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Aug. 14, 2023 - Fresh & Fit
02:14:16
How To SETUP Your Business To Pay LESS Taxes w/ Our Accountant Steve!
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What's up guys, welcome to the Friendship Podcast, man.
We're here with Steve from Accounting.
We're going to talk about starting a business, LLC's, S-Corps.
Let's get into it!
it. Let's go. Let's go.
Let's go. Let's go. Let's go. Let's go. Let's go. Let's go. Let's go. Let's go.
All right.
We are back.
What's up, guys?
Welcome to the Fresh and Fit Podcast, man.
It is Money Monday, and today we probably have one of the most important episodes we're going to do for a while.
This is going to be one of those episodes that you're going to need your notebook, take notes, come back to it, reference it.
Whenever you're ready to start a business, or if you are thinking about starting a business, this is going to be your blueprint and 101 and how to do this.
And also, you guys asked for it so many times, so now we've got a few today for Stephen Mechanics.
Yes, we brought our account in here, man, to give y'all the walkthrough step-by-step.
So real quick, before we get into it, rumble.com slash fresherfitguys, go ahead and find us over there.
So if we ever do get canceled, you know exactly where to find us.
Also, check us out on fresherfit.locals.com for behind-the-scenes content.
As you guys know, we do a live stream right before we do the show on Locals.
And then also check us out on Fresher Fit Store to get the merch, hoodies, t-shirts, etc.
Also, guys, do me a favor.
Please subscribe to our other YouTube channel.
It's called Fresher Fit Clips, guys.
We post six clips on there per day.
Like, damn near 8 to 10 shorts per day.
So if you guys want bite-sized forms of the content, go ahead and check us out over there on Fresh and Fit Clips, guys, okay?
And then also we got another one called More Fresh Fit Clips.
We're trying to get that one to 100K and we're trying to get the main Fresh Fit Clips channel to a million.
So guys, go over there, support those two channels because 80% of the people or so that watch both those channels are not subscribed.
It's not enough just to be subscribed to Fresh Fit.
We need you all to be subscribed to Fresh Fit Clips as well and more Fresh Fit Clips.
And then also check us out on Spotify where Mo posts every single day.
And quick little announcement.
We posted the Andrew Tate interview on Rumble.
Okay, guys?
Because as y'all know, they took it down on YouTube.
And yeah, it's lame.
We can't post our Andrew Tate interviews on YouTube, man.
So you guys got to go over to Rumble.
We have a bunch of them over there.
And they're also on Spotify as well.
I think we got all of them.
All of them are on there now?
Nice.
Okay, so all of them should be on there now, guys.
We did like, man, a bunch.
Like 8 to 10, something like that.
One of the first.
Yeah, so go check it out over there.
Also, guys, Fresh, your vlog?
Yes, guys.
For vlogs, man, we travel.
When we do our fun stuff, go check it out.
Also, as well, I'm going to do more live streams on my channel just to talk about networking and more tips.
And then as well, guys, join the SEO Network, man.
Give value as well.
Got millionaires coming on every week to talk about, for example, success, mindset, business.
Go check it out.
See you guys in there.
And check me out, guys, on Fed Reaction.
So yesterday on, um...
Kidnapping.
Excuse me.
I did it on The Sound of Freedom.
As you guys know, the movie is a blockbuster hit.
It was, well, obviously it was an independent film, but it did really well in the box office.
I went ahead and watched it with Angie, and then we went ahead and covered...
What Tim Ballard is really doing, the former HSI agent who now rescues children all over the world.
We went ahead and watched the documentary, reacted to it.
I explained the differences between human trafficking versus human smuggling because they're vastly different.
A lot of people don't know the differences.
We watched a couple of sting operations they did with human traffickers.
So if you guys like true crime stuff or you like that type of stuff where you can learn a little bit more when it comes to the whole legal process and law enforcement in general, go check me out on FedReacts.
I do everything from contemporary cases to cases going on in news with Trump to serial killers to terrorism to espionage to kidnapping.
Pretty much any type of case I cover over there.
I cover the YWMLE case, the YSL Rico cases.
I cover all the cases there for my former law enforcement experience, man.
So go check me out over there on FedReacts and go get my book, Why Women Deserve Less.
But that's all great and dandy.
But dude, we got a special guest in the house.
Without further ado.
Yeah, we just wanted to get as many of y'all in here before we get into the good stuff.
Steve, we know who you are.
We've known you for years now.
Yeah, it's been a while since the beginning.
Three to four years now at this point.
The man.
We know who you are, Steve, but the audience might not know because you come in here periodically, maybe once or twice a year.
Always new people coming in.
And they've been requesting this for a while.
Can you introduce yourself to the people?
Absolutely.
My name is Steve Colon.
These are my clients.
And...
I think I was with you guys since the beginning, and it's just amazing where you guys have come.
But I'm a CPA. I've been a CPA for about, I'll say, over 20 years.
I'm located here in the state of Florida.
I've got a couple of practices, and I'm a serial entrepreneur.
I've opened up several different businesses.
One of them was a portable x-ray company in the state of Florida, and then we went national, or we sold it to a national company.
I did a lot of real estate, a lot of investing in various real estate, commercial and residential, kind of like what you're doing.
And, yeah, so I'm here.
And right now, you know, I focus on high net worth individuals, small business owners, all, you know, a slew of different types of industries and types of businesses.
And I've been doing that for, you know, about 25 years now.
Yeah.
And something that I want to really highlight here, which I think is very important for the audience that's watching, right?
A lot of you guys might not necessarily be entrepreneurs.
You might be working a nine-to-five job and you're thinking about starting a business on the side, etc.
Guys, I was in your shoes about four years ago.
In 2019, I was working my government job and I also started my fitness business, right?
And I was able to transition from being, you know...
You know, regular employee, right?
To becoming an entrepreneur.
And Steve was instrumental in that and me segueing over in a correct fashion where I wouldn't hurt myself from a tax standpoint and setting up my business appropriately.
So for a lot of you guys, you're going to start as a full-time employee and then start your business.
And then at some point, you know, you're going to want to quit that business.
Sorry, quit that job and transition over to entrepreneurship.
You need to do it in a very particular way so that you don't mess yourself up because I made some mistakes along the way doing that.
And also, guys, debut Steve in the chat because Steve is giving you guys some massive gems here for free, by the way, and he charges for this all the time.
So thank you, Steve, for coming to the platform as well.
My pleasure.
My pleasure, guys.
Thank you.
Definitely.
And we'll talk about this a little bit later in the show because this is an issue close to my heart.
And, you know, the real thrust of what it is that I'm doing and what I'm going to embark on, we'll talk about that.
Is for you guys.
So before I came, I was looking at the shows that you guys have, the late night shows.
So I think I went over the past 10 shows and then I did the ones where you guys had special guests on here.
So I know in the beginning when you guys started that and you guys like kind of blew up and everybody was coming in for the red meat for the drama and the shows.
And here I was kind of looking at like the viewership.
So I think it was like 10%.
I was just talking with Mo about this and I did...
I did a little calculation on it and I think it's like 25% now, which is good.
So that means you guys are really getting these guys across from there, bringing them in the door and getting them over to where they need to be.
This is where the real alpha is.
This is where you guys want to be.
So, you know, props to you guys.
No, thank you, man.
I mean, and I've always said it, right?
Like, they come in because the girls, right?
Oh, wow, this drama's awesome.
But then they realize, oh, wait, hold on.
Y'all give financial stuff?
You guys teach people how to set up LLCs, credit, buy real estate, become financially free?
Yeah, man, because at the end of the day, guys, if you want to be able to deal with a lot of these ridiculous women in a position where you have the leverage, you need to have your money on point.
And I... And nowadays, they don't teach you any of this stuff in school.
No.
Yeah.
And true freedom starts with financial freedom as well.
Yeah.
So ultimately speaking, if you get that down pat, you have that under control, you get whatever you want.
Amen.
Amen.
So I guess we could start from the beginning, Steve.
So let's say someone's watching, right?
And they're thinking about starting a business.
Maybe they even already did start a business.
How should they go about registering their business and making that segue over while they're still an employee?
So the first thing you want to do, and...
I'm going to start with this.
You know, he was talking about him being a W2 employee and then doing a side gig, side hustle.
So, you know, I would imagine that this show is going to be speaking to you guys.
So if you're going to do something like that, there's a specific way to go about doing it.
And it's an area that always causes a lot of confusion.
Yes.
It messed me up, too.
Yeah.
So when I was...
In my early 20s, I started a business with my brother.
We didn't know what the hell we were doing.
We didn't have access to YouTube and videos and things like that.
The first thing we did to start a corporation in New York State, no less, was see a lawyer.
We ended up spending $2,500.
We only had $20,000 collectively to spend on this business venture.
We started there.
He got us incorporated, gave us a book of stock certificates with a stamp on it.
I brought this It was a really good looking hardcover binder for my corporate documents and all this stuff.
And I thought, oh, this is all I needed.
I was in the CPA at the time.
So then I had to go see a CPA and the CPA said, yeah, never do that again.
And I said, well, why?
He goes, well, you're just wasting your time.
You don't need stock certificates unless you're going to sell them.
I said, well, you know, it's just me and my brother.
He goes, well, you don't need that.
He goes, all you need to do is get an EIN number and then he made us an S Corp.
So he basically walked us through the process of what I'm going to talk about today.
Okay.
And kind of what we talked about when you were starting your fitness business and you were structured as an LLC. So most people...
I think that, oh, I got an LLC, and it equates to tax savings.
An LLC does not equate to tax savings.
An LLC is just a form of entity that you can form.
You can do it, and every state has their own limited liability company.
You just get on the State Department, and this is what we're going to talk about on my channel in more detail.
But that's the first step you do, is you select a name that no one else has in that state, You form your LLC. Make sure that name is available.
You pay your fee online.
Typically at the Department of State, they all pretty much have the same type of format and website.
Every state is different state by state.
Yeah.
And then you get your articles of organization back.
So now with that LLC, what you want to do is you want to make it an S-corp.
The only reason I would tell you to stay as an LLC is if you want to invest in rental real estate property.
Bam.
So that's what you have.
So that's very important because I made that mistake.
So a big mistake that a lot of people make, right?
You come from the W-2 world, right, where you have a regular job, right?
And you're like, okay, they take my taxes out for me.
I don't got to worry about anything.
And then you go over to entrepreneurship.
The first thing people do is they think, I'm going to make an LLC. But you're saying, no, no.
You can start with the LLC, but what you need to do is transition it over to an S-corp.
Yes.
Especially when you're a W-2 employee.
Can you tell the people why that's so critical and why that's so important?
Because I made that mistake myself in the beginning.
So, if you're going to invest in real estate property, for every property that you have, you want to have a separate LLC. We're good to go.
So they can only sue the LLC of that particular property.
You may have multiple properties, such as yourself, where they can't reach over that.
So it's limited liability.
Lawyers started a limited liability in most states.
And the reason why they did it is because they went into practice together, and they were partners, and they didn't want each other's Clients that may sue them coming after each other.
So they limited the liability.
That's really the rest of it.
Then they applied it to real estate as well.
But you could get the best of both worlds because if you're going to operate a business where you're operating, you're getting income from an operational business, not a rental property, then that's where you want to take that LLC and convert it into an S Corp.
I think the first person I heard talk about LLCs was Robert Kiyosaki.
Obviously speaking, he wants to protect your assets.
But we didn't know how to really do it, how it made sense for us as regular business owners.
Okay, so it's okay for them to start off with, you know, create the LLC, right?
They can go on their website, do it.
Don't hire an attorney, do it.
You can literally do it by yourself.
I know LegalZoom will let you do it.
You can do LegalZoom if you want to.
You don't really need to.
And what I'm going to do is I'm going to actually, I'm going to do videos.
Because you've done it for me a bunch of times.
Yeah, it's very simple.
It takes like 10-15 minutes not even to create an LLC. It's very easy, guys.
You go on the website and you pay the filing fee, you get your articles of organization, which is basically, think of it as like the documents that prove you have a real business entity now.
Once you have that...
How long can they have the LLC before they switch it over to an S-Corp, in your opinion?
So there's a time limit on that.
I've taken it out into two years where you can get elected for forgiveness.
There's certain things that you have to mark.
You should do it as soon as possible.
And a lot of times I get clients because, again, they go to an attorney, they form an LLC, and then at the end of the year when they come see me, I ask them, are you an S-Corp?
They're like, I don't know what you're talking about.
I think I am, right?
And I'm like, okay, let me check.
Did your attorney fill out these forms?
Well, nine times out of ten they don't.
Because lawyers don't know anything about taxes.
Yeah, and we're coming in a year, maybe a year and three months or so later, and then I have to fill out the forms and then they have now a provision because it's so common that the IRS actually added on their form.
A two sections where you could just check the box and say, you know, we're doing a late filing election.
So you start off with LLC, so they got to get it, hopefully get it done within a year, right?
And you're saying, yeah, you can count to two years, but certain, you got to make sure that certain forms were filed in a certain way.
Okay.
You know, I'm not going to get into that in detail, but that's typically the most cases, nine times out of 10, it's going to be a year later and we could, we could pretty much get the S Corp.
And I remember with me, like, I was almost at the end of my time limit, and we switched it to an S-Corp right before, because I had an LLC, guys, that I had started for my fitness business, and then Steve saw, I got Steve as an accountant, and then he saw I was set up, and he was like, dude, you still have a W-2 job, and you have an LLC, what are you doing?
And then we switched over to an S-Corp, and we'll talk about that here in a second.
Guys, real quick, All the chats that come in, I'm going to read them here in a second.
But go ahead and get your questions in, guys, because this is a fantastic opportunity for you guys to ask a real CPA who works for real clients from a small business angle and real estate.
You can ask them all your questions.
So all those questions you guys ask us about starting a business and everything else like that, today's they did ask these questions.
So...
Going back to the LLC, so you start, do it within a year, sometimes up to two if you have certain things in place.
So why is it so important to switch over to an S Corp from that initial LLC that they create?
Great question.
So because when, so first off, let me skip back just a second.
The LLC for rental property is okay because they construe that as passive income.
So that's not subject to self-employment tax.
Okay.
Okay, so those are okay because you're going to have a special schedule on your 1040.
We don't need to file an S-Corp return.
We just put the rental income, rental expenses.
So having a real estate property under an LLC is appropriate.
However, when we're talking about an S-Corp, an actual business difference.
Right.
So now that's where if you don't make the S-Corp election, you have to put all of that business activity, the income and all the business expenses and the profit, Right inside of your 1040 on a Schedule C form.
And I think we had a show and we talked about this.
That's the number one audited form in the entire IRS. That's the one that probably 75% of people that get their 1040 audited.
And what is a 1040 form?
1040 is your personal income tax return that everybody that has a job and you're making over a certain amount.
that you have to report your income on a form 1040.
Okay?
So if you have a side hustle and it's an LLC and you didn't make it an S-Corp, then you have to put your business activity in your 1040 on a certain schedule called a Schedule C.
And that schedule is what is the most audited schedule It's like out of all of the forms that get audited, the IRS is the number one.
I detest it.
Everybody that does that, some people are well past The time limit to do an S-Corp election, and I make them form a new corporation with a brand new name, with a brand new EIN number, open up a brand new, and it's a pain in the ass, but I'm like, listen, you're going to thank me for this later because you need to file a separate form.
Gotcha.
So if they don't, let's say they stick with that LLC and they have their business and they have their W-2 job, that LLC income now has to be put in their 1040, which they're also earning income from their job, and that can mess them up.
Correct.
Correct.
So you're basically putting both of your income streams on one form that shouldn't be put for two different income streams, and that form is the most audited by the IRS. Correct.
There's two departments.
They don't even call it audited.
They call it examination.
So there's two examination departments.
One that is in charge of auditing personal income tax returns, which are the 1040s, and with that comes the Schedule C in there.
So that gives them jurisdiction over your business.
I've had people come into my office with Like, their top line for gross revenue was over a million dollars.
I'm like, dude, what are you doing?
You're filing this on your personal return.
So now you have a guy auditing a pretty good-sized company that really doesn't have a lot of experience in the IRS, and they're going through everything, and they could turn your world upside down.
Oh my god.
Yeah.
Okay, so...
See what I mean?
Yo, where are y'all gonna get sauce like this anywhere else, bro?
I don't know.
You would have to bring an actual, real...
And here's the other thing.
A lot of accountants aren't gonna share this with y'all.
They might not know this stuff.
