back to you.
@tamarunitamaruni4724
2 ай бұрын
What type of "businesS" would be listed on the LLC registration or IRs or EIN paperwork ? (not being sarcastic here)... Like I'm sure it would need to more than "overage savings act" lol but I can't imagine what that could be!
@thymeparzival
2 ай бұрын
@@tamarunitamaruni4724 Depending on your situation, potentially a trust or a holdings company with an investment portfolio. The USD is very vulnerable right now, as are many global currencies, so you may want to consider investing in assets that appreciate in value over time such as property.
@HopeProphecy
5 ай бұрын
Very helpful. Can you use that banking LLC as the holding LLC for the business LLC? Or would you recommend a separate Holding LLC that doesn’t not invest or hold money?
@ClintCoons
5 ай бұрын
You could but I prefer to use a separate LLC
@williamrivera1268
2 ай бұрын
In the case that you have the Business LLC, owned by a Holding LLC and create a "Banking" LLC do you need to still transfer the money to yourself before the Banking LLC? Or could you Transfer the money from your business LLC to the holding LLC then to the Banking LLC, as a means to keep the money safe and "pay/etc" completely separate from personal affairs? @@ClintCoons
@Agentxile
5 ай бұрын
I watched KZitemrs who recommended the five-account strategy. Thank you for the correct information.
@mrjuannorris_
5 ай бұрын
Technically, he’s not saying that having multiple accounts is wrong. The moral of the story is don’t have a lot of money in your operating business account. Particularly for me, the cost of running my business is extremely low and it has four accounts, but there’s never really any money in those accounts >$3000. 90-95% of profits gets filtered up to my holding company and dispersed again for buying assets. But I do see the advantage of what he’s saying for credit purposes. Obviously that’s not what the point is, but this sounds like a potentially great way to build credit for your business, and to create a solid track record. I would look into it for that reason alone, after looking at possible tax implications.
@JoeSmith-kn5wo
5 ай бұрын
Man I just stumbled on this video in the recommendations. I happen to getting ready to leave the corporate world again after running a few startups in the past and this sounds like great advise.
@ClintCoons
5 ай бұрын
You got this!
@S1N2D3S
5 ай бұрын
Great Video. Thank you for sharing!. Question: In your example above, is the Wyoming LLC the same concept as a Holding Company or is that different strategy? Thank you for your response!
@ClintCoons
5 ай бұрын
Great question, to assist you further, I highly recommend you request a free 45-minute consultation to discuss this with my team so we can provide with you an answer that is unique to your situation. Visit: aba.link/y18
@brebre09shana
Ай бұрын
@@ClintCoonslet's say in ur example my original LLC is getting sued. What if the defendant attorney request my company's w2 for lack of the proper form name. On my company's w2 it will list how much money I made and paid into taxes. So wouldn't a judge just order for those funds to be returned to the original account? It seems like it would be the same as hiding money in an offshore account
@brebre09shana
Ай бұрын
I'm guessing we're hoping the lawyer isn't smart enough to do that. I'm truly curious
@ClintCoons
Ай бұрын
@@brebre09shana Not at all. If the busienss is being sued then only the business assets are at risk. This is why I reccomend you remove the money from your business.
@KristenNichole
4 ай бұрын
First video I’ve watched regarding this topic that actually made sense. Thank you.
@ClintCoons
4 ай бұрын
Glad to hear it!
@mpsmanger4713
5 ай бұрын
When you take the money out into your name to move it to the Wyoming LLC , is it not a taxable event?
@quixoticPrancer
5 ай бұрын
No, because he's talking about LLCs that have elected pass-through taxation status. It's only taxable if you're taking money out of an LLC taxed as a c-corp, because that would be a dividend.
@karikasumi888
5 ай бұрын
Great info. Hope i can come to the workshop soon
@SergioB-MakingMillionaires
4 ай бұрын
Very informative! 🔥
@Rummy316
5 ай бұрын
Talking about the “profit first” book.
@MusafirsSoul
5 ай бұрын
Smart advice 👌 Thanks. However why only Wyoming, can the home state be used for the purpose?
@christian-gu5oq
5 ай бұрын
Wyoming gives you the ability not to show your identity
@virgobee23
4 ай бұрын
This makes alot of sense!!! Thank You.
@tomasgonzalez4819
5 ай бұрын
Clint. I love your (and ABA's) videos. Great content as always. However, I think there is a missing detail here. Any "move" of money to your banking LLC, directly or otherwise, as you've described it here is a distribution. In a depo in aid of execution, opposing counsel will likely move to garnish distributions - worse case. So while the already transfered $350k is safe, all revenue, moving forward, is not. I'm surprised that you didn't add an MSA as a potential work around. You "pay" the Banking LLC a monthly services fee thereby showing an operating expense not a distribution. I get it. It's only a 10 minute video, and you can't be expected to hit all the nuance. Hence why my position still stands. Great content!
