Do some good things with your status. Go after litigious people. They can't get anything from you. Go after the people no one else wants to go after, and help the faceless that way.
Clint as a retired lawyer your advice has a degree of merit , but you and both know in a deposition you will be asked about any LLC you own or manage . Their are ways more sophisticated than a double llc or trust . More costly yes but useful if the asset base is large enough . A few pointers : rent you house , long term lease for stability Sat 2 to 3 years auto Renew . Lease your vehicles Gold and silver and appraisal art Bermuda captive or any insurance entity that you pay premium to and are a shareholder. I am afraid most courts will pierce the fiction of your second llc . And any state can be ordered by the Feds to cough up your name . So offshore area that has No treaty with US . Lots more to discuss but in general your idea works to stop Nuisance suits . But if the Feds are after you , well that’s a different game 😎. Always pay your taxes and then play with the net . The post tax money is what you shield from spurious lawsuits .
I believe I am naturally protected, as best I know. 1) Rent My Home. 2) Drive 15 year old cars. 3) As I am retired now, Income is 100% based on IRA, SS, ACA Tax Credits...hard for others to break into those. My assets are good, 90% in the IRA - stocks and bonds. I can only see some exposure in checking / savings (small) and a Vanguard Traditional account (6 figures).
National Enquirer did something similar to this. They had a primary corporation that had loaned money to the National Enquirer at an absurdly high-interest rate. The National Enquirer would borrow money each month to do a print run and then pay their staff and other operating expenses and all the profits flowed back into the primary corporation. The Primary corporation even sued the National Enquirer and anyone who later sued the National Enquirer had to just get in line and wait to be paid. Everything was owned by the primary corporation including the equipment and all the trademarks. If anyone ever did get the National Enquirer they would find out that it was just an empty shell that didn't even own the name The National Enquirer.
I'm always amazed that people like OJ Simpson don't do this stuff to protect their assets. There was an Australian lawyer who came up with some wonderful stuff to avoid paying taxes which is usually harder to do. I have a copy of one of his many books, "How To Not Pay Taxes"
@@ClintCoons I k ow you must already know this,but some are satisfied sitting in the covered wagon and some like us dare to push ahead and scout a safe route for others. See you in a few hours. I signed up.😎
That was a very enlightening presentation, but it covered only one side of the issue. I would love to see a video from the creditor's point of view -- addressing the countermeasures available to overcome these strategies. As the old saying goes, "Any fool can get a judgment, but it takes a real lawyer to collect on one."
Oh its easy just look at any LLC that the company or owner deals with and run a check if the owner of the LLC that is being sued is owned by the same person. Of coarse that does not mean you can sue the other LLC(s) also you would have to prove in court that the other LLC is involved in some way in the wrong doing that the first LLC is being sued over. Now no matter how many LLCs someone may have that will not protect the owner of the LLCs if they are being sued personally. But to sue an owner of a LLC personally you would have to prove in court that they personally are at fault and not as an employee of the LLC.
@@Donkeyearsa He said that with a Wyoming LLC, they could not find out who the owner is because Wyoming does not collect that information. On the other hand, in the house example, if there's a lien from a Wyoming LLC for just about the equity in the house, it's easy to suspect this strategy is at work. And then would a judge force the debtor to divulge this information, given the clues that make it look like the strategy is being used?
It means the creditor has to have enough money to pay an attorney to get a claim. They won’t get an attorney to work for a percentage of the claim, such as a personal injury lawyer or a divorce lawyer. Lawsuits are expensive, and lawyers want to be paid. Giving the appearance that they won’t be paid in the 10 minutes a lawyer spends on financial diligence will lead to settling for what the insurance policy will pay. Even a creditor with money is likely to get legal advice that the person has no assets and is judgement-proof. If a creditor does get a large judgement, and is persistent, it will be hard for the creditor to have a normal life as the constantly have to hide how they spend money. Who is paying their mortgage? How did they pay for that car?
@@johnhaller5851 the house is owned by the trust, which owes the bank for the mortgage & the LLC for the line of credit. So they aren't paying a mortgage, they are paying rent to the trust so it can pay the mortgage. Oh, and it's a company car.
It's worth noting that this anonymity is not absolute, as law enforcement agencies and courts can compel the disclosure of ownership information under certain circumstances. E.g., if the LLC is involved in a legal dispute, a court may order the disclosure of the owners' identities.
One very important thing to remember is that any asset protection measures need to be taken BEFORE a lawsuit. Otherwise, it looks like a Fraudulent Transfer and a court can nullify transfers of assets, corp structures, etc. if certain criteria are met. Single-member LLCs are problematic. If you are the only person in the entity it can be considered an alter-ego and can be subject to enforcement of a judgment. All in all, these are reasonable strategies for discouraging nuisance lawsuits since most attorneys and creditors buy a canned asset check through Lexis, CLEAR, IRB, an inexperienced PI, etc. and don't hire a competent asset investigator - who would pick all this apart in an afternoon. That being said, even if it's not "judgment -proof" it does provide a degree of incentive to reach a settlement rather than go to court and unwind it all.
Okay Clint, I must put the cards on the table, show my hands and let someone else cut the deck. I hate lawyers because I know way to much about them and what they have done to the judicial system. That said, if I had a flat tire on a lonely highway I would not refuse one who assisted me in fixing it and getting on the road. And I would offer to pay him. This information you just gave cut to the quick in navigating the treaturous waters of the Gov. A lot was said in a brief time and illustrated well. The drawing part is actually better and more easily absorbed than a pre arranged chart. The strange thing is the more knowledge one accumulates the more it boils down to basic principals across all documents. The pieces are interchangeable and when done with at least a modicum of skill become nearly unchallengeable. Thank you for your knowledge presented here.
@@pietmondrianstudent6984 Dear piet there is much in what you say as a pendulum swings back and forth. Competent and IN competent are brother and sister in the grand scheme of ALL. I will not Boar you with what you already know. THEY (Attorney IN law and Attorney AT law) both must make a living also. So said, the Creator of This world and all the rest gave us many gifts, besides WHO gives you the authority there is the right to question EVERYTHING. Find the best for your situation and question everything that is WRITTEN on it.
Hey Clint, What do you think about charitable immunity? My wife and I operate a nonprofit in MA, we donated our house to the nonprofit to get the charitable immunity protection as well as the real estate tax exemption. We hold 2 events in the backyard to benefit the charity every year. We use a foreign UK subsidiary as a lien holder against the property and bank accounts. Also, when we sell the property there is NO capital gains due.
