LLC or Trust?

[Ice]

Please quote your authorities... support your statements.


Thanx,
Ice

Geez Ice. Here ya go:


"Business Planning," 3rd ed., by Franklin A. Gevurtz
Foundation Press, 2001, p. 62.


Check with your Sec. of State for further confirmation and to find the year in which the LLC was authorized in your state.


-squirrels

[Ice]

Can't remember a time when there weren't LLC's... but then, I got that CRS, lol.

Ask yourself if anyone would have verified a debt, even 30 years ago, by affidavit and accepting 100% liability for their statements.& Seems to me the country&has been running&on Limited Liability for,&at least, the&last 70 years.& So it surprises me that LLC's are not that old.


&

[rushpat]

Here's something about using an LLC to protect your paycheck. This was posted in the taxfreedomnowtoo yahoo group recently by the guy that runs the pfshield site I mentioned. Could be helpful.

I'm not advertising for him, but I think this could be useful.


-----

I proposed a solution a while back on this board. Interestingly
enough, I was watching a $1700 set of asset protection
training tapes by a very reputable attorney (Jay Mitton) just a few
hours ago, and he said you could do the same thing that I had
proposed (albeit to achieve somewhat different ends), which is this:

Tell your company that you will get major tax benefits if they pay an
LLC that you set up of which you are an employee instead of you.
Then, set everything up and have them cut the check to your LLC (make
sure they pay not only wages, but also the amount that they would
normally put towards your health insurance and other benefits. A
bonus for them is they no longer have to pay the 7.65% employer tax.)

The benefit to this is that since your LLC is now being paid, instead
of you, your LLC will be the one that accepts your W-4 forms, and
sends out W-2 forms to the government every year (of course you can
determine for yourself if the law actually requires you to do this.)
Furthermore, if a bogus wage garnishment letter is sent out, it is
now sent out to YOUR company, instead of your employer's company, and
therefore you have the power to decide if you need to comply with
that letter or not.

Now, there are a couple of downsides to this plan.

1) Your current employer may not want to cut a check to an LLC, even
though he saves 7.65% in employer tax. He may prefer to just preserve
the status quo, and keep everything as it is.

2) You will have to learn how to run an LLC with you as an employee.
(fortunately, an LLC, especially a single-member LLC, is much easier
to maintain and operate than a corporation.)

3) This works best as a PREVENTATIVE measure. I don't think you will
be able to do this if your wages are already garnished. Furthermore,
I disclaim all responsibility and liability from any consequences if
someone takes my advice in this or any other situation.

The solution to problem #2 is easy: educate yourself. Talk to a
friend who is a business owner, go to the IRS office (egads!) and ask
them what needs to be done in order to comply with government
regulations, or if you don't mind shelling out the bucks, hire
someone to teach you. Back when I was starting my first LLC, I hired
a friend who was a CPA to show me how to do things, at $50 an hour.

If problem #1 is an issue (your employer is reluctant to do this
arrangement), then do this: go to a CPA or tax lawyer, and ask
him "will I get a lot of tax benefits, if I have an LLC that is taxed
as a C Corporation." Any CPA who knows what he is doing will
say "absolutely!" Then explain that your employer is a bit reluctant
to go this route, perhaps because he is unfamiliar with doing things
this way, so would the CPA/tax lawyer be so kind as to write a brief
letter, on company letterhead, explaining how everything will be
done. This official letter may be what overcomes your employer's
uncertainty regarding this matter.

NOTE: If you are a non-filer or a zero-filer, you do NOT want to have
a C corporation set up, or an LLC set up so as to be taxed as a C
corp, or an S corp, for that matter. However, if you go to a CPA, he
will want to set up the LLC (for tax benefits) so that it is set up
as a C or S corp. Just get him to write the letter. Then, when the
single-member LLC is actually set up, keep it in its default tax
status, which is sole proprietership/disregarded entity.

Like I said, this works best as a PREVENTATIVE measure - before your
wages are being garnished. I am not even sure that I'd try this if
you are threatened with garnishment. If your wages are being
garnished, or are threatened with garnishment, then go to the
following URL for a possible solution:

http://www.pfshield.com/illegalwagegarnish.html

The above information does not constitute tax or legal advice.

Regards,

W Ryan Fowler
www.pfshield.com
800-798-2008

I do know of someone who has done trusts for many years with great succcess and many people on these forumns have had him do there work.& If you want more information about him I will have to ask him first if I can give out his information for he is very busy and very good.& His price is not cheap but his work if so far the best I have heard of and I will be having him do mine once I am in a safer position to do it.& You can email me offline if you choose.& I will see if he is interested in me sharing his information on line I wouldn't think so though.& Just a thought.& Bobbie

[LUKE2447]

Limited Liability "COMPANY" not corporation as many have corrected me in the past!

[rushpat]

Originally Posted by SuiJuris

One thing I missed - my understanding is that a single member LLC can not be a partnership, and will be viewed by the tax man as a sole proprietership. That is not desirable... I know I have heard this, but cannot vouch for its accuracy. Just something else to check into.



Sui Juris

Apparently, the NM LLC's are set up so that no one knows who, or how many own it. All they require is: address of businees, in the state and local rep and a few other things. Apparently, this privacy leads to passthrough taxation, where the LLC files no business return or informational return.



Also, since the ownership is private, apparently, there is an assumption somewhere that the income generated (if any) will be claimed on the individual return (if any).



As long as you leave no trails, then they won't find out. I would think that if the tax man comes asking a company who they pay the check to in order to employ you (as a contractor), then they could name the LLC, and the privacy would be gone.



Learning more dailiy...

[KaosTheory]

Is this anything like the Corporate Sole thing I've been hearing about?



KT

My 2 cents from afar, well so far i've set up a private Umbrella account that has under that private corp. 18 sub-accounts. the Umbrella has a UCC1 filed on all the sub-account as the secured party holding all the assets/collateral/property/etc. in its possesion, each sub-account has their own respective acoount #s and are apart of a seperate UCC1 secured by their designated flesh-and-blood-man and or woman as a secured party, upon opening the account under the umbrella, all copyright notices, tradename, and UCC documents were filed with the bank, all executive officers and board of directors are under common-law copyright protection as well as their respective filing of legal public filings of their UCC. i've not only taken the burden off the backs of the flesh and or the living souls but have placed a lien on all of the debtors asset/etc. the docs that were filed with the bank flags the account as a private account and waives all charges and protect the accounts from ever being levy or lien. this is a new walk and the laws that be allows me to do this. i will keep you informed of any changes.



Freedom

[rushpat]

Wow! That's a lot of work. Can you go into any more detail about the path you took?



How did you get the accounts flagged as private, not subject to levy/lien, without a fight?