I heard from someone one time to hold the cranes in one company and then have the actual business in another company, and the company rents the cranes from the other company. This way if the actual construction company gets sued, it doesn’t own the equipment and they can’t touch it. So the construction company files for bankruptcy and closes and then you open another one and still keep the cranes. I think it might’ve been a Robert kiyosaki book.
Don't take this the wrong way, please, but taking legal advice from Robert Kyosaki is like taking gun control advice from a Leftist who wants to repeal the 2nd Amendment because they think guns are big and scary. Kyosaki has no clue what he's talking about. The whole "lease from one LLC to another" doesn't help you if you are the person who owns and operates them both. Any competent attorney will ask the judge to "pierce the veil" and get at your personally if you've done something negligent. LLCs were created to "limit" the liability of hands-off investors, not owner / operators. The idea was that sometimes a small group of people want to contribute money toward a business, but their liability is limited just to what they invested. They are not held liable for an incompetent or accident prone manager who is running the day to day operations. If you are owning and operating the biz, you basically need to be competent, careful, and well-insured. Hate to say it, but Dave does NOT have the fully accurate answer here. Depending on the state and the attorney opposing you... they very well may get all personally owned assets. In summary, an LLC doesn't protect you from negligence if you're the negligent person.
My friend owned a mobile crane company. He was an expert in cranes, rigging, etc., and smart enough to hire a licensed & insured company to service the cranes. The cable came out of the headache ball and killed a worker just after servicing. The family sued the Crane Servicing Company which my friend suggested, they won and my friend sold the business and retired. He had L.L.C., proper insurance policies and smart lawyers to help setup the business.
A better solution is to add one more thing. Form a holding company that owns all of the assets and equipment for all of the llcs. It leases any assets of real value to the llcs so the assets and equipment is not owned by the llcs either, they are leased by a holding company that is only a leasing company. The only assets the llcs own is cash on hand, bank accounts, employees and maybe some office space, but that can be leased too.
What's the annual cost of maintaining a holding company and LLC? Would putting all of your high value assets like a house in a trust be a good easy and less expensive way for someone who is retired to help shield their assets against grifter lawsuits?
@@st.bernard7498LLC filing fees differ by state. It could be anywhere from $20-a couple hundred. You would also have to pay the fees for your accountant because they only group the tax prep fees if it is a consolidated entity. Also some states like TN have franchise and excise taxes which in TN is a minimum of $100
A holding company should never be involved in any kind of operations. The only job of a holding company is to own its subsidiaries/LLC's. All operations need to be done by its subsidiaries.
i am in construction as well. there is no way to fully protect your company from being sued. good insurance helps, but it only does so much. most general contractors will require that you have a minimum insurance to even work on their projects. the best way to protect from frivolous lawsuits is to be very very selective as to who you hire. and if you happen to have too much work at one time, you are better off subcontracting that work out than hiring sketchy people to get it done. and also always always make sure you are following all employment laws. there are some tricky ones, but if you dont do everything exactly by the book you are setting yourself up for a class action. also, use a crane service
@@PeterLawton i mean both regular lawauits and class action lawsuits. if you dont follow the employment laws exactly, you will be opened up for class action suits. it can be something as stupid as allowing your employees to take lunch after 5 hours instead of before their 5th hour, even if that is what they want
@@mixedup84 well actually that still protects you, but i wasnt implying that your subcontractor would have to hire those sketchy people to get your work done
@yammbagg4866 So at what point in humanity history? Do you believe what those who have lived before you said or have done ? What are you going to say next that? You don't believe that houses can be built using wood? I do you believe the past or you don't it's not rocket science The only intelligent leg you have to stand on involving backing up your statement or argument. Here is the part of christianity history that directly involves a so called savior who was born from a virgin.
@@motoryzen I don’t believe in the invisible man. None of my wealth has been attributed to him; As I said, Dave’s advice appeals to me other than that part of it. Have a great day.
@yammbagg4866 I never said your wealth was a result of him.. Go back , actually read your original comment...then actually read what I posted..not just want you wanted to interpret.
If they're really wanting this done and keep insurance costs down and it would be a great asset to get a Health and Safety audit and risk assessment professional in construction on board. A consultant would be able to look at their processes and check everything from training and responsibilities , identify activities that pose a risk and ways to reduce them. Put procedures in place to limit future escalations. My experience is UK but essentially you can do this yourself but with a business of this size I wouldn't want to take any chances.