@@practicaldeen5333 Hello Deen, There is NO book perse I am a former 20-year plus attorney that has worked in the nonprofit and tax-exempt field. I would look into your state law to see if they offer charities in your state charitable immunity if NOT you can incorporate in a state that does and then do a foreign incorporation in your home state. The other thing you want to look at is local tax exemptions for real estate and equipment you can donate and yes you can personal deduction to donating to the charity once you obtain 501(c)(3) status. Again there are NO capital gains once you sell your organization is a nonprofit.
This sounds great where do I sign?? Seriously I need to hire someone and sort this out. It I could donate to my own charity and save on property tax that would be huge!
@@newmonengineering All you need is a charitable cause that you support once a year. I would recommend researching your state laws for incorporation guidance and your local real estate laws to make sure that tax-exempt organizations can get and receive the Real estate tax exemption. My wife and I incorporated in MA because the state has a charitable immunity cap for nonprofits. I would recommend incorporating in a state with charitable immunity and then doing a foreign incorporation in your home state. charities are very effective tax vehicles even if your NOT getting paid by them. All you need to do is operate one. The work is very minimal and brings a number of benefits. This will also benefit you once the Trump or TCJA tax cuts expire and we go back to normal tax rates.
In some states if you are being sued don't you have to file a statement of your net assets? I heard this recently in the Murdaugh case in South Caroline where he had to file for the boating accident judgement. So if you need to file with the court don't you have to disclose all these secret LLC's?
at 0:08 "These strategies are designed to thwart B.S. lawsuits from taking your investments, your personal Residence or your business" at 1:46 the "goal is to make you appear worthless because no one wants to go after somebody that does not have assets" You are correct but the goal is to not get to that point in the lawsuit
Yes if a judgement is entered against you then you must disclose your assets. As @Eric Blank mentioned, the strategy is to minimize the risk you find yourself in that situation.
Ok fine BUT.....people have to know that timing is a critical factor, maybe more important than a specific strategy. Do these things the night before youre sued, the night before you file bankruptcy papers, its all going to be overturned as fraud. Second, the veil of like a WY LLC can be pierced easily in court when you are asked on the stand "just who is this entity?" In fact, because of how WY operates, doing this becomes its own red flag to a creditor. So as for timing, do the strategies when you absolutely are not under any threat of suits and hopefully years go by before they are tested. Regardless of the strategy, taking steps today and being chased 5-10 years from now make it very tough for anyone to claim you did it to escape debt and allegations of fraud are not going to be an issue. Last, do the strategies as a practical layer of insurance but never as an excuse to be shitty in business. Conduct yourself honestly and correctly always.
When you get a limited liability company in Wyoming. Do you need to go ahead and set your banking up in Wyoming? Under that limited liability, that's in Wyoming?
Robert Kreamer Addressed the flaws I saw coming. Fl land trusts are not recorded and the homestead exemption is unlimited. South Dakota has interesting Legacy trusts with significant protections. In my experience LLCs are recorded in the home state domesticated and any other state as foreign entities. A serious draw back to your strategy is refinancing. Quite a collection of documents at closing and the new lender will wonder why you have a substsntial 2nd mortgage. Also where did the funds come from to settle the 2nd at closing. Then the IRS becomes real interested when the title company files a report with them from settlement docs. You may be considered for money laundering and so it goes....
If the lawyer for the creditor/s is smart enough they will follow the money trail. If you are a shareholder of the LLC the creditor can go for your equity in the LLC. Don't try to hide and deliberately mislead your creditors. If your business is in a cash flow problem or you personally, go to your creditors and place all your cards on the table and look for a solution. In most cases your creditors will help and respect you for being honest. Then employ an accountant to solve your cash flow troubles. And set your affairs in order with sound financial literacy. Keep your creditors informed all the way.
First of all, if you create an LLC, in order to use it, you need a taxpayer ID, in order to get a taxpayer ID you need to supply, depending how many owns or will own it, a Social Security number. If you open an account in a bank as an LLC, you still have that taxpayer ID which can be linked to your and possibly others Social Security number, so in affect your assets and the partner's assets can get frozen until the lien is satisfied. So basically you just created a more complicated situation.
If a judgement is entered against you personally it will not attach to the LLCs assets I.e., bank account. A creditor could move for a charging order but that would only affect distributions from your LLC and not the bank account.
IANAL, but wouldn't they be able to file discovery for bank statements and tax returns which would show all the money coming and going and where to and from?
At what level of net-worth do all these steps become worth it? I assume it takes money to create these LLCs, file these documents, annual fees, etc ...
For one's personal residence, an umbrella liability insurance policy would be a first, relatively inexpensive layer of protection. I've maintained a $2MM umbrella policy for years. Fortunately, never been sued. It should be a simple matter to contact the company who insures your home (or whom you purchase renter's insurance) and they will be happy to quote you. My policy carries an annual premium of
You said in a previous video that you NEVER want to put the Wyoming or Delaware LLC in your name and to put it in a trusy name because it defeats the purpose and they can simply perform a search to see who the managing member or registered agent of the LLC is? Now you're saying to self manage the LLC? Are you "conveniently forgetting" that rule for the sake of the strategy? Or is there something we are missing?
He never said to self manage. He said that you can set up the WY LLC as member managed or manager managed. Neither option breaks anonymity, WY doesn’t record who the members are but it does record the name and address of who created it. Don’t let it be you.
How about repositioning the cash we have in our savings account into a cashvalue life insurance policy like Whole Life or Index Universal Life? Don’t they have asset protection from creditors in most states? Plz let me know..
@@ClintCoons thanks Clint..I hardly see any attorney mention about asset protection for a Cashvalue life insurance policy, without getting into too many details about cashvalue life insurance,if you can cover this topic, it would be very informative for a lot of people.
SUPER GOOD QUESTION HERE!!! WHEN PUTTING A HOUSE IN A TRUST AND NOT USING YOIUR OWN NAME WILL MOST INSURANCE COMPANIES STILL CONSENT TO INURING YOUR HOME???? I spoke one one and they stated they would not unless Tue trust was in my own name! So concerned abt Home owners insurance in this regards. Any suggestions or comments that might be helpful in this regards. Thank you very fine and informative video.