Like, this is a big mistake that a lot of people do.
They start off a business, it does really well.
Maybe even they make an extra $30,000, $40,000 a year.
Well, guess what?
It gets put on your personal tax return, which is your regular job, and that is the most audited form.
And then they're like, yo, what the hell?
You got all this extra income.
What's going on?
And then the next thing you know, bam, you're getting audited.
Because they don't look at it like it's a business, right?
They look at it like, wait, you're making more money now.
What's going on here?
And if you don't know, you don't know.
It's funny because when I spoke to Steve for the first time, I was like, Steve, please, I don't want to end up like Wesley Snipes.
Please save me, bro.
And stuff like this will literally jam you up.
So that's the importance of switching over to the S-Corp.
So when they switch over to the S-Corp, what does that basically do for them?
It separates that business?
So it does two things.
So one of the greatest, obviously, it's a tax savings.
And it's very significant.
So when you, obviously, now you're taking that S-Corp and you're having to file a separate return.
So now you return, it's going to be an 1120S. That's what it's called.
These are the form numbers.
You guys can write that down and look it up.
But that's where you, instead of doing the Schedule C on a 1040, now you move that over to its own tax return and you file.
Now that goes to the business side of the examination of the IRS. Those two shall never meet.
They don't even communicate with each other.
It's two separate departments.
You know, you being the government guy, you know how important that is.
So that's kind of where you divide and conquer.
Because instead of making, let's say you make an extra 100 grand with your business, right?
You're gonna be a big fish in a small pond, putting it in a 1040, Right.
And then it's gonna be audited to fucking hell.
Right.
Versus you put it in the, you file it as a separate business.
Right.
Now you're a small fish in a big pond because there's a bunch of other businesses that are getting put there alongside you.
And you filed it appropriately.
This isn't illegal stuff.
You're doing it the way it should be.
You're separating the two.
Correct.
So the other reason is obviously for the tax savings.
So, you know, we use very simple numbers.
Let's say you make a profit for $100,000, right?
So if you file that on your Schedule C, On your income tax return, you're going to pay $15,300 in self-employment tax, even before you start paying regular income tax.
So forget about the income tax.
You're going to pay self-employment tax because you have no control over that.
You've got a $100,000 profit.
All of that $100,000 is subject to self-employment tax.
Well, what is that?
That's like the W-2 wage earner when you look at your check and you see where they take the Social Security out into Medicare.
That's basically the self-employment tax.
That's FICA, Medicare.
So when you have an LLC and you're self-employed, now you're picking up not only the employer portion, But you're picking up the employee portion of that.
So it's 15.3%.
So that's just getting taken right off the top.
Correct.
So you're getting hit with it twice.
Almost.
Right.
Once you're self-employed, you have to pay that.
So now what you can save in this one, you'll save like $7,650.
I'll use this example.
File it on an S-Corp return.
You have to pay yourself a reasonable wage.
So you have to give your own self, for running that company, a reasonable wage.
A wage that you would pay someone if you were going to hire them to do that job.
Like a CEO or manager?
Whatever it is.
You're the president of that company and whatever that company is, let's say you're a doctor and you've got a medical practice, what would you pay someone to do that job or so on and so forth?
When should someone start paying themselves from their company?
So that's a good question.
Obviously, if you're not profitable, and typically when you form a new corporation, typically the first year you're going to have more expenses than you do income, and you might have a slight loss.
That's why I like to have that on a separate return, because then you get the slight loss that comes through on a K-1 form, and we attach it to your 1040, versus having a loss on your Schedule C. And then it's netting against your other W-2 wages like you had with DHS. That looks bad.
Now that's a red flag.
That's why those...
Because a lot of...
The IRS looks at that Schedule C as a way of people that are W-2 wage earners getting their income down, their taxable income.
Because you have no control.
When you're a W-2 wage earner, you can't get your income down.
It's already reported on that W-2.
There's nothing you can do.
There's really very limited ways for you to get your income down.
And that's one of the ways...
That people do, they'll file with this little schedule on there and then all of a sudden they have a loss and then they'll, you know, maybe they have a $150,000 W2 wage and a $20,000 Schedule C loss.
Now they're getting their income down.
Gotcha.
So you want to avoid all red flags that might come up to the IRS to say, you know what, this is all this person because of these things coming up on their account.
It could be a legitimate loss.
And I think we talked about this.
I had a real estate agent where she was trying to sell real estate when the economy crashed and she didn't sell anything, but she incurred legitimate costs.
And she was renting, paying desk fee, this, that.
And she had a loss.
Her husband was making like, I don't know, $400,000 or $500,000 as a doctor.
And she had like a $35,000 loss.
They were legitimate.
She had all of the receipts, everything.
And it got their income down.
And, you know, so they saw that as an opportunity that she got out of it.
She could have fought it.
She didn't.
She was like, I don't want to deal with it.
So she just paid, you know, the penalties and fines and everything.
Wow.
She doesn't want to deal with it.
Yeah.
Versus if she would have, I would have told her, you should have been an S Corp.
I don't know who you talked to, who did your stuff, but we could have filed that on a separate return, take the $35,000 loss, put it on the schedule K-1, and they would have left you alone.
Yeah.
Isn't it amazing how the vast difference just by setting yourself up correctly, when you set yourself up correctly from the beginning, it avoids long-term problems versus if you set yourself up incorrectly in the beginning, it might be easier.
Oh, I just made an LLC. Now I'm like, I'm a business owner.
Woo!
And then you file your tax return.
Next thing you know, they're like, oh, yeah, we're going to go ahead and audit you because you made way more money.
And yeah, okay.
But we're told to get LLC as a business owner and just like do that.
It's great.
It's great because you get the best of both words.
So if you're going to run a business and have an operation, then I would say, yeah, be the LLC, get the extra limited liability protection for your assets and also just convert it into an S-Corp.
So in that case, we were talking about the second system, the $100,000 case, $15,000, 300 extra tax bill you're paying versus if you did it on an S-Corp, we could take $50,000 of that and deem that wages.
So you only pay $7,650.
The rest is just income.
So you don't pay that.
Just in that case alone, you're saving $7,650.
Okay, hold on.
Let me just hold on.
That was very important.
I don't want none of this stuff to get glossed over because you're giving these guys so much important information.
I really want to hone this home because I'm hoping that this episode is going to be something people can go back to continuously, right?
And we're going to put very detailed timestamps on this episode for y'all.
So...
Two scenarios.
You make $100,000, right?
One as an LLC, one as an S-Corp, right?
Assuming you made the LLC, then you switched over to S-Corp.
In the first scenario, where you're just a regular LLC working a job, let's say you make $100,000 extra from your business, you are going to be subject to paying $15,000 in, you said self-employment tax, right?
Self-employment tax.
Automatic, without a doubt, that's coming off.
So you're going to only net about $85,000, and that's before all the other taxes that come in, right?
So $15,000 is already gone.
However, if you had switched it over to an S-Corp, you would only be paying about half of that at about $75,000, $7,600?
It's an automatic $7,000.
Yeah, because I would say, just let's take 50% of your $100,000 and deem that Taxable for self-employment tax.
Okay.
Because you could do that on S-Corp.
Okay.
And the IRS says you have to pay yourself a reasonable salary.
Yeah.
And a lot of guys don't do that and they've been getting away with it, but I think now with Social Security and the situation that we're getting a lot of little notices and stuff like that saying that you need to...
I think at some point the IRS is going to come back and probably claw back a lot of these returns that were S-Corps where the owner didn't pay himself a reasonable salary.
okay and there's a way to do that like you should go on and see like what is really the market rate for that position okay and the irs can push you know push and shove on that but i think if you put something in there yeah more than likely they're gonna be like yeah whatever alone but if you put a big goose egg on there um they're gonna be like yeah you know gotcha now we're gonna get you and how much did you take in distributions Oh, you took $100,000?
Okay, that's going to be WTO wage.
Now you owe us that plus penalties and interest, and it's a 25% for a misstatement there on top of the 15.3% plus the interest.
So we're talking about just off of a $100,000 profit, You're saving $7,500 that you would have had to pay, you know, double that if you had stayed as an LLC. Right.
And then not to mention, and you can't, I guess, also with the S-Corp, you were saying that you set yourself up for better tax mitigation as well?
As far as, like, is it easier to write things off?
Are there any other benefits?
They're about the same, because if you look at a Schedule C on a 1040 and you look at the, you know, it's just basically a profit-loss statement.
Okay.
You know, the only thing with the schedule is that you don't have a balance sheet.
Okay.
You have a balance sheet for the S-Corp.
That's the major difference.
Okay.
But you still can, you know, take the same deductions.
Should someone switch over to an S-Corp even if they're not a W-2 employee?
Let's say they start their entrepreneur venture and they quit their job and they say, you know what?
I don't even want to work a W-2 job anymore.
I'm going all in on this.
So what I would say is, yes, they can.
But I would say when given the opportunity, if you have an opportunity with whatever your employment relationship is with someone, and I'd say this to everybody, always side to be treated as an independent contractor.
If you can negotiate where they can pay you, As a 1099 independent contractor, then do it.
And here's why.
Because by not doing it, you're getting a W-2 wage and you have very limited access to get your income down.
But when you become an LLC and you're treated as an independent contractor, you basically open up your whole business to the whole tax code to take advantage to get your income as low down to near zero as possible.
You can't do that with a W-2 wage.
Okay.
So if you have the opportunity, if you have a gig and you're like, oh, the other guy said he'll pay me a W-2, put me on the books and pay me as an employee.
And I always ask him, I'll say, is there an opportunity for them to pay you as an independent contractor?
And they're like, yeah, I could talk to them.
Maybe.
I'm like, well, then do it.
Then do it.
Okay.
Then we have the whole tax book where we could just write everything off that they can't as an employee.
Right.
Gotcha.
And you know what?
Now that I think about it, when I was an agent, right?
And I had my W2 thing.
So they assign you a six-hour.
I didn't like that gun.
I was like, this gun sucks.
So I went ahead and bought my own Glocks.
But I couldn't write those off.
And I think years ago you could have been able to do it.
But by the time I bought those Glocks and switched over, you couldn't.
And that was because I was a W2 employee.
These are very limited.
I mean, the only thing you do is if you have a 401k with matching and stuff like that, You know, that's a different story.
But if you have an opportunity, if they don't have any of those benefits, you know, like that, then just try to become an independent contractor.
And most employers, excuse me, would opt for that, because that's less liability on them.
That's less hassle.
It's just so easy.
Like, oh, I got this guy, you know, just give him a straight check, give him a 1099 at the end of the year, and...
Wash your hands of it.
It's a lot, you know.
And they don't have to pay you benefits or anything, so it's better on their end, too.
So for the guys, so...
So should they always just switch over to an S-Corp, it sounds like to me?
Always.
Okay, so even if you're a W-2 employee, well, you definitely want to do it if you're a W-2 employee, but if you're just an entrepreneur, serial entrepreneur, and don't have a W-2 job, you should always, you could start as an LLC, but always at some point, if it's a business that's generating money, unless it's real estate, that's the only exception to this rule.
Only exception.
Absolutely.
Almost every scenario That's fucking sauce right there Yeah, that's great That's really life changing information And I'll tell you guys this from experience I made that mistake where I had done it I was an LLC And I was an S Corp And I was wondering why was I paying so much in taxes And I'll never forget that first year I went to H&R Block I think I made like $30,000 to $40,000 extra For the first year with my fitness business In 2019 because I had started mid-year
And I paid a bunch of taxes and I was like, what the hell?
And then it was because I was set up as an LLC and I had never switched over to an S-Corp.
Right.
Let me ask you guys a question because I don't even know because I look at it differently.
What's your view of H&R Black?
Like before you knew me...
Going there, as far as them being a professional tax company to prepare your tax return, how did you feel about them?
I think if you're a guy and you have a regular job and you just don't want to deal with it, they're good to go to.
But if you're an entrepreneur, you 100% need a legit accountant that deals with entrepreneurs.
I agree with you.
Over the past years, we look at the H&R blocks and checks and hewits to see what they're charging and their rates to see how competitive we are.
Everybody does in our area.
Yeah.
So, you know, it's pretty much most jurisdiction, most areas are going to have pretty much the same level.
But I noticed that H&R Block in our area, for instance, we weren't really saving any money at all.
Yeah.
And the thing with the H&R Block is, like, you have a person, potentially, that's only gone through a 13-week tax course, and they're preparing your return.
Yeah.
So they have very little experience, and you don't know it because they're just following whatever they, you know, like, there's...
Where I would never have someone, after 13 weeks in my firm, preparing returns for anybody.
I will have them preparing them, but I'll look at them.
Do we have a level of review?
Like, okay, you know, you prepare it, you're going to give it to so-and-so, and then I'm going to look at it.
So we have levels of review.
They don't do that at HR Block.
Because they're trying to get volume.
Correct.
And a lot of these people, what they do is they take that course and then they'll spend a season there in the H&R Block and then they try to leave to go hang their own shingle or do their own side tax prep stuff.
So then the next year you go back and you're getting somebody totally different.
Well, I mean, okay, you know what?
Let's just use literal, real-world things here.
So when I was an agent, right, that first year that I had done a tax return, I made somewhere between...
Like 120 to 150 gross, right?
Because I had my fitness business as well.
I made 120K as an agent.
I think I made about like 30 to 40K with my fitness business.
And this is 2019, right guys?
Because I started the business June of 2019.
And then I was also working as an agent making about 120K per year.
So we're talking about 150K gross.
I paid that year, I think, like $36,000 in taxes.
$36,000 to $40,000 in taxes.
And I think I showed you, hey, this is my 2019 tax returns, right?
Because the first year I worked with you was 2020.
I paid, we paid just that same amount of taxes this year, making 10x.
I'll do a comparison.
I'll do a side-by-side just as a final check, and then I'll point that out.
Like, wow, look at...
Guys, I made pretty much, last year, made over an M, right?
And I paid...
About $36,000 to $40,000 in taxes.
So I pretty much paid the same amount of taxes as I did when I was an agent with a W-2 job and just starting my business making about $30,000, right?
$150,000 gross as I did making an M. And if that doesn't show you that fucking a guy like Steve knows what he's doing, right?
Obviously all legal because I'm using real estate, I'm an entrepreneur, etc.
I get heavy tax...
I don't know what does.
I think H&R Block is great for a guy that just doesn't want to deal with it and is a regular W-2 employee and it's easy.
But once you start getting into real estate, you're a business owner, etc., things get more complex.
H&R Block isn't going to do cost segregation for you.
They're not going to do depreciation.
They're not going to be able to help you with writing off expenses for your business.
It's not like you go to H&R Block.
Towards the end of the year, my bigger clients, I'll send out notices We'll sit down right before the year ends to see where they're at to do some tax planning and then to see if they need to buy more equipment, pull back, see where they're at, make estimates, things like that.
They don't do any type of tax planning that's very important that comes in towards the end of the year.
Me and you've been on the phone before planning like, hey, you should probably spend...
You know, some money before the end of the year, etc.
Any equipment that you want to buy, go pick it up now.
I remember when we were buying the cars, pick it up now before the end of the year.
Like, all this stuff is imperative because it will set you up, right, to pay a smaller tax bill in the future, guys.
And again, this is all legal.
I told y'all before, when you're an entrepreneur or if you're a real estate investor, what ends up happening is you are the cornerstone of the United States economy.
Small businesses, real estate, small business, Real estate, bam!
You hit this corner right here, and you're able to create jobs, create housing for people, and you get huge tax breaks.
And that's why I was able to pay less taxes now than I did when I was an agent as a W-2 employee.
I think the allure is for H&R Block is that on some level, it's streamlined, and it seems to be an easy option because you just go there, get your documents, information, and they do it for you.
But ease of access leaves you open to missing out a lot.
Right, right.
Yeah, they do tremendous marketing, too, as well.
So they're out there.
They got numbers.
Yeah.
You know, I think you're talking about real estate, you know, the most millionaires are in- Yeah, 90% plus.
Should we talk about, because they've asked me this question a bit, you want to talk about our strategy that we're doing right now with the real estate?
Sure, yeah.
Fuck it, we'll do it.
Okay, we're going to give you all some sauce, okay?
We're going to go ahead and kill the Twitch, Twitter, Facebook, kill everything except for Rumble and YouTube.
I've never revealed this, but I'm going to tell you exactly what I'm doing with Steve right now as my tax strategy for real estate for all you guys out there that want to invest in real estate, et cetera, and set yourself up for success.