I handle a ton of complex litigation for businesses. I see all the time where companies don't keep a distinct line between corporate entities, causing massive complications. I have seen companies have a different LLC for everything. They have an LLC for paying employees and an LLC for owning company vehicles. Plaintiff attorneys can use that to get past exclusive remedy defenses. Now you have an employee who has a WC claim against his employer LLC and tort claim against the LLC that owns the vehicle. Corporate entities can be useful, just be careful and don't cross the streams.
my cousin owns like 8 homes and 1 warehouse in which he rents to business owners . the 8 homes is under his name with a 5 million dollar umbrella policy and the warehouse is under an LLC
Last year I got rear ended and both cars where totaled. There where no injuries. The woman who hit me called me 3 days after the accident and asked me if I have any pains. I joked that at 67 years old. I always have pains but nothing to do with the accident. PS This is another reason to spend a small amount on cars and to have money set aside for your next care.
The problem with this strategy is that most banks won't loan money or even open a checking account to an LLC without the person attaching their name to it. I do believe in an LLCs though but just make sure you treat your business like a business and not an extension of your personal life.
Something I didn’t hear him mention his policies and procedures. My experience in corporate world has been that the policies and procedures are the business. Establishing a solid set of policies and procedures, and ensure that all of your employees are thoroughly trained on them, should go along way to limit your liability for negligence.
That is it. We had a kid almost die because they didn't check if a cord was tied and about 320Kg of cement plates fall on him from a stand. Not only we paid a lot of money because we were actually worried about him, but the mother tried tu sue (her 18 year old almost died and and will probablyhave trouble walking for the rest of his life so I don't blame her). Thankfully we had proof of training and how we told them every day to check and tie the plates up before moving anything. The kid also held plates many times before they toppled over and NONE of his idiotic teammates remembered to tie them beforehand, neither did they tell him to get out of the way instead of getting under the plates. So yes, training and procedures are essential. Also don't hire sketchy or arrogant people, they'll hurt themselves and the business
A manufacturing company I worked for (in the S&P 500) has sales employees, manufacturing employees, manufacturing facilities around the world, etc., all in different corporations and/or LLC’s. For risk management, among many other business reasons.
Mark J Kohler. He's a Tax attorney and CPA. He has a TH-cam channel and podcast and loves sharing his wisdom. Not to mention, he has a CPA firm and tax attorney firm. TH-cam Mark Kohler.
Many years ago when I was running my own business, my solicitor, " attorney in the US" ask me why everything was in my wife's name , she wasn't part of the business, I said I always do the right thing by people, but someone might do the wrong thing by me , so I protect myself, my solicitor said he does the same thing .
@@LegacyDumpster various states allow different values of home value to be exempt from any lawsuit. Florida exemption is particularly favorable to a homeowner. But it must be the principal residence.
I have an LLC and I operate a small business under that name. However, I put business expenses on a personal credit card and then pay it with a check on the LLC. Does that mean they could pierce the corporate veil by itself? Also, I own a rent house in the name of a living trust. I have an umbrella policy just to protect myself if one of my renters has something problem. There is a guy I know in the landlord's association who tells everyone that will listen, not to buy an umbrella policy because that could encourage someone to sue. I don't think they could even discover the umbrella policy unless they already filed suit. What do you think?
I've thought about eventually giving up my cars and just going with Uber & Lyft because of the crazy sue , sue, sue times...And rent a car when going out of town & using the car rental insurance then...I do have a umbrella policy added on my insurance. But the LLC seems to add more complications & expense. I wonder if putting everything of high value like a home into a trust vs LLC would be as good and more simplified?
Everyone wants to sue, so be careful and be careful and watchful of the people that are closest to you and your company. Those are the ones that will get you.
So the people who get hurt building this guy business… let’s say gets injured an can’t work for 5-10 years should suffer with no compensation 🤔 they should just go be homeless right ? 😂 gtfho
@@goldenbearfitness9297 , it is just like any other profession. You know the risk and what you are getting into and what could possibly happen in your particular choice of career. From being a police officer, professional athlete or construction worker. You should have adequate insurance and pay that monthly premium if you get hurt, maimed or killed. Then your family will be taken care of.
@@goldenbearfitness9297That’s why you have to be extremely careful who you hire. If you hire an idiot from doofus world and he comes in and isn’t following all safety guidelines and gets hurt from his own stupidity, you’re saying he’s entitled to everything he can get out of you when it was his own fault? At that point the only thing he has coming is from workman’s comp.
1.6 million for a company with heavy equipment is LOW. 6 employees at say $30 dollars and hour is $374,400.00 a year thats not including WC or Taxes. Then Equipment costs? Fuel? Etc? The fact is this like he said anyone can sue for anything even if you win you will LOSE.
You've got to know when to hold 'em Know when to fold 'em Know when to walk away And know when to run You never count your money When you're sittin' at the table There'll be time enough for countin' When the dealin's done
1. A person has to have committed a crime 2. Insurance does prevent lawsuits 3. Calculations for proof of loss must be calculated 4. Police departments investigate it. 5. The institutions are often fined and asked how they will change
That isn't required, sign it as of and make sure the account is in the LLC's name. This makes it clear that you are performing an action on behalf of your LLC. Then in the memo line specify that Issuing payment for to ensure all bases are covered.
