LLC Suggestions

This is an FYI I thought I would share. All can take it or leave it.
I have been looking to see if protection of my meager IQD holdings should start with an LLC. I found the average man or woman in the US today experiences five lawsuits in his or her lifetime. The odds are that one of these is a devastating lawsuit.
Most of those who have assets to lose occasionally consider taking action to protect their assets and lower their taxes. The reminder may strike around tax time or when a lawsuit or other tragedy strikes. However, the consideration often fades when the danger subsides. Then, the procrastinator is usually leveled with a financial blow that robs the individual of hard-earned resources.
I am impressed with what the state of Wyoming has to offer over Nevada as some have been suggesting in other posts.
As of July 1, 2010 Wyoming has the best LLC asset protection law in the nation. The first LLC statutes in the US were instituted in Wyoming in 1977.
Wyoming state fees are 87% less than Nevada's.
Wyoming has made it easy to move your existing corporation to Wyoming. That's another thing you cannot do in Nevada. Wyoming is about 35% less to incorporate in than Nevada. Nevada is running a deficit, and the Nevada state legislature has been trying to pass a corporate income tax and it came within a few votes of passing a tax a few years ago. In this current political controlling climate, they will not stop until they get it.
Wyoming never has and never will have a state income tax on corporations. It is one of the few states with a budget surplus.
I do not live in Wyoming, but I opened a WF account there to avoid state taxes on my investment when I was in Cheyenne during my wife's illness. Now I find they have more to offer than just no state income taxes. I can operate my Corporation and live anywhere in the world and I do not even have to be a US citizen (I am) to incorporate in Wyoming. This information is available to anyone interested in looking at Wyoming, I started by keying in a search for Corporate services.
I have never posted anywhere before, and I will quietly plan to get the most for my cash in at RV time as I can. I am REALLY BIG on paying it forward with my blessing I am about to receive. Lots of family trips are planed, but my first trip will be on my knees. Just sayin' IMO 2012 will be our year!! Happy 2012!

Thanks D. I was wondering about Wyoming and you have provided a lot of great information.

Thank you.

There is one great big down fall in an LLC in Wyoming! and that is piercing the corporate veil. In Wyoming the courts use the alter ego method which is very much left to interpretation of the courts, right down to underfunding. Wyoming courts have pierced the corporate veil more times than carter has liver pills and for more reasons than one can think of.

In Nevada the courts are limited to act and fraud by statute and have only pierced the corporate veil that I can count on one hand with two fingers. If you get my meaning there.

All states have mulled over passing state income taxes including Wyoming. I agree Wyoming has never put one up for election, but have discussed it. Nevada will never pass one because they know at this time if they do pass an income tax many businesses including their gambling will leave the state.

One thing Wyoming does not have is a better trust law either, where Nevada does, see chapter 88 NRS.

I would not set up an LLC in either state anyway for the protection of money, period ending. LLCs should only be used for limited purposes, such as small business for profit funded by loan through your trust or protecting auto's that are leased back to your asset protection trust of some sort or another.

There are better asset protections out there than an LLC for after tax settlement assets, which can be handled by these entities.

AJ

Aj...call me at work number

Thanks AJ for the response, good to know!

Your welcome. I am sponsering a free class that will get into detail about these things if interested. To sign up just email me at AJanderson@oomteam.com

AJ

Dinarasaurus wrote:Thanks AJ for the response, good to know!

"Most of those who have assets to lose occasionally consider taking action to protect their assets and lower their taxes."
Only thing you will lower is state tax. LLC has you SS# or Fed Tax # attached to it so you will not avoid Fed Tax.

one will never avoid federal taxes, but you can minimize them! AJ

Bikertrash wrote:"Most of those who have assets to lose occasionally consider taking action to protect their assets and lower their taxes."
Only thing you will lower is state tax. LLC has you SS# or Fed Tax # attached to it so you will not avoid Fed Tax.

Ok AJ We do not want to Avoid taxes yet the Bulldog and Bear ScottiG scare of Name on Assets is Our Concern/ Security We want to buy a house and need a truck and give to many charitys. So in Our case when we looked into Llc's it seemed wrong for US. We need Suggestions that can give T peace of mind when we Give it away?