When you move the funds from your personal account to the new LLC account, and then your regularly moving funds over to an LLC account, isn’t that income for the LLC account? I mean it’s not really income because it’s not coming from delivery of what your business does but it’s still money appearing in the account from an outside source. I don’t quite follow how the taxation would work on that. Also, in the case of a judgment issued in a court, wouldn’t the court just force you to divulge who the owner of the LLC is and you wouldn’t have a choice?
Moving money is not income it is a contribution, distribution or loan. Correct as to the judgement and disclosure. Keep in mind at the point of judgement you have lost your anonymity but not the asset protection of the LLC.
Is Wyoming the only state where I can do an LLC that wouldn't show up when I'm being searched for? What if I wanted to do a Montana LLC to put my vehicles into when purchasing nice vehicles? Montana has no sales tax on vehicles, and you can get a Permanent Registration for pretty cheap. It's a tax haven for people with multiple supercars. How could I go about having a Montana LLC for my supercars, but still having them hidden from sight? Can an LLC own an LLC? Could I have a Wyoming LLC that wouldn't show up under my name search, and own a Montana LLC within that LLC? Also, how about a video explaining the tax haven benefits of a Montana LLC for supercars? Hope all of these questions aren't too confusing, if so, let me know and I can try to rephrase. I think you could make a video or two about Montana LLCs for supercars. Would be fantastic content, just like this video was. Thanks Clint.
Have your WY LLC own your MT LLC and you have anonymity. Also make sure you are not having license renewals sent to your home address. We offer these services to keep your affairs totally private.
I had an AZ plate in CA in an Audi for about 2 months before I had a cop inquiring about the registration (and giving me a fix it ticket). How is it possible to have very visible cars with MT plates in a different state, long term? The MT registration strategy is somewhat well known so it feels like you would be a huge target for local law enforcement.
@@ClintCoons how much would it cost to set me up a Montana LLC, and a Wyoming LLC, with Wyoming owning the Montana one? I live in Virginia if that matters any. How would I process any paperwork required with me living in Virginia? And what would the annual expenses cost? Highly interested.
@@O1012-u7q that's pretty much just California doing what they do best. I'd recommend watching some Daily Driven Exotics TH-cam videos with them getting pulled over in the state of California. It's just how California is from what I have seen online. I don't think you would have any major issues in any other state. If you get a good lawyer, they'd get those California tickets completely dismissed. One cop in California told DDE that he needed a California drivers license to drive in California, completely false, lol.
If lawyers are searching you for owned assets, do they not also search ownership history? It seems to me that any competent lawyer would notice two properties owned by me were both transferred/sold to LLCs whose only member is the same WY LLC at about the same time, and immediately assume that I control those LLCs, and also that if I'm playing that game, I almost certainly have enough assets to be a worthwhile target.
Great point. You are always in the chain of title on searchable assets i.e., real estate. One can assume the LLC owning the property is in fact your LLC but they have no way to verify this if the LLC is set up with anonymity. Remember this is just a smoke screen and the real protection in your example comes from having your real estate held by separate LLCs.
Clint, at the end, you have one WY LLC with all the spokes as the owner of the multiple non WY LLC’s. Is that your intention or are you suggesting individual WY LLCs for each asset? I’m seeing one WY LLC with ownership of: banking llc, investment real estate llc, llc/trust personal property. Thanks!
@@ClintCoons Thank you for clarifying. In terms of banking, Would you have: A: WY holding LLC > WY banking LLC > bank account Or B: WY holding LLC > bank account.
Do you assist people with international trusts? For example, if you wanted to politically diversify and hold assets, cash flowing managed rental real estate and bank accounts in Mexico, where you have residency. How would that be done? Would there be a multi jurisdictional international master trust of some sort? If so, what kind of firm would set that up?
Ok, so do you use the Wyoming llc ein to open a separate bank account. Or how does this actually work ? Because banks require SSN or EIN to open a bank account no matter what
Thank you for the video. Good points. Question for liability. Wouldnt creditors/people suing you just go after the LLC instead? How are the assets held by the LLC protected. What's stopping them from doing so?
The anonymity of it all. By making the LLC in wyoming it is not attached to your name, it would take a lot more digging to find out the actual members of the Wyoming LLC
The LLC would not be a party to the lawsuit unless the LLC caused the harm. For example, you own stock in Microsoft so if you are sued for not paying a business lease can the lessor sue Microsoft because you are a shareholder? Make sense?
@@ClintCoons My rental property is owned by my LLC. If a delivery person slips on the front steps, they can sue the LLC directly. You're saying that by having a secondary WY based LLC extend a line of credit to the LLC holding the property, it could make it look like it's not capable of paying out any judgement. What is stopping them from suing anyways? Surely they know that the line of credit could be an internal transaction.
@@matthewqtran1318 That's the whole point. They can't see it's an internal transaction because the WY LLC doesn't bear your name on it. To the person suing, it looks like a random company that lent credit. Now, it's not entirely foolproof as the government can force WY to turn over identities, and more serious lawsuits will uncover this, but for any frivolous lawsuit, this will stop it dead in its tracks
@@ScreamingEagleFTW I have millions in assets diversified over bank accounts in 12 different countries. And if for any reason one of them fails it's not going to be the end of the world for me.
@@Elemental1331 Yep I assumed mainly because it's about US laws and nuances. I didn't mean to question your advice, which is a good one. I wanted to understand more details.
Hey Clint, this vid is great. One question: If I have a LLC in Wyoming, and I open a bank acct with that LLC, can creditors see my name associated with the bank? Or can I open the bank acct without "associated persons" on it?
Great insights! So… if I’ve had you guys setup my WY LLC (the “blocker” holding company I’ve heard you call it) that’s where I should be doing these LOCs to my other entities, right?
looks like a good way to manage assets, EXCEPT it seems like the WY LLC will at least need the name of a Registered Agent, so there is the problem, the bread crumb that leads back to the key person of all these LLC's and Asset entities.
Wouldn't any suit lawyer know this and upon seeing WY LLC on anything just understand that there's a good/excellent chance it's just the target obfuscating things? What happens if it's pursued anyway? Can plaintiff ask the court to compel the defendant into full disclosure? Lastly, can this be used for avoiding asset halving in marital dissolutions?
An attorney would not know you have a WY LLC unless a judgement is entered against you and you are forced to disclose during a debtor exam. This will not help with asset halving in a divorce.