From 20 years in the insurance industry, Dave's suggestions are all good starting points. There are independent insurance brokers and risk management consultants that specialize in certain industries. He truly wants to talk to someone who specializes in construction business insurance.
This guy doesn’t own the cranes. They most likely rent them. Usually the crane company employs the operator. These guys are just making the connections. Pretty big step going from welding gates together to building buildings. Most iron workers go through a structured apprenticeship. He better have some good liability insurance.
Your business LLC shouldn’t own anything either. You have your Business LLC that actually trades and does business. Any substantial assets (buildings, expensive equipment, substantial amounts of cash or cash equivalents) should then be held by one or more holding companies which is a separate or multiple separate legal entities. One of the holding companies is the shareholder of the Business LLC. This way if your trading business gets sued it can go bankrupt but your significant assets are protected. But your holdings company doesn't actually do anything but own assets that it leases to the Business LLC so there isn't really any scenario in which it can become liable for anything. It just owns assets. You then personally don't want to own any shares in the holding company because then you can be targeted personally. So, you setup a trust and make yourself the beneficiary of the trust. This trust should only really own shares in your various holding companies. When you want a payout, you just instruct the holding company to pay dividend to it's shareholders (the trust) and then the trust pays out to it's beneficiary (you, the natural person). The reason you only keep the shares to your holding companies in the trust is because legally the trust must pay out a % to the beneficiary each year and you don't want to hold all that cash personally so the assets stay with the holdings company until you want them. When you want them, the trustee of the trust (the entity that decides how to use the trusts assets) then uses it's controlling share of the holding companies to instruct them to pay dividends to the trust and then the trust must pay out to the beneficiary. You can make yourself both the beneficiary and trustee of the trust; however, in realistic setups nowadays we see that instead another LLC is setup who's sole purpose it is to be the trustee of the trust. The only thing you personally then own is shares of the Trustee LLC so you still have control over the trust's assets without actually being the trustee. So to summarise, the only entities that every actually do any activity that you can be liable for is you, the natural person, and the Business LLC that actually trades. Neither of which own anything at all so you can both be sued and go bankrupt and it'll have no affect. All the assets are held by holding companies that only exist to own assets, nothing more, so it cannot be sued (unless as Ramsay mentioned there was a legal fuck up and they can pull back the veil). When you want money, you just instruct Trustee LLC to instruct Holdings LLC to pay dividends to its shareholders which go into the Trust. You then instruct Trustee LLC to pay out the trusts assets to the beneficiary (you). Even if a court took ownership of Trustee LLC away from you, the Trustee LLC is worthless and legally the trust must payout to you by the end of year anyway specifically to prevent rogue trustees from withholding funds from the beneficiary. This is a bit more of a complete description of what Ramsay was describing. Obviously in the real world at his scale he will have many Business LLCs that do different trades, with many holdings LLCs that own specific asset classes to minimise the chance of the veil being pulled back. His personal houses and cars etc. would also be held in holding companies and then he would have control over them through a trust. Beneficiaries of the trust or web of multiple trusts will then be his family etc.
Yes....by all means follow Dave's advice and get a insurance policy, this way the company can make more from you when they sue you to find out if they have to cover the claim!
The best thing insurance provides is a defense team tho. You don’t have to pay for lawyers in the case of a suit plus it’s their money so it’s in their interest to pay as little as possible
Defense team? I was sued by my insurance company to prevent me from having legal representation from them! It was cheaper to see if they had to represent me than to represent me!@@JTrys
It doesn't matter at all and can be completely transparent because it's perfectly legal. You just simply don't personally own anything. The business that operates also owns nothing. Anything valuable is owned by a holding company that down nothing it can ever be found liable for because it only exists to own assets. Although in common sense speak we know he has control over everything, legally speaking all the assets might as well be owned by a completely unrelated human being because an LLC is a legal entity in the same way a natural person is a legal entity in the eyes of the law. There are ways to pull back the veil as Dave described but attorneys specialise in asset protection and setting up these structures specifically to minimise the possibility of a court finding a legal reason as to why one legal entity is liable for the actions of a completely different legal entity
So basically what this means if you don’t own anything in your name, people can’t sue you personally, They have to sue the LLC, which means they will get nothing?
Your face reminds me of that young man sitting at that lonely table just for one in Colonial Garden in the early 90's while I was busy dancing w/ my cowboy boots/hat on stage.🥀🥀
Not necessarily. People transfer assets to LLCs and trusts all the time. Consideration isn't always needed for proper transfers. It's when someone is doing it with the intent to avoid creditors that problems arise.
