If I need to pay myself a Salary, what are the Entity options? Can it be a LLC or has to be a Corp? I want to have a WY LLC own my CA Business. Great videos, I appreciate the insight.
Hey Clint! Was at a real Estate meetup today. Was talking with a lawyer who handles corporate structure and trusts. In Ohio back in February 2022, they started “Series LLC’s.” Have you heard of this? Also asked her about using trusts to incorporate anonymity. She said you don’t need it with these LLC’s and it won’t prevent creditors from Coming after me. I’m lost!
From what I was understanding each entity is in there own cell, own bank account, etc. What I got from it is you don’t have to purchase an LLC for each property, it is it’s own cell under the management LLC. Protected from the other cells.
Yes that works. We use series LLCs many times when working with clients. The only concern is making sure the state recognizes that particular form of business structure. Some states do not recognize the series structure.
@@ClintCoons Yes, Ohio adopted them in 2022. So why would she say you don’t need trusts with a series LLC? She said a trust would only be beneficial for estate taxes. Maybe, like you said, they are unaware of how. 🤷♂️
@@seanmclaughlin7415 No idea why she stated you wouldn't need a land trust with a series LLC. In some instances they are necessary because of the type of loan on the property. Remember it is never a one size fits all approach when it comes to planning. She is correct in stating a land trust will not help with estate taxes. However, that is like saying a car won't help you with water skiing. A boat and a car are vehicles but are used in different circumstances.
@@ClintCoons Yes! I was thrown a little by her response. But again, like you mentioned before, just because you are a lawyer doesn’t mean you understand it all. Thanks again!
If I need to pay myself a Salary, what are the Entity options? Can it be a LLC or has to be a Corp? I want to have a WY LLC own my CA Business. Great videos, I appreciate the insight.
Hang on one second. Why not sell it to the S corp and then xfer to the LLC. Wouldn't that benefit you from both sides. You get both the cost basis and the benefit of an LLC holding it.
in your passing away scenario, if the LLC was owned by an WY LLC that was owned by a revocable trust (which the kids would own from passing away), would the same thing happen? the trust via the WY LLC would get that step up basis on the new 800 appreciation? essentially, the family could just keep on doing this model and instead of taking taxable income, keep doing cash out refinances and taken distributions. please point out if i'm mistaken. love your videos...i've learned a ton...especially if all this is correct LOL!
@@ClintCoons Wow...that's the cheat code without cheating! Obviously you're putting complex mechanisms in somewhat easy terms for people like myself to digest...now onto execution of the plan. Preciate'cha 👍🏾
If i am doing real estate development and holding for rental purposes and i want most of the income left in the business, which will be better for me? C Corp or LLC? Thanks.
If you want the income left in the business to grow the development business then I would opt for c-corp tax status but it really depends on the amount of income. If under 200k maybe its better to use an s-corp. If you would like a FREE 30-minute consultation, you can request one here - aba.link/30minSession
Clint, your videos are insanely helpful! Do you by chance know the benefits and drawbacks of a structure composed of Land Trusts and LLC's held by a WY LLC Holding Company versus an irrevocable Asset Protection Trust (e.g., IPUG Trust)? Or, maybe able to provide any insight as a comment here? Everything is much appreciated, you've done great every time!!!
APT are a useful tool but they are irrevocable so you do have some limitations in your interaction. I prefer to start with the LLCs then consider an APT or Dubai holding LLC as the assets grow.
I've been looking forward to this video...Thank you!
Glad you enjoyed the video
If I need to pay myself a Salary, what are the Entity options? Can it be a LLC or has to be a Corp?
I want to have a WY LLC own my CA Business.
Great videos, I appreciate the insight.
Heading to the other video to learn how to transfer my personal residence to an S-corp to increase my tax basis! Thanks for everything you do for us!
Hey Clint! Was at a real Estate meetup today. Was talking with a lawyer who handles corporate structure and trusts. In Ohio back in February 2022, they started “Series LLC’s.” Have you heard of this? Also asked her about using trusts to incorporate anonymity. She said you don’t need it with these LLC’s and it won’t prevent creditors from Coming after me. I’m lost!
From what I was understanding each entity is in there own cell, own bank account, etc. What I got from it is you don’t have to purchase an LLC for each property, it is it’s own cell under the management LLC. Protected from the other cells.
Yes that works. We use series LLCs many times when working with clients. The only concern is making sure the state recognizes that particular form of business structure. Some states do not recognize the series structure.
@@ClintCoons Yes, Ohio adopted them in 2022. So why would she say you don’t need trusts with a series LLC? She said a trust would only be beneficial for estate taxes. Maybe, like you said, they are unaware of how. 🤷♂️
@@seanmclaughlin7415 No idea why she stated you wouldn't need a land trust with a series LLC. In some instances they are necessary because of the type of loan on the property. Remember it is never a one size fits all approach when it comes to planning. She is correct in stating a land trust will not help with estate taxes. However, that is like saying a car won't help you with water skiing. A boat and a car are vehicles but are used in different circumstances.
@@ClintCoons Yes! I was thrown a little by her response. But again, like you mentioned before, just because you are a lawyer doesn’t mean you understand it all. Thanks again!
If I need to pay myself a Salary, what are the Entity options? Can it be a LLC or has to be a Corp?
I want to have a WY LLC own my CA Business.
Great videos, I appreciate the insight.
It can be either so long as the entity is treated as a corporation for federal tax purposes.
Hang on one second. Why not sell it to the S corp and then xfer to the LLC. Wouldn't that benefit you from both sides. You get both the cost basis and the benefit of an LLC holding it.
in your passing away scenario, if the LLC was owned by an WY LLC that was owned by a revocable trust (which the kids would own from passing away), would the same thing happen? the trust via the WY LLC would get that step up basis on the new 800 appreciation? essentially, the family could just keep on doing this model and instead of taking taxable income, keep doing cash out refinances and taken distributions. please point out if i'm mistaken. love your videos...i've learned a ton...especially if all this is correct LOL!
You got it.
@@ClintCoons Wow...that's the cheat code without cheating!
Obviously you're putting complex mechanisms in somewhat easy terms for people like myself to digest...now onto execution of the plan. Preciate'cha 👍🏾
If i am doing real estate development and holding for rental purposes and i want most of the income left in the business, which will be better for me? C Corp or LLC? Thanks.
If you want the income left in the business to grow the development business then I would opt for c-corp tax status but it really depends on the amount of income. If under 200k maybe its better to use an s-corp. If you would like a FREE 30-minute consultation, you can request one here
- aba.link/30minSession
Clint, your videos are insanely helpful! Do you by chance know the benefits and drawbacks of a structure composed of Land Trusts and LLC's held by a WY LLC Holding Company versus an irrevocable Asset Protection Trust (e.g., IPUG Trust)? Or, maybe able to provide any insight as a comment here? Everything is much appreciated, you've done great every time!!!
APT are a useful tool but they are irrevocable so you do have some limitations in your interaction. I prefer to start with the LLCs then consider an APT or Dubai holding LLC as the assets grow.
@@ClintCoons Dubai holding LLC? Did I miss your video(s) on that🤔 Would love a pros/cons/applicability video on it if you have done one
Great video! As far as selling my primary home to S Corp, does the price hv to be fmv? What if it exceeds $500k? Shd we pay taxes for the excess?
Yes and yes