Fresh & Fit - How To SETUP Your Business To Pay LESS Taxes w- Our Accountant Steve!

00:00:00.000 What's up guys, welcome to the Friendship Podcast, man.

00:00:02.000 We're here with Steve from Accounting.

00:00:03.000 We're going to talk about starting a business, LLC's, S-Corps.

00:00:05.000 Let's get into it!

00:00:06.000 Let's go!

00:00:56.000 All right, and we are back.

00:00:57.000 What's up, guys?

00:00:58.000 Welcome to the Fresh and Fit Podcast, man.

00:00:59.000 It is Money Monday, and today we probably have one of the most important episodes we're going to do for a while.

00:01:04.000 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.

00:01:10.000 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.

00:01:16.000 And also, you guys asked for it so many times, so now we've got a few today for Stephen Mechanics.

00:01:20.000 Yes, we brought our account in here, man, to give y'all the walkthrough step-by-step.

00:01:24.000 So real quick, before we get into it, rumble.com slash fresherfitguys, go ahead and find us over there.

00:01:28.000 So if we ever do get canceled, you know exactly where to find us.

00:01:31.000 Also, check us out on fresherfit.locals.com for behind-the-scenes content.

00:01:34.000 As you guys know, we do a live stream right before we do the show on Locals.

00:01:38.000 And then also check us out on Fresher Fit Store to get the merch, hoodies, t-shirts, etc.

00:01:42.000 Also, guys, do me a favor.

00:01:43.000 Please subscribe to our other YouTube channel.

00:01:45.000 It's called Fresher Fit Clips, guys.

00:01:46.000 We post six clips on there per day.

00:01:48.000 Like, damn near 8 to 10 shorts per day.

00:01:50.000 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?

00:01:58.000 And then also we got another one called More Fresh Fit Clips.

00:02:00.000 We're trying to get that one to 100K and we're trying to get the main Fresh Fit Clips channel to a million.

00:02:03.000 So guys, go over there, support those two channels because 80% of the people or so that watch both those channels are not subscribed.

00:02:09.000 It's not enough just to be subscribed to Fresh Fit.

00:02:11.000 We need you all to be subscribed to Fresh Fit Clips as well and more Fresh Fit Clips.

00:02:15.000 And then also check us out on Spotify where Mo posts every single day.

00:02:18.000 And quick little announcement.

00:02:19.000 We posted the Andrew Tate interview on Rumble.

00:02:22.000 Okay, guys?

00:02:23.000 Because as y'all know, they took it down on YouTube.

00:02:25.000 And yeah, it's lame.

00:02:26.000 We can't post our Andrew Tate interviews on YouTube, man.

00:02:29.000 So you guys got to go over to Rumble.

00:02:31.000 We have a bunch of them over there.

00:02:33.000 And they're also on Spotify as well.

00:02:34.000 I think we got all of them.

00:02:36.000 All of them are on there now?

00:02:37.000 Nice.

00:02:37.000 Okay, so all of them should be on there now, guys.

00:02:39.000 We did like, man, a bunch.

00:02:41.000 Like 8 to 10, something like that.

00:02:43.000 One of the first.

00:02:44.000 Yeah, so go check it out over there.

00:02:46.000 Also, guys, Fresh, your vlog?

00:02:48.000 Yes, guys.

00:02:48.000 For vlogs, man, we travel.

00:02:49.000 When we do our fun stuff, go check it out.

00:02:51.000 Also, as well, I'm going to do more live streams on my channel just to talk about networking and more tips.

00:02:56.000 And then as well, guys, join the SEO Network, man.

00:02:58.000 Give value as well.

00:03:00.000 Got millionaires coming on every week to talk about, for example, success, mindset, business.

00:03:04.000 Go check it out.

00:03:05.000 See you guys in there.

00:03:06.000 And check me out, guys, on Fed Reaction.

00:03:09.000 So yesterday on, um...

00:03:12.000 Kidnapping.

00:03:12.000 Excuse me.

00:03:13.000 I did it on The Sound of Freedom.

00:03:14.000 As you guys know, the movie is a blockbuster hit.

00:03:16.000 It was, well, obviously it was an independent film, but it did really well in the box office.

00:03:19.000 I went ahead and watched it with Angie, and then we went ahead and covered...

00:03:22.000 What Tim Ballard is really doing, the former HSI agent who now rescues children all over the world.

00:03:27.000 We went ahead and watched the documentary, reacted to it.

00:03:29.000 I explained the differences between human trafficking versus human smuggling because they're vastly different.

00:03:33.000 A lot of people don't know the differences.

00:03:34.000 We watched a couple of sting operations they did with human traffickers.

00:03:37.000 So if you guys like true crime stuff or you like that type of stuff where you can learn...

00:03:43.000 We're good to go.

00:04:09.000 That's all great and dandy, but we got a special guest in the house.

00:04:14.000 Yeah, we just wanted to get as many of y'all in here before we get into the good stuff.

00:04:18.000 Steve, we know who you are.

00:04:20.000 We've known you for years now.

00:04:21.000 Yeah, it's been a while since the beginning.

00:04:23.000 Three to four years now at this point.

00:04:24.000 The man.

00:04:25.000 We know who you are, Steve, but the audience might not know because you come in here periodically, maybe once or twice a year.

00:04:31.000 Always new people coming in.