Also Need input: When tithe 10% of whole Cash out How do we do it? Cannot put ck in offering plate;& should I tell my New Pastor ahead of Time or just the Bank president (I personally know member of Our Church) If I give Dinar; Church has to cash in & find a Rate (not good)

Use a for low profit L3c! These things you will learn in my class, which is full for the first. There will be a first timer 2nd class, but I have not set a date yet. AJ

his4evr2c wrote:Ok AJ We do not want to Avoid taxes yet the Bulldog and Bear ScottiG scare of Name on Assets is Our Concern/ Security We want to buy a house and need a truck and give to many charitys. So in Our case when we looked into Llc's it seemed wrong for US. We need Suggestions that can give T peace of mind when we Give it away?

Also Need input: When tithe 10% of whole Cash out How do we do it? Cannot put ck in offering plate;& should I tell my New Pastor ahead of Time or just the Bank president (I personally know member of Our Church) If I give Dinar; Church has to cash in & find a Rate (not good)

AW AJ my lil Laptop was sick it's okay we Replaced it's hard drive... Will your class cost much (or do I sign over my dinar? lol NOT)

Some say LLC 3 or Corporations? DK I just got news OOM2 so maybe in after Rv! THanks Anyway AJ

You can also use a charitable remainder trust for charity, but it has inheiritence and gift tax implications. I would not use the L3c or the charitable trust to protect non-taxable assets. AJ

his4evr2c wrote:AW AJ my lil Laptop was sick it's okay we Replaced it's hard drive... Will your class cost much (or do I sign over my dinar? lol NOT)

Some say LLC 3 or Corporations? DK I just got news OOM2 so maybe in after Rv! THanks Anyway AJ

I really would like to give several "Pay it forward" small gifts. Some at home suggest have your lawyer present it to the recipients to remain anonymous. "My client wanted you to have this gift, etc etc" type of thing, maybe even my 10% Tithes? Maybe would help in staying secure? Any thoughts?

We'll do much of our gifting anonymously ... I suppose it is more secure, but it's also more fun. We have a handicapped friend, and another who has a handicapped son, we are thinking we will set up trusts to help them with needed special equipment. I have designs for a special accessible stove/oven and may get a couple of prototypes built.

AJ have you ever heard of, and if so what is your opinion of "Passion for Purpose Trust" It is a blind, irrevocable spendthrift trust. Okies guy who is promoting a "Business Trust" made the comment that it was to complicated and cost to much. I personally dont care that it cost alot or that it is complicated. I am looking for something that I direct, and provides both asset protection and helps to minimize tax implications. Any insight would be greatly appreciated.

Its just another name for a business trust with certain language clauses in it. Here is what i call it. Qualified Special Power of Appointment Asset Management Irrevocable Spend Thrift Trust. My book will have all the documents to create this trust yourself for $29.95, in fact I am adding them to the book now and I should be done. There are other corps, trusts, chaitable corps and LLCs, L3c, within the book as well.

The blind trust or SPAT as I call it are purely blind when you become sued, insolvent or bankrupt in your personal capacity. They keep asset away from creditors. The SPAT walks in your shoes and acts for you inside the trust when you become insolvent, bankrupt or sued in your personal capacity and you can honestly say you own nothing.

AJ

DinarPhoenix wrote:AJ have you ever heard of, and if so what is your opinion of "Passion for Purpose Trust" It is a blind, irrevocable spendthrift trust. Okies guy who is promoting a "Business Trust" made the comment that it was to complicated and cost to much. I personally dont care that it cost alot or that it is complicated. I am looking for something that I direct, and provides both asset protection and helps to minimize tax implications. Any insight would be greatly appreciated.

Wow, Great posts!

Great information, thanks to all!

Thanks AJ, good info. my group is going the Business Trust route for many reasons, but I am also thinking about a LLC or your L3C, (something I didn't know about) just as a small business front. Most all my money will be hidden in the BT with a Nevada address since my state has state tax..