Yeah, Maren's a great guy, man.
Awesome guy.
I'm giving you...
Shout out to Maren.
Yeah.
And like the video.
Yeah, and like the video, by the way, guys, too.
So...
This is what we're basically doing, guys.
Once I bought my 13th or 14th property, I pretty much got on the phone with Steve and Roger.
As you guys know, Roger is my real estate agent.
Steve is my accountant.
And we started strategizing, like, okay, we need to put this stuff in a way where I'm not going to...
So I can mitigate risk.
God forbid a tenant tries to sue me or whatever it may be.
So we started putting all the businesses into LLCs, which Steve was describing to you guys earlier.
But...
And each house, right, it's very simple.
Let's say you own 123 Main Street, make an LLC, 123 Main Street, LLC, bam.
And then just go by the address name for each house that you own, right?
And then each of those houses operates kind of like its own entity where that money's coming in.
And Steve described it earlier why it's appropriate for an LLC because it's considered passive income, you said, from a tax standpoint.
So you don't necessarily have to escorp it.
Then I took the next step, guys, and this is where the game changer is.
I went ahead and made an overarching LLC out of Delaware.
And that Delaware LLC holds all the other LLCs that I own.
So that main LLC is a real estate LLC, and that holds all the real estate property underneath it.
So it's kind of like an umbrella corp.
That holds all the others.
And I guess we could talk a little bit about the strategy there, why that's a...
So, I mean, that's important because you're separating all your assets for liability purposes.
Now, necessarily, that doesn't provide any real tax savings in it because you're already structured properly.
But another opportunity, too, is that I know you spoke to your attorney and that was a fantastic strategy.
Another one that you could do, too, is a revocable trust as well, too.
To encapsulate that.
So that's probably the next step because now you have your operation business and you have all your real estate.
You're going to have some other assets that you're going to be holding in there.
So then that's the next level that we'll talk about is to get an attorney to do the trust.
So let's say something should happen to you and then you can avoid probate and things of that nature.
And Delaware, I think the reason, because my lawyer was suggesting Delaware, I think the reason why is because you guys are probably wondering why Delaware.
Because Delaware...
It has a very good setup process and everything is private.
It's not like Florida where everything is out there.
That's the thing with the trust too.
Yeah.
So you don't know.
You can't go on public records and find out.
Yeah.
Like Florida.
Florida is easy to find.
It's too easy.
It's too public.
Everything's out there.
Yeah, definitely.
That's one of the major things that benefits.
Shuttle to trust, man.
Yeah.
And another reason, too, guys, why I made that LLC out of Delaware was, number one, for the privacy to hold all those LLCs.
And then the other reason, too, guys, is I was able to open up a business credit card, right, where I charge all my real estate expenses on.
Yeah.
And that real estate card, right, and just so you guys, it's Amex Gold that I use.
Yeah.
Because I have an Amex Platinum that I use for Fresh and Fit and then I have an Amex Gold that I use for the real estate stuff.
Everything for my real estate expenses gets charged on that gold and then at the end of the year, I just give Steve the credit card statement, the yearly statement that shows all the expenses for the entire year and I give him the Fresh and Fit one that shows all the expenses for the entire year and is able to go ahead and do what he needs to do from the tax standpoint.
Because all the expenses are there.
That's why I tell y'all, credit card is so important.
You get free points, you're able to track everything, and you increase your credit score.
There's no reason to use your own money, guys, when you have a business.
So it allows me to go ahead and absorb those fees and get a benefit.
And he avoids all the paperwork, receipts you have to keep for every transaction.
Just give him his one list of charges from his credit card, he's good to go.
You know, for you guys out there, too, also, to help out your CPA, so when you develop a relationship, you've got a business, whether it's a rental property, you're going to have, you know, for each one of those that we talked about when we were talking about with Roger, each one of those LLCs for each property has to have their own separate bank account.
So when you do an LLC, okay, so the next step is, like, you get online, you go to your department of state, get your LLC, next thing you do when they get to approve is get an EIN number, and this is what I'm going to, this is, I'm going to have a book And then we'll talk about that at the end.
I'm going to give it out for free for the viewers here only.
Nice.
Only for the Fresh and Fit.
So if you go onto my Instagram and DM me and just DM me Fresh and Fit, I'll give you both.
There's two books, both copies.
One is going to be for W-2 wage earners.
It's going to be like things that you could do to get your tax bill down.
And also if you want to start your own business.
And then I'll walk you through some of the forms that you need to go through in specific detail and how to fill those out.
That's free.
And it's free.
Yeah, and the other one is for real estate people starting out, how to go through that process.
I talk about the cost segregation process.
I have links in there and resources in there.
That's about a 50-page book.
W. Steve in the chat.
W. Steve in the chat.
And it's right there on the screen at the bottom, guys.
I'm going to give that out to you guys.
Yeah, it took me a while.
You know, and...
And I got a little, I had, you know, obviously a major life-changing event happened to me last year.
And that's kind of the purpose why I'm doing this.
The intention of this channel that I was doing, I was starting this with my son around this time last year.
And he was supposed to help me with this.
We were supposed to launch this.
And, you know, he unfortunately passed away at the age of 22.
And in honor of him, And keeping his memory alive, his legacy alive.
That's why I'm doing this.
So I'm just going to give the full alpha out.
I've made my money.
I'm running a successful business.
This is something I want to do because it's important because he was struggling as a young man And he was obviously a fan of you guys.
And a lot of the issues that you guys are dealing with, I understand.
Because that was my son.
And you guys see that every day.
So that's why I'm going to...
That's the whole purpose and drive of this.
That's what's going to drive me and motivate me to do this in honor.
And unfortunately, we had a little setback with this for obvious reasons.
But now, I'm here.
And I just want to put that out there.
So there's going to be a lot of content out there.
If you follow my channel, I'm going to get the YouTube channel...
Off the ground, too, as well.
And I'm going to be talking about these specific issues like we talked about.
I have so many clients that I could tap into that could be guests on the show that you would never hear of.
They're not flexing out there with their Lambo.
These are multi-millionaires.
Hey!
I was going to say, Steve!
Well, you're young.
That's good.
Billionaires, too.
You've got billionaire clients.
I got a clip on my...
My Instagram, you know, it's a young lady.
She's got a really great channel, too.
She just talks like sometimes the best person to go to is a person that you don't know, you don't talk to.
And they're around.
And they're willing to talk to you.
And they're willing to sit down.
So I had clients of mine that wanted to start an alcohol mezcal.
And I think I gave you guys a bottle like last year or so.
And they wanted to start a mezcal company.
So I put them together with...
The inventor of Grey Goose Vodka, who's my client.
You would never know him.
We call him Vodka Bill.
Vodka Bill.
He's in the 70s.
He sold that company for $2.2 billion to Bacardi back in 2012.
I put him in touch.
I put the two brothers in touch with those guys, and he mentored those guys.
And today, those guys are in...
They've got with Buffalo Wild Wings.
They're in Total Wine.
They're in...
All major hotels.
And if it were not for them, consulting with this guy.
And this guy just sat with them.
And he didn't charge them for this.
He just sat with them.
And he mentored them.
And he mentored them.
Gave them links.
And even put them together with people that he knew in the industry.
So that's kind of what I'm going to do.
I've got an electrician that's got a multi-million dollar business.
He's an electrician.
Didn't go to college.
Got some great contracts.
I got another guy that's making over a million, and he's a painter.
Never went to college.
Didn't go to trade school.
So these stories are out there, and these are people that, you know, he likes cars, by the way.
He's got a Ferrari.
He's got a Ferrari, I think a Bentley.
Okay.
Yeah, you guys might have to talk.
But, yeah, so that's the whole purpose of this channel.
Go on there, DM me, Fresh and Fit, and you're going to get those two books.
I'm going to email you personally.
Completely free.
And we can see right now his phone's blowing up from DMs.
Oh, yeah, yeah, yeah.
The other message is right now.
You know, and the story is inspiring.
Yeah.
And I hope, one, you can tell the whole extent of the story because this is, once again, I don't know how you do this, but you're very inspirational to me, at least, and Myron as well.
No, of course.
What happened?
You know, to lose your son, I mean, and still say, you know what, I'm going to do this because this is his dream.
Because make no bones about it, guys.
Like, Steve doesn't need to do this whatsoever.
He's already been established.
He owns his own accounting firm.
He does very well financially.
Doesn't need to do this.
But he's doing it because it's like, hey, me and my son started this.
I'm going to finish it.
Yes, it's my way of giving back and honoring his memory.
And, you know, like I said, I'm going to walk people through...
You know, step-by-step the process of I'll walk you through on the IRS website what forms to print down, how to fill them out.
Things like if you came to my office and said when you had a personal consult, that's the level that you're going to get for free.
That's the whole purpose.
And I figured out, like, let the AdSense on revenue, let them pay for your fees and get the free knowledge out there.
You know, and there's a reason why you guys are tuning into this because you guys are the guys that are going to be top the 1%.
Yeah, you guys are actually watching the real content versus like just watching us argue with chicks.
This is the stuff that's gonna change your life.
Is there anyone out there on YouTube With this much value?
No.
Bro, you're not going to explain S Corp and LLC because people tell you all the time, oh yeah, I do an S Corp, but they don't tell you why.
The details.
He's telling you specifically why.
Literally, if you go ahead and just do an LLC versus switching it over to an S Corp, it goes into a pile that's more audited by the IRS and it raises the flags and it causes you problems.
And like you said, from the very beginning, if you start right, you end right.
If you start wrong, you end wrong.
Yeah.
And it can cause you dearly.
Cool.
I can hit some of these chats, yeah.
Because I know some of you guys probably have some really good questions.
Hey man, put your phone on mute, man.
Yeah, guys, and the book is completely free, man.
Various layers.
Have a great day, gentlemen.
I appreciate you guys and all you do.
CEO Network and Big Bossing.
Shout out to Cody!
Guys, get your questions in now, man.
Juvie goes, I'm 18, just graduated with two jobs and a 694 credit score and just financed a car to get credit history and have a credit card that I use instead of cash to make it 50k plus a year.
Any advice?
You're doing good?
Just make more money?
And pay off...
I mean, I don't know about buying a car right now, but...
Okay, so the finance car is not the best thing, but if you can pay it off and raise the amount of time, let's say a year or a year and a half, you could pay it off, then it's good.
But if it's too long...
Just make it 50k a year.
Yeah.
If it's too long, then it's bad.
Just focus on making more money, bro.
If you got to go and just get another job, just do that.
But yeah, just pay your bills on time and get that credit score above a 720.
That should be your goal.
When I was younger, what I did was I got a car I could pay off in a year.
I had to cash for it in my hand anyway, so I just paid off over time without my score, and that helped a lot.
So if you can't pay it off, pay it off.
But yeah, man, focus on getting...
I would say for you, just focus on getting your credit score over 70.
Also, to the guys right now, I would hold off, if you can, on getting a car right now because I think the car market right now, you should know.
You'd probably know better.
Car markets are going to get soft over the next six months.
I'm seeing a lot of repos, too.
So I've got an in.
I've got a lot of car dealers that I work with, and I'm...
I got them online, and I always ask them.
I always talk to my real estate agents.
I always talk to my car dealer guys, because those are the big ticket items.
And once they tell me, as owners and operators of those businesses, if they're having issues, that tells me what's going on in the economy.
And I've always used it as a barometer.
Cars is a big measuring thing.
So he's telling me right now, they're having trouble right now.
I think the new car market's gonna be the new thing, because it's gonna be competitive.
And if you guys can hold off, there are going to be some better deals on there.
We had on the show Lucky Lopez before, and you mentioned all the repo lots are packed to the brim.
And you have to get more space because people can't afford to pay their car.
These floor plans right now, they can't pay the note on that.
They got to get rid of this shit.
So these are like the beginning signs.
Dealership owners telling you this.
Wow.
So he's getting straight from the source, guys.
And then what are the real estate guys telling you?
Real estate, too, as well right now.
I mean, it's...
You know, I just talked to Roger on the way here, and he told me, he gave me a stat, and I wish I would have wrote it down, but he's pretty optimistic on the rental market.
Yeah.
Still good in Miami.
You probably know this, too.
They need like four or five, like they're short There's still a shortage, yeah.
What is it, like four or five million units?
Yeah, we're about short four to five million single-family homes in the United States.
Okay.
So, I mean, I guess that bodes well for the...
The only problem is the rates right now and affordability.
So, I guess some of these people might have bought...
The rates are kind of in the cash flow pretty bad right now.
Kind of the situation where you're probably making a deal...
Maybe they got a 2% or 3%.
Yep.
And then now it's at 8%.
Yep.
So they can't get that higher price.
I was easily getting like 10% cash on cash returns with deals that I was doing in Miami.
Now I've got to settle.
If I'm going to do a deal in Miami, it's going to have to be 7% to 8%, which is a lot lower than I normally like to do.
But, you know, the Miami market's good.
So it's like I would make that concession because the appreciation is strong.
The rental market is strong here.
People are moving here.
So the growth is on the horizon.
But, yeah, any other market, I wouldn't take an 8% cash on cash return.
Yeah, absolutely.
But in Miami, I could.
But yeah, the interest rates have definitely hurt it because interest rates keep going up.
They're trying to stave off the inflation.
Same thing with the cars.
Now, a lot of these people, they got 9%, 10%, 11% low rates on their cars.
They're paying for not so...
Because they bought these cars where there was a shortage.
And now, you know, they're having a tough time making the payments on them.
So right now is not the best time to get a car.
I would wait to see because there's going to be some good deals, I think, towards the later part of this year and early next year.
Okay.
Yeah.
Unless you're going to get a fantastic deal, guys.
They're struggling to sell cars nowadays.
Especially like those, because it was a heightened market and then it's dropping because they can't sell cars.
So they have to at some point, you know, give you a deal on it.
Yeah.
Yeah.
So, you know, they're lost your gain.
So timing's everything.
Yep.
All right.
We got here, Ham Holland goes, if you guys had an insurance company, what would be the niche?
Auto, life, etc.
If you had an insurance company.
I'm not going to lie, bro.
What would be the auto?
For me.
What do you think, Steve?
I would say auto, yeah.
Auto?
That's a finesse, bro.
They're paying them off accident.
Although they're charging a lot of high rates here in Florida because of the last, you know, EN and stuff.
Yeah, yeah.
Troy, WFedReactStream last night.
Couldn't stop talking about it at work today.
Thank you so much, Troy.
Appreciate that, man.
I'm glad y'all enjoyed that Sound of Freedom breakdown.
That was fucking good.
Yuri, man, good things...
Yeah, they rescued kids from Haiti and everything, man.
You guys, go watch that episode, man.
Good things come to those who wait, but the best things come to those who take action and me.
Shout out to you, Yuri.
That's a good quote, man.
Mr.
Al goes, Hey, Myron, you said you will try to get Dr.
Stephen Greer on.
How's that going?
It'd be nice to have him on the show.
Working on it?
For some of you guys that are wondering, you're probably wondering who is that.
That's the leading guy when it comes to UFOs.
Definitely going to try to bring him on.
And then we got Tony goes, what does Steve say is a better route for trading profits?
LLC or S Corp about to open a business bank account to deposit profits and pay myself bi-weekly.
Okay, trading profits.
So if you're an LSE and you become an S-Corp, you cannot pay yourself a salary.
That's another little caveat.
So you have to be an S-Corp.
Okay.
Be an S-Corp, yeah.
Tony S-Corp, my friend.
Bam.
That's a safe bet.
Yeah.
So even as a trader, because people might do that where they trade commodity stocks, whatever, incorporate themselves as an S-Corp, I guess, huh?
I would do that, yeah.
And that's another thing, because I've seen day traders do that schedule, and you do so much trading that your top line is like, it could be like a couple of million dollars, because it's in and out.
You're trying to do these short trades during a short period of time.
So these 1099s come out, when you look at the sales and the Purchases, they're huge numbers.
You don't want to put that on your 1040.
It's just a big red flag.
It's problems.
Fair enough.
So if you're doing the trading on the side and you've got a regular job especially, definitely switch over to that.
Marius Pagel goes, or Pagel, starting an online mindset coaching business soon.
Would an LLC be beneficial right off the bat?
Can I use traveling or home rental expenses as write-offs?
Florida's my home state.
So that's a great thing too.
So that's another thing I'm going to do for you.
First, what do you guys do?
Yeah, so definitely LLC. But you want to be an S-Corp.
Yeah.