00:04:32.000 And they've been requesting this for a while.

00:04:33.000 Can you introduce yourself to the people?

00:04:35.000 Absolutely.

00:04:35.000 My name is Steve Colon.

00:04:37.000 These are my clients.

00:04:38.000 And...

00:04:39.000 I think I was with you guys since the beginning, and it's just amazing where you guys have come.

00:04:44.000 But I'm a CPA. I've been a CPA for about, I'll say, over 20 years.

00:04:49.000 I'm located here in the state of Florida.

00:04:51.000 I've got a couple of practices, and I'm a serial entrepreneur.

00:04:53.000 I've opened up several different businesses.

00:04:56.000 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.

00:05:04.000 I did a lot of real estate, a lot of investing, and We're good to go.

00:05:12.000 We're good to go.

00:05:18.000 We're good to go.

00:05:32.000 We're good to go.

00:05:33.000 A lot of you guys might not necessarily be entrepreneurs.

00:05:36.000 You might be working a nine-to-five job and you're thinking about starting a business on the side, etc.

00:05:40.000 Guys, I was in your shoes about four years ago.

00:05:43.000 In 2019, I was working my government job and I also started my fitness business, right?

00:05:49.000 And I was able to transition from being, you know...

00:05:52.000 You know, regular employee, right?

00:05:54.000 To becoming an entrepreneur.

00:05:56.000 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.

00:06:05.000 So for a lot of you guys, you're going to start as a full-time employee and then start your business.

00:06:10.000 And then at some point, you know, you're going to want to quit that business.

00:06:12.000 Sorry, quit that job and transition over to entrepreneurship.

00:06:15.000 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.

00:06:20.000 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.

00:06:28.000 So thank you, Steve, for coming to the platform as well.

00:06:30.000 My pleasure.

00:06:31.000 My pleasure, guys.

00:06:31.000 Thank you.

00:06:32.000 Definitely.

00:06:32.000 And we'll talk about this a little bit later in the show because this is an issue close to my heart.

00:06:38.000 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.

00:06:44.000 Is for you guys.

00:06:45.000 So before I came, I was looking at the shows that you guys have, the late night shows.

00:06:51.000 So I think I went over the past 10 shows and then I did the ones where you guys had special guests on here.

00:06:55.000 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.

00:07:03.000 And here I was kind of looking at like the viewership.

00:07:05.000 So I think it was like 10%.

00:07:06.000 I was just talking with Mo about this and I did...

00:07:09.000 I did a little calculation on it and I think it's like 25% now, which is good.

00:07:14.000 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.

00:07:21.000 This is where the real alpha is.

00:07:22.000 This is where you guys want to be.

00:07:23.000 So, you know, props to you guys.

00:07:25.000 No, thank you, man.

00:07:26.000 I mean, and I've always said it, right?

00:07:27.000 Like, they come in because the girls, right?

00:07:29.000 Oh, wow, this drama's awesome.

00:07:31.000 But then they realize, oh, wait, hold on.

00:07:32.000 Y'all give financial stuff?

00:07:34.000 You guys teach people how to set up LLCs, credit, buy real estate, become financially free?

00:07:38.000 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. 0.98

00:07:47.000 And I... And nowadays, they don't teach you any of this stuff in school.

00:07:50.000 No.

00:07:51.000 Yeah.

00:07:51.000 And true freedom starts with financial freedom as well.

00:07:54.000 Yeah.

00:07:55.000 So ultimately speaking, if you get that down pat, you have that under control, you get whatever you want.

00:07:58.000 Amen.

00:07:59.000 Amen.

00:07:59.000 So I guess we could start from the beginning, Steve.

00:08:01.000 So let's say someone's watching, right?

00:08:03.000 And they're thinking about starting a business.

00:08:05.000 Maybe they even already did start a business.

00:08:07.000 How should they go about registering their business and making that segue over while they're still an employee?

00:08:13.000 So the first thing you want to do, and...

00:08:16.000 I'm going to start with this.

00:08:16.000 You know, he was talking about him being a W2 employee and then doing a side gig, side hustle.

00:08:22.000 So, you know, I would imagine that this show is going to be speaking to you guys.

00:08:26.000 So if you're going to do something like that, there's a specific way to go about doing it.

00:08:29.000 And it's an area that always causes a lot of confusion.

00:08:32.000 Yes.

00:08:32.000 It messed me up, too.

00:08:33.000 Yeah.

00:08:33.000 So when I was...

00:08:35.000 In my early 20s, I started a business with my brother.

00:08:39.000 We didn't know what the hell we were doing.

00:08:40.000 We didn't have access to YouTube and videos and things like that.

00:08:44.000 The first thing we did to start a corporation in New York State, no less, was see a lawyer.

00:08:50.000 We ended up spending $2,500.

00:08:52.000 We only had $20,000 collectively to spend on this business venture.

00:08:56.000 We started there.

00:08:58.000 He got us incorporated, gave us a book of stock certificates with a stamp on it.

00:09:03.000 I brought this It was a really good looking hardcover binder for my corporate documents and all this stuff.

00:09:10.000 And I thought, oh, this is all I needed.

00:09:12.000 I was in the CPA at the time.

00:09:14.000 So then I had to go see a CPA and the CPA said, yeah, never do that again.

00:09:17.000 And I said, well, why?