"how can I illgalize the accidental murder and injury my workers may negligently commit" "so it's messed up they'd do that. Lemme explain how to get away with it"
Parents can be risky, but you can put in a trust. I have read you can put your house in a corporation or trust and then pay rent to that. I read someone did that and wife couldn't touch it, smart thinking.
How are Dave's costs after the new LLC reporting requirements kicked it? If he moves, each LLC is subject to heavy fines if he fails or forgets to report it. This ain't America any more, it is Amerika.
Doing the right thing is always simple to understand just sometimes difficult to execute It's not rocket science Don't lie, don't steal, don't cheat. Don't cut corners and instead the direct be real, be honest and be good to people. Again not rocket science
@@tobygrim7136Believe it or not, the shadow government (btw it’s common knowledge that there is one) is gradually conditioning us to accept that reality. We have already accepted so many things we can’t even stop and think about it it’s so normal now. For example, the credit score, credit and debit cards, banks, online transactions, renting vs owning, etc etc… all to condition you to “own nothing and be happy”.
That is also the best way for any man to not get screwed in a divorce. Never own anything. Of course, if you never own anything, you will probably never find a woman that will marry you. That is not necessarily a bad thing.
I disagree with this! If you are a single owner LLC, at least in Minnesota, you are still personally liable. Now if you form a Schedule S or C, corporation I would agree with Dave.
I heard from someone one time to hold the cranes in one company and then have the actual business in another company, and the company rents the cranes from the other company. This way if the actual construction company gets sued, it doesn’t own the equipment and they can’t touch it. So the construction company files for bankruptcy and closes and then you open another one and still keep the cranes. I think it might’ve been a Robert kiyosaki book.
Do you remember the title of the book? Because I think Robert K has a few different books
Buy Assets with debt, You still can profit but never own nothing ❤
I know several guys that have companies, where their trucking side the trucks are owned by one company, the trailers in a different one ect.
Don't take this the wrong way, please, but taking legal advice from Robert Kyosaki is like taking gun control advice from a Leftist who wants to repeal the 2nd Amendment because they think guns are big and scary. Kyosaki has no clue what he's talking about.
The whole "lease from one LLC to another" doesn't help you if you are the person who owns and operates them both. Any competent attorney will ask the judge to "pierce the veil" and get at your personally if you've done something negligent. LLCs were created to "limit" the liability of hands-off investors, not owner / operators. The idea was that sometimes a small group of people want to contribute money toward a business, but their liability is limited just to what they invested. They are not held liable for an incompetent or accident prone manager who is running the day to day operations.
If you are owning and operating the biz, you basically need to be competent, careful, and well-insured. Hate to say it, but Dave does NOT have the fully accurate answer here. Depending on the state and the attorney opposing you... they very well may get all personally owned assets. In summary, an LLC doesn't protect you from negligence if you're the negligent person.
They go in depth in a book from the rich dad series called “Start your own corporation.” It’s written by Garrett Sutton and he’s also an Attorney
"You can do the right thing and accomplish the liability buffer" - thank you for being both a decent and competent voice.
My friend owned a mobile crane company. He was an expert in cranes, rigging, etc., and smart enough to hire a licensed & insured company to service the cranes. The cable came out of the headache ball and killed a worker just after servicing. The family sued the Crane Servicing Company which my friend suggested, they won and my friend sold the business and retired. He had L.L.C., proper insurance policies and smart lawyers to help setup the business.
Dave can advise almost all aspects of life! Fabulous
Mr. Dylan said it best " When you got nothin' you got nothin' to lose"
I'm in the UK and if you put your money and property in a trust or company, you are much safer than having assets in your name.
There are attorneys that specialize in asset protection, which varies state to state. It is well worth a consultation
A better solution is to add one more thing. Form a holding company that owns all of the assets and equipment for all of the llcs. It leases any assets of real value to the llcs so the assets and equipment is not owned by the llcs either, they are leased by a holding company that is only a leasing company. The only assets the llcs own is cash on hand, bank accounts, employees and maybe some office space, but that can be leased too.
What's the annual cost of maintaining a holding company and LLC? Would putting all of your high value assets like a house in a trust be a good easy and less expensive way for someone who is retired to help shield their assets against grifter lawsuits?