Thanks again..

QUESTION
IF YOU CASH IN IN A STATE WITH NO TAXES AND THEN GO BACK TO YOUR OWN STATE DO YOU STILL NOT HAVE TO PAY STATE CAPITAL GAINS TAX?
THANK YOU
STARK7

stark7 wrote:QUESTION
IF YOU CASH IN IN A STATE WITH NO TAXES AND THEN GO BACK TO YOUR OWN STATE DO YOU STILL NOT HAVE TO PAY STATE CAPITAL GAINS TAX?
THANK YOU
STARK7

I think the consensus is if the state you have residentcy in has a state income tax, you will owe it.

Here is some more information I found on WY vs NV. If you search the number of LLC's that have been pierced in Nevada it is much more than what can be found in Wyoming, but I do not think anyone has an accurate number.

However, the tests that the courts use in NV and WY are largely the same; they simply come from different sources. In Nevada, veil piercing is addressed in the statutes. In Wyoming (as in most other states), veil piercing is a judge-created doctrine found in case law.

In Wyoming, LLC veil piercing factors have been reduced to: 1) fraud; 2) inadequate capitalization; 3) failure to observe company formalities, and 4) intermingling the business and finances of the company and the member to such an extent that there is no distinction between them.

In Nevada, the statute says the veil will only be pierced when the stockholder is an alter ego of the company, where there is such a unity of interest that the owner is equal to the company; the second factor is where to not disregard the corporate veil would promote injustice or sanction a fraud. Wyoming courts use almost exactly the same language. The Wyoming courts go the additional step of occasionally providing a list of factors they might consider to determine if there is an alter ego, or if it would sanction a fraud, etc. None of any factors listed is a black and white, if-it-exists- we-will-pierce-for-sure type of factor.

The bottom line is that whether you are in Wyoming or Nevada, you must operate your business in a reasonable, legitimate fashion, if you want to avoid having the veil pierced. To do that, you need to do things like keep separate bank accounts, maintain financial records, not commingle funds, provide adequate capitalization, observe the corporate formalities, etc. That is true no matter what state you are in.

In regards to taxes, Wyoming is running a budget surplus of two years and Nevada is, and has been for the last decade, in a budget deficit. You tell me what state you think needs to tax income.

In regards to Trusts, listening to an non Nevada non Wyoming attorney about this and he stated the Wyoming trust law was some of the best in the nation. I am still thinking Wyoming is a better bet than Nevada for my purposes. JMO. As I said in my initial post,
I can operate my Corporation and live anywhere in the world and I do not even have to be a US citizen (I am) to incorporate in Wyoming.
Everyone should do whats best for them, listen to God for advice, He never fails.

thank you alaskan1...unfortunately that's what i figured
bless you,
stark7

Piercing the LLC Corporate Veil Differences:

Nevada has 3:

The corporation must be influenced and governed by the person asserted to be the alter ego.

There must be such unity of interest and ownership that one is inseparable from the other.

The facts must be such that adherence to the corporate fiction of a separate entity would, under the circumstances, sanction fraud or promote injustice.



Wyoming has 17: Almost as bad as California who has 26

(1) commingling of funds and other assets, (2) failure to segregate funds of the separate entities, and the unauthorized diversion of corporate funds or assets to other than corporate uses; (3) the treatment by an individual of the assets of the corporation as his own; (4) the failure to obtain authority to issue or subscribe to stock; (5) the holding out by an individual that he is personally liable for the debts of the corporation; (6) the failure to maintain minutes or adequate corporate records and the confusion of the records of the separate entities; (7) the identical equitable ownership in the two entities; (8) the identification of the equitable owners thereof with the domination and control of the two entities; (9) identification of the directors and officers of the two entities in the responsible supervision and management; (10) the failure to adequately capitalize a corporation; (11) the absence of corporate assets, and undercapitalization; (12) the use of a corporation as a mere shell, instrumentality or conduit for a single venture or the business of an individual or another corporation; (13) the concealment and misrepresentation of the identity of the responsible ownership, management and financial interest or concealment of personal business activities; (14) the disregard of legal formalities and the failure to maintain arm's length relationships among related entities; (15) the use of the corporate entity to procure labor, services or merchandise for another person or entity; (16) the diversion of assets from a corporation by or to a stockholder or other person or entity, to the detriment of creditors, or the manipulation of assets and liabilities between entities so as to concentrate the assets in one and the liabilities in another; (17) the contracting with another with intent to avoid performance by use of a corporation as a subterfuge of illegal transactions; and the formation and use of a corporation to transfer to it the existing liability of another person or entity.