@khughes691
5 ай бұрын
Correct me if I am wrong, but in your scenario the business would pay monthly services fees to the Wyoming LLC that could total up to $300k or more (bypassing a distribution)? Seems excessive, but possible I guess depends on the situation... if that is what you meant by paying the Banking LLC a monthly service fee in place of a distribution to yourself (taxed on individual level).
@tomasgonzalez4819
5 ай бұрын
@@khughes691 As a single-member LLC (i.e., a disregarded entity for tax purposes), the Banking LLC would enjoy pass-through taxation, which would make it "taxed on individual level" as well. (Not that you mentioned it, but since we're here: The added administrative costs to implement my scenario would be neglible, especially if you're "netting" $300k or more per year.) Also, a monthly management service fee of $25k (or more) is hardly "excessive." That label is purely subjective. Add consulting, marketing, admin, and back-office functions to an MSA and you'll easily (and actually) justify the price tag.
@ThriveWithLouise
4 ай бұрын
Great info, so that new llc, can you then create a business out of that or is it only used for the purpose of protecting your assets??
@ClintCoons
4 ай бұрын
Yes you can. If you would like a FREE 30-minute consultation, you can request one here - aba.link/clintss
@buildingAbiz
5 ай бұрын
How do you put the money into the Wyoming llc bank account without paying tax again on that money as profits?
@dmez7020
5 ай бұрын
Transferring money is not taxable
@rcruz401
5 ай бұрын
From my understanding, any money that goes into that Wyoming LLC holding bank account will be taxed. In my example, we have it as a Partnership 1065 (my wife and I).
@AnastasiaDanielle
5 ай бұрын
@@rcruz401incorrect understanding. Money transfers are not taxable, profits are
@yz6450
5 ай бұрын
@@rcruz401 Hire a good bookkeeper /CPA to explain it to you. Taxed or not depends on what the money is - is it income, dividends, owner contribution, loan, etc.
@khughes691
5 ай бұрын
The loan part is good benefit, and the interest payment on the loan can be a nice business deduction... however, the majority of the money leaving the business would be considered a distribution, so it's taxed on the business owner personal tax return? Hence doesn't seem like much tax benefit, it's mostly just legal protection, correct?
@activemusickid
4 ай бұрын
But what if you have multiple subsidiary LLC’s under one holding company; wouldn’t transferring funds from neighboring subsidiaries into the shared holding company be considered as “co-mingling of funds?” (For example, a music record label and a music publishing company transferring cash to their shared holding company)
@ClintCoons
4 ай бұрын
The transferring of funds would be considered a distribution. Co-mingling could be raised when you moved funds between the sub-LLCs.
@michaelrowley6069
5 ай бұрын
You file a UCC1 to move money from the blue LLC to the orange LLC. How do you move money out of the orange and into the blue? You mentioned that the money would go to you the investor. Would that be a distribution? Is there a way to keep your excess cash in a way that you aren't lending back to yourself? Could you put it into a trust and put that trust into another WY LLC? Could you create security through obscurity that way? I can see the benefits of loaning the amount to the operating LLC. I just wonder if there was a way to move the money to the holding/lending LLC that didn't involve a distribution.
@quixoticPrancer
5 ай бұрын
You're thinking of an LLC taxed as a c-corp. His example implies that with the LLC in question, you have chosen pass-through taxation status.
@activemusickid
4 ай бұрын
Who said you can put a trust into an LLC? As far as I know, you can only put an LLC into a trust.
@heidinasser2883
5 ай бұрын
Great Video, if you write the check under my name to move it to the Wyoming LLC, shouldn’t I pay taxes on the money im moving?
@thebestken
5 ай бұрын
You are drawing money from LLC. There is no tax on that. Talk to CPA or learn more about drawing money from LLC.
@LeolyanGRAY
5 ай бұрын
Hey Clint, if you own an office building inside of your active business LLC, Should one put the Office building in the Wyoming asset holding company?
@mnventuresinc.8292
5 ай бұрын
Are you talking about the profit first method ? Basically right
@mikejr1152
5 ай бұрын
Is it OK to do this with just a holding company?
@ClintCoons
5 ай бұрын
Yes
@marinakn2474
4 ай бұрын
Do you provide consult to EU citizens who want to set up a LLC in YS? If yes, how can I contact you?
@ClintCoons
4 ай бұрын
If you would like a FREE 30-minute consultation, you can request one here - aba.link/clintss
@marinakn2474
4 ай бұрын
I tried to request but you website wouldn’t allow me to do anything . It says that ‘Yor access to this website is limited by the owner of the website’. I am from The Netherlands. Seems like your website doesn’t allow EU citizens to access it.