@@st.bernard7498LLC filing fees differ by state. It could be anywhere from $20-a couple hundred. You would also have to pay the fees for your accountant because they only group the tax prep fees if it is a consolidated entity. Also some states like TN have franchise and excise taxes which in TN is a minimum of $100
A holding company should never be involved in any kind of operations. The only job of a holding company is to own its subsidiaries/LLC's. All operations need to be done by its subsidiaries.
i am in construction as well. there is no way to fully protect your company from being sued. good insurance helps, but it only does so much. most general contractors will require that you have a minimum insurance to even work on their projects. the best way to protect from frivolous lawsuits is to be very very selective as to who you hire. and if you happen to have too much work at one time, you are better off subcontracting that work out than hiring sketchy people to get it done. and also always always make sure you are following all employment laws. there are some tricky ones, but if you dont do everything exactly by the book you are setting yourself up for a class action. also, use a crane service
I do not believe "class action" is the correct term here. Otherwise, good advice.
@@PeterLawton no, class action is the correct term. i went through it with my business
@@PeterLawton i mean both regular lawauits and class action lawsuits. if you dont follow the employment laws exactly, you will be opened up for class action suits. it can be something as stupid as allowing your employees to take lunch after 5 hours instead of before their 5th hour, even if that is what they want
Let the subcontractors hire the sketchy ppl!
@@mixedup84 well actually that still protects you, but i wasnt implying that your subcontractor would have to hire those sketchy people to get your work done
Ok I already read about this in a book called, "How To Be Invisible" by J.J. Luna.
This is an area where I would trust Dave's advice.
I believe everything except the Jesus crap he spews. It all works!
@yammbagg4866 So at what point in humanity history? Do you believe what those who have lived before you said or have done ?
What are you going to say next that? You don't believe that houses can be built using wood?
I do you believe the past or you don't it's not rocket science
The only intelligent leg you have to stand on involving backing up your statement or argument. Here is the part of christianity history that directly involves a so called savior who was born from a virgin.
@@motoryzen I don’t believe in the invisible man. None of my wealth has been attributed to him; As I said, Dave’s advice appeals to me other than that part of it. Have a great day.
@yammbagg4866 I never said your wealth was a result of him..
Go back , actually read your original comment...then actually read what I posted..not just want you wanted to interpret.
@@motoryzen the thing about christianity is you have the option to not believe also.
Where in the world would you sit down with millionaires while they discuss business. It's just gold.
Own nothing, control everything!
Well put
Wow Dave just showed us all how to work the system.
I’m not sure it is “working the system”, rather it is using the law to your advantage.
This was your best ever advice!
If they're really wanting this done and keep insurance costs down and it would be a great asset to get a Health and Safety audit and risk assessment professional in construction on board. A consultant would be able to look at their processes and check everything from training and responsibilities , identify activities that pose a risk and ways to reduce them. Put procedures in place to limit future escalations. My experience is UK but essentially you can do this yourself but with a business of this size I wouldn't want to take any chances.
I only have small rental properties but the lawyer to create an LLC is a thousand bucks. Is there a way around that?
@@georgewagner7787nooo it's worth what if some guy falls
I handle a ton of complex litigation for businesses. I see all the time where companies don't keep a distinct line between corporate entities, causing massive complications. I have seen companies have a different LLC for everything. They have an LLC for paying employees and an LLC for owning company vehicles. Plaintiff attorneys can use that to get past exclusive remedy defenses. Now you have an employee who has a WC claim against his employer LLC and tort claim against the LLC that owns the vehicle. Corporate entities can be useful, just be careful and don't cross the streams.
With so many lawyer billboards next to my local freeways, this is sound advice.
my cousin owns like 8 homes and 1 warehouse in which he rents to business owners . the 8 homes is under his name with a 5 million dollar umbrella policy and the warehouse is under an LLC
Last year I got rear ended and both cars where totaled.
There where no injuries.
The woman who hit me called me 3 days after the accident and asked me if I have any pains.
I joked that at 67 years old. I always have pains but nothing to do with the accident.
PS This is another reason to spend a small amount on cars and to have money set aside for your next care.
Best advice hes given
The problem with this strategy is that most banks won't loan money or even open a checking account to an LLC without the person attaching their name to it. I do believe in an LLCs though but just make sure you treat your business like a business and not an extension of your personal life.
"When you ain't got nothing...you've got nothing to loose!" -Bob Dylan
Something I didn’t hear him mention his policies and procedures.
My experience in corporate world has been that the policies and procedures are the business. Establishing a solid set of policies and procedures, and ensure that all of your employees are thoroughly trained on them, should go along way to limit your liability for negligence.
That is it. We had a kid almost die because they didn't check if a cord was tied and about 320Kg of cement plates fall on him from a stand. Not only we paid a lot of money because we were actually worried about him, but the mother tried tu sue (her 18 year old almost died and and will probablyhave trouble walking for the rest of his life so I don't blame her). Thankfully we had proof of training and how we told them every day to check and tie the plates up before moving anything.
The kid also held plates many times before they toppled over and NONE of his idiotic teammates remembered to tie them beforehand, neither did they tell him to get out of the way instead of getting under the plates.