You want to be an S-Corp.
Because if it's not a rental property, become an LLC, but make it an S-Corp.
Yeah.
If it's a rental property, just stay an LLC. Is there a way for them to make it an S-Corp off the rip, or do they have to open it up as an LLC just for ease?
Yeah, you could do it.
So the only thing is just like, okay, I'm going to open up my ABC Inc.
You just don't use LLC. Yeah, you could just do a profit.
But why?
Just get the best of both words.
You're going to get the limited liability plus the S-Corp status.
So it's like a hybrid.
It's not a full S-Corp.
It's a full S-Corp.
It's treated for tax purposes.
So why not get the best?
The lawyers came up with the LLC. So use what they came up with.
And the IRS has given you the option to treat it as an S-Corp.
So they'll get both.
Okay.
So start off as an LLC so that you can go ahead and get both sides.
But if you just open it as an S-Corp, you're not able to get the benefits of an LLC. Correct.
Because now you're just treated as a straight corporation, S-Corp.
Got it.
So you don't have limited liability.
Oh, that's smart.
I mean, there is some corporate protection there, you know, that's more from a legal standpoint, but I just, I like the LLC better.
So start with LLC, then make an S-Corp.
Yeah, a few months in.
But do it within a year, right?
There's also been things where I've had, like, if it's a limited liability where your account can't get, like, your bank account...
I think there's something that has to do with your bank account.
Can't get garnished if you're set up as a limited liability, where if it's set up as just a corporation, they can go in there and get it, though.
I think that's one of the things, too, that I learned along the way.
I came across that a couple of times in my experience.
What about Teltsport?
Well, Chad's probably going to get it anyway.
Damn.
You can't beat that one.
So yeah, LLC beneficial off the bat, then switch over, my friend.
And then he said, can I use traveling or home rental expenses?
Go back to that last one.
He's asking, can I use traveling or home rental expenses as write-offs?
Yes.
Yeah.
Yeah.
So that's the thing.
So I'm going to be doing like a special thing for like content creators where they're maybe, you know, running it out of their house.
Yeah.
So that's going to be a special segment that I'm going to focus on too.
And they could write off up to a certain percentage, right?
Yeah.
You take a percentage of, you know, the square footage and then you could write off a percentage of your utilities, your interest, your, you know, your insurance, so on and so forth.
Whatever you're paying for that house.
Yeah.
Got you.
Cool.
Double Ace?
Goes, LLC, that's 50-50 partnership.
My brother and I, our business, grosses about $250,000 a year.
We file taxes as S-Corp and our company pays us W-2s as employees.
We don't have any other employees besides us two.
Is this a solid structure for better tax purposes?
Yeah, it's perfect.
Yeah.
That's perfect.
50-50.
All right.
Sweet.
Good stuff, Albo.
You're doing it right.
The one, Curiso.
Five bucks.
Appreciate that.
Remember, Lord Titus, I have a videography business.
Been filing as a sole proprietorship for the past few years.
Would an LLC be beneficial?
Yes.
Get rid of that ASAP. That's an L. And become an S-Corp.
Yeah.
LLC. LLC. What is a sole proprietor?
That's another.
Sole proprietor is Schedule C. Yeah.
That's Schedule C. That's what happens.
You become a sole proprietor.
When you don't elect to be treated as a, As an LLC, or if you just do a business and you don't form a corporation, then you just default to a sole proprietor.
Isn't that taxed more?
Yeah, so now you're subject to the 15.3%.
I just knew one thing, don't be a sole proprietor.
Okay, so yeah, bro, you need to switch.
So what should he do in his case?
Should he go make an LLC immediately?
Yeah, go make an LLC, get a tax ID number, and then fill out these two.
I don't know.
Just write this down.
You got to fill out.
And you can get this on my book, too, because I talk about the two forms, and I give the links in there.
Write this down!
So if you go in there and you DM me and you DM me Fresh and Fit in that book, I'm gonna show you, walk you through the steps, where to start, what to do next, how to fill out that form, and then I'm gonna be uploading some videos on there because you're gonna have questions on how do I fill out this 8832 form?
What box do I need?
That's the form for an LLC? Yeah.
Okay.
So I'm gonna have those two forms.
They have some tricky questions on there, and you have to fill them out in a specific way to make sure you don't F them up.
So I'm going to give the two videos on there that's going to be coming in the next couple weeks or whatever, and then that'll show you exactly what boxes to check, why to check those boxes.
The stuff that we do, the stuff that I do every day, I'm just going to give it away for free.
So do they have to, let's say he's in the state of Florida for simple purposes.
He needs to make the LLC in Florida.
Once he gets that EIN number, right, for making the LLC in Florida, then he goes and does this tax, sorry, this IRS form, 8832.
8832 and then 2553.
Boom.
Write that down, guys.
So if you want to start your LLC, Go to your state, state department website, whatever it may be, which is for businesses, right?
In Florida, I think it's SunBiz, right?
In other states, it's called the Department of State for Businesses, whatever.
Every state has its own thing, but either way, you go ahead and create the LLC in your state, wherever you live.
Once it's incorporated, you get an EIN number from the IRS. Then once you have that EIN number, which is basically, think of it as a social security number for your business.
Correct, yeah.
You take that EIN number, and you're gonna go ahead and put it in your IRS form, 8832, and then the other one is 11...
2553.
112553?
No, 2553.
2553, yeah.
And then those two forms are gonna help them set up as a...
That'll turn them into...
That'll turn the LLC into an S-Corp.
Okay.
And then, boom, you're done.
Okay.
Yeah, then you just go walk down to the bank...
In his case, does he need to do anything else since he's not even an LLC? He's gotta create that LLC. He's gotta start right from the scratch, yeah.
Yeah, okay.
Yeah.
I just had an idea, bro.
You should start a Patreon and do videos about all this stuff behind the scenes.
We talked to me about it because I bring the knowledge and the experience to her.
I don't bring what you guys have.
You guys are a new generation where that's where I was bringing my son in because he knows how to do all this stuff.
I grew up...
I didn't have a cell phone.
We didn't have the internet.
Different times.
We'll do a value exchange.
Don't speak to my network, and I'll have you tips on Patreon.
There you go.
Cesar Aguilar.
Hey, Myron and Steve.
Would it be smart to start a car wrapping side hustle as an LLC, stack up a good amount of capital for rental property, then later into more real estate?
That's a great plan.
It's a great plan, but...
Is this the same guy that wanted the car wrapping?
Yeah, I think so.
I think so.
But again, you got to make sure it makes sense because car wrapping is a, want to say, one of those niches where, like, guys have to be into cars.
You need to know your marketplace at the very beginning.
For example, who's going to be your customers?
Can you get customers at all?
So before you run into that business, make sure your customers lined up before you even jump into it.
Yeah.
And guys, keep in mind, I didn't start my real estate LLC until I had 10 plus properties.
So it's not like you have to go ahead and incorporate all your LLCs, sorry, all your real estate properties into LLCs immediately.
I bought all the properties under my personal name, and then I switched them to LLCs after.
It's easier.
It's easier to buy under your...
Yeah, a little tip for y'all real fast.
It's way easier to buy a property under your personal name and then switch it to an LLC after.
Because if you try to buy under your LLC name, it's going to be...
You're going to get shittier rates.
You're not going to get as good of deals with lenders, and it's just a pain.
What's the form again?
Quickly indeed.
Oh, yeah.
Claim B. Yeah, we talked about that.
You know what?
That's a great one.
Let's talk about this real fast for the people.
So they go ahead, they buy the real estate property under their personal name, and then they want to switch it over to an LLC. What do they need to do?
So the first thing, what I used to do when I did it was I'd buy in Steve Colon and a signee.
Okay.
And a signee.
So that left me.
Now I think in the state of Florida, they have a box where you could do and a signee.
I think I talked to Rogers about that when you guys were doing that deal.
So then you go and do the deal because everything's going to be done with your personal credit.
It's going to be your social security number.
And the bank wants, you know, you don't want to complicate the whole deal.
Who's this LSE? Yeah.
That's why I didn't even bother anymore.
I remember having those issues.
And, you know, sometimes you get some people that are just, you know, they're in the...
The lending department.
Yeah, they get finicky, man.
Underwriters start freaking out.
It goes to underwriting, they ask stupid questions, and it's a pain in the ass.
So keep it simple.
And then when you go to the attorney or the title company to do your closing, they say, hey, by the way, an assignee put it in whatever this LLC is, and then they'll make it happen with the paperwork.
But yeah, so that's...
And you transition it over.
Yeah.
But you know, I have a lot of people too, and they were talking about like, you know, don't try to create this whole structure that Like, don't put the cart before the horse.
Yeah.
Like, what we did with you, you're talking about, like, now you're getting to a level where you're accumulating certain things.
Now, the next thing for you to think about is a trust.
Yeah.
A revocable living trust.
Yeah.
Right?
So, you build it organically.
So, as you go and you need certain things, you know, if you have a business, don't try to, like, strike.
You know, I had a couple of clients come in and they're like, oh, we went to this tech seminar and this and that.
And they had built a trust and they built, like, this holding company.
They built these multiple.
I'm like...
You don't even have a business in property yet.
They had the whole structure in place.
They spent thousands of dollars doing it.
And they got mad at me.
I'm like, you don't have to do all this.
You don't teach this stuff?
I'm like, no.
This stuff you do organically as you acquire a new business or a new property.
There's levels to it.
Just do it organically.
They're pretty forgiving, I've noticed, for entrepreneurs, for you to incorporate the stuff after the fact.
I mean, hell, I didn't tell Post Properties before I even started.
I mean, I just started doing the LLC-ing and the Shell Company, all that stuff.
I started doing that this year, guys.
You know what I mean?
And I've been acquiring property for the past year and a half, two years.
So you can take your time with it.
Just make sure you get it set up right.
As soon as you can.
There was one guy, and I'm not going to put a name out there, because I've been doing some research on this stuff.
There was one guy, he's funny, and he had this reel out there talking about getting a trust and putting life insurance in it, and getting life insurance.
He had this whole scheme.
I don't know what you mean, but I won't say his name.
First off, You don't like...
Nobody's like...
He's got this whole...
It's just a lot of these streamers out there.
You know what's scary?
There's no alternative.
It's either him or the other guy.
Yeah, it's just unreasonable.
They need you, bro.
They need you, man.
This is unreasonable.
Alright, so we got here.
Who's up next?
As independent contractor and roofing, should I open LLC as a consultant?
How should I structure a business doing roofing?
So again, LLC, convert to an S Corp.
And yeah, independent contractor, roofing.
Your workers' comp rates are going to be high.
I don't know what state you're in, but I know in the state of Florida, you can do a workers' comp exemption if it's just you and two other people that have 10% ownership.
And you can save on the workers' comp rate because those rates are high.
They're like 30-something for every dollar that you...
So if you're a small roofing company, it's just you, maybe a couple of guys.
You can structure yourself where you don't have to pay that extra rate.
Is it because of the liability of them hurting themselves?
Yeah, they fall off.
It's huge.
Workers' comp.
Those guys are very dangerous.
Damn.
Okay.
Menline goes, can you pay for business services overseas via crypto and claim it as a loss?
Got workers in Chile not a fan of $50 wire fee.
Shout out FNF. No, that's, yeah.
Whatever the jurisdiction is in Chile, you're going to have to be under their jurisdiction for tax purposes.
Gotcha.
Crypto, man.
Elman Howard, how much annual earnings do you need to make before hiring a financial consultant or accountant?
Good question.
So, I mean, I say if you have a side gig and you're netting like $40,000 to $50,000 profit, you should already have started to think about getting a CPA firm to help you out.
Okay.
Mean Green 816.
Yep, goes, how do you find a good CPA in your city and how much should I be paying for them?
Good question.
Very good one.
So depending on the industry you're in, I would ask around other people, like, you know, whatever it is that you're doing, there's got to be other people that you know in that circle and ask them who they use.
And typically, you know, they say, are you happy with that guy?
So usually, it's a referral.
Yeah.
So if someone is doing well in life, that's obviously well spoken for, has a good business.
I'm just curious, brother, who's your CPA? And you ask them, and then they can help you out normally.
Yeah, because if you have a specialized industry, I don't know what kind of work that you're doing, but typically, if it's a specialized industry, you want to talk to people in that industry and say, hey, who do you use?
And typically, they'll refer you to somebody if they're happy with them.
Real quick, guys, do me a favor.
We got 3,000 of y'all watching over on YouTube and then another 3,000 or so on Rumble.
Can you guys do me a favor and open up a tab on YouTube and come over and like the video on YouTube?
Because as you guys know, we're in YouTube jail for about two weeks, so it's going to suppress us in the algo a bit since we're breaking out now.
So it would really help with the algo if you guys went ahead and liked the video.
Comment below for the algorithm or something like that.
It helps us a lot.
But yeah, guys, just like the video.
Let's get 100% engagement because we're giving y'all a lot of sauce right now.
This is life-changing information.
If you want to help us, like the video and put hashtag Fresh and Fit under the comments.
Yeah, on YouTube so that we can get back up in the algo.
And then also, open up a tab on YouTube and on Rumble.
Watch us on both, man.
The viewership is literally split right down the middle.
Half of y'all are on Rumble, half of y'all are on YouTube.
Just like it on YouTube for the algo.
If you don't mind, from the free sauce, like the video and put hashtag in the comments Fresh and Fit.
Yeah, man.
Please.
We really appreciate that, guys.
Especially since we're just coming out of YouTube, Joe, and giving you all this sauce, man.
Who else is giving you all this kind of information?
I mean, the S-Corp and LLC, the bread chain alone, is like, literally, that's going to save you thousands upon thousands of dollars, guys.
And guess what?
In school, you don't learn this shit.
They don't teach you that.
At all.
I didn't even know it.
No.
Until Steve saved me.
If you do find out, it might be too late.
Yeah.
So.
H&R Block ain't going to do this for you.
I'll tell you that.
They're definitely not.
They'll take your money, though.
I paid less taxes.
I paid more taxes with H&R Block than I did with Steve, making 10x the money with Steve.
I mean, I said hello to Jill.
There was a Snipes.
Crazy.
Okay, we got here.
I'm a single business owner.
I have an ATM business.
Is it appropriate to have an LLC with an ATM since it's passive income?
Good question.
Really good question.
So that's it, yeah.
So it's ATM business.
I can explain, because I have one of these ATMs too.
Basically, it's ATM. You put it at a location, and it makes, it just basically generates passive income for you.
It's kind of like a rental property.
Yeah, really, it is.
So I guess, yeah.
So I guess you don't have, yeah.
It's simpler too.
Yeah, no need for an S-corp on that.
Yeah, it's not subject to self-employment tax, so.
Yeah.
Cool.
And then Crying Frankenstein, like the picture, I think video is what he means, like Crying Frankenstein.
I appreciate that.
And guys, don't worry.
On the ATM thing, I'm going to give you guys an update probably in the next month or two with the ATM together and how my crypto ATM is doing and show you all the numbers.
I love to be transparent with you guys.
Brubri831 goes, I have an appliance repair business looking to expand.
What would you recommend currently as sole proprietor?
Oh, shit.
I'm an appliance repair business.
Yeah, do not be a sole proprietor.
Yeah, LLC, S Corp.
There you go.
That was easy.
Is there ever a situation where it's good to be a sole proprietor?
I can't think of one.
Unless you're just doing some, like, selling little t-shirts or, like, you know...
Some, like, BS job on the side of, like, a real thing?
Stuff that you don't really care about.
Maybe?
Yeah.
Guys, sole proprietorship?
Don't do that, bro.
That's, like, what a woman on the side...
A woman could do, like, she sells cookies on the side of some shit.
You know what I mean?
For you guys that are actually, like, earning real income?
Like, no, man.
Girl Scouts.
Yeah.
This is only good for U.S. law.
Well, yeah.
We're in America, bro.
I mean, Canada, I mean, a lot of first world countries have similar setups, right?
But yeah, in general.
Talk to your local accountant over there.
Yeah.
Dodge Roberts goes, is it worth getting LLC when you day trade stocks and forex to save on taxes?
Day trading, again, I don't like that schedule because you're going to have to put it in your schedule.
There's just high numbers that you're putting in your 1040 that just tracked a lot of attention.
Those are outlier returns.
They have certain And that's why when you have a business, you have to put a code for what type of business that you're in.
Because what the IRS does is they put those in a repository and they take all that data.
And then any one of those expense line items falls outside of the ordinary percentage of what it is for gross income in that particular industry.