@virtualcreationcorp.6179
5 ай бұрын
Clint is amazing....period💟
@LeolyanGRAY
5 ай бұрын
Hey Clint, if you only office building in the active business account in the state you’re operating from should you put the office building in the Wyomi holding company? Leolyan (Lee)
@ClintCoons
5 ай бұрын
The building should be placed in an LLC registered in the state where the property is located.
@rebeccasimmers9363
5 ай бұрын
Yes, but don't I incur taxes when I pull the money out of the active LLC to create a separate "bank LLC"? Does this still apply if I have a management C Corp that owns several LLC businesses?
@ClintCoons
5 ай бұрын
You do not unless the operating LLC is treated as a C-Corporation
@11962
5 ай бұрын
Everything coming out this guy's mouth is gold.....
@ClintCoons
5 ай бұрын
Hah I will let my wife read this comment. 😂
@marctlm3636
5 ай бұрын
How can I work with you directly to structure my LLC and set up a trust?
@ClintCoons
5 ай бұрын
Hi you can reach out to my team to get started. Visit: aba.link/y18
@ajrockinshockin2893
4 ай бұрын
@@ClintCoons Hey 👋 Clint, I went to the link and saved it. I'll be working with your legal team very soon. Thank you for sharing your knowledge. 😊
@ChristianPierreW
5 ай бұрын
Good video. Thanks.
@TGArthur
4 ай бұрын
I called your advisory firm and they won't help me due to a pending civil suit we are settling. Can't you help with setting up Operating Agreements for the hodling companies, LLC and S Corp companies I have at least?
@ClintCoons
4 ай бұрын
If you would like a FREE 30-minute consultation, you can request one here - aba.link/clintss
@djlightsout06
5 ай бұрын
Is it necessary to loan yourself the money? Can you just wire the money over without filing the UCCC?
@Zenumo1
5 ай бұрын
The ucc1 creates a "lien" that must be paid first in the event the business llc gets sued.
@ClintCoons
5 ай бұрын
You can but you would not be protected. The purpose of the UCC is to make your lending entity a secured creditor.
@stevem0601
4 ай бұрын
@@ClintCoons - But doesn't that remove the veil of anonymity?
@Mhapple
4 ай бұрын
What do you mean put it in your name? Write a check to yourself? If there was some type of legal action, wouldn't attorneys go after the paper trail? If I use a Wyoming LLC from NJ, do I need to register the LLC to conduct business in NJ or since it is just a bank account, it doesn't matter? Also doesn't registering the LLC in certain states mean you lose anonymity?
@ClintCoons
4 ай бұрын
The WY LLC will not register in NJ because it is not conducting any business in NJ. You ask about the paper trail - if an attorney did discover you moved money into your WY LLC that does not give the attorney a cause of action against the WY LLC to bring it into the case.
@hedgefund996
5 ай бұрын
Good Educational Content
@ClintCoons
4 ай бұрын
Thanks
@AdeAde0224
5 ай бұрын
Great information
@activemusickid
4 ай бұрын
So when you transfer funds from a subsidiary to a holding LLC, are there limits to how much you can transfer? I’d imagine you can’t limit your liability to the point where you just transfer 99% of cash from subsidiary to holding company?
@ClintCoons
4 ай бұрын
No limit, but you should keep enough operating revenue in your account.
@tracy419
4 ай бұрын
I've been using the 5 pillowcase strategy for years, and it's a lot less paperwork and headaches.
@LearW-tc9ez
4 ай бұрын
Are you able to explain that strategy?
@tracy419
4 ай бұрын
@@LearW-tc9ez it's a lot like the old under the mattress strategy, but I've only got one mattress. (Sorry, figured it would be an obvious joke)
@ClintCoons
4 ай бұрын
😂😂😂
@activemusickid
4 ай бұрын
So the banking LLC, would that be a holding company ??
@ClintCoons
4 ай бұрын
Yes
@archiepennoh
4 ай бұрын
THANK YOU
@iwebexp
5 ай бұрын
Pulling the money from the LLC in your name to move over banking LLC, doesnt that piece the veil?
@zeusmultirotor8479
5 ай бұрын
Filing the UCC is kind of the point. That makes it so that anyone who successfully sues the operating LLC would only get their money after the UCC register loan is paid of. The more UCC filings the less money is available to be taken by people suing the company
@iwebexp
5 ай бұрын
@@zeusmultirotor8479 that doesn't have anything to do with my question
@truhawaii5957
4 ай бұрын
How does the taxes work on your banking LLC
@ClintCoons
4 ай бұрын
The LLC is disregarded and will not be a tax issue unless the account generates income, which would be taxable.