So yes, training and procedures are essential. Also don't hire sketchy or arrogant people, they'll hurt themselves and the business
A manufacturing company I worked for (in the S&P 500) has sales employees, manufacturing employees, manufacturing facilities around the world, etc., all in different corporations and/or LLC’s. For risk management, among many other business reasons.
Great advice!
Where can you go to find trusted info on how to set up LLCs or Trusts for your personal property?
Mark J Kohler. He's a Tax attorney and CPA. He has a TH-cam channel and podcast and loves sharing his wisdom. Not to mention, he has a CPA firm and tax attorney firm. TH-cam Mark Kohler.
Smart move Dave
3:27 onwards
Many years ago when I was running my own business, my solicitor, " attorney in the US" ask me why everything was in my wife's name , she wasn't part of the business, I said I always do the right thing by people, but someone might do the wrong thing by me , so I protect myself, my solicitor said he does the same thing .
Is an LLC better than a trust if a person is just attempting to protect their home, personal assets, etc. and not a business they run?
LLC more freedom
Protect your home in states with homestead exemptions. Florida, Texas, Iowa, Kansas, etc.
Can you elaborate on that? @DanielRicany
@@LegacyDumpster you can Google homestead bankruptcy exemptions
@@LegacyDumpster various states allow different values of home value to be exempt from any lawsuit. Florida exemption is particularly favorable to a homeowner. But it must be the principal residence.
I have an LLC and I operate a small business under that name. However, I put business expenses on a personal credit card and then pay it with a check on the LLC. Does that mean they could pierce the corporate veil by itself? Also, I own a rent house in the name of a living trust. I have an umbrella policy just to protect myself if one of my renters has something problem. There is a guy I know in the landlord's association who tells everyone that will listen, not to buy an umbrella policy because that could encourage someone to sue. I don't think they could even discover the umbrella policy unless they already filed suit. What do you think?
Get a business credit card.
You are losing out on a lot of the advantages of LLC. You want as many expenses as possible to on your business to limit its income/tax liability.
If you're negligent or break the law, any corporate veil can be pierced.
I've thought about eventually giving up my cars and just going with Uber & Lyft because of the crazy sue , sue, sue times...And rent a car when going out of town & using the car rental insurance then...I do have a umbrella policy added on my insurance. But the LLC seems to add more complications & expense. I wonder if putting everything of high value like a home into a trust vs LLC would be as good and more simplified?
Everyone wants to sue, so be careful and be careful and watchful of the people that are closest to you and your company. Those are the ones that will get you.
So the people who get hurt building this guy business… let’s say gets injured an can’t work for 5-10 years should suffer with no compensation 🤔 they should just go be homeless right ? 😂 gtfho
@@goldenbearfitness9297 , it is just like any other profession. You know the risk and what you are getting into and what could possibly happen in your particular choice of career. From being a police officer, professional athlete or construction worker. You should have adequate insurance and pay that monthly premium if you get hurt, maimed or killed. Then your family will be taken care of.
@@goldenbearfitness9297That’s why you have to be extremely careful who you hire. If you hire an idiot from doofus world and he comes in and isn’t following all safety guidelines and gets hurt from his own stupidity, you’re saying he’s entitled to everything he can get out of you when it was his own fault? At that point the only thing he has coming is from workman’s comp.
Those this also works to protect your self from IRS?
1.6 million for a company with heavy equipment is LOW. 6 employees at say $30 dollars and hour is $374,400.00 a year thats not including WC or Taxes. Then Equipment costs? Fuel? Etc? The fact is this like he said anyone can sue for anything even if you win you will LOSE.
You've got to know when to hold 'em
Know when to fold 'em
Know when to walk away
And know when to run
You never count your money
When you're sittin' at the table
There'll be time enough for countin'
When the dealin's done
Dave, That's smart advice.
Need D&O insurance as well.
1. A person has to have committed a crime
2. Insurance does prevent lawsuits
3. Calculations for proof of loss must be calculated
4. Police departments investigate it.
5. The institutions are often fined and asked how they will change
When writing checks, I have both my name and LLC on the check. Should I remove my name completely?
That isn't required, sign it as of and make sure the account is in the LLC's name. This makes it clear that you are performing an action on behalf of your LLC. Then in the memo line specify that Issuing payment for to ensure all bases are covered.
Anderson Advisors. They have the best asset protection plans.
From 20 years in the insurance industry, Dave's suggestions are all good starting points.
There are independent insurance brokers and risk management consultants that specialize in certain industries. He truly wants to talk to someone who specializes in construction business insurance.
It's a game of navigating around the law without leaving any loophole, in short, get an attorney
wonder how much money he has to send the state each year for all these LLC's
Doesn't matter. "Cost of maintaining business" is tax write-off.