That's how they flag returns.
So that's why you want a good CPA that knows certain industries so they know, like, look.
I know this industry.
And they're doing a good job comparing year over year to make sure there's no these crazy swings.
He's saying when you day trade stocks and forex to save on taxes, can you even trade stocks or forex and save on taxes?
Well, if you're having gains, I mean, I would imagine that you want to do it for profit and make money, not to take losses, unless you're harvesting them at the end of the year.
But in which case, you have the wash sales, and that's a whole other...
Is there a way to, like, mitigate tax liability through trading stocks, though?
I didn't think that there was a way to do that.
I mean, I think if you're trading, you're trying to make a profit and make money, so I don't understand the...
How are you going to save taxes, bro?
With Forex and trade?
Maybe there's a way.
Maybe.
What people used to do at the end of the year...
Maybe losses.
Yeah, what people used to do at the end of the year...
You don't have to report losses, though, right?
To get those tax benefits.
Right, but you have to harvest those.
Like, at the end of the year, you harvest them.
But then what happens is if you buy that stock back within 30 days, then you can't take that loss.
So, you know, a lot of times, we'll look at...
I'll have my clients come in, and we'll look at things that we could do.
And one of them is we look at what stocks they have.
And they're dogs.
They've had them a long time, and they're going to lose money on them.
Then I'd say, all right, you need to sell those at the end of the year.
And we're not trying to buy them back or whatever.
Because what people used to do was sell them at the end of the year and then buy them right back in January.
Oh, but you can't do that.
And then they take the loss.
That's called wash sale.
But you can't buy it back within 30 days.
So they used to do that.
The IRS said, no, no, no, we can't do that anymore.
But yes, a lot of times I'll tell them, okay, maybe just get rid of this.
Is it going to come back?
It's a dad.
So it seems to me like to get tax benefits from trading stocks or forks is a very nuanced and case-by-case basis that requires specific tactics and strategies to do that.
The only thing I could think of is if he's got certain things that he doesn't think are going to come back and just wants to get rid of them.
People are just trying to get around buying real estate.
Bro!
Buy real estate, guys.
If you want tax liability protection, man.
But with crypto, you're not subject to the wash sale.
So we talked about it in the tax court with Charlie and Miguel.
We'll tell them harvest losses at the end of the year.
We've got some crypto stuff.
The market's been down.
So, harvest these at the end of the year, and then, you know, so you don't lose on it, buy them right back.
So you could do it like a 1231, take the loss for it on your return, and then buy it back.
I think the IRS is going to close the loop on that eventually.
Yeah, but right now you can take advantage of it.
That's a little advantage, yeah.
Bro, we're giving y'all so much sauce right now, man.
Legally.
Legally, of course.
Yo, man.
But yeah, dude, I mean, so yeah, so S Corp for this guy as well, right?
Yes.
Yeah, S-Corp, bro.
We got here Chayamba Luro.
First Super Chat, what if you're an international Amazon wholesale business owner, LLC in the U.S.? I'm outside of the U.S., though.
And you start with an LLC. Should you move to an S-Corp or don't work in the United States?
Yeah, definitely.
That doesn't matter.
Yeah.
Yeah.
Cool.
Yeah, definitely.
Yeah, you got to switch to an S-Corp.
Because there's a bunch of guys that do that.
A lot of guys, they'll start an online business and they'll move somewhere significantly cheaper to live.
But what is it?
How much is it up to $100,000?
If you make over $105,000 or something like that internationally that you have to pay taxes on?
Well, see, the U.S. is the only country in the world that taxes you on your worldwide income.
Go figure it out.
Of course.
Uncle Sam's got to get his money.
Yeah.
So that's why I was just in Puerto Rico.
As a matter of fact, you guys are famous in Puerto Rico.
I never had this happen, but shout out to Gene Paul at the cigar bar.
So the place I stood at was above, it was Airbnb, but above the cigar bar.
Really nice cigar bar.
And this nice young kid, and he's a huge fan of you guys.
And then all of a sudden he called his brother, his cousin, his best friend.
And the next day I was there, they were all there talking about you guys.
That's dope, man.
And I was like, yeah, I know these guys.
Because the conversation just all of a sudden came up and he started talking about it.
I said, hey, you should follow these guys.
He's like, I know these guys.
Shout out to Gene Paul.
It's either a good response or a bad response.
Even the owner, I think.
A couple of the owners, they know you guys.
So they said, hey, if you guys ever want to come to Puerto Rico, you could do a really nice cigar bar.
Yeah, right in Old San Juan.
It's beautiful.
Right next to the Ford.
I've been to the Ford.
It's nice.
It's a lot of fun.
I don't know if I would live there, though.
There's certain areas, and that's what I'm doing.
I'm setting up a business there.
That's my whole purpose there.
But if I set something up there, I'm going to have to buy a property within two years.
I just want to throw that in there.
It's great, great tax.
There's a lot of crypto.
The whole condado area is all bought up by crypto millionaires.
It's really nice.
It's right on the beach.
The food there, the restaurants are phenomenal.
Isn't that where Logan Paul lives?
Yeah.
I think he has a crib out there.
Yeah, he's in Dorado, which is, that's another really very exclusive area.
Yeah, he needs to help, man.
Huh?
Yo, save, hashtag save Logan.
Yeah, right.
He married a girl that's been passed around Hollywood.
If you know, you know.
Or he's marrying her.
Okay.
Big Bear, man.
Can I do an LLC for my econ business?
I just started this year.
P.S. Chris should just go bald.
That five head isn't doing him justice, WMO. Can I do an LLC for my econ business?
I just started this year.
Any service or goods business that you're doing, I would definitely do LLC and definitely do S Corp.
Only when it's a rental real estate property will I just stick to LLC. Got it.
Gotcha.
Or the ATM thing where it's, I think if it's passive income and you're not actively operating a business or an operational business where you're providing goods and services.
Passive income, does it get taxed the same as earned income?
Ordinary income.
So earned income is income that is subject to self-employment tax because you're actually earning it and working for it.
Yeah.
So then there's ordinary income.
So that would be like business from business profits.
Okay.
And then there's earned income would be like earned wages, you know, working.
So earned income and ordinary income aren't the same.
No.
So earned income, that's why you have the Schedule C where it's like, it's subject to self-employment tax.
And then you break it out.
So then you take the portion of that you're going to pay yourself as earned wages, and that's going to be subject to self-employment tax.
The other one is going to be just ordinary income tax that you would pay for.
For the rest of the profit.
And passive income isn't subject to the same, I guess, tax scrutiny?
Maybe that's my poor choice of words.
So the thing with passive income is, yes, it's still subject to the same ordinary income tax rate.
The only difference is you're limited on the loss that you could take.
So if it's passive, you could only take up to a $3,000 loss per year.
So in other words, yeah, so if you have gains, So basically, you can't take more than a certain amount.
You're limited on the losses you can take, but it's passive.
Okay.
So, yeah.
All right.
We got here.
Taylor Richard, getting a used car soon, about $9,000.
If I start an S-Corp for my entertainment manager business, which I'll be my first client, but I'm in college to get the actual degree, can I write off the car somehow?
Yeah, so definitely.
You're going to go to your accountant.
You're going to tell him you got the car.
You're going to give him the paperwork for it.
He's going to list it for you.
He's going to ask you, how much do you use it for your business?
Oh, I use the 80%.
He's going to list it for 80%.
You're going to get depreciation, a nice depreciation deduction on it.
I have a lot of my clients.
And this is going to become a good one.
Again, like we're talking about, the market's going to be really good for cars.
So if you have a business and you want to get a nice deduction...
You know, that's definitely a way to do it.
So a lot of times that we have my clients trading out cars and getting new ones towards the end of the year to get a nice big tax break.
And prompting for this question, is it better to lease that car under business or finance under your business for the best tax benefits, you would say?
I mean, it all depends on the rate I would take right now, you know, because the lease is nice because you could take, you know, the lease, the whole lease payment on it.
But the depreciation right now is really good, dude.
Excuse me, with bonus depreciation plus section 179, if it's over 6,000 pounds, you can take the whole price of the car or whatever percentage of it that you're using.
I thought it was 80% now.
Yeah, they drop down for the...
Bigger weight.
That's going to phase out too.
Now it was 100 last year, 80 this year, then it's going to go to 60.
Every year it's going to drop 20%.
So take advantage of it now.
80% is still pretty good.
That's very important.
So if someone buys a car right now, a Range Rover, one of these cars that's over 6,000 pounds for their business, they're able to write off 80% of the car's purchase price.
How much they put down, which is huge.
So if it's worth 200,000, They're able to write off 160K. In the first year.
In the first year.
Yeah.
Wow.
And then the rest of the 20%, then they'll just take that over the next four years.
Okay.
Wow.
It's still a good deduction.
Yeah.
And I think that's where Fresh talked about, because a lot of people ask, oh, yeah, I want to buy a car.
I want to buy a car.
The only way it really makes sense to buy a car and lease it nowadays is if you're a business owner.
Right.
Yeah, pretty much.
Like, if you're going to buy it privately and you got a regular job, you're not really going to get much benefit from it.
So, if you're going to lease a car, guys, at least have a business or something so that you can get some kind of benefit.
It can cost you anyway, so you might as well get benefits off it.
Yeah.
Yo, guys, I'm a new...
Don't do it through fraud, though, guys.
Yo, guys, I am new to Fresh and Fit, and I must say you guys have an amazing team.
Shout out to the mod team and greetings from Netherlands.
Shout out to you, bro.
Shout out to the mods, man.
Assalamualaikum, Habibi!
And then we got here Asked...
Okay.
I'm an LLC filed as S-Corp for taxes.
Would you recommend I set up a private retirement account funded by my LLC to invest in real estate?
So he says, I own LLC filers, and I said, okay, would you recommend?
Yeah, you could do a solo 401k.
A solo 401k.
You could even set it up as a Roth, too.
You don't need the immediate tax deduction for it.
That would be the best way to put your earnings in there.
Roth IRA? Yeah, you can put up to $66,000 in one year.
And if you do it as a Roth, I mean, you could get the tax deduction on it, but then you're going to have to pay the tax when you pull it out.
But I like the 401k because you could take loans against it.
So you need access to that money.
You don't have to wait until you're like, you know, retirement age.
Yeah.
And so then you could take loans against it and then you could pay yourself back the interest as long as you, you know, set up the paperwork right.
But yeah, definitely.
That's the solo 401k.
You should look into that.
Okay, cool.
G goes, should I create a company if I earn money from YouTube?
Yes.
Yes.
Absolutely, bro.
Yeah.
I run a trucking business as a sole proprietor.
They started an LLC trading luxury watches.
Should I switch this to an S-Corp and should I change my sole proprietorship business as well?
Thank you FNF the goats.
Yes.
All of the above.
Yeah.
So for your sole proprietorship, turn that into an LLC, then an S-Corp, and then your trading luxury watches LLC that you have, you need to make that an S-Corp as well.
So you should be running two S-Corps if I'm not mistaken.
Yep.
Two different businesses.
Yeah, bro.
What are you doing, man?
Come on.
Just a question, Myron.
Did these Monday things apply to Aussies?
I might not have been paying attention.
Sorry.
I mean, this is the U.S. tax code, but I think...
The Australian tax code is very similar to the US tax code.
All the first world countries are.
Canada.
Tom Wheelwright, Robert Kiyosaki's accountant, he wrote a book called Tax-Free Wealth.
And in that book, he also put in the beginning that all the first world countries have very similar tax codes.
Yeah, they do.
So, you know, obviously in the United States, we're capitalistic, so we might get better tax benefits, et cetera, to some of y'all in these other countries, but it doesn't change the fact that, you know, you could definitely take advantage and make money in your respective country.
We definitely have the most sophisticated and most complex tax structure.
Yeah.
On purpose.
Just a question, Myron.
Do these money...
Oh, sorry.
Read that one.
We got here.
And guys, from this point forward, are we 20 and up?
Yeah, 20 and up.
Best way to find a mentor for your new business?
So, you know, that's what I was talking about.
Like, I'm going to have guests on my show that are just guys that you don't know who they are.
They're quiet money and they're successful.
And these guys will give free advice to you.
That's their jobs.
It's alpha.
And they will sit with you and talk with you because they want that.
You know, you're basically feeding their ego.
They like that.
They're like, okay, let me help.
You know, they'll help you out.
If you're really serious about it, you just go.
Just walk in and say, hey, listen.
These guys are bored.
They made their money.
They made their success.
They're like, you know what?
What do I do nowadays?
And it's just like, if you are adamant about becoming better, they can see the driving you, they see the ambition.
You know what?
Well, Johnny, I got you, brother.
I'm going to give you my knowledge.
For free!
If a young kid came to me and I said, hey, you know, I want to know what it is that you do and how you do it and, like, how can I be successful doing it?
I'll sit down and give him all my time.
And tell him everything he needs to know for free.
If he's humble and willing to learn and listen, why not?
Take him out to lunch.
Lunch is, you know, spend 20 bucks.
Well, if you tell me that, I'm going to say no.
Yeah, but that's because you're famous, nigga.
No.
He could buy lunch for himself.
Well, you know what I mean.
You offer.
Talk to rich guys that are famous.
He'll probably give you free advice and pay the bill.
Van Chazelle, $10.
Appreciate that.
GhostRaven226, if I start an epoxy and pressure washing business in a small town, what should I know about moving my business to another state with a bigger market, M? So basically, yeah, so get with a CPA because they'll tell you everything you need to know, whether you have to register for sales tax, what type of business license you need.
They know everything when it comes to starting the business and they don't charge a lot of money for it.
It's not like they can do these corporations for you.
Can they keep their business incorporated in their home state when they move?
Yeah, they can, but that's a pain in the ass, though.
If you're going to move the whole thing over, then you've got to go back and file over there.
It's like, no.
I would just keep it all to that one state that you're in.
It's simple.
Ghost Raven, if I start an epoxy...
No, sorry.
Read that one.
These came in after, Mo, or...?
These are early.
Okay, these came in earlier.
Guys, so from this point forward, we're going to only read 20 and up, but I will read the ones that came in before.
Steve, I have a midterm rental arbitrage Airbnb business where I manage real estate, but I don't own it.
LLC or S-Corp?
LLC, that's an S-Corp.
Okay.
Because it's an active business, right?
Yeah.
So that's an example of- That's more of an operation.
Yeah.
Okay.
Smart.
Smart.
So basically, because a lot of people do this, they don't own the property.
They just simply get it leased out through Airbnb and they get a percentage and the owner doesn't do anything.
So the owner is able to keep that as LLC and passive income.
You, on the other hand, since you're actively finding clients to rent the property, et cetera, and you're running it like a actual business, that's not considered passive income.
So you need to escort, but the owner can LLC it.
I think I got to change my dinner plans.
I got my reservation because I don't know what she's cooking over, but it smells delicious.
I mean, smelling it.
Yeah, she's back cooking some.
So what do we got here?
I understand the real estate strategy, but if I'm starting a business in, let's say, Virginia, should I do an S-Corp in Delaware or do I do it in Virginia?
Is there an advantage?
Yeah.
Again, I don't know what the filing requirement is in Delaware.
There's a return you got to file, right?
Yeah, you have to update it every year to keep it up.
Let's see, should I do an S-Corp in Delaware?
Well, I have the LLC out of Delaware.
Remember, this is real estate, guys.
So you have a resident agent that has to put their information in for that?
Yes.
Yes, I did it.
And then you pay a fee for that every year.
Okay.
Yeah.
So, yeah.
But I have it as an LLC, not as an S-Corp because it's real estate.
And it's the parent company.
Yeah.
It's not your lower level.
Okay.
I understand real estate, but if I'm starting a business in, let's say, Virginia, should I do an S-Corp in Delaware or do I do it in Virginia?
I think in your case, it's an active business.
It's an operational business.
I would do it in the state that you're in.
Yeah.
In Virginia.
Yeah.
Do it in Virginia as an LLC, then switch it over to an S-Corp.
But remember, my LLC out of Delaware is staying an LLC because it's a real estate business.
That's why.
DL Saint!
Shout out to DL Saint, man.
I really want to know a podcast.
Shout out to him, man.
This is a message man needed to hear.
Respect to Myron Fresh, Big Mo, and Chris.
Shout out to Brother Steve.
Keep leaning from the front, John.
I appreciate that, St.
Man.
Trying to get people to the sauce.
Guys, go check out his YouTube channel, by the way.