In California, if you deed transfer your house, you lose Prop 13 tax base and your house gets assessed at market rate, which means your property taxes will go up a lot.
Not if there isn't a change in beneficial ownership. So long as the members of the LLC or beneficiaries of the trust are the same as the grantors on the deed it is non taxable.
If the registered agent is your nominee officer in NV do they have to reveal true ownership of your corporation if they were served in a lawsuit or subpoenas when an indemnity agreement was signed?
@@ClintCoons If the registered agent is your nominee officer is in WY do they have to reveal true ownership of your corporation if they were served in a lawsuit or subpoenas when an indemnity agreement was signed?
@@mondavou9408 If a person is subpoenaed they would be required to disclose any information pertaining to the request. The indemnity agreement has no bearing.
Do you have a package for someone with the rental property? I’ve got a rental property that only has about $80,000 mortgage balance it’s worth about 500,000 minimum and I’ve got a primary residence paid off. I don’t have a lot of cash less than $20,000 but I have often worried about a renter trying to sue me for my equity. I’ve been lucky I’ve been renting property for the last 20 years and never had an issue but I know all it takes is one time
Joe Glenn Thanks. If you would like to learn more you can register for one of our upcoming Livestream 1-day Tax and Asset Protection Classes for Real Estate Investors. Here is the link: aba.link/TH-camAP.
Correct NM works but NM does not offer charging order protections as the sole and exclusive remedy so we limit its application in the overall planning.
Hi Clint, I have a few properties under my name that I am planning to rent out. How could I get in contact with your firm to set up that protection strategy? Also, the properties are already under my name, so how can I move these properties into Wyoming LLC without actually selling them?
You would have to transfer them to the LLC. If they are taxed as a normal residence that would likely change when it goes into an LLC and you will likely have the properties put in a higher tax class as it becomes evident that the properties are been rented.
If you have a Wyoming LLC that has a lien against your rental property (or domestic LLC), can’t the ownership and exact relationship between the entities (and with YOU) be determined during discovery? It seems like such an arrangement *might* deter a suit in the first place but once filed, would provide little protection. Maybe that’s the point?
Schedule a complimentary consultation with our experts today! aba.link/bqy
Can a judge force you to submit your tax returns which would include all the businesses/trusts you owned ? 🤔
@@illgx3446 Possibly if you are in a debtors exam.
Can I put all my stocks in a Wyoming llc and do investment income on my personal return like I did before the transfer? Thanks in advance
Man this would be super useful if I weren’t actually broke 😂
I know right. Same here
Me watching this with a $5.23 net worth. Oooooof
@@lpmazariegos1996 Dude, don't get an overdue library book. You'll have negative net worth. 😅
Do some good things with your status. Go after litigious people. They can't get anything from you. Go after the people no one else wants to go after, and help the faceless that way.
I am so good at pretending I am broke that I am.
1:40 appear worthless & indebted 2:25 3:45 4:30 UCC one 7:10 8:10 personal residence 8:50 personal residence trust
Clint as a retired lawyer your advice has a degree of merit , but you and both know in a deposition you will be asked about any LLC you own or manage . Their are ways more sophisticated than a double llc or trust . More costly yes but useful if the asset base is large enough .
A few pointers : rent you house , long term lease for stability Sat 2 to 3 years auto Renew .
Lease your vehicles
Gold and silver and appraisal art
Bermuda captive or any insurance entity that you pay premium to and are a shareholder.
I am afraid most courts will pierce the fiction of your second llc . And any state can be ordered by the Feds to cough up your name . So offshore area that has No treaty with US .
Lots more to discuss but in general your idea works to stop
Nuisance suits . But if the Feds are after you , well that’s a different game 😎. Always pay your taxes and then play with the net . The post tax money is what you shield from spurious lawsuits .
The only surefire method I see is to gift your assets to somebody you trust.
Good comment. Thanks for watching.
@@MrHowzaa Until that person you trust gets sued...
Why not just put it all in eth on a hardware wallet?
@@indo3052 why not at least make a bon fire with your money and stay warm for a few minutes, or put it in crypto as suggested and watch it go to zero
I believe I am naturally protected, as best I know. 1) Rent My Home. 2) Drive 15 year old cars. 3) As I am retired now, Income is 100% based on IRA, SS, ACA Tax Credits...hard for others to break into those. My assets are good, 90% in the IRA - stocks and bonds. I can only see some exposure in checking / savings (small) and a Vanguard Traditional account (6 figures).
Nice. I would say it would be very hard from someone to collect against you with the way you have structured your life and assets.
National Enquirer did something similar to this. They had a primary corporation that had loaned money to the National Enquirer at an absurdly high-interest rate.
The National Enquirer would borrow money each month to do a print run and then pay their staff and other operating expenses and all the profits flowed back into the
primary corporation. The Primary corporation even sued the National Enquirer and anyone who later sued the National Enquirer had to just get in line and wait to be paid.
Everything was owned by the primary corporation including the equipment and all the trademarks. If anyone ever did get the National Enquirer they would find out
that it was just an empty shell that didn't even own the name The National Enquirer.
I'm always amazed that people like OJ Simpson don't do this stuff to protect their assets. There was an Australian lawyer who came up with some wonderful stuff to avoid paying taxes which is usually harder to do. I have a copy of one of his many books, "How To Not Pay Taxes"
this is such a boss move. something that was an asset becomes a liability to someone else who wants to forcefully take away your business. 🤣
Clint once again your dropping solid gold nuggets for free. THANK YOU!!!
Glad you like them!
@@ClintCoons I k ow you must already know this,but some are satisfied sitting in the covered wagon and some like us dare to push ahead and scout a safe route for others. See you in a few hours. I signed up.😎
I don't have to TRY to appear broke.
I was just gonna say that lol
Rob a diamond business
lol I completely agree .
That was a very enlightening presentation, but it covered only one side of the issue. I would love to see a video from the creditor's point of view -- addressing the countermeasures available to overcome these strategies. As the old saying goes, "Any fool can get a judgment, but it takes a real lawyer to collect on one."
Oh its easy just look at any LLC that the company or owner deals with and run a check if the owner of the LLC that is being sued is owned by the same person. Of coarse that does not mean you can sue the other LLC(s) also you would have to prove in court that the other LLC is involved in some way in the wrong doing that the first LLC is being sued over.
