Most people dread tax day, especially those that aren’t prepared and don’t have a plan. If you plan your business and your income correctly using business entities like LLCs, or S Corps, you not only can deduct many operating expenses, but you can even file an extension which lessens that time pressure and gives you an opportunity to step away from the herd.
The only catch is that to be effective and in compliance with legal regulations, you have to do some strategic work up front. First thing is you have to decide what your business and investment goals are and find the right combination of legal entities and where you want to do business. Then you need to make sure that you are in compliance in case you ever have an audit or legal issue. We are here to talk about all of this and offer some options in getting the legal stuff done right.
Disclaimer: We are not lawyers, CPAs, or licensed financial planners.
You can find Scott here:
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Show Notes
- [03:31] We are now moving into the next era of money. The current old system was formed in 1933.
- [04:07] We are going to talk about being a company with the legal right to make money and take advantage of 81,000 pages of deductions.
- [04:16] We are talking about how to live inside corporate life. We are going to walk through the absolute need for corporate compliance.
- [04:41] If you don't have a company, you need to decide which type of company you should have and which state you should be in.
- [04:55] You also need to know how to use the deductions and keep your corporate compliance up in case you are audited.
- [06:00] We are also going to talk about income, assets, and the choices you need to make to invest off of Wall Street.
- [08:01] You shouldn't be doing your taxes yourself. You need a tax strategist.
- [08:45] Loral has a Wealth Cycle product that gives you the basics. You need to find a business to put your taxes in order.
- [10:14] If you are using an S Corp. The expenses are deducted from the S Corp before you distribute the money to yourself on your personal return.
- [11:35] Do it yourself without proper guidance is costly when it comes to fixing the mistakes.
- [13:08] Sometimes you should move to a different state. It depends on where you want to live and how you want to be taxed.
- [14:43] Your investments should drive the decision on where some of your corporate structure is.
- [16:07] Do paperwork or be poor. You need to be in compliance with your corporate structure and your deductions.
- [17:04] A corporation can do anything you want it to do but think and speak for itself. Minutes and resolutions is how your company speaks. You need to treat it as a separate company.
- [18:31] There are required formalities. There are about 165 minutes and resolutions that need to be kept as a company.
- [20:09] Minutes are the voice and thought process why decisions are made. A lot of things need to be documented and recorded.
- [22:15] You need a calendar for 30 days before things are due. Once you put an entity in the air don't take it down.
- [25:29] The biggest gap is because people don't know they end up doing nothing.
- [28:15] What do you want and what are you going to have and how are you going to plan your legacy? Create things properly from the beginning.
- [29:46] You can reconstruct minutes and resolutions by recollection, but you can't back date them.
- [32:42] Corporate records need minutes and resolutions and ownership certifications. It's imperative to keep up on these minutes and resolutions.
- [34:38] You type in everything that you have done to create a resolution. Loral has a software product for this.
- [36:13] You may need diversification and multiple entity structures. Lay out everything and then start growing into it.
- [40:00] You can have an entity within a trust and move generational money.
- [46:29] We offer an interactive business guide that will help you document your entities and give you that peace of mind.
Links and Resources:
Loral’s Real Money Talks