He does a podcast where he helps guys.
He has a lot of wisdom, a lot of knowledge from his years on life.
Military vet, been around the world.
Definitely someone that you want to watch.
D House, 50 bucks.
Need advice, 30 years old, 105K salary.
I'm paying too much of taxes.
I'm already maxing my company for 1K match.
So go...
DM me on there, because I talk about W-2 wage earners just like you, and I give strategies in that one book.
It's called The Lie About Tax.
The first book that I'm going to send to you, go in there.
It's going to have strategies for W-2.
There's like 10 strategies that you can apply immediately.
For W-2 earners to lower their tax liability?
Cool.
Can you give us like two or three of them?
So, I mean, obviously, you're maxing out your 401k, but you also can do a traditional or a Roth IRA. But the Roth's not going to give you immediate tax benefit.
But what's nice about it is you can let your money grow tax-free, and then when you pull it out, you get taxed at the end.
But if you want to save now, you can put up $6,500 into there.
Also, I don't know what type of work that you're doing.
So you can look at different things where you might be able to take some advantage of Some of the employee expenses.
I know in your case where you bought your own Glocks and so forth like that, it wasn't that, but in some industries where you have certain things that you can write off.
Go ahead and go in there.
Those will be the time that are going to apply in 90% of the cases.
Okay.
You know, unfortunately, when you're W-2, it's your very limited.
That's why, like, starting a business is so good.
Yeah, if you have an option to become an independent contractor, always opt for that option.
Because now you've got the whole tax code at your disposal.
Bam.
Nice.
All right.
We got here Eric Campos, 20 bucks.
Appreciate that.
Talk to you.
Thank you, my friend.
Vigoronomy by Rod Eric goes, Fresh Fit Money Clips will help pass out the books.
Thanks, Steve, for supporting the page.
Shout out to you, my friend.
There you go.
What small business or side hustle would you recommend for guys in the military?
Also, what do you guys think about AI OnlyFans business?
Well, number one, with the military, you're a government employee, so you need to go ahead and get outside employment paperwork approved first and foremost before you do anything.
That's number one, so you don't get in trouble, right?
And I'll tell you that as a former government employee.
And then as far as like a side hustle, what's your skill set, bro?
I mean, I'm hoping that since you're in the military, you have an MOS. Hopefully the MOS can help you out in the civilian world and go ahead and have a business tied to your MOS so that you're skilled in.
I mean, what do you think, Steve?
I agree.
Yeah.
I mean, when it comes to the military, I'm going to defer that to you because, you know, as far as working with the government.
But I have no idea.
What is it?
I mean, well, that's never going to get official intelligence.
I'll tell you that right now.
Bro, you try to push that up through your chain of command.
That's never going to get approved.
And then if you lie and you say, oh, no, there's going to be a side also with AI. And then they find out after the fact that it's AI only fans.
You might have Army CID knocking on your door.
You know what I'm saying?
RBCID, open up.
You know what I mean?
Because, bro, remember, when you're a government employee, you have to have a certain level of integrity to whatever you do outside of the government.
So if you're doing OnlyFans, that's essentially pornography.
The government might look at it as pornography on the side.
And I guarantee your chain of command won't approve that.
That could jam you up in the future, have you a part of an internal investigation, administrative investigation by RBCID. All it takes is one person to hate and say, look at This guy is doing OnlyFans on the side with AI. He's doing pornography.
And then, bam, next thing you know, you're getting a court-martial and you're over.
And another thing, too, is with the USM, the, goddammit, the military courts, like, you have less rights than as a private citizen when you're being charged criminally.
When they're hitting you administratively in the military and you go through the military courts, bro, that jag is going to fuck you up.
So these are things you got to keep in mind when you're in the military, guys.
You don't have as much freedom as a private citizen to do certain things.
So, yeah, bro, just be very careful.
I mean, what do y'all think?
I agree.
Especially if you got a clearance.
Especially if you got a clearance, they're going to come and they're going to, they can revoke your clearance.
Like, bro, you got to be very, you got to move intelligently when you work for the government, especially when you got a secret, a top secret, etc.
Clearance.
SCI. That stuff is all going to be unfavorable.
And all it takes is one person to snitch and hate on you and be like, oh, look at this guy doing this stuff.
And then, bam, internal investigation open on you.
Army CID's at your door.
Yeah, it sounds cool, but I wouldn't tell anyone what you want to do with that.
Yeah, but it's going to have to go up the chain of command anyway.
Your superior's going to know.
Keep it up to yourself.
Don't do the OnlyFans stuff, bro, if you're going to be in the military.
That's my suggestion.
Don't do anything that can be looked at negatively.
I purchased my home last year this month.
What benefits can I get by moving out and renting my current home to a family member?
Can I start an LLC with that?
Yeah, definitely start the LLC with it immediately if you're going to do that.
Cool.
You guys are getting so much sauce, man.
This is like, bro, this is probably one of the most value-packed episodes we've done in a very long time.
Shout out to Steve.
Yeah, shout out to Steve.
Hey, Fresh to Fit, I own a restaurant, but I made it as a sole proprietor.
Wow.
Stupid.
No, bro.
Just hold it.
Just hold it.
It's fine.
As it's my first business and didn't have much help, I worked with what I got.
How can I go about making it an LLC S Corp?
Is it even beneficial to do that with a restaurant?
Most definitely with a restaurant.
There's so much liability in there.
It's incredible.
Yeah, do that like ASAP. But see, that's the problem.
Plus the tax savings on it.
It's like you're missing out on that.
But here's the question.
How long has he had the restaurant open?
Yeah, well, yeah.
So you're going to get to come up with a name.
You're going to start from scratch.
Okay.
We'll sit down with your CPA. So if it's been under two years, he can probably still convert it to an escort, maybe.
No, he's not even an LLC. He's just a sole proprietor.
He's just operating the business under his own name.
This is the issue, though.
We've been taught.
Wrong way to do business.
Or not at all.
And we run into things like this, and it's like, wait, why are we not getting full benefits?
Because we don't know.
All he did was basically, like you could do it here in Florida, you just go in there, all he has is a fictitious name, or like, it's like a doing business as.
DBA, yeah.
And whatever the name of the restaurant is, and it all, and he's putting it on a schedule.
Damn, he get taxed like crazy.
Yeah, he's probably playing employees, and man.
On the table, Cash?
Yeah, bro.
Yeah.
Yeah, yeah, yeah.
It's like he needs to do it right now as he's watching the show.
Like yesterday.
Make an LLC right now, bro, while you're watching us live.
Like yesterday, bro.
Jesus, come on.
Yeah, Jesus, make that LLC right now, and then you're going to go ahead and turn that thing into an escort.
He's legal, bro.
You're legal.
Get that taco truck.
Get the taco truck.
Make an escort.
Come on.
Hey, yes, races, bro.
I'm just kidding.
It's okay.
He's watering.
Yeah, he's one of those.
He's one of those.
Superguts.
Superguts goes, I have a couple of trustworthy friends, and we would like to know how we can all go in on the Umbrella S-Corp while owning separate properties that have equitable shares in the properties based on our ability to fund the accounts.
Okay.
Okay, so they're properties.
You don't know.
Okay, so again, we're talking about properties.
So I have this in my business as well, too, in my CPA practice.
So you guys will probably be, you know, obviously an LLC, but then what happens is it's a multi-member LLC. It's not a sole member LLC. It's a multi-member.
So you guys will default to a partnership.
And again, it's real estate rental activity, I'm assuming.
So you can structure it that way.
It'll be a separate return, but you'll have partners.
It'll default to a partnership tax return, not an S-corp.
Okay.
And guys, do me a quick favor.
I'm looking right now.
We got 3,000 y'all watching on YouTube alone.
But I see that we only have 1.9k likes.
Guys, I need y'all.
To stop what you're doing, see that like button right below the video?
That little thumbs up?
I need you guys to smash that like button right now.
We should be at 100% engagement for this video because we are giving you guys so much sauce right now helping y'all.
We are literally saving y'all thousands of dollars right now as we speak.
And also, the real supporters that support Fresh and Fit, do me a favor.
Hashtag Fresh and Fit in the comments down below.
That's all we ask for, bro.
It's free.
Literally comment it right now as you're watching, guys.
Boom.
That's it.
Like the video, man, because we're giving you a lot of sauce.
You guys have been requesting this episode for a long time, by the way, too.
I know you got it.
And you guys are getting it.
And we're answering your questions.
You guys have one of the best accountants.
Literally answer your questions right here, right now.
Betty, Steve.
For a regular appointment with a CPA to talk about these things.
I was just going to say that.
How much is the cost?
So, anywhere from $300 to $500.
I know if I have a contact with someone and say, hey, what do I got to pay?
It's typically anywhere from $300 to $500.
So, this would be equivalent to me, you know, instead of doing a one-on-one with someone and give them, like, you know, advice and tell them exactly what they need to do, you're getting it for free.
Just like the video.
That's all you gotta do.
And DM him to get his two free books for y'all.
How to set up your LLC, switch it over to an S-Corp, and then how to 10 ways to mitigate your tax liability as a W-2 employee.
Because a lot of you guys have regular jobs and you want to be able to go ahead and get some tax benefits and lower what you pay.
I could only imagine being 18 years old hearing this info, bro.
I wish I had a curve, bro.
I'd be smarter.
Man.
You know, and if you're going to be a, you know, obviously.
Guys, comment it in the comment section.
I see you guys putting hashtag Fresh and Fit.
Not in the live chat.
Put it in the comment section.
Put hashtag Fresh and Fit.
Shout out to you guys, man.
Just below.
Click comments.
Fresh and Fit.
Boom.
Hashtag Fresh and Fit.
For the Algo.
We appreciate it.
Sorry, you had something fresh?
You were trying to say?
No.
Or Steve?
Oh, so what I was going to say is you don't need to be an expert, actually, on a tax code.
I don't expect anybody.
But I want to break things down and explain.
These are the things that you need to know if you're going to be the business owner and you're going to be successful.
You've got to get the team in right in the beginning.
That's what you did.
Yeah.
That's what you did, too.
That makes a difference.
Not only did you save thousands of dollars in taxes, but you also got good advice going forward.
Yep.
And also, basically...
You're going to get this information for free.
So, I mean, just definitely, those two books that I have would be like, if I had a client come to my office and sit down, these would be the things that I would be explaining to them.
Yeah.
You know, step by step.
Absolutely for free.
He's not trying to make a dollar off y'all.
Just go on his DM on Instagram and he's literally going to send you the book for free, which is crazy that he's doing that, but okay.
WST! Yeah, he's doing it for the passion.
Like the video, guys.
I see 2.2K. We should be at 3,000 right now.
3,000 right now.
Lord...
What do we got here?
Lorraine goes, can you discuss or offer advice on how a U.S. citizen can create foreign LLCs or S-Corps subsidiaries, foreign irrevocable trusts, shell companies, and DBAs legally?
That's a packed question in there.
U.S. citizen create foreign LLCs or S-Corps, subsidiaries, foreign irrevocable trusts, shell companies, and DBAs.
Foreign LLCs or S-Corps, I don't know anything about, to be honest with you.
So, I mean, every jurisdiction, every other country right now is different.
Subsidiaries, foreign irrevocable trusts.
No comment on that one.
Sorry.
You gotta look into the countries for which you're trying to do these things.
Every country is different, bro.
So he wouldn't be able to tell you that because it depends on what country you're trying to do it with.
Yeah, he's not there.
What else we got here?
Shout out to Wayne.
Oh, 10 YouTube memberships.
Thank you so much, man.
I appreciate that.
Shout out to you.
Casey Travis goes, I'm a trucker driver...
I think it means I'm a truck driver and get paid at 1099.
Should I open an LLC or S Corp?
And is that legal to pay yourself if employed as an independent contractor, especially in the trucking industry?
Yeah, so you're going to be a 1099.
Immediately become an LLC S Corp.
Give the person who's paying you, whoever's paying you, On 1099, you're going to fill out a specific form.
It's a W-9 form.
On there, it's going to have the name, address of your business, and it's going to have the EIN number, and you're going to give that to the lady, and you're going to say you're going to pay whoever in the office is, the guy, and you're going to say you're going to pay the checks to me.
Now, here's the W-9.
You sign it.
You say, I want the checks to come here now.
What's the W-9 form?
So W-9 is basically a form to...
Let's say I hire him to do some consulting with me, and I'm going to pay him as an independent contractor.
He's going to form an LLC. He's going to give me a W-9 so I can pay checks to that LLC. And then I know at the end of the year when I give him a 1099, I have the proper tax ID number, the name of the company, and the address.
So he gives that to me, and he signs and says, please, Steve, give me the...
The checks in the name of this LLC. Bam.
I didn't know that truckers can be 1099 employees.
So for all you guys out there, because a lot of truck drivers actually listen to us.
Yeah.
Yo, try to be a 1099, guys, if you can.
And that way you can write off more and more aggressively deduct your taxes.
Absolutely.
Legally.
Smarter.
And file your trucking company as a LLC and then switch over to an S Corp.
All the truck drivers out there, because a lot of y'all listen to us.
Free game.
There you go.
So Parismo HD goes, just finished my LLC paperwork for my mobile body paint repair company.
I have the capital to purchase a van in between six to $10,000.
They'll open a business account and purchase it finance or just buy it out cash.
Thanks.
Uglies.
Good question.
Great question.
Thanks.
That does not matter whether you buy it with your personal check or not.
As long as you have the paperwork to support that you're using it for your business, and you have the paperwork that you purchased it, you just give that to your accountant, they will accept that.
90% of the 90% of the company vehicles that people write off and purchase, they purchase them in their personal name.
Because their businesses are new.
They don't have established credit.
So they just typically buy them in their name.
I still list them.
The IRS doesn't care.
As long as you're actually using it for a business purpose, that's all that matters.
They don't care how you procure it.
I think another important thing too, bro, is if this vehicle that you're about to buy is over 6,000 pounds...
Maybe finance it.
That's a great...
Maybe finance it versus buying it, you know, cash.
All cash, yeah.
Because then you can actually get...
Remember, like we said before, what is the...
Do you know the statute that...
Section 179.
Section 179 allows you to go ahead and write 80% off of a 6,000 pound or more weighted vehicle.
And there's also bonus depreciation, too, that you can actually...
Bam.
So, yeah, bro.
If the vehicle...
It's a van, so it's probably going to be over 6,000 pounds.
Buy that van, finance it.
You can buy it under your personal name and still get the tax benefits, and you get 80%.
So if it's $100,000, you can write off $80,000, and then you get bonus depreciation on top of that.
Amen.
There you go, my friend.
Well, we just say, man!
Bro!
What other YouTube channel is giving y'all this kind of sauce?
I don't know anybody.
Dave Ramsey?
Not even him!
Oh, just kidding.
Yeah.
Don't get into debt, man!
Don't get into debt!
You know what I mean?
I get it.
Here's the thing.
I like Dave Ramsey.
He gives you very good financial tips for someone who's kind of a moron with money.
It's what I call retard-proof advice.
But if you're a guy, you want to be a business owner, you want to be a real estate investor, you have to take risk.
And taking risk a lot of times means using other people's money, investing it into your business or an asset class, and then making money back from that and aggressively reinvesting it.
So if you're watching us, you're already RP aware and understand how the world works to a degree.
You have some level of competence, some level of critical thinking skills.
If you're watching content like ours, you're not necessarily a slave of the matrix if you're watching this stuff.
So, dude, you can exercise the discipline to take that money, invest it properly, and funnel it into a business versus funneling it into stupid stuff that isn't going to make you money.
Well said.
Yeah.
Persian Prince.
Yeah, thank you guys.
Thank you for this, guys.
Especially the nugget behind Y Register, the S-Corp holding company in Delaware.
I'm at this decision stage on my real estate business, so this was helpful.
We got you.
Yeah, because having you out of Delaware, like I said before, it allows me to get a business credit card that allows me to charge everything easily to one.
Is this guy snitching on himself?
Oh, the money I made on the table.
Yuri Bezmenov goes, bought a rental house with money I made under the table over the last 10 years.
Oh, man.
Okay, here we go.
Allegedly.
Haven't filed taxes in roughly 10 years.
Is that his real name?
I hope not.
How can I protect myself when filing?
How do I claim my money saved to purchase rental to pay minimal tax?
This guy, bro.
This dude...
Here you go.
So first off, I would never suggest anybody to do what you're doing, obviously, but first thing I do when I get clients like you, because they do, they exist.