@kimbrian199
Ай бұрын
@@ClintCoonswhen the orange llc pays the loan back to the blue llc with interest, isn’t that income generating? Or does the orange llc just never pay the “loans” back?
@ClintCoons
Ай бұрын
@@kimbrian199 yes but it is offset by the interest deducted through the orange LLC
@malcomgreen4747
3 күн бұрын
But are you going to pay tax on the my banking llc isnt that considered profit are going to get audite
@ClintCoons
Күн бұрын
Contributions to the LLC are not profit. Also, the banking LLC is not earning the money you place into it. The income is earned at the business level and not the banking level.
@malcomgreen4747
Күн бұрын
@ClintCoons that makes sense. Thank you, im indihacker. i own an LLC in florida. And most time im overseas. Does your company do taxes for a small business located in florida, online? and it will be great if you make a video about us citi expats owning small businesses like software development that can be run online, but we're required to file taxes like any other business
@Karguy4545
4 ай бұрын
My question doesn't pertain to this video but since we are talking about a holding llc would it be wise to create a Wyoming holding llc for my savings ? I have it all sitting in my local bank savings account but i feel that it's not safe there. What do Rich people with tons of money do with the cash they have saved up and not invested anywhere yet?
@ClintCoons
4 ай бұрын
Correct, set up a WY holding LLC for your savings.
@Karguy4545
4 ай бұрын
@@ClintCoons is this something you guys can help me setup?and if so, whats the cost?
@ClintCoons
4 ай бұрын
@@Karguy4545 Yes we can. Sign up for a free consultation to get your questions answered by my team. Visit: aba.link/y18
@khackney86
5 ай бұрын
Great video
@jdwilk5023
4 ай бұрын
Once you move all that money into your name, it’s taxable. There’s got to be a better way to protect that money while also, keeping it in the business so what would be a tax liability can be offset by investing in additional assets versus just giving it to the government.
@ClintCoons
4 ай бұрын
It's only taxable to move money out if your entity is treated as a C-corporation.
@jdwilk5023
4 ай бұрын
@@ClintCoons Yes because an S-corp passes straight through anyway.
@sandorvarga.6982
4 ай бұрын
ACTIVASION FRATELO.❤
@waynecmontgomery
5 ай бұрын
What about using a statutory Trust out of Delaware or VA for the secondary company?
@ClintCoons
5 ай бұрын
You can - the point is to keep the business account without a lot of cash.
@waynecmontgomery
5 ай бұрын
@@ClintCoons I only ask because statutory trust require a lot less reporting and formality than an LLC but has the same protections (depending on state law).
@michaelfrancis-vb7tp
4 ай бұрын
Why do you use a Wyoming LLC?
@ClintCoons
4 ай бұрын
Watch this video: kzitem.info/news/bejne/o6Ss1ZqXiWOYZX4
@jeanalexandre1105
5 ай бұрын
A lawyer might say giving yourself a loan from a different entity of your making. It's not A loan.
@mesbahulhoda9539
5 ай бұрын
Isn't the presenter a lawyer?
@XFactor-we5cg
4 ай бұрын
How do you think its not a loan? Companies small and large do this all the time. Also usually under a parent company. What do you think it is?
@TheRealKimJong-Il
20 күн бұрын
It in fact must be a loan, with a contract and interest at the current market rate
@tailormadegrace9234
4 ай бұрын
Thanks
@kingdomthoughts2023
4 ай бұрын
By Wyoming LLC do you mean land trust?
@ClintCoons
4 ай бұрын
No I am referring to an LLC.
@td5222
4 ай бұрын
Why Wyoming
@ClintCoons
4 ай бұрын
Anonymity and asset protection benefits.
@makecostaricahome
4 ай бұрын
You aba links don't work :(
@ClintCoons
4 ай бұрын
Which link did you have issues with? Have you tried visiting aba.link/y18
@greeceundiscovered9670
5 ай бұрын
LLC for a KZitem channel? Should you have one?
@anntiup
4 ай бұрын
OK CLINT,OK,OK OK, 👍 🔥 🔥 🔥 🔥
@NicholasVaccariello-pr2cg
15 күн бұрын
Why you giving me the thumbs down….
@DIGTHEVOICE
5 ай бұрын
Great info
@ClintCoons
5 ай бұрын
Glad it was helpful
@ventureted
4 ай бұрын
When you take money out of your business LLC and into your own name aren't you creating a big tax liability for yourself?
@ClintCoons
4 ай бұрын
I recommend setting up a free consultation to discuss some strategies and how they apply to your unique situation. Sign up here: aba.link/y18
@ventureted
4 ай бұрын
@@ClintCoons LOL
@Jesus_Christ_is_Coming_Back-17
4 ай бұрын
Would you put a brokerage account in the Wyoming LLC?
Пікірлер: 131