00:09:18.000 He goes, well, you're just wasting your time.

00:09:19.000 You don't need stock certificates unless you're going to sell them.

00:09:22.000 I said, well, you know, it's just me and my brother.

00:09:24.000 He goes, well, you don't need that.

00:09:25.000 He goes, all you need to do is get an EIN number and then he made us an S Corp.

00:09:28.000 So he basically walked us through the process of what I'm going to talk about today.

00:09:32.000 Okay.

00:09:33.000 And kind of what we talked about when you were starting your fitness business and you were structured as an LLC. So most people...

00:09:39.000 I think that, oh, I got an LLC, and it equates to tax savings.

00:09:44.000 An LLC does not equate to tax savings.

00:09:46.000 An LLC is just a form of entity that you can form.

00:09:51.000 You can do it, and every state has their own limited liability company.

00:09:55.000 You just get on the State Department, and this is what we're going to talk about on my channel in more detail.

00:10:01.000 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.

00:10:09.000 You pay your fee online.

00:10:10.000 Typically at the Department of State, they all pretty much have the same type of format and website.

00:10:16.000 Every state is different state by state.

00:10:17.000 Yeah.

00:10:18.000 And then you get your articles of organization back.

00:10:22.000 So now with that LLC, what you want to do is you want to make it an S-corp.

00:10:27.000 The only reason I would tell you to stay as an LLC is if you want to invest in rental real estate property.

00:10:34.000 Bam.

00:10:35.000 So that's what you have.

00:10:36.000 So that's very important because I made that mistake.

00:10:39.000 So a big mistake that a lot of people make, right?

00:10:41.000 You come from the W-2 world, right, where you have a regular job, right?

00:10:44.000 And you're like, okay, they take my taxes out for me.

00:10:46.000 I don't got to worry about anything.

00:10:47.000 And then you go over to entrepreneurship.

00:10:49.000 The first thing people do is they think, I'm going to make an LLC. But you're saying, no, no.

00:10:54.000 You can start with the LLC, but what you need to do is transition it over to an S-corp.

00:10:58.000 Yes.

00:10:58.000 Especially when you're a W-2 employee.

00:11:00.000 Can you tell the people why that's so critical and why that's so important?

00:11:02.000 Because I made that mistake myself in the beginning.

00:11:04.000 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.

00:11:32.000 So they can only sue the LLC of that particular property.

00:11:35.000 You may have multiple properties, such as yourself, where they can't reach over that.

00:11:40.000 So it's limited liability.

00:11:43.000 Lawyers started a limited liability in most states.

00:11:47.000 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.

00:12:00.000 So they limited the liability.

00:12:02.000 That's really the rest of it.

00:12:04.000 Then they applied it to real estate as well.

00:12:07.000 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.

00:12:21.000 I think the first person I heard talk about LLCs was Robert Kiyosaki.

00:12:24.000 Obviously speaking, he wants to protect your assets.

00:12:26.000 But we didn't know how to really do it, how it made sense for us as regular business owners.

00:12:31.000 Okay, so it's okay for them to start off with, you know, create the LLC, right?

00:12:35.000 They can go on their website, do it.

00:12:37.000 Don't hire an attorney, do it.

00:12:38.000 You can literally do it by yourself.

00:12:39.000 I know LegalZoom will let you do it.

00:12:40.000 You can do LegalZoom if you want to.

00:12:41.000 You don't really need to.

00:12:43.000 And what I'm going to do is I'm going to actually, I'm going to do videos.

00:12:46.000 Because you've done it for me a bunch of times.

00:12:47.000 Yeah, it's very simple.

00:12:48.000 It takes like 10-15 minutes not even to create an LLC. It's very easy, guys.

00:12:51.000 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.

00:13:02.000 Once you have that...

00:13:04.000 How long can they have the LLC before they switch it over to an S-Corp, in your opinion?

00:13:07.000 So there's a time limit on that.

00:13:10.000 I've taken it out into two years where you can get elected for forgiveness.

00:13:14.000 There's certain things that you have to mark.

00:13:18.000 You should do it as soon as possible.

00:13:20.000 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?

00:13:29.000 They're like, I don't know what you're talking about.

00:13:31.000 I think I am, right?

00:13:32.000 And I'm like, okay, let me check.

00:13:33.000 Did your attorney fill out these forms?

00:13:36.000 Well, nine times out of ten they don't.

00:13:38.000 Because lawyers don't know anything about taxes. 1.00

00:13:39.000 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.

00:13:50.000 A two sections where you could just check the box and say, you know, we're doing a late filing election.

00:13:56.000 So you start off with LLC, so they got to get it, hopefully get it done within a year, right?

00:14:00.000 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.

00:14:08.000 Okay.

00:14:09.000 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.

00:14:17.000 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,

00:14:32.000 dude, you still have a W-2 job, and you have an LLC, what are you doing?

00:14:35.000 And then we switched over to an S-Corp, and we'll talk about that here in a second.

00:14:38.000 Guys, real quick, All the chats that come in, I'm going to read them here in a second.

00:14:43.000 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.

00:14:53.000 You can ask them all your questions.

00:14:54.000 So all those questions you guys ask us about starting a business and everything else like that, today's they did ask these questions.

00:14:59.000 So...

00:15:00.000 Going back to the LLC, so you start, do it within a year, sometimes up to two if you have certain things in place.