Yeah, yeah, yeah.
So here's the first thing I would do.
Get your transcripts going back six years, because the IRS only goes back six years, okay?
Okay.
Get them.
Step one.
What do you want to do?
You want to find out in there, has anybody filed a 1099 on you that triggers their filing requirement?
If not, and nothing shows up, Don't snitch on yourself, obviously.
And I just, you know, I would say, hey, you got a 1099 for, you know, 25 grand.
Did you know that you had that unit file?
Let's get that filed.
Sometimes these guys wind up getting refunds.
The problem is you can only get those refunds.
They expire after three years.
So we don't do that in a timely manner.
But if you have nothing on your transcripts and they're just empty, then you really don't have anything in the IRS computer system that requires you to file.
So you're probably okay.
How the hell did you buy a rental house with money you made under the table when you have to...
You must have bought a cash.
No doc loan?
Yeah, there's no way he was the loan.
Unless like...
Maybe he had a lot of money to put down on it.
Yeah, maybe he had cash.
I'd be interested how the hell you...
He either did it with private equity, aka hard money loan...
You know what time that is.
Or he bought a cash on YouTube.
I'm not even going to go further than that.
You guys know what that sound effect means, though.
So, yeah.
So pull your transcripts.
You can pull your transcripts.
Or you've got a plug in the setup with somebody.
Yeah, something's off there.
That's a good question, though.
You know, that's a very common thing, especially here in Florida.
When I came down here, I'm like...
I'm sorry with these people.
You didn't work at Teddy, you didn't even file your taxes?
Yeah.
Because I came from New York, and more people are more compliant there.
Yeah.
And then you come down here, it's just crazy.
People do weird odd jobs in Miami and Florida, bro.
People take money in cash, and these are celebrities, and these people have actual presents, and I'm like, what are you taking money in cash?
I have a doctor.
I have a doctor with an established practice that does very well.
This fucking guy hasn't filed his taxes in over 10 years.
What the?
How do these guys get around?
I don't know.
I don't know.
So the first thing I do is I pull the transcripts just to see what's there.
See what the IRS has in their computer system on you.
They're going to say, catch me when I die, nigga.
Catch me when I die.
All right.
Where are we at here?
Yeah, Yuri, listen to what Steve just told you.
Keep yourself out of jail.
Shout out to the IRS for giving 10 YouTube memberships.
Yeah, he's watching.
IRS is in the chat right now.
R.P. Josh, I have a cleaning business and a painting business with my brothers-in-law.
They are from Venezuela.
I can't have an LLC taxed as an S-Corp, so should I leave it as an LLC or a C-Corp?
Now, see the thing with when you go to S-Corp, there's one nuance is you can't have any foreign members.
So I don't know if they're U.S. citizens or not, a resident, but that's the thing.
So you'd have to, whoever the person is that's going to be ultimately in the form of the S-Corp, you can't have a foreign resident or foreign individual on there.
How about if he just does Escort by himself and pay them out, it's $10.99?
Yeah.
There you go, my friend.
That's probably the best way.
Do the S-Corp, get the tax benefit, and then pay them off from a 1099 perspective.
Yeah, that's exactly what I was suggesting.
Have a high 5-fig-a-month online business.
Our LLC is currently set up in Delaware with a registered agent.
Now we're looking to set up in the UAE free zone.
Any tips registering internationally while living in the United States?
Yeah, no, I don't.
Sorry.
This is strictly U.S. tax code.
Yeah.
Guys, we're going to...
Okay, there's a lot of questions here.
Yeah, guys, we're going to have to bump it up to 50 and up for questions, but I will read the ones that came in.
Let's see here.
Aaron M. Angus, hey FNF, I'm just tuning in.
I love what I'm hearing so far.
Are you guys also going to cover business credit card today while Steve is here?
No, but we will cover that on another episode because we knew that we would have a lot of certain time.
I knew you guys were going to have a bunch of questions, so we kind of gave the sauce and then now we're answering questions.
But we will do a business credit card episode either next Monday or the Monday after that.
We're debating whether we're going to do travel credit cards first or business credit cards first for 2023.
Probably travel.
You know what?
Mo, do a quick poll in the chat.
See what they want on YouTube.
Do a quick poll.
Business credit card or travel credit card first, and then that'll be what we cover next Monday.
Okay, so what else do we got here?
Brian Grant.
Brian Grant goes 24 years old, 62K, W2 worker, and have an LLC for business services company, operational for less than one year, making less than 10K for this a year.
Suggestions to lower personal taxes due?
Good question.
A lot of people are in this position right here where he has an LLC. He's making $62,000 from his W-2 job.
He's making about $10,000 from his side hustle.
How to lower personal taxes?
I mean, so basically, one-year LLC. I would still do the S-Corp, even though it's $10,000.
I don't know.
I'm hoping that maybe you're going to make more than $10,000 on this business going forward.
But then from there, now you're opening yourself up to the entire tax code, and you can write off your phone.
You can write off your car.
Any travel.
You know, right now, a big thing that people are missing, the IRS has given everybody a hundred percent deduction for meals.
Oh, really?
I take a lot of clients out.
Wow.
I ran off all my meals 100%.
They did that because COVID. That was under Trump, right?
Yeah, because COVID. Okay.
Because COVID, yeah.
So they got, you know, they got decimated with all the shutdowns with COVID and stuff.
To kind of stimulate the restaurant business back.
Steve, you know what I did, bro?
Remember I told you when I made my sister an employee?
Yeah.
So I made her an employee whenever we go to eat.
It's a write-off.
Yeah, it's a write-off.
That's a business meeting.
Yeah, that's an employee meeting.
Yeah, so definitely.
So that's 100%.
And just make sure when you're using the card of your business when you're doing that, I mean, it makes it a lot easier.
So just use your business card for that.
Yeah.
I have a lawn service here in Louisiana.
It's just me doing it.
Should I keep it as an LLC? Escort, my friend.
Switch that thing over ASAP. And for all you guys that have your LLC and it's been that way for a year or two, bro, y'all need to switch now.
Like, now!
Okay?
Like, I'm literally talking like, as we're talking...
Okay, let's say someone is watching, listening to this podcast right now as we speak.
They have a side hustle.
Maybe they're at their W-2 job.
They've had their LLC open for a year.
What should they do right now to switch over to an S-Corp?
So basically fill out those two forms.
Get my book because I walk you through that process and you go through there and I'll have those two videos that load it up soon on exactly how to check the boxes because it's very easy and then you fax the forms to the IRS. So yeah, get that and then...
IRS form 8832?
8832 and then 2553.
They're easy forms to fill out.
I mean, it'll literally take like maybe 10 minutes.
And that will transition their LLC over to an S Corp.
Both forms or just one of them?
Both forms.
Yeah.
And then, so basically, but there's one, because if you're late on it, then you have to, you have to check a certain box to say, I'm asking for late relief.
And I'll explain that in more detail.
That's what I'm going to walk you guys through because I don't even like doing this stuff, honestly.
So I'm just going to give it away for free because when people come to me, you know, I don't want to do all this stuff.
So I'd rather the client like do it.
And like, there's no value in me doing this for them.
You know what I mean?
Okay.
So yeah, man.
All y'all that are listening, switch over to an S Corp.
Immediately, he just told you guys the two forms.
IRS form 8832 and...
Sorry.
2553.
2553.
You can literally Google them right now and start filling them out, guys.
Yeah.
The sauce would not exist without you two.
Don DeMarco, for all of you, truly grateful.
We got you, bro.
That's what we're trying to do, man.
Trying to change lives, help you guys become better men.
Shout out Wayne again.
10 more YouTube memberships.
Shout out to Wayne, man.
Because, bro, ain't nobody giving y'all more value on YouTube than us.
Everybody else is reacting to stupid ass videos, telling you guys about, oh, this is what's going on and crying and shit like that.
We're giving you guys solutions to actually dig yourself out of this stuff, man.
We actually give y'all actionable information in detail with experts to help you guys get to where you want to go.
And the most important part, We do it completely free.
We're not charging y'all nothing for this.
We live good, so you can live good.
Yeah.
Simple.
You know, you guys are sending in the Super Chats and answering, but bro, it's worth the value.
I mean, 20 bucks to answer a question.
We should do business credit cards because business credit cards give you access to a lot more than just travel.
I want to see what the poll say, Mo.
What's the business?
75% business credit cards.
Business credit cards.
Yeah.
Shout out to you, Wayne.
Thank you so much.
The process, Nate Tilly's pursuit of excellence goes, yo, I reached out to Fresh.
The processing, I want to teach how to get local businesses more clients as a service.
Been doing it 40k a month for three years now.
I think y'all are widely overlooking and sleeping on this opportunity.
Much love, y'all.
Thanks.
Shout out to you, bro.
I'll look into it.
Okay.
IRS, WStream, why y'all need to like this video?
WStream, why y'all need to like the video?
Steve giving y'all all this valuable info to improve your life.
Some of y'all are going to hear from me in April.
I always get mine.
That's true.
One way or another.
IRS in the chat, man.
Avery Watson, he's definitely looking at that dude that hasn't followed for 10 years.
Why would you say that, bro?
I would need an in-on account with a random name.
Hopefully that's what it was, bro, but that's crazy.
Okay, Avery Watson goes, I'm working on the irrevocable trust now with properties.
The lawyer said I should be LLC and land trust.
Should I be an S-Corp?
Also, I'm a travel healthcare worker.
I have option of 1099.
If I switch, won't I need to wait for two years to buy more houses?
So you have a revocable...
So, I mean, this is real estate, again.
So I'm going to go back to real estate.
You can remain an LLC. You don't need to do the S-Corp.
Yeah.
Good question here.
It says, I'm a tribal healthcare worker.
I have the option of a 1099.
If I switch one, I need to wait two years to buy more houses.
This is a good question.
Oh, yeah.
So it's a two-part question.
I'll tell you right now, bro.
Do not, okay?
I made this mistake.
Yep.
Do all your real estate stuff while you're still a W-2 employee.
Okay?
And then, when you're ready to go ahead and do the whole entrepreneur 1099 stuff, do it after your real estate stuff is done.
Because if you plan to use loans from a bank, the worst thing you can do, this is literally life-saving advice, write this shit down to everybody in here.
If you're thinking about buying real estate, guys, okay, and you have a W-2 job, and you're like, you know what?
I'm going to quit this job and do my entrepreneurship stuff because it makes more money.
Don't Do it.
Stay with your W-2 job because lenders like to see consistent income from a saved job over you being an entrepreneur.
Because if you are an entrepreneur, what they're going to say is, we want two years of tax returns with your entrepreneur venture.
You're not going to have it because you just started it.
So stay at your W-2 job, do your side hustle, get the real estate, and then once you're done and you're prepared to go ahead and go two years without buying real estate, then you can go ahead and And transition and go the 1099 entrepreneur route.
Because I'm telling you, it will mess you up with getting loans.
Here's another golden one.
And that's great.
That's perfect.
However...
That was my mistake.
You are going to be in the same line of work where he wasn't in the same line of work.
So he went from government job to doing something different.
So get a CPA. Why?
And I do these letters all the time for this specific reason.
You can have your CPA write a letter to the underwriter saying you were a W-2 employee and you're still doing the same type of work and sign off on it and vouch for it.
Oh, wow.
So that's a way around it.
The two-year thing.
But you're right with the business stuff.
Once they do that, it creates a problem.
It creates a, like, whoa, what's going on now?
As long as they see it's the same, like, oh, this is health work.
Oh, he just changed it to the same income.
Got it.
You need a CPA. You need a CPA to write you a letter.
Yeah, so form a relationship with that CPA, because you're going to need somebody to help you with the S Corp stuff and the tax filings on that, and then they're going to be able, once they need it, they're going to ask for it, and he could do the letter for you, or she could do that.
Dude, that's literally life-saving advice.
So two options.
If you're, let's say, a traveling healthcare worker, like traveling nurses do this a lot, et cetera, and you want to go ahead and go the 1099 route, and you're staying in that line of work, and you're just switching to 1099 so you can get better tax benefits, Make sure you get that letter from your CPA, because then it'll kind of be, hey, still same line of work, same earning, pretty much.
Boom, they could write.
What, does it got to be notarized, probably?
No, they just sign it.
I just sign it.
I just put it on a letterhead.
I write what the, you know, I say, like, what do they need to hear?
And that suffices most of the time?
Yeah.
Okay, so that'll suffice for the lender.
Or if you are going to go and do, let's say, a completely different side hustle, let's say you want to be a fitness instructor, but you're also doing the nursing thing, then nah, man.
Just wait.
Get your real estate stuff done before you quit that job or decide to go the entrepreneur route.
Because I made that mistake.
I tried to pick up real estate property once I left the government, and it was a lot harder for me to get a loan, guys.
Even if you're making a bunch of money, they don't care.
They want two years of tax returns.
And tell them how many CPA letters did you need on a lot of deals because these banks were being glitches.
Steve wrote me a couple of letters, guys, to get around that stuff.
They don't even look.
They just put them in there.
And they want more profit loss statements.
It's going to be a pain in the ass, dude.
That's another thing, too.
If you're going to get into business, get yourself reading a financial statement for dummies.
And I'm not even kidding you.
You don't have to be an accountant or just basic.
Learn how to read a financial statement.
Because if you're going to run a business, you're going to want to know where you stand.
And that's going to be, you know, that's important.
Yeah.
So, a really good question, bro.
Because a lot of people make that mistake.
They try to buy real estate and they just quit their W-2 job.
Oh, man.
That's going to be a problem.
Unless you plan to buy houses cash or do hard money loans, which you don't want to do that.
You're going to have issues with finding lenders to give you money.
Let's see here.
AJ, Mary, got a house with my wife.
Oh.
Allegedly filed the loan under single.
What do I do if I'm trying to put this under an LLC for tenants?
I do have a small ATM business under a different LLC. Wife's on board with post-pernuptial provided she has one house.
One house.
What's your thoughts on that, Steve?
Under single.
Allegedly filed the loan under single.
What do I do if I'm trying to put under my LLC for tenants?
Well, she's now on...
He's married now, though.
Wait, so...
Okay, the loan's single.
So now you're on the hook for the, you know...
So she has access now to rights to the property, but you're on the hook for the loan liability, 100%.
That doesn't seem very fair.
I do have an ATM business under a different LLC. Yeah, keep that separate.
Website board with posts, prenuptial.
Yeah, so it sounds like you're on the hook 100% for the loan.
And she has 50% of the rights of the property and not on the hook for the loan.
Because he got the house while he was married with her, so it would be considered marriageable assets at that point.
Yeah, but then he probably put her in that title, too.
They're both...
But then the loan, they're going to come after him for the loan.
Hey, man!
Come on, man!
Goddamn!
Yeah, but definitely keep the LLC separately.
So I'm not sure what you're trying to ask.
Hopefully things work out.
He's trying to put it under an LLC for tenants.
So he probably wants to rent that house out.
But he didn't specify...
Yeah, because you could do the quick claim deed to the LLC, so that shouldn't be a problem.
The bank doesn't care because ultimately...
But either way, his wife's going to have taxes because he's married to her, right?
Yeah, but ultimately the bank has what's called a mortgage...
That trumps all.
So they don't care about who's titled this and that.
They have their first rights to that property if you default on a loan.
So as far as doing the LLC, yeah, do it to protect your liability and the asset.
But the financing is something different.
That's a whole separate issue.
So the two don't have anything to do with it.
I wish he specified if it was a single family home or if it's like a multi...
Yeah, because if it's a single family home, he's got to leave.
I mean, but if he's going to put tenants in there, I would say definitely...
You got to LLC it anyway, right?
Yeah.
So regardless whether it's a single family home or it's a multi-property house and you're going to still live at it, right?
And maybe rent other units out, you got to LLC it anyway.
Because if they sue you, they can come after your personal license.
So that's a layer of protection for the limited liability.
So yeah, you want to put that over it.
Okay.
All right.
And don't buy a house with your wife.
Like, come on, man.
Cheyenne Ballero goes, wait, no foreign owners?
So as an Amazon Wholesale FBA owner, U.S. LLC, not from or live in the U.S., from Africa, no excuse being broke.
I can't switch to an S-corp?
An S-corp?
Okay, he's a foreign owner.
Oh, yeah, you're a foreigner.
Yeah, unfortunately, no.
Yeah, you gotta, no, you can't do it.
That's unfortunate, yeah.
Some people do get away with it, actually.
