Clint Coons, Esq. is an entrepreneur, real estate investor, attorney, author, and speaker. In his work with Anderson Business Advisors, he shepherds clients through lawsuits, taxes, and the intricacies of real estate investing. Clint has saved millions of dollars for aspiring entrepreneurs but isn’t done yet.
How about a Holding Company solely for owning, within a Trust and a main c corporation underneath the Holding with every other company with 80% ownership underneath as subsidiaries including an LLC for all my IP, and a s series llc for all rental properties? I'm going for the utmost asset protection and to get a valuation.
wrong, wrong, wrong, do not make a trust the beneficiaries of your IRA, 401K, and annuity as a trust must cash them out in 5 years whereas a person gets 10 years.
Why make the Trust the beneficiary of the 401(k)? If congress reduces the unified credit back to $1mil, you have just ballooned the Trust and may incur estate tax. The beneficiaries of the 401(k) should be the Trust beneficiaries, bypassing the Trust.
@ClintCoons What about a Wyoming LLC where you’re the member and manager of the LLC, but you create an assignment for your trust to own the Wyoming LLC? Are there any additional tax ramifications between the Wyoming LLC and the trust fund, or are the taxes only paid through the Wyoming LLC?
Except because of the new law that passed in January 2024 you have to register EVERY partner/shadow partner/or anyone that has major control of the LLC with FINCEN so your information is public records, so if you get sued and you have assets, they can force it to the holding company and writ those accounts.
Clint these are very limited favorable rulings and one should NOT take this advise as serious but it is good entertainment. There are some pretty high profile people that have paid the price for single-member LLCs namely a former president, a former mayor and etc. Single-member LLCs are very risky at best and you should NOT be encouraging that type of formation.
@@Teolulz I would recommend setting up a UK limited company to own and operate the LLC. You have to make it difficult for the plaintiff to serve and sue you. That requires layers of protection.
Excellent as always! If someone is skeptical about the need for a thoroughly drafted operating agreement because they think they’ll never be sued, do you have a video which provides an overwhelmingly convincing argument to the contrary? Thanks in advance!
@clintcoons If I have a Wyoming hold account only, can I use or apply for business credit and use it for other to states to fund or would it be better to just open another LLC in the state that I want and apply for business credit?
I wish I had waited until this played out. Forgot the deadline was 12/31/24 for businesses formed prior to year 2024. When/if this gets repealed, what happens to the information from businesses who already submitted their info?
Love your content 👏 I have a good question for you. What if I, myself, file the Wyoming LLC and do so on an annual basis, which will list me as the organizer, will that blow my privacy?
Amazing Video ? If I had the my rental property for 2 years and now 2024 want to transfer into an LLC . If I decide to refi next year will I still have to pull it out from LLC ? Asking because you stated don’t transfer to early. Thank you !
I love your videos. QUESTION: In your example, The Holding Company LLC, is it member or manager managed? If the Holding LLC is structured to provide anonymity to the portfolio LLC, and WY doesn't collect the name data, why not just remain anonymous to begin with (in the portfolio LLC) ?? Otherwise, doesn't the Holding company have to choose member/manager managed.. and divulge the names anyway? Please help. Thanks
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)
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?
That is correct. Your RA must have a business address in the state where the entity is formed. If you do not live in Wyoming then you will use a commercial registered agent.
Very nice video, i have one question for clarification. Lets say I have 10 properties in florida. P1, P2, P3.. etc etc. I want to put each of them into a FL Land Trust, called LT1, LT2, LT3 etc etc I want my main WY LLC to be the beneficiary, of which I am the Manager and Member. Now when it comes to choosing my trustee, I have two options. Either I pick someone like a Lawyer, or I use a WY LLC to be the trustee. But seems like you are saying that I should not use my Main WY LLC (which I am using as the beneficiary) as the trustee? Does that mean I have to make another Side WY LLC that I will use as the trustee for each land trust? So the beneficiary for LT1, LT2, LT3 will be MAIN WY LLC, and then the Trustee for LT1, LT2, LT3 will be the SIDE WY LLC? Can you clarify why I would use two separate WY LLCs for this? Thanks!
Is TIC the right move for “permanent” buys. Example 2 brothers buy a 100 acre farm to build houses on opposite sides and live on with 1 brother taking 70% ownership with the other 30%. I thought I seen a video you did years ago talking about this that I can’t find on how you can even setup pre identified partition lines in the TIC during closing in case one person has to sell their portion due to getting sued, divorced, cancer, etc. also including right to refusal to give the other brother first dibs on property if it goes up for sale. And Are the portions of the property protected if they aren’t technically divided prior to a lawsuit. Hunting leases sound similar and come to mind to but know even less about that.
In a TIC you do not have asset protection unless you set it up with LLCs as the TIC owners. Further a TIC does not have pre-identified areas in general but you can attempt to identify the separate nature of the relationship by placing a parenthetical notation on the deed as to the separate address held by TIC owner 1 versus 2.
Clint, great stuff! Been leveraging your guidance as my wife and I start the journey. Have not made any purchases yet. As such, I have Wyoming LLC process started. Looking to make first purchase preferably in PA (close to home). Any recommendations on structure for PA LLC? You mentioned unrecorded deed, but I am not transferring anything in. I am thinking member managed, with my wife and I as officers. Thoughts?
Absolutely, if a judgement is entered against you personally, you will be required to disclose your ownership in LLCs; however, having the LLC in place will protect you from a personal creditor garnishing your accounts and taking the funds.
Great info. Question: If we have the "Wyoming" company and child Florida LLC, and a management company for rentals, who/what bank pays the property taxes/HOA fees/ect? Would that be at Wyoming level or in this case would we need a child LLC level bank account?
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?
Newly divorced (42yrs) - trying to learn. So what’s left? Ur primary house? What about a rent house?Regular bank accts? I have POD on all cash accts. What “should” be included? It a trust cheaper than probate & inheritance property values?
Your home, rentals (these should go into an LLC, and the LLC is held by your living trust), personal bank accounts, brokerage accounts, and business interests are the top that come to mind.