Now no matter how many LLCs someone may have that will not protect the owner of the LLCs if they are being sued personally. But to sue an owner of a LLC personally you would have to prove in court that they personally are at fault and not as an employee of the LLC.
@@Donkeyearsa He said that with a Wyoming LLC, they could not find out who the owner is because Wyoming does not collect that information. On the other hand, in the house example, if there's a lien from a Wyoming LLC for just about the equity in the house, it's easy to suspect this strategy is at work. And then would a judge force the debtor to divulge this information, given the clues that make it look like the strategy is being used?
It means the creditor has to have enough money to pay an attorney to get a claim. They won’t get an attorney to work for a percentage of the claim, such as a personal injury lawyer or a divorce lawyer. Lawsuits are expensive, and lawyers want to be paid. Giving the appearance that they won’t be paid in the 10 minutes a lawyer spends on financial diligence will lead to settling for what the insurance policy will pay. Even a creditor with money is likely to get legal advice that the person has no assets and is judgement-proof.
If a creditor does get a large judgement, and is persistent, it will be hard for the creditor to have a normal life as the constantly have to hide how they spend money. Who is paying their mortgage? How did they pay for that car?
They never look for anything leading to Wyoming...cuz nobody knows about it, right? lol
@@johnhaller5851 the house is owned by the trust, which owes the bank for the mortgage & the LLC for the line of credit. So they aren't paying a mortgage, they are paying rent to the trust so it can pay the mortgage.
Oh, and it's a company car.
This man is smart.
I was an auditor for a hotel management company and they have a series LLC setup.
Thanks!! Clint thanks for sharing this valuable Information. Continue the extraordinary work.
Thanks, will do!
I understand some states such as Texas and Florida are such that creditors cannot touch your house no matter what.
Correct but when you sell the proceeds may be able to be attached.
It's worth noting that this anonymity is not absolute, as law enforcement agencies and courts can compel the disclosure of ownership information under certain circumstances. E.g., if the LLC is involved in a legal dispute, a court may order the disclosure of the owners' identities.
An experienced lawyer will ask enough questions to uncover all of this information. Doing all of this forces the other party to do their job, though
One very important thing to remember is that any asset protection measures need to be taken BEFORE a lawsuit. Otherwise, it looks like a Fraudulent Transfer and a court can nullify transfers of assets, corp structures, etc. if certain criteria are met. Single-member LLCs are problematic. If you are the only person in the entity it can be considered an alter-ego and can be subject to enforcement of a judgment.
All in all, these are reasonable strategies for discouraging nuisance lawsuits since most attorneys and creditors buy a canned asset check through Lexis, CLEAR, IRB, an inexperienced PI, etc. and don't hire a competent asset investigator - who would pick all this apart in an afternoon. That being said, even if it's not "judgment -proof" it does provide a degree of incentive to reach a settlement rather than go to court and unwind it all.
Clint as a insurance agent here in Ohio ,you would need to name the LLC's as "Named Insureds" all and all good info.
Lots of useful information. A lot of the questions I have as a wet behind the ears and still broke (lol) small business person were answered.
Clint, you're the man! My thanks!
Any time!
I learned much more from the "comments" than I did from this presentation!
Man my ambulance chancing attorney family member would be pissed if he knew this video was out there! 😂 Great information!
Shh... dont tell him. 😂
Okay Clint, I must put the cards on the table, show my hands and let someone else cut the deck.
I hate lawyers because I know way to much about them and what they have done to the judicial system.
That said, if I had a flat tire on a lonely highway I would not refuse one who assisted me in fixing it and getting on the road. And I would offer to pay him.
This information you just gave cut to the quick in navigating the treaturous waters of the Gov.
A lot was said in a brief time and illustrated well. The drawing part is actually better and more easily absorbed than a pre arranged chart.
The strange thing is the more knowledge one accumulates the more it boils down to basic principals across all documents. The pieces are interchangeable and when done with at least a modicum of skill become nearly unchallengeable.
Thank you for your knowledge presented here.
Affordable Voices
Thanks for watching.
@@pietmondrianstudent6984 Dear piet there is much in what you say as a pendulum swings back and forth. Competent and IN competent are brother and sister in the grand scheme of ALL. I will not Boar you with what you already know.
THEY (Attorney IN law and Attorney AT law) both must make a living also.
So said, the Creator of This world and all the rest gave us many gifts, besides WHO gives you the authority there is the right to question EVERYTHING.
Find the best for your situation and question everything that is WRITTEN on it.
How would this work when centralized banking digital currency is introduced
I don't think it will change anything.
wow, this is some gold content
Thanks
Hey Clint, What do you think about charitable immunity? My wife and I operate a nonprofit in MA, we donated our house to the nonprofit to get the charitable immunity protection as well as the real estate tax exemption. We hold 2 events in the backyard to benefit the charity every year. We use a foreign UK subsidiary as a lien holder against the property and bank accounts. Also, when we sell the property there is NO capital gains due.
Sounds interesting but outside of my lane. I will look into it though.
Interesting....Mr. Montgomery, what book can I read to learn this process? Thanks.
@@practicaldeen5333 Hello Deen, There is NO book perse I am a former 20-year plus attorney that has worked in the nonprofit and tax-exempt field. I would look into your state law to see if they offer charities in your state charitable immunity if NOT you can incorporate in a state that does and then do a foreign incorporation in your home state. The other thing you want to look at is local tax exemptions for real estate and equipment you can donate and yes you can personal deduction to donating to the charity once you obtain 501(c)(3) status. Again there are NO capital gains once you sell your organization is a nonprofit.
This sounds great where do I sign?? Seriously I need to hire someone and sort this out. It I could donate to my own charity and save on property tax that would be huge!
@@newmonengineering All you need is a charitable cause that you support once a year. I would recommend researching your state laws for incorporation guidance and your local real estate laws to make sure that tax-exempt organizations can get and receive the Real estate tax exemption. My wife and I incorporated in MA because the state has a charitable immunity cap for nonprofits. I would recommend incorporating in a state with charitable immunity and then doing a foreign incorporation in your home state. charities are very effective tax vehicles even if your NOT getting paid by them. All you need to do is operate one. The work is very minimal and brings a number of benefits. This will also benefit you once the Trump or TCJA tax cuts expire and we go back to normal tax rates.