You know, I don't even know if the IRS system is, like, because they'll get a tax ID number, their tax identification number.
Yeah.
Which kind of acts like a social security number.
Yeah.
I've seen it where people have set it up and come to me and I find out later there's partners in there that are foreign.
And I don't know if the IRS has a mechanism to check on that, to be honest with you, because I've never seen anybody get checked on it before.
So it's kind of like, I think...
A loop.
Yeah, it could be a little bit.
I mean, I wouldn't recommend people to do that going in only, but I've seen it done where it's done and it gets done successfully.
Yeah.
Guys, by the way, we got 2.9, almost 3,000 of y'all watching on YouTube, but we only got 2.4k likes.
Let's get up to 3,000 likes, man.
Like the video, we're giving you a lot of sauce.
Thank you, Chayamba.
Who's up next?
Rumble Rants.
What about these other guys here below?
Or those came up before?
Cut off, because we're tight on time.
Okay.
But did they come in before?
No, these are later.
These are later.
Okay, guys.
Yeah, 50 and up for the Super Chats, guys.
Rumble Rants.
DeAndre Reason goes, if you have a business you want to transition into an S-Corp but also plan to invest in rental properties, how should you set that up?
LLC, no S-Corp.
Yeah, LLC for real estate property, guys, because it's considered passive income.
And then if you want to take it a step further like I do, you can have one shell corporation out of Delaware, and then that controls all your LLCs that are each particular property.
Yeah, and then each property is going to be a separate LLC. Yes.
With a separate bank account.
And I will talk to you guys about me and Steve are actually in the process right now of setting up how to collect money from tenants, how to pay utilities, etc.
That's going to be on the next episode of actually managing all those different properties and collecting money from tenants and doing it in a way that won't pull your hair out.
Oh, that's great.
Yeah, we got something.
We'll do a full episode for y'all on that.
Me and Steve are right now in the process of setting up the system, but I will tell you guys how the system works as soon as we have it done.
That's going to be really valuable for you guys that have multiple doors.
Yep, that are going to have multiple doors.
What's up, gents?
I currently have NLC. I'm a 1099 truck driver.
I want to have my own fleet of W2 trucks drivers working for me, and I want to invest in real estate eventually.
Should I still switch to S-Corp?
Yes.
For the trucking company?
Yes.
Absolutely.
What else here?
This is good, man.
We got a lot of guys that are set up as LLCs that didn't even know this stuff.
Yeah.
That's crazy.
Yeah.
Wow.
And then the sole proprietors, I'm like, bro.
That's cool.
The guy running the restaurant.
I want that.
Yeah.
How many years?
We just saved him tens of thousands of dollars.
You don't know what you don't know.
So now you know you can make a change for it.
But I mean, we're not taught to actually like learning stuff in school anyway.
It's just kind of like you got to learn on your own.
BPO says, I'm a commercial fisherman and file all taxes under my name.
Is there a more advantageous way to approach taxes for my own owner-operated fishing business?
Yep, I got a few of them.
Yeah, so definitely.
And you know what?
Because you're buying a lot of gas.
You get a tax credit for the fuel.
Oh, wow.
Yeah, it's pretty substantial.
Nice.
Yeah, so you want to file a...
Yeah, definitely.
You can definitely become an LLC and S Corp.
Definitely.
Cool.
Yeah.
What's up next here?
6ix9ine goes, I bought a Tesla in California for $9,500.
Tax incentive.
I'm signed up for the Uber.
Would I be able to form an S-Corp and buy the car of myself and work it as an S-Corp after?
I think he means buy the car for myself and work it as an S-Corp after.
And he bought a Tesla to drive Uber.
Yeah, so definitely.
It doesn't matter that you bought it after.
So yeah, as long as it's business huge, which obviously Uber is, and then you're just going to have Uber pay you in the LLC, you're going to convert it to an S Corp, and you're going to get the deduction for the depreciation on the car that you bought, and it's all good.
Uber's a valid side hustle.
Yeah, it is.
And they're able to go ahead and do that as a 1099, right?
Absolutely.
So they're able to write everything off.
Well, they're smart.
Uber is super smart.
Because they're a contractor too, right?
Not correct?
Yeah.
So 1099.
So, okay.
Real quick.
So let's say someone here wants a side hustle, but maybe they don't have a skill set yet.
They're not able to do so.
The best way to do it is create an LLC. Yeah.
Turn an LLC for Uber.
Yep.
Turn it into an S-Corp.
Go ahead and procure a vehicle.
They can write the purchase of that vehicle off.
Even if it's under 6,000 pounds?
Yeah, because you still get the depreciation.
So if you can, guys, try to get a car that's over 6,000 pounds so that you can get that 80% tax write-off as well as the depreciation.
Do it for Uber.
Your 10-9 employees are able to write off maybe if you put bottles of water in your car, if you keep your car washes, everything that you do for that vehicle to maintain it for Uber.
And then you can write all that stuff off.
Even the worst case scenario, if you get a used car, it's not 6,000, you're still going to get 20% because the car is depreciated over five years.
Yeah, I'll buy a used car.
A used car for sure.
Yeah, because a lot of miles on it.
But they should finance it though, right?
If it's over 6,000 pounds?
Yeah, depending on the price on it.
I know the rates right now are kind of tough.
The thing with Uber, though, you're going to put miles on a car and it's going to fuck it up.
Yeah, I would definitely not buy a brand new car.
I didn't have to do that because I did it at the beginning of my career and it was...
That was a great one because I had an x-ray company.
I bought a fleet of Honda Elements because we had these x-ray machines going in there.
And I bought them all brand new thinking it was all cool and everything.
And then I winded up...
You're a best bet.
It's to buy a used, pre-owned car over 6,000 miles.
Over 6,000 pounds?
Pre-owned, over 6,000 pounds.
And then at that point, I would just make sure the car has no issues.
Of course, if it's pre-owned, it shouldn't.
And then drug that.
But buying a new car...
Yeah, don't buy it.
So don't buy a brand new...
Should they finance it?
Or should they finance it, right?
Because they're basically, so they can get the full tax write-off because you're writing off the 6,000 pounds on the purchase price, not what you put down, right?
Yeah, if you can get a lease pre-owned, that's awesome.
Get a lease pre-owned?
If you can.
I'm saying you write off the whole lease.
Yeah, you write off the whole lease payment.
So each payment, you can write it off.
So yeah, man, I think leasing is the route to go for Uber.
Uber is a great way to pay some money on the side.
If you get benefits well from taxes, then awesome.
Until you can get a real skill set that will pay you more money.
The problem with leasing, though, don't they have that mileage thing where you return it in?
The mileage?
They do, actually.
I would go use.
That's what I did.
Actually, you know what?
For Uber itself, because of miles, you want to finance it, and then 6,000 pounds.
Bam.
There you go.
For all y'all that want to side hustle, that's Uber right there.
Back in the day, bro, when I did Uber, there was a big surge almost every weekend.
I made hell of money, bro.
I'll never forget.
It was New Year's...
And it was like, everyone was out partying.
I was an Uber, bro.
I made that night, one night, bro.
$1,000.
Wow.
Yeah.
And I did only like, what?
12 trips?
Wow.
Airport, Fort Lauderdale, Las Solas, Las Solas to Miami.
That makes sense.
Backup.
It was like, bro, money raking in.
But now it is tough, though.
Yeah.
So you know what, man?
We should probably do an episode for them on, literally, you want to side hustle?
Just a whole Uber guide.
Right.
You did it, right?
I got all my shit back home.
I made my notes, everything like that.
We could do it.
Because a lot of these guys that are young might not have a skill set yet to make a viable income on the side.
So what we could do is we could tell y'all, hey, this is how you can make money on the side from your job.
The car to purchase.
Or it's a full-time job until you get a skill set.
How to purchase it and then go into details about Uber.
Yeah.
Because Uber, you can absolutely make money and get tax benefits at the same time.
I didn't even think about this.
There's smart people.
They work maybe 40 or 50 miles away from their house, and they sign up for Uber or Lyft.
And then what they do is they try to get a ride going back to pick up a couple rides to either to work or back to work.
They got to go there anyway.
So then they'll pick up a ride and say, okay, I'm available.
They'll pick up a couple rides, drop them off before they get to work, go to work, and then try to get some rides after.
I've met a couple guys like that.
Damn.
Smart.
That's clever.
Guys, 2.5k likes.
So we're giving you all the sauce.
I need you guys to like the video so we get to 3,000 likes.
Come on, man.
Like the video because we're giving you guys so much goddamn value right now.
It's wild.
AJ. We'll be going two hours plus giving you all nonstop constant value, man.
Single family home, VA loan.
She's Colombian.
Wanted no part in the purchase.
Stay at home.
Colombian.
I found y'all after the fact.
Yeah, you fucked up.
Doing a Chris Crow method.
Appreciate what y'all do.
Looking forward to the business CC video for leveraging capital.
Yeah, man.
Yes, we got a single family home, VA loan, she's Colombian, want no part in the purchase, good.
But bro, if you bought it while you were with her...
Bro, she's Colombian?
Yeah, she might...
She'd want a part now, nigga.
But after the fact, she'd want all that part, nigga.
If you're married to her, if you married her and you bought the house, bro, then that's considered...
I mean, watch your episodes with the divorce attorneys.
They'll tell you that that's considered...
And hopefully he didn't bring him from Colombia.
Marriage asset.
Is she automatically entitled to 50% of his military retirement?
I don't know if they got married.
I don't know if he's married.
See, that's the thing with the military.
Oh, yeah.
He is married.
Oh, man.
Okay, so it's a single family.
So he's going to have to move out to rent it.
You're going to have to move out more than likely to rent that thing.
So yeah, you got an LLC anyway.
She swatted no part in the purchase, but bro, she might still be entitled to some of it.
Because you bought it when you were married to her.
If I was a Colombian girl.
Hey man, she don't know what she don't know.
I'll say the same thing, yeah.
You better not let her hear this call.
Hey man, yeah, yeah.
She better not be watching this podcast with you, bro.
Hey honey!
No hables English, correct?
Correcto?
Perfecto!
She's probably sitting next to him right now watching this thing like, hmm, okay, we got this, boy.
She better not be watching this with you, bro.
Woo!
Yeah, man.
Alright.
What do you guys think about real estate wholesaling?
Great way to get your feet wet in the real estate game early, but you don't want to be doing that all the time, bro.
You use that to get your feet wet, and then you actually want to go ahead.
Bro, y'all don't want to be these people that are just leasing Airbnbs or doing wholesaling or whatever.
You want to be the actual owner so you get the real tax benefits from real estate.
So you want to hustle at the beginning, become a business owner, and reap the benefits with passive income at the end, pretty much.
Yeah, because a lot of y'all that do like wholesaling and do Airbnb arbitrage, etc.
Y'all are doing all the work for the owner.
And he gets the money and he's getting all the benefits and he ain't doing nothing.
I think they call it like grunt work.
Yeah, you're doing a lot of the grunt work for him.
You're making him all the money.
Yeah, you're making some money as well.
But bro, why not?
And he's getting tax benefits.
And then they say, oh, I'm an entrepreneur, bro.
Look at me.
I'm like...
Shorty.
Shorty.
You're a worker.
You're a worker, bro.
You're out here working for a ninja that really owns the property that's getting all the benefits.
He's just pimping you to go ahead and find tenants for Airbnb.
Come on, man.
Spell entrepreneur.
Yeah.
E-N-T-R-P-E-N-E! Okay, cool.
It's spelled I-D-I-O-T. An idiot.
That's what you are.
Peter.
Doing 20K a month cash.
No job.
I'm having LLC for previous business.
Yeah.
Any advice on how to set myself up the right way to look good for the IRS?
No.
What's your thoughts on this, Steve?
Ay, ay, ay.
Get somebody to write...
He's like, get somebody...
Ay, ay, ay, ay.
Hey, man, you know what you gotta do, bro.
Turn yourself in.
Turn yourself in, bro.
Turn yourself in now, bro.
Yo, but I will say this, though.
I know guys that have that same setup, and they'll, like, just blow it in the club.
He's scamming or doing something, bro.
Put ass marketing in the club, buying bottles and buying tables.
But I like the 20,000, but no job.
Hey, man, he did Uber, bro.
He just took it in cash.
Yo!
I don't know if y'all be serious sometimes with this stuff y'all be saying, bro.
I got a patroller.
Yeah, man.
Forget about it!
This guy, bro.
Oh, Lord.
Okay.
Yeah.
You need to find a job.
You need to find a job, bro.
Oh, man.
Steve.
This was two hours of nothing but value.
That was great.
I was like, wow.
I looked at the time.
I think the chat got so much value from me, bro.
They're like, they owe you some money, man.
Yeah.
That's awesome.
Timestamps are going to be down below in detail, by the way.
But where can I find you?
And any last comments or thoughts for the chat?
So definitely just...
DM me if you want those two free books, because I have it on a Sam card where you actually have to pay for it.
So one's like $7, the other's like $26 or whatever.
So I'm going to give those to you guys free.
For free.
And again, that's like having a free console.
I would sit down with a client for an hour, and that would be like a $350 or $400 or whatever.
consult.
So take advantage of that.
DM me at seeing beyond the numbers.
That's on Instagram and on YouTube as well.
I don't really have much on the YouTube side of things.
So I'm going to start with the Instagram stuff.
But in the coming days, weeks, months, there's going to be a lot of content, a lot of informational stuff.
And we're going to bring you back, probably with Roger, to talk about how we set up my real estate properties and how to set up a system to get paid without headaches, collecting late dues, all that stuff.
I'm going to go over with y'all how to system my systematically systematically right collect rent from your tenants in a no-nonsense headache free fashion I've went through the headaches already I've already evicted a couple of tenants etc we're gonna go over the do's and don'ts and Roger and Roger is my property manager and my real estate agent and Steve is my accountant so we're gonna go over detail how I do everything guys and we're gonna be real transparent with y'all man we give you give you all the sauce yeah so my my brother and my I
My father had large buildings in New York State.
They had a couple hundred apartments and they could have benefited from that system that Roger and I were talking about.
We're almost done with it, guys.
That is really good.
We could probably do it by next month.
I think we'll be fully up and running.
We're like 80-90% of the way, guys.
And then once it's up and running and everything is being collected correctly, etc., I'm going to show y'all A to Z. How to set up once you have real estate property.
And it's actually, you know what?
I wish I had done it sooner.
I know.
I wish I had done this shit sooner, man.
Versus doing it all at the end.
And I'm going to teach you guys.
What a headache that you would have saved.
Yeah.
Right?
Yeah, man.
So we'll literally walk through with y'all.
Because being a landlord, if you don't do it right, we'll create a lot of headaches for you guys.
I'm going to teach you guys how to avoid a lot of the headaches that I endured.
At least you got your hair back.
I got my hair back.
Between dealing with, during the daytime, dealing with real estate, and then at nighttime, dealing with annoying girls.
So, guys, here's Steve Colon.
Go check him out at Instagram, seeing beyond the numbers, man.
We gave y'all two hours plus of value.
A lot of this stuff is life-saving stuff that will save you tens of thousands of dollars on taxes, if not millions, for all you guys that have big businesses.
Check him out.
His links are all below, guys.
Get the free books.
DM him on Instagram.
Just type in Fresh and Fit on seeing down the numbers, and he'll send you his two free books, one on how to mitigate your tax liability as a W-2 employee, and the other one on how to set up your LLC properly and then switch over to an S-Corp, which we already discussed the benefits of doing so, multiple different benefits and...
And yeah, Steve, I'll give you the last word.
Yeah, and that one's got the rental stuff with the cost segregation and depreciation and all that stuff for rental.
That's specific for the newbie getting into the rentium.
And I do cover a little bit about the program that you're talking about with just a tiny bit in there, but it's not very detailed on that section.
But yeah, definitely get that.
There's a lot of good information in there.
And that's it.
It's always a pleasure to be here.
I'm really glad that you guys are back up and running and things are going good.
These are the shows that really matter.
This is the whole reason why you guys do what you do.
And this episode is for everybody.
So whether you're a W2 employee trying to transition into being an entrepreneur or you're thinking about it, whatever, we gave you all the tools, man.
So always come back and reference this episode if you're thinking about starting a business, how to do this properly.
Yep.
We'll catch you guys back here with some lovely ladies in about 45 minutes or so.
Guys, do me a favor.
Like the video.
Let's get 3,000 likes before we close this thing out.
We'll catch you guys on the next one.
Steve's links are below.
Go check them out, guys.
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