00:15:04.000 So why is it so important to switch over to an S Corp from that initial LLC that they create?

00:15:10.000 Great question.

00:15:11.000 So because when, so first off, let me skip back just a second.

00:15:17.000 The LLC for rental property is okay because they construe that as passive income.

00:15:24.000 So that's not subject to self-employment tax.

00:15:28.000 Okay.

00:15:28.000 Okay, so those are okay because you're going to have a special schedule on your 1040.

00:15:32.000 We don't need to file an S-Corp return.

00:15:34.000 We just put the rental income, rental expenses.

00:15:36.000 So having a real estate property under an LLC is appropriate.

00:15:39.000 However, when we're talking about an S-Corp, an actual business difference.

00:15:42.000 Right.

00:15:43.000 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.

00:15:56.000 And I think we had a show and we talked about this.

00:15:58.000 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.

00:16:07.000 And what is a 1040 form?

00:16:09.000 1040 is your personal income tax return that everybody that has a job and you're making over a certain amount.

00:16:15.000 Mm-hmm.

00:16:32.000 Is what is the most audited schedule.

00:16:36.000 It's like out of all of the forms that get audited, the IRS is the number one.

00:16:41.000 I detest it. 0.98

00:16:42.000 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, 0.98

00:16:57.000 but I'm like, listen, you're going to thank me for this later because you need to file a separate form. 0.64

00:17:01.000 Gotcha.

00:17:02.000 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.

00:17:14.000 Correct.

00:17:14.000 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.

00:17:22.000 There's two departments.

00:17:23.000 They don't even call it audited.

00:17:25.000 They call it examination.

00:17:26.000 So there's two examination departments.

00:17:29.000 One that is in charge of auditing personal income tax returns, which are the 1040s, and with that comes the Schedule C in there.

00:17:36.000 So that gives them jurisdiction over your business.

00:17:39.000 I've had people come into my office with Like, their top line for gross revenue was over a million dollars.

00:17:45.000 I'm like, dude, what are you doing?

00:17:46.000 You're filing this on your personal return.

00:17:47.000 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.

00:17:58.000 Oh my god.

00:17:59.000 Yeah.

00:17:59.000 Okay, so...

00:18:00.000 See what I mean?

00:18:02.000 Yo, where are y'all gonna get sauce like this anywhere else, bro?

00:18:04.000 I don't know.

00:18:05.000 You would have to bring an actual, real...

00:18:07.000 And here's the other thing.

00:18:08.000 A lot of accountants aren't gonna share this with y'all.

00:18:10.000 They might not know this stuff.

00:18:11.000 Like, this is a big mistake that a lot of people do.

00:18:13.000 They start off a business, it does really well.

00:18:15.000 Maybe even they make an extra $30,000, $40,000 a year.

00:18:17.000 Well, guess what?

00:18:18.000 It gets put on your personal tax return, which is your regular job, and that is the most audited form.

00:18:23.000 And then they're like, yo, what the hell?

00:18:24.000 You got all this extra income.

00:18:25.000 What's going on?

00:18:26.000 And then the next thing you know, bam, you're getting audited.

00:18:29.000 Because they don't look at it like it's a business, right?

00:18:31.000 They look at it like, wait, you're making more money now.

00:18:34.000 What's going on here?

00:18:35.000 And if you don't know, you don't know.

00:18:36.000 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.

00:18:42.000 Please save me, bro.

00:18:43.000 And stuff like this will literally jam you up.

00:18:45.000 So that's the importance of switching over to the S-Corp.

00:18:49.000 So when they switch over to the S-Corp, what does that basically do for them?

00:18:52.000 It separates that business?

00:18:54.000 So it does two things.

00:18:55.000 So one of the greatest, obviously, it's a tax savings.

00:18:58.000 And it's very significant.

00:19:00.000 So when you, obviously, now you're taking that S-Corp and you're having to file a separate return.

00:19:05.000 So now you return, it's going to be an 1120S. That's what it's called.

00:19:09.000 These are the form numbers.

00:19:11.000 You guys can write that down and look it up.

00:19:12.000 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.

00:19:18.000 Now that goes to the business side of the examination of the IRS. Those two shall never meet.

00:19:25.000 They don't even communicate with each other.

00:19:27.000 It's two separate departments.

00:19:29.000 You know, you being the government guy, you know how important that is.

00:19:32.000 So that's kind of where you divide and conquer.

00:19:36.000 Because instead of making, let's say you make an extra 100 grand with your business, right?

00:19:40.000 You're gonna be a big fish in a small pond, putting it in a 1040, Right. 0.99

00:19:45.000 And then it's gonna be audited to fucking hell. 1.00

00:19:46.000 Right. 0.97

00:19:47.000 Versus you put it in the, you file it as a separate business.

00:19:51.000 Right.

00:19:51.000 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.

00:19:56.000 And you filed it appropriately.

00:19:57.000 This isn't illegal stuff.

00:19:58.000 You're doing it the way it should be.

00:19:59.000 You're separating the two.

00:20:01.000 Correct.

00:20:02.000 So the other reason is obviously for the tax savings.

00:20:05.000 So, you know, we use very simple numbers.

00:20:07.000 Let's say you make a profit for $100,000, right?

00:20:10.000 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.

00:20:22.000 So forget about the income tax.