In some states if you are being sued don't you have to file a statement of your net assets? I heard this recently in the Murdaugh case in South Caroline where he had to file for the boating accident judgement. So if you need to file with the court don't you have to disclose all these secret LLC's?
at 0:08 "These strategies are designed to thwart B.S. lawsuits from taking your investments, your personal Residence or your business"
at 1:46 the "goal is to make you appear worthless because no one wants to go after somebody that does not have assets"
You are correct but the goal is to not get to that point in the lawsuit
Yes if a judgement is entered against you then you must disclose your assets. As @Eric Blank mentioned, the strategy is to minimize the risk you find yourself in that situation.
@@ClintCoonsbut if you set up a trust, those aren't your assets anymore. Do you have to disclose them if you are a beneficiary or trustee?
What about umbrella insurance?
I have a video coming out on that.
YES!!! I needed this. Thanks
Great content, thanks for sharing! Any tips for a Canadian to avoid being double taxed when using LLCs?
Don’t use them. I prefer to use limited partnerships for Canadian’s investing in the US
Checked on setting up a Wyoming LLC. You have to be a resident of Wyoming to do it..What is the work-a-round?
You do not - you only need a registered agent in WY. If you would like a FREE 30-minute consultation, you can request one here
- aba.link/30minSession
Ok fine BUT.....people have to know that timing is a critical factor, maybe more important than a specific strategy. Do these things the night before youre sued, the night before you file bankruptcy papers, its all going to be overturned as fraud. Second, the veil of like a WY LLC can be pierced easily in court when you are asked on the stand "just who is this entity?" In fact, because of how WY operates, doing this becomes its own red flag to a creditor. So as for timing, do the strategies when you absolutely are not under any threat of suits and hopefully years go by before they are tested. Regardless of the strategy, taking steps today and being chased 5-10 years from now make it very tough for anyone to claim you did it to escape debt and allegations of fraud are not going to be an issue. Last, do the strategies as a practical layer of insurance but never as an excuse to be shitty in business. Conduct yourself honestly and correctly always.
Excellent !! I have smashed the "Suscribe" botton that I almost break it!
Nice.
When you get a limited liability company in Wyoming. Do you need to go ahead and set your banking up in Wyoming? Under that limited liability, that's in Wyoming?
thank you! Very helpful video!
Glad it was helpful!
Follow up video chapters could include impacts of doctrines around fraudulent misrepresentation and division of entities.
I am so good at this everyone thinks Im broke
Robert Kreamer
Addressed the flaws I saw coming. Fl land trusts are not recorded and the homestead exemption is unlimited.
South Dakota has interesting Legacy trusts with significant protections.
In my experience LLCs are recorded in the home state domesticated and any other state as foreign entities.
A serious draw back to your strategy is refinancing. Quite a collection of documents at closing and the new lender will wonder why you have a substsntial 2nd mortgage. Also where did the funds come from to settle the 2nd at closing. Then the IRS becomes real interested when the title company files a report with them from settlement docs. You may be considered for money laundering and so it goes....
If I cut myself a check from the LLC are there any type of tax implications one should know about?.
None unless your LLC has elected to be treated as a C or S corporation for federal tax purposes
@@ClintCoons Thank you for the reply.
How do you find out if there’s a lien on my property?
If the lawyer for the creditor/s is smart enough they will follow the money trail. If you are a shareholder of the LLC the creditor can go for your equity in the LLC. Don't try to hide and deliberately mislead your creditors. If your business is in a cash flow problem or you personally, go to your creditors and place all your cards on the table and look for a solution. In most cases your creditors will help and respect you for being honest. Then employ an accountant to solve your cash flow troubles. And set your affairs in order with sound financial literacy. Keep your creditors informed all the way.
Great Video. But the same rule applies. "They'll only sue you if there's money."
First of all, if you create an LLC, in order to use it, you need a taxpayer ID, in order to get a taxpayer ID you need to supply, depending how many owns or will own it, a Social Security number. If you open an account in a bank as an LLC, you still have that taxpayer ID which can be linked to your and possibly others Social Security number, so in affect your assets and the partner's assets can get frozen until the lien is satisfied. So basically you just created a more complicated situation.
If a judgement is entered against you personally it will not attach to the LLCs assets I.e., bank account. A creditor could move for a charging order but that would only affect distributions from your LLC and not the bank account.
IANAL, but wouldn't they be able to file discovery for bank statements and tax returns which would show all the money coming and going and where to and from?
Not until they get a judgement against you. Here is the thing - the strategies are meant to discourage lawsuits or the pursuit of judgements.
At what level of net-worth do all these steps become worth it? I assume it takes money to create these LLCs, file these documents, annual fees, etc ...
It is about what do you want to protect. Easily 50k or more is worth protecting.
For one's personal residence, an umbrella liability insurance policy would be a first, relatively inexpensive layer of protection. I've maintained a $2MM umbrella policy for years. Fortunately, never been sued. It should be a simple matter to contact the company who insures your home (or whom you purchase renter's insurance) and they will be happy to quote you.
My policy carries an annual premium of
How do you wind up getting bank accounts for those Wyoming l? LC's without having your name attached to the l. L c
You said in a previous video that you NEVER want to put the Wyoming or Delaware LLC in your name and to put it in a trusy name because it defeats the purpose and they can simply perform a search to see who the managing member or registered agent of the LLC is? Now you're saying to self manage the LLC? Are you "conveniently forgetting" that rule for the sake of the strategy? Or is there something we are missing?
He never said to self manage. He said that you can set up the WY LLC as member managed or manager managed. Neither option breaks anonymity, WY doesn’t record who the members are but it does record the name and address of who created it. Don’t let it be you.
Kevin provided the answer. Well put sir.
@@Jussomerando677 ahhh ok. Makes sense!!! Thanks!
@@Jussomerando677 well said!
@@ClintCoons I learn so MUCH from your videos and the comments. Thank you for all of this!
Great info thank you
Thanks for watching!
Excellent and thanks.
I've seen this strategy used and it was easily pierced through because it was a single-member LLC. They used the alter ego doctrine.
Irrevocable trust would be better
But what do you say during the legal process when they ask you to provide details on your assets?
You only answer after a judgement is entered against you.
If I default on myself, can I sue myself???
Thank you for all your information
SD Cleaners
Thanks for watching.
Great Video! I assume that changing title of your personal residence from your name to your living trust, it won't offer asset protection, correct?