LLC EVERYTHING
This guy doesn’t own the cranes. They most likely rent them. Usually the crane company employs the operator. These guys are just making the connections. Pretty big step going from welding gates together to building buildings. Most iron workers go through a structured apprenticeship. He better have some good liability insurance.
If you fail to comply to the rules for the LLC you are still held accountable personally
What kind lawyer should i look for to do this type of structuring?
Risk management.
So recent lawsuit vs Dave will have hard time getting paid?
What if you have a business in an LLC that has substantial cash buildup that could be a target?
Your business LLC shouldn’t own anything either.
You have your Business LLC that actually trades and does business. Any substantial assets (buildings, expensive equipment, substantial amounts of cash or cash equivalents) should then be held by one or more holding companies which is a separate or multiple separate legal entities. One of the holding companies is the shareholder of the Business LLC. This way if your trading business gets sued it can go bankrupt but your significant assets are protected. But your holdings company doesn't actually do anything but own assets that it leases to the Business LLC so there isn't really any scenario in which it can become liable for anything. It just owns assets.
You then personally don't want to own any shares in the holding company because then you can be targeted personally. So, you setup a trust and make yourself the beneficiary of the trust. This trust should only really own shares in your various holding companies. When you want a payout, you just instruct the holding company to pay dividend to it's shareholders (the trust) and then the trust pays out to it's beneficiary (you, the natural person).
The reason you only keep the shares to your holding companies in the trust is because legally the trust must pay out a % to the beneficiary each year and you don't want to hold all that cash personally so the assets stay with the holdings company until you want them. When you want them, the trustee of the trust (the entity that decides how to use the trusts assets) then uses it's controlling share of the holding companies to instruct them to pay dividends to the trust and then the trust must pay out to the beneficiary.
You can make yourself both the beneficiary and trustee of the trust; however, in realistic setups nowadays we see that instead another LLC is setup who's sole purpose it is to be the trustee of the trust. The only thing you personally then own is shares of the Trustee LLC so you still have control over the trust's assets without actually being the trustee.
So to summarise, the only entities that every actually do any activity that you can be liable for is you, the natural person, and the Business LLC that actually trades. Neither of which own anything at all so you can both be sued and go bankrupt and it'll have no affect. All the assets are held by holding companies that only exist to own assets, nothing more, so it cannot be sued (unless as Ramsay mentioned there was a legal fuck up and they can pull back the veil). When you want money, you just instruct Trustee LLC to instruct Holdings LLC to pay dividends to its shareholders which go into the Trust. You then instruct Trustee LLC to pay out the trusts assets to the beneficiary (you). Even if a court took ownership of Trustee LLC away from you, the Trustee LLC is worthless and legally the trust must payout to you by the end of year anyway specifically to prevent rogue trustees from withholding funds from the beneficiary.
This is a bit more of a complete description of what Ramsay was describing. Obviously in the real world at his scale he will have many Business LLCs that do different trades, with many holdings LLCs that own specific asset classes to minimise the chance of the veil being pulled back. His personal houses and cars etc. would also be held in holding companies and then he would have control over them through a trust. Beneficiaries of the trust or web of multiple trusts will then be his family etc.
Yes....by all means follow Dave's advice and get a insurance policy, this way the company can make more from you when they sue you to find out if they have to cover the claim!
The best thing insurance provides is a defense team tho. You don’t have to pay for lawyers in the case of a suit plus it’s their money so it’s in their interest to pay as little as possible
Defense team? I was sued by my insurance company to prevent me from having legal representation from them! It was cheaper to see if they had to represent me than to represent me!@@JTrys
Does any of this still work with boi now in place?
It doesn't matter at all and can be completely transparent because it's perfectly legal. You just simply don't personally own anything. The business that operates also owns nothing. Anything valuable is owned by a holding company that down nothing it can ever be found liable for because it only exists to own assets. Although in common sense speak we know he has control over everything, legally speaking all the assets might as well be owned by a completely unrelated human being because an LLC is a legal entity in the same way a natural person is a legal entity in the eyes of the law. There are ways to pull back the veil as Dave described but attorneys specialise in asset protection and setting up these structures specifically to minimise the possibility of a court finding a legal reason as to why one legal entity is liable for the actions of a completely different legal entity
Hey I know buy a time share
What is a LLC?
Limited Liability Corporation
So how can dave own anything then if he is using llc
A lot of people get in trouble because they don't see trouble to begin with and prevent it
I noticed even Dental practices are LLC incorporated.
All businesses should be in a LLC. It is less than $100 a year
I also own nothing. Very good at it in fact
Lol!😆
Lol I think Dave has come full circle
If Dave Ramsey's car bumps mine, I'm going to wear a full body cast. I'm gonna have a splint on my tongue and a cast on each tooth.