00:20:24.000 You're going to pay self-employment tax because you have no control over that.

00:20:27.000 You've got a $100,000 profit.

00:20:28.000 All of that $100,000 is subject to self-employment tax.

00:20:31.000 Well, what is that?

00:20:32.000 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.

00:20:39.000 That's basically the self-employment tax.

00:20:41.000 That's FICA, Medicare.

00:20:44.000 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.

00:20:53.000 So it's 15.3%.

00:20:55.000 So that's just getting taken right off the top.

00:20:58.000 So you're getting hit with it twice.

00:20:58.000 Correct.

00:21:02.000 Almost.

00:21:02.000 Right.

00:21:03.000 Once you're self-employed, you have to pay that.

00:21:05.000 So now what you can save in this one, you'll save like $7,650.

00:21:08.000 I'll use this example.

00:21:10.000 File it on an S-Corp return.

00:21:11.000 You have to pay yourself a reasonable wage.

00:21:14.000 So you have to give your own self, for running that company, a reasonable wage.

00:21:18.000 A wage that you would pay someone if you were going to hire them to do that job.

00:21:22.000 Like a CEO or manager?

00:21:24.000 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?

00:21:24.000 Whatever it is.

00:21:32.000 When should someone start paying themselves from their company?

00:21:35.000 So that's a good question.

00:21:37.000 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.

00:21:46.000 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.

00:22:06.000 Now that's a red flag.

00:22:08.000 That's why those...

00:22:08.000 Because a lot of...

00:22:09.000 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.

00:22:18.000 Because you have no control.

00:22:19.000 When you're a W-2 wage earner, you can't get your income down.

00:22:22.000 It's already reported on that W-2.

00:22:23.000 There's nothing you can do.

00:22:24.000 There's really very limited ways for you to get your income down.

00:22:29.000 And that's one of the ways...

00:22:31.000 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.

00:22:41.000 Now they're getting their income down.

00:22:43.000 Gotcha.

00:22:44.000 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.

00:22:50.000 It could be a legitimate loss.

00:22:52.000 And I think we talked about this.

00:22:53.000 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. 1.00

00:23:01.000 And she was renting, paying desk fee, this, that.

00:23:03.000 And she had a loss.

00:23:04.000 Her husband was making like, I don't know, $400,000 or $500,000 as a doctor.

00:23:08.000 And she had like a $35,000 loss. 0.74

00:23:11.000 They were legitimate.

00:23:12.000 She had all of the receipts, everything.

00:23:15.000 And it got their income down.

00:23:17.000 And, you know, so they saw that as an opportunity that she got out of it.

00:23:20.000 She could have fought it.

00:23:21.000 She didn't.

00:23:22.000 She was like, I don't want to deal with it.

00:23:23.000 So she just paid, you know, the penalties and fines and everything.

00:23:26.000 Wow.

00:23:27.000 She doesn't want to deal with it.

00:23:28.000 Yeah.

00:23:28.000 Versus if she would have, I would have told her, you should have been an S Corp.

00:23:31.000 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.

00:23:40.000 Yeah.

00:23:42.000 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.

00:23:54.000 Oh, I just made an LLC. Now I'm like, I'm a business owner.

00:23:57.000 Woo! 0.99

00:23:57.000 And then you file your tax return. 0.99

00:23:59.000 Next thing you know, they're like, oh, yeah, we're going to go ahead and audit you because you made way more money.

00:24:03.000 And yeah, okay.

00:24:05.000 But we're told to get LLC as a business owner and just like do that.

00:24:09.000 It's great.

00:24:09.000 It's great because you get the best of both words.

00:24:11.000 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.

00:24:21.000 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.

00:24:34.000 So you only pay $7,650.

00:24:36.000 The rest is just income.

00:24:38.000 So you don't pay that.

00:24:39.000 Just in that case alone, you're saving $7,650.

00:24:43.000 Okay, hold on.

00:24:44.000 Let me just hold on.

00:24:45.000 That was very important.

00:24:47.000 I don't want none of this stuff to get glossed over because you're giving these guys so much important information.

00:24:51.000 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?

00:24:57.000 And we're going to put very detailed timestamps on this episode for y'all.

00:25:00.000 So...

00:25:01.000 Two scenarios.

00:25:02.000 You make $100,000, right?

00:25:03.000 One as an LLC, one as an S-Corp, right?

00:25:07.000 Assuming you made the LLC, then you switched over to S-Corp.

00:25:09.000 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?

00:25:20.000 Self-employment tax.

00:25:21.000 Automatic, without a doubt, that's coming off.

00:25:24.000 So you're going to only net about $85,000, and that's before all the other taxes that come in, right?

00:25:27.000 So $15,000 is already gone.

00:25:29.000 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?

00:25:36.000 It's an automatic $7,000.

00:25:37.000 Yeah, because I would say, just let's take 50% of your $100,000 and deem that Taxable for self-employment tax. 0.62

00:25:46.000 Okay.

00:25:47.000 Because you could do that on S-Corp.

00:25:48.000 Okay.

00:25:48.000 And the IRS says you have to pay yourself a reasonable salary.

00:25:51.000 Yeah.

00:25:52.000 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...

00:26:01.000 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.

00:26:11.000 Okay.

00:26:30.000 Okay.

00:26:32.000 Oh, you took $100,000?