You are correct
How about repositioning the cash we have in our savings account into a cashvalue life insurance policy like Whole Life or Index Universal Life? Don’t they have asset protection from creditors in most states? Plz let me know..
Absolutely you can
Yes - great strategy
@@ClintCoons thanks Clint..I hardly see any attorney mention about asset protection for a Cashvalue life insurance policy, without getting into too many details about cashvalue life insurance,if you can cover this topic, it would be very informative for a lot of people.
@@kriskris5989 I will add it to my list.
@@ClintCoons thats awesome..thanks,looking forward to it
Does new Mexico work like Wyoming?
SUPER GOOD QUESTION HERE!!! WHEN PUTTING A HOUSE IN A TRUST AND NOT USING YOIUR OWN NAME WILL MOST INSURANCE COMPANIES STILL CONSENT TO INURING YOUR HOME???? I spoke one one and they stated they would not unless Tue trust was in my own name! So concerned abt Home owners insurance in this regards. Any suggestions or comments that might be helpful in this regards. Thank you very fine and informative video.
List yourself as an additional insured under the policy. Sometimes you may have to find a different insurer.
Interesting but complicated
When you move the funds from your personal account to the new LLC account, and then your regularly moving funds over to an LLC account, isn’t that income for the LLC account? I mean it’s not really income because it’s not coming from delivery of what your business does but it’s still money appearing in the account from an outside source. I don’t quite follow how the taxation would work on that. Also, in the case of a judgment issued in a court, wouldn’t the court just force you to divulge who the owner of the LLC is and you wouldn’t have a choice?
Moving money is not income it is a contribution, distribution or loan. Correct as to the judgement and disclosure. Keep in mind at the point of judgement you have lost your anonymity but not the asset protection of the LLC.
Time to subscribe...
Is Wyoming the only state where I can do an LLC that wouldn't show up when I'm being searched for?
What if I wanted to do a Montana LLC to put my vehicles into when purchasing nice vehicles? Montana has no sales tax on vehicles, and you can get a Permanent Registration for pretty cheap. It's a tax haven for people with multiple supercars. How could I go about having a Montana LLC for my supercars, but still having them hidden from sight? Can an LLC own an LLC? Could I have a Wyoming LLC that wouldn't show up under my name search, and own a Montana LLC within that LLC? Also, how about a video explaining the tax haven benefits of a Montana LLC for supercars? Hope all of these questions aren't too confusing, if so, let me know and I can try to rephrase. I think you could make a video or two about Montana LLCs for supercars. Would be fantastic content, just like this video was. Thanks Clint.
Have your WY LLC own your MT LLC and you have anonymity. Also make sure you are not having license renewals sent to your home address. We offer these services to keep your affairs totally private.
I had an AZ plate in CA in an Audi for about 2 months before I had a cop inquiring about the registration (and giving me a fix it ticket). How is it possible to have very visible cars with
MT plates in a different state, long term? The MT registration strategy is somewhat well known so it feels like you would be a huge target for local law enforcement.
@@ClintCoons how much would it cost to set me up a Montana LLC, and a Wyoming LLC, with Wyoming owning the Montana one? I live in Virginia if that matters any. How would I process any paperwork required with me living in Virginia? And what would the annual expenses cost? Highly interested.
@@O1012-u7q that's pretty much just California doing what they do best. I'd recommend watching some Daily Driven Exotics TH-cam videos with them getting pulled over in the state of California. It's just how California is from what I have seen online. I don't think you would have any major issues in any other state. If you get a good lawyer, they'd get those California tickets completely dismissed. One cop in California told DDE that he needed a California drivers license to drive in California, completely false, lol.
Clint what about this new Digital Systems banks are going to do we need to worry about that?
I am not up on this. Could you direct me to some information on the topic?
Do you have to use a Wyoming address to start the LLC, they'll need a driver's license to open an account.
No use your personal address.
If lawyers are searching you for owned assets, do they not also search ownership history? It seems to me that any competent lawyer would notice two properties owned by me were both transferred/sold to LLCs whose only member is the same WY LLC at about the same time, and immediately assume that I control those LLCs, and also that if I'm playing that game, I almost certainly have enough assets to be a worthwhile target.
Great point. You are always in the chain of title on searchable assets i.e., real estate. One can assume the LLC owning the property is in fact your LLC but they have no way to verify this if the LLC is set up with anonymity. Remember this is just a smoke screen and the real protection in your example comes from having your real estate held by separate LLCs.
Creating multiple LLCs seems like a lot of hassle. Wouldn't it be less hassle to buy insurance?
I have a video coming out on what insurance does not cover.
If you pull cash out of the entity.. Youll have to then pay taxes on that money..correct??
No. An LLC only passes through taxable income if the LLC generates income. Pulling money out is not taxable.
can the event help if i don't have a real estate business?
Yes. If you would like a FREE 30-minute consultation, you can request one here
- aba.link/30minSession
Clint, at the end, you have one WY LLC with all the spokes as the owner of the multiple non WY LLC’s. Is that your intention or are you suggesting individual WY LLCs for each asset?
I’m seeing one WY LLC with ownership of: banking llc, investment real estate llc, llc/trust personal property.
Thanks!
Good morning Clint.
Yes that is the intention. The WY LLC is a holding company that protects your various other LLCs
@@ClintCoons Thank you for clarifying.
In terms of banking,
Would you have:
A: WY holding LLC > WY banking LLC > bank account
Or
B: WY holding LLC > bank account.
Iis tvis the holding company stratergy
How would this work with a Trust and just personal assets and retired from owning a business at this point.
You could set up a personal residence trust for your home and a WY LLC to hold your brokerage and savings.
@@ClintCoons Thanks for the advice and the videos. My I will share with my wife so we can discuss this.
You can open WY llc whenever you live in The United states? Like if Youre in California ?
yes you can
Do you assist people with international trusts? For example, if you wanted to politically diversify and hold assets, cash flowing managed rental real estate and bank accounts in Mexico, where you have residency. How would that be done? Would there be a multi jurisdictional international master trust of some sort? If so, what kind of firm would set that up?
Yes we can.
If we registered a WY Llc , do we need file tax return to WY state ?
No
Ok, so do you use the Wyoming llc ein to open a separate bank account. Or how does this actually work ? Because banks require SSN or EIN to open a bank account no matter what
Yes you must provide your personal info to the bank but this is not available to the public.