South Dakota has 6:

(1) fraudulent representation by corporation directors; (2) undercapitalization; (3) failure to observe corporate formalities; (4) absence of corporate records; (5) payment by the corporation of individual obligations; or (6) use of the corporation to promote fraud, injustice, or illegalities.

I am on information overload with all of the different trusts and LLC's. The most recent one was the "Invisible New Mexico LLC". Do you know if this is as good as NV or WY. I need to move on this pretty quickly and it is a minimum of 2 weeks to get the NM LLC set up. Any suggestions?

It is not really invisable, you just do not have to make the members public and there is a capital gains tax in NM. As far as I am concerned these promotors of the NM LLC are misleading people. As soon as you make that big deposit and do not pay the taxes the IRS will get your name from the bank anyway. Nevada can be just as invisable by making a repatable attorney or other person a director, because Nevada only requires one director and one registered agent at filing. Nevada does not require the members or stock holders names and has no income or capital gains tax like NM. AJ

bang bang wrote:I am on information overload with all of the different trusts and LLC's. The most recent one was the "Invisible New Mexico LLC". Do you know if this is as good as NV or WY. I need to move on this pretty quickly and it is a minimum of 2 weeks to get the NM LLC set up. Any suggestions?

Dang A J, I wish I had the time to just set down and pick your brain for a while, lol. Like most every one else, I don't have enough money to even pay all my bills this month, let alone look into setting up a Business Trust and a LLC or L3C before it RVs. I am going to set up an LLC because I am doing a little bit of online business, but I may not have to do any thing else if the RV comes in low, I'll just set up a couple more banking accounts..

Call me you can pick my brain all you want for free. 641-799-3580

I would not use a business trust as they are one of the most picked on by the IRS. I would use a Special Power of Appointment Spendthrift Trust. They are truly blind even under the Bankruptcy Code at 11 USC section 541 and do not even have to be filed under Nevada Law NRS Chapter 163. Check it out. AJ

wolverine7 wrote:Dang A J, I wish I had the time to just set down and pick your brain for a while, lol. Like most every one else, I don't have enough money to even pay all my bills this month, let alone look into setting up a Business Trust and a LLC or L3C before it RVs. I am going to set up an LLC because I am doing a little bit of online business, but I may not have to do any thing else if the RV comes in low, I'll just set up a couple more banking accounts..

Thanks for the heads up on the Business Trust, my family group was looking into that direction, I am emailing them this and get with you later. Any word on the RV yet, I haven't had time to snoop around that much this morning...

CBI still pulling dinar out of the market place in Iraq. Until he feels comfortable we will not see our due. Of course that is contray to others beliefs. 5 to 7 more weeks I would think. But, depends on the markets world wide. AJ

wolverine7 wrote:Thanks for the heads up on the Business Trust, my family group was looking into that direction, I am emailing them this and get with you later. Any word on the RV yet, I haven't had time to snoop around that much this morning...

AJAnderson wrote:Call me you can pick my brain all you want for free. 641-799-3580

I would not use a business trust as they are one of the most picked on by the IRS. I would use a Special Power of Appointment Spendthrift Trust. They are truly blind even under the Bankruptcy Code at 11 USC section 541 and do not even have to be filed under Nevada Law NRS Chapter 163. Check it out. AJ

wolverine7 wrote:Dang A J, I wish I had the time to just set down and pick your brain for a while, lol. Like most every one else, I don't have enough money to even pay all my bills this month, let alone look into setting up a Business Trust and a LLC or L3C before it RVs. I am going to set up an LLC because I am doing a little bit of online business, but I may not have to do any thing else if the RV comes in low, I'll just set up a couple more banking accounts..