We live in a sick world
So what about that lawsuit with the time shares? Huh Dave.
Sounds like Mrs Ramsey owns everything. Hope she doesn’t kick him out.
Yeah if that happens he will find out about Family court real fast. He will be living in somebodys elses storage shed.
:v
Without ownership, you cannot have debt. With debt, you can make your money work for you. It is called real estate.
You could always relocate your residence overseas, to a country that has a less wacky legal system. Look up the "Five Flags Theory".
This is what dismantled manufacturing in America.
Sounds like a question for an attorney really and your CPA
I use the term, "Jackpot Lawsuit". I hate people who try those.
Said the one eyed man in a world that is blind!
So basically what this means if you don’t own anything in your name, people can’t sue you personally, They have to sue the LLC, which means they will get nothing?
Wonder what Dave Ramsey thinks about owning nothing and being happy. Or his thoughts on the world economic forum?
Tall buildings? Ok 👍 got it 🤣
Who’s ever in control has all the liability. Period.
😮😮My dentist works for a corporation that owns the toothbrushes and tee shirts. It leases equipment from his wife’s corporations.
Dave doesn’t own hardly anything, but I’m sure he has a key to every door and ignition switch 😂😂😂
Own " NOTHING" On paper
Papper
@@willmichael4033 Pauper.
“You’ll own nothing and be happy”
Own nothing and you will be happy.
No you won't.
@@Jenda-ld8dj but Klaus Schwab said it so it must be true lol
Your face reminds me of that young man sitting at that lonely table just for one in Colonial Garden in the early 90's while I was busy dancing w/ my cowboy boots/hat on stage.🥀🥀
Umbrella policy.
👍
Any recommendations on who I should speak to about getting out of my timeshare, Mr. Ramsey?
Who owns rhe LLc?
LLC...
SEE OJ SIMPSON. Lol and other pro athletes. I recall Allen Iverson of 76ers fame protected himself too.
Transferring assets to another entity for no consideration opens you up to fraudulent transfer claims.
Not necessarily. People transfer assets to LLCs and trusts all the time. Consideration isn't always needed for proper transfers. It's when someone is doing it with the intent to avoid creditors that problems arise.
@sconnell1791 constructive fraudulent transfers don't require a showing of fraudulent intent
But when the time comes who will inherit everything? You can't Will things you don't own
trust funds
"how can I illgalize the accidental murder and injury my workers may negligently commit"
"so it's messed up they'd do that. Lemme explain how to get away with it"
Same advice for husbands. Put everything under your parents' name.
Parents can be risky, but you can put in a trust. I have read you can put your house in a corporation or trust and then pay rent to that. I read someone did that and wife couldn't touch it, smart thinking.
I own nothing, I owe nothing.
Don't own any thing..
Always be an employee of the corporation
How are Dave's costs after the new LLC reporting requirements kicked it? If he moves, each LLC is subject to heavy fines if he fails or forgets to report it. This ain't America any more, it is Amerika.
You may find it’s not that simple…..
Doing the right thing is always simple to understand just sometimes difficult to execute
It's not rocket science
Don't lie, don't steal, don't cheat. Don't cut corners and instead the direct be real, be honest and be good to people.
Again not rocket science
No one thinks more of Dave Ramsey, than Dave Ramsey!
You will own nothing and be happy. OK Dave. It's called the WEF.
You missed the point..
@@tobygrim7136mikeytheyungdumgod!
@@tobygrim7136I think he is joking tbh. lol
@@tobygrim7136Believe it or not, the shadow government (btw it’s common knowledge that there is one) is gradually conditioning us to accept that reality. We have already accepted so many things we can’t even stop and think about it it’s so normal now. For example, the credit score, credit and debit cards, banks, online transactions, renting vs owning, etc etc… all to condition you to “own nothing and be happy”.
Uneducated reply
That is also the best way for any man to not get screwed in a divorce. Never own anything. Of course, if you never own anything, you will probably never find a woman that will marry you. That is not necessarily a bad thing.
Talk to a lawyer to create an irrevocable living trust for the benefit of you.
You better know your rights and the rules. People have easier access to different resources these days and are more educated.
I disagree with this! If you are a single owner LLC, at least in Minnesota, you are still personally liable. Now if you form a Schedule S or C, corporation I would agree with Dave.
That's why he said talk to a lawyer smart guy no shit it's gonna vary by state 😅
To whoever runs this account: could you please not do 24 fps? We were fine at 30 and or 60. 24 looks weird. 😂 thanks.
24 is pretty standard though….
@@digitalpacswas standard... back in the 1900s when yall were using candle light and reals to do moving pictures.
Everything is in my baby’s name