00:26:33.000 Okay, that's going to be WTO wage.

00:26:35.000 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.

00:26:45.000 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.

00:26:57.000 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?

00:27:06.000 As far as, like, is it easier to write things off?

00:27:08.000 Are there any other benefits?

00:27:09.000 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.

00:27:16.000 Okay.

00:27:17.000 You know, the only thing with the schedule is that you don't have a balance sheet.

00:27:19.000 Okay.

00:27:20.000 You have a balance sheet for the S-Corp.

00:27:23.000 That's the major difference.

00:27:25.000 Okay.

00:27:25.000 But you still can, you know, take the same deductions.

00:27:29.000 Should someone switch over to an S-Corp even if they're not a W-2 employee?

00:27:34.000 Let's say they start their entrepreneur venture and they quit their job and they say, you know what?

00:27:37.000 I don't even want to work a W-2 job anymore.

00:27:39.000 I'm going all in on this.

00:27:40.000 So what I would say is, yes, they can.

00:27:42.000 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.

00:27:53.000 If you can negotiate where they can pay you, As a 1099 independent contractor, then do it.

00:28:00.000 And here's why.

00:28:01.000 Because by not doing it, you're getting a W-2 wage and you have very limited access to get your income down.

00:28:08.000 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.

00:28:23.000 You can't do that with a W-2 wage.

00:28:25.000 Okay.

00:28:26.000 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.

00:28:33.000 And I always ask him, I'll say, is there an opportunity for them to pay you as an independent contractor?

00:28:38.000 And they're like, yeah, I could talk to them.

00:28:39.000 I'm like, well, then do it.

00:28:39.000 Maybe.

00:28:41.000 Then do it.

00:28:42.000 Okay.

00:28:42.000 Then we have the whole tax book where we could just write everything off that they can't as an employee.

00:28:48.000 Right.

00:28:48.000 Gotcha.

00:28:49.000 And you know what?

00:28:50.000 Now that I think about it, when I was an agent, right?

00:28:52.000 And I had my W2 thing.

00:28:55.000 So they assign you a six-hour.

00:28:57.000 I didn't like that gun. 0.99

00:28:58.000 I was like, this gun sucks. 0.98

00:28:59.000 So I went ahead and bought my own Glocks. 0.99

00:29:00.000 But I couldn't write those off.

00:29:02.000 And I think years ago you could have been able to do it.

00:29:05.000 But by the time I bought those Glocks and switched over, you couldn't.

00:29:08.000 And that was because I was a W2 employee.

00:29:10.000 These are very limited.

00:29:11.000 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.

00:29:17.000 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.

00:29:22.000 And most employers, excuse me, would opt for that, because that's less liability on them.

00:29:29.000 That's less hassle.

00:29:30.000 It's just so easy.

00:29:32.000 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...

00:29:37.000 Wash your hands of it. 0.94

00:29:38.000 It's a lot, you know.

00:29:39.000 And they don't have to pay you benefits or anything, so it's better on their end, too.

00:29:41.000 So for the guys, so...

00:29:44.000 So should they always just switch over to an S-Corp, it sounds like to me?

00:29:47.000 Always.

00:29:47.000 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,

00:30:03.000 unless it's real estate, that's the only exception to this rule.

00:30:05.000 Only exception.

00:30:06.000 Absolutely.

00:30:07.000 Absolutely.

00:30:29.000 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.

00:30:36.000 And I paid a bunch of taxes and I was like, what the hell?

00:30:38.000 And then it was because I was set up as an LLC and I had never switched over to an S-Corp.

00:30:42.000 Right.

00:30:43.000 Let me ask you guys a question because I don't even know because I look at it differently.

00:30:47.000 What's your view of H&R Black?

00:30:49.000 Like before you knew me...

00:30:52.000 Going there, as far as them being a professional tax company to prepare your tax return, how did you feel about them?

00:30:58.000 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.

00:31:04.000 But if you're an entrepreneur, you 100% need a legit accountant that deals with entrepreneurs.

00:31:09.000 I agree with you.

00:31:11.000 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.

00:31:19.000 Everybody does in our area.

00:31:21.000 So, you know, it's pretty much most jurisdiction, most areas are going to have pretty much the same level.

00:31:21.000 Yeah.

00:31:26.000 But I noticed that H&R Block in our area, for instance, we weren't really saving any money at all.

00:31:32.000 Yeah.

00:31:33.000 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.

00:31:40.000 Yeah.

00:31:40.000 So they have very little experience, and you don't know it because they're just following whatever they, you know, like, there's...

00:31:45.000 Where I would never have someone, after 13 weeks in my firm, preparing returns for anybody.

00:31:51.000 I will have them preparing them, but I'll look at them.

00:31:54.000 Do we have a level of review?

00:31:55.000 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.

00:32:00.000 So we have levels of review.

00:32:01.000 They don't do that at HR Block.

00:32:03.000 Because they're trying to get volume.

00:32:04.000 Correct.

00:32:05.000 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.

00:32:16.000 So then the next year you go back and you're getting somebody totally different.

00:32:19.000 Well, I mean, okay, you know what?

00:32:20.000 Let's just use literal, real-world things here.

00:32:23.000 So when I was an agent, right, that first year that I had done a tax return, I made somewhere between...

00:32:30.000 Like 120 to 150 gross, right?