Special Power of Appointment Spendthrift Trust

This is interesting, would it apply, If a person wanted to:

#1. Protect Assets such as home, other real-estate properties which I plan to purchase, Autos, heavy equipment, and liquid bank funds

#2. Make accommodations for our children to have our stuff and money when we are both gone, WITHOUT the government sticking their fingers in my family business with fees and taxes because now I am dead.

#3. Own and control everything but no one can find or touch my stuff or money.

#4. I plan to do online FX and want it protected.

#5. The wife is adamant about corrupt government being able to invade us at every security level with the (In-dee-aye-aye) and (Ho./me-l\and –s.e.c) laws allowing the access to any area of our lives including private bank accounts. And I agree with her. They can now breach your financial institution and freeze or confiscate any and all money and assets in your accounts and safety deposit boxes. Along with the ability to arrest you and hold you without charges forever, and all they have to say is they suspect something. How can we protect ourselves, our family, our money, our security, our privacy, and our assets, from this type of overbearing power?

If I could get all my family to go with, I think I would find

an island somewhere and build a fortress! LOL

Hubby, I haven't been in this that long, but my cousin-inlaws, have done much research, and so far they have determined that if you are in a Business Trust, no death tax and it's passed on to your children. But as
A J said, A BT sends up red flags to the IRS if they think you are dong it to avoid taxes. But if you report your taxes right and they know you are not trying to hide anything, you could be OK. Unless something else changes my mind, that may be the route I go with an LLC to operate through. What is an online FX?? One thing they said, keep just enough money in your LLC, to operate your business, but most of if in your BT. But like I said, it's still all up in the air, for me it all depends on how high the RV comes in at, being on S/S I was not able to buy that many notes.

wolverine7 wrote:Hubby, I haven't been in this that long, but my cousin-inlaws, have done much research, and so far they have determined that if you are in a Business Trust, no death tax and it's passed on to your children. But as
A J said, A BT sends up red flags to the IRS if they think you are dong it to avoid taxes. But if you report your taxes right and they know you are not trying to hide anything, you could be OK. Unless something else changes my mind, that may be the route I go with an LLC to operate through. What is an online FX?? One thing they said, keep just enough money in your LLC, to operate your business, but most of if in your BT. But like I said, it's still all up in the air, for me it all depends on how high the RV comes in at, being on S/S I was not able to buy that many notes.

I understand, BT is something I want to look into, I won't be hidding anything from the Gov., but still, they can kiss my.......... butt.

I won't give them a penny that I don't have to legally. I have allready bought them way to many luxury items with my tax dollars.

FX means Forex Trading. Thanks

AJAnderson wrote:CBI still pulling dinar out of the market place in Iraq. Until he feels comfortable we will not see our due. Of course that is contray to others beliefs. 5 to 7 more weeks I would think. But, depends on the markets world wide. AJ

wolverine7 wrote:Thanks for the heads up on the Business Trust, my family group was looking into that direction, I am emailing them this and get with you later. Any word on the RV yet, I haven't had time to snoop around that much this morning...

If it takes a few more weeks,I can scrape together funds to buy a bit more,that is good,if it happens tomorrow,great!
I will be happy either way

Dr. Hubby, I have to send the info to you by email, it's in email format so I would have to forward it to you.

My email is " henson007@live.com "

In my opinion I would not use an LLC of anykind in any state for the IQD exchange because there are very little tax advantages. I would use an LLC with S corp election for high liability business and have a trust citus is Neveda owning at least 85% of the LLC S corp. Stock if not all. That way if the LLC business project goes bankrupt it does not affect your money cribbed away and the Trust gets a huge tax right off for the everyday course of business.
I would use an irrevocable trust as qualified under 26 USC sec. 643(a)(3) for the exchange and then create an LLC with S corp. election for liabilty type business selling at least 85% of stock to the trust in exchange for the money the LLC needs to operate the LLC and I would repeat that over and over again. AJ