Thank you for the video. Good points. Question for liability. Wouldnt creditors/people suing you just go after the LLC instead? How are the assets held by the LLC protected. What's stopping them from doing so?
The anonymity of it all. By making the LLC in wyoming it is not attached to your name, it would take a lot more digging to find out the actual members of the Wyoming LLC
The LLC would not be a party to the lawsuit unless the LLC caused the harm. For example, you own stock in Microsoft so if you are sued for not paying a business lease can the lessor sue Microsoft because you are a shareholder? Make sense?
@@ClintCoons My rental property is owned by my LLC. If a delivery person slips on the front steps, they can sue the LLC directly. You're saying that by having a secondary WY based LLC extend a line of credit to the LLC holding the property, it could make it look like it's not capable of paying out any judgement. What is stopping them from suing anyways? Surely they know that the line of credit could be an internal transaction.
@@matthewqtran1318 That's the whole point. They can't see it's an internal transaction because the WY LLC doesn't bear your name on it. To the person suing, it looks like a random company that lent credit. Now, it's not entirely foolproof as the government can force WY to turn over identities, and more serious lawsuits will uncover this, but for any frivolous lawsuit, this will stop it dead in its tracks
@@matthewqtran1318 Nothing but it helps convince the other party to take your policy limits and not seek further recovery.
You can also move a part of your portfolio into BTC transfer into your hardware wallet and never show the private key.
thankyou Clint
This is a creative way to do it but simply moving the money offshore seems to be more straightforward.
and when you call them up asking about your money they say "what money" now what are you going to do about it? nothing.
@@ScreamingEagleFTW I have millions in assets diversified over bank accounts in 12 different countries. And if for any reason one of them fails it's not going to be the end of the world for me.
You have to report those accounts to IRS and/or FINRA due to FATCA. How does this affect your insulation?
@@JS-fd5oh Lol. You are assuming am I US citizen
@@Elemental1331 Yep I assumed mainly because it's about US laws and nuances. I didn't mean to question your advice, which is a good one. I wanted to understand more details.
Basically setup a shell account to reduce liability. Sweet!
Hey Clint, this vid is great. One question: If I have a LLC in Wyoming, and I open a bank acct with that LLC, can creditors see my name associated with the bank? Or can I open the bank acct without "associated persons" on it?
Creditors can not see your name on the account and you can not open an account with "associated persons on it" (to my knowledge)
Great insights! So… if I’ve had you guys setup my WY LLC (the “blocker” holding company I’ve heard you call it) that’s where I should be doing these LOCs to my other entities, right?
Yes.
looks like a good way to manage assets, EXCEPT it seems like the WY LLC will at least need the name of a Registered Agent, so there is the problem, the bread crumb that leads back to the key person of all these LLC's and Asset entities.
Correct and that is why you never serve as your own RA.
3:17 wouldn’t it be taxed as income at that point?
Not unless your LLC is taxed as a corporation.
how does the CTA going to affect this stratagy?
It wont. The information collected is private.
Excellent!
Wouldn't any suit lawyer know this and upon seeing WY LLC on anything just understand that there's a good/excellent chance it's just the target obfuscating things?
What happens if it's pursued anyway? Can plaintiff ask the court to compel the defendant into full disclosure?
Lastly, can this be used for avoiding asset halving in marital dissolutions?
An attorney would not know you have a WY LLC unless a judgement is entered against you and you are forced to disclose during a debtor exam. This will not help with asset halving in a divorce.
In California, if you deed transfer your house, you lose Prop 13 tax base and your house gets assessed at market rate, which means your property taxes will go up a lot.
Not if there isn't a change in beneficial ownership. So long as the members of the LLC or beneficiaries of the trust are the same as the grantors on the deed it is non taxable.
Great info!!!
If the registered agent is your nominee officer in NV do they have to reveal true ownership of your corporation if they were served in a lawsuit or subpoenas when an indemnity agreement was signed?
Yes they do.
@@ClintCoons If the registered agent is your nominee officer is in WY do they have to reveal true ownership of your corporation if they were served in a lawsuit or subpoenas when an indemnity agreement was signed?
@@mondavou9408 If a person is subpoenaed they would be required to disclose any information pertaining to the request. The indemnity agreement has no bearing.
@@ClintCoons Thank you.
@@ClintCoons Does this mean any potential creditor could get your ID / info just by starting a lawsuit even if they don't plan to win (that case)?
Would this strategy work for Texas Series LLC?
Yes
Does this new law requiring disclosure of these LLC entities effect this strategy?
Yes you must disclose to FINCEN
Do you have a package for someone with the rental property? I’ve got a rental property that only has about $80,000 mortgage balance it’s worth about 500,000 minimum and I’ve got a primary residence paid off. I don’t have a lot of cash less than $20,000 but I have often worried about a renter trying to sue me for my equity. I’ve been lucky I’ve been renting property for the last 20 years and never had an issue but I know all it takes is one time
Joe Glenn
Thanks. If you would like to learn more you can register for one of our upcoming Livestream 1-day Tax and Asset Protection Classes for Real Estate Investors. Here is the link: aba.link/TH-camAP.
That is a great video!
Thank you!
PERTINENT ADVICE!How about usibg a New Mex ico vs Wyoming private LLC? Just asking. I think NM doesn't gather information either?
Correct NM works but NM does not offer charging order protections as the sole and exclusive remedy so we limit its application in the overall planning.
Hi Clint, I have a few properties under my name that I am planning to rent out. How could I get in contact with your firm to set up that protection strategy? Also, the properties are already under my name, so how can I move these properties into Wyoming LLC without actually selling them?
If you would like a FREE 30-minute consultation, you can request one here
- aba.link/30minSession
You would have to transfer them to the LLC. If they are taxed as a normal residence that would likely change when it goes into an LLC and you will likely have the properties put in a higher tax class as it becomes evident that the properties are been rented.
If you have a Wyoming LLC that has a lien against your rental property (or domestic LLC), can’t the ownership and exact relationship between the entities (and with YOU) be determined during discovery? It seems like such an arrangement *might* deter a suit in the first place but once filed, would provide little protection. Maybe that’s the point?
Correct. It must be disclosed during discovery however, this only takes place AFTER the creditor has obtained a judgement against you.
Step #1: You’re already broke.
I done this like 10 years ago.
Hiding things in individual trusts are safer than multiple LLCs
Is this strategy impacted with the new Corporate Transparency Act (CTA)?
No it is not.