00:32:34.000 Because I had my fitness business as well.

00:32:35.000 I made 120K as an agent.

00:32:37.000 I think I made about like 30 to 40K with my fitness business.

00:32:40.000 And this is 2019, right guys?

00:32:41.000 Because I started the business June of 2019.

00:32:44.000 And then I was also working as an agent making about 120K per year.

00:32:48.000 So we're talking about 150K gross.

00:32:50.000 I paid that year, I think, like $36,000 in taxes.

00:32:54.000 $36,000 to $40,000 in taxes.

00:32:56.000 And I think I showed you, hey, this is my 2019 tax returns, right?

00:33:00.000 Because the first year I worked with you was 2020.

00:33:03.000 I paid, we paid just that same amount of taxes this year, making 10x.

00:33:07.000 I'll do a comparison.

00:33:08.000 I'll do a side-by-side just as a final check, and then I'll point that out.

00:33:12.000 Like, wow, look at...

00:33:13.000 Guys, I made pretty much, last year, made over an M, right?

00:33:17.000 And I paid...

00:33:19.000 About $36,000 to $40,000 in taxes.

00:33:21.000 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? 0.97

00:33:28.000 $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? 0.88

00:33:35.000 Obviously all legal because I'm using real estate, I'm an entrepreneur, etc. 0.92

00:33:37.000 I get heavy tax...

00:33:40.000 I don't know what does.

00:33:41.000 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.

00:33:47.000 But once you start getting into real estate, you're a business owner, etc., things get more complex.

00:33:51.000 H&R Block isn't going to do cost segregation for you.

00:33:53.000 They're not going to do depreciation.

00:33:55.000 They're not going to be able to help you with writing off expenses for your business.

00:34:00.000 It's not like you go to H&R Block.

00:34:02.000 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.

00:34:17.000 They don't do any type of tax planning that's very important that comes in towards the end of the year.

00:34:22.000 Me and you've been on the phone before planning like, hey, you should probably spend...

00:34:26.000 You know, some money before the end of the year, etc.

00:34:29.000 Any equipment that you want to buy, go pick it up now.

00:34:31.000 I remember when we were buying the cars, pick it up now before the end of the year.

00:34:34.000 Like, all this stuff is imperative because it will set you up, right, to pay a smaller tax bill in the future, guys.

00:34:40.000 And again, this is all legal.

00:34:42.000 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.

00:34:48.000 Small businesses, real estate, small business, Real estate, bam!

00:34:52.000 You hit this corner right here, and you're able to create jobs, create housing for people, and you get huge tax breaks.

00:34:57.000 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.

00:35:01.000 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.

00:35:09.000 But ease of access leaves you open to missing out a lot.

00:35:13.000 Right, right.

00:35:15.000 Yeah, they do tremendous marketing, too, as well.

00:35:17.000 So they're out there.

00:35:18.000 They got numbers.

00:35:19.000 Yeah.

00:35:19.000 You know, I think you're talking about real estate, you know, the most millionaires are in- Yeah, 90% plus.

00:35:26.000 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?

00:35:31.000 Sure, yeah. 0.99

00:35:32.000 Fuck it, we'll do it. 1.00

00:35:33.000 Okay, we're going to give you all some sauce, okay? 1.00

00:35:35.000 We're going to go ahead and kill the Twitch, Twitter, Facebook, kill everything except for Rumble and YouTube.

00:35:40.000 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.

00:35:51.000 Yeah, Maren's a great guy, man.

00:35:52.000 Awesome guy.

00:35:54.000 I'm giving you...

00:35:55.000 Shout out to Maren. 0.98

00:35:57.000 Yeah.

00:35:57.000 And like the video.

00:35:58.000 Yeah, and like the video, by the way, guys, too.

00:36:00.000 So...

00:36:02.000 This is what we're basically doing, guys.

00:36:04.000 Once I bought my 13th or 14th property, I pretty much got on the phone with Steve and Roger.

00:36:09.000 As you guys know, Roger is my real estate agent.

00:36:11.000 Steve is my accountant.

00:36:12.000 And we started strategizing, like, okay, we need to put this stuff in a way where I'm not going to...

00:36:18.000 So I can mitigate risk.

00:36:20.000 God forbid a tenant tries to sue me or whatever it may be.

00:36:22.000 So we started putting all the businesses into LLCs, which Steve was describing to you guys earlier.

00:36:27.000 But...

00:36:29.000 And each house, right, it's very simple.

00:36:30.000 Let's say you own 123 Main Street, make an LLC, 123 Main Street, LLC, bam.

00:36:35.000 And then just go by the address name for each house that you own, right?

00:36:37.000 And then each of those houses operates kind of like its own entity where that money's coming in.

00:36:41.000 And Steve described it earlier why it's appropriate for an LLC because it's considered passive income, you said, from a tax standpoint.

00:36:47.000 So you don't necessarily have to escorp it.

00:36:49.000 Then I took the next step, guys, and this is where the game changer is.

00:36:53.000 I went ahead and made an overarching LLC out of Delaware.

00:36:59.000 And that Delaware LLC holds all the other LLCs that I own.

00:37:07.000 So that main LLC is a real estate LLC, and that holds all the real estate property underneath it.

00:37:13.000 So it's kind of like an umbrella corp.

00:37:14.000 That holds all the others.

00:37:16.000 And I guess we could talk a little bit about the strategy there, why that's a...

00:37:20.000 So, I mean, that's important because you're separating all your assets for liability purposes.

00:37:27.000 Now, necessarily, that doesn't provide any real tax savings in it because you're already structured properly.

00:37:34.000 But another opportunity, too, is that I know you spoke to your attorney and that was a fantastic strategy.

00:37:39.000 Another one that you could do, too, is a revocable trust as well, too.

00:37:44.000 To encapsulate that.

00:37:46.000 So that's probably the next step because now you have your operation business and you have all your real estate.

00:37:51.000 You're going to have some other assets that you're going to be holding in there.

00:37:54.000 So then that's the next level that we'll talk about is to get an attorney to do the trust.

00:37:59.000 So let's say something should happen to you and then you can avoid probate and things of that nature.

00:38:06.000 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.

00:38:13.000 Because Delaware...

00:38:14.000 It has a very good setup process and everything is private.

00:38:19.000 It's not like Florida where everything is out there.

00:38:20.000 That's the thing with the trust too.

00:38:22.000 Yeah.

00:38:23.000 So you don't know.

00:38:25.000 You can't go on public records and find out.

00:38:28.000 Yeah.

00:38:29.000 Like Florida.

00:38:30.000 Florida is easy to find.

00:38:31.000 It's too easy.

00:38:31.000 It's too public.

00:38:32.000 Everything's out there.

00:38:34.000 Yeah, definitely.

00:38:34.000 That's one of the major things that benefits.

00:38:38.000 Shuttle to trust, man.

00:38:39.000 Yeah.

00:38:39.000 And another reason, too, guys, why I made that LLC out of Delaware was, number one, for the privacy to hold all those LLCs.

00:38:44.000 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.

00:38:51.000 Yeah.

00:38:52.000 And that real estate card, right, and just so you guys, it's Amex Gold that I use.

00:38:58.000 Yeah.

00:38:58.000 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.

00:39:03.000 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.

00:39:21.000 Because all the expenses are there.

00:39:22.000 That's why I tell y'all, credit card is so important.

00:39:24.000 You get free points, you're able to track everything, and you increase your credit score.

00:39:28.000 There's no reason to use your own money, guys, when you have a business.

00:39:31.000 So it allows me to go ahead and absorb those fees and get a benefit.

00:39:34.000 And he avoids all the paperwork, receipts you have to keep for every transaction.

00:39:38.000 Just give him his one list of charges from his credit card, he's good to go.

00:39:42.000 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.

00:39:59.000 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.

00:40:13.000 I'm going to give it out for free for the viewers here only.

00:40:16.000 Nice.

00:40:16.000 Only for the Fresh and Fit.

00:40:18.000 So if you go onto my Instagram and DM me and just DM me Fresh and Fit, I'll give you both.

00:40:24.000 There's two books, both copies.

00:40:25.000 One is going to be for W-2 wage earners.

00:40:28.000 It's going to be like things that you could do to get your tax bill down.

00:40:31.000 And also if you want to start your own business.

00:40:33.000 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.

00:40:38.000 That's free.

00:40:39.000 And it's free.

00:40:39.000 Yeah, and the other one is for real estate people starting out, how to go through that process.

00:40:45.000 I talk about the cost segregation process.

00:40:47.000 I have links in there and resources in there.

00:40:50.000 That's about a 50-page book.

00:40:52.000 W. Steve in the chat.

00:40:54.000 W. Steve in the chat.

00:40:55.000 And it's right there on the screen at the bottom, guys.

00:40:57.000 I'm going to give that out to you guys.

00:40:59.000 Yeah, it took me a while.

00:41:00.000 You know, and...

00:41:02.000 And I got a little, I had, you know, obviously a major life-changing event happened to me last year.

00:41:07.000 And that's kind of the purpose why I'm doing this.

00:41:09.000 The intention of this channel that I was doing, I was starting this with my son around this time last year.

00:41:15.000 And he was supposed to help me with this.

00:41:17.000 We were supposed to launch this.

00:41:18.000 And, you know, he unfortunately passed away at the age of 22.

00:41:22.000 And in honor of him, And keeping his memory alive, his legacy alive.

00:41:28.000 That's why I'm doing this.

00:41:29.000 So I'm just going to give the full alpha out.

00:41:33.000 I've made my money.

00:41:35.000 I'm running a successful business.

00:41:37.000 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.

00:41:45.000 And a lot of the issues that you guys are dealing with, I understand.

00:41:49.000 Because that was my son.

00:41:50.000 And you guys see that every day.

00:41:51.000 So that's why I'm going to...

00:41:53.000 That's the whole purpose and drive of this.

00:41:55.000 That's what's going to drive me and motivate me to do this in honor.

00:41:58.000 And unfortunately, we had a little setback with this for obvious reasons.

00:42:03.000 But now, I'm here.

00:42:05.000 And I just want to put that out there.

00:42:07.000 So there's going to be a lot of content out there.

00:42:09.000 If you follow my channel, I'm going to get the YouTube channel...

00:42:12.000 Off the ground, too, as well.

00:42:14.000 And I'm going to be talking about these specific issues like we talked about.

00:42:17.000 I have so many clients that I could tap into that could be guests on the show that you would never hear of.

00:42:24.000 They're not flexing out there with their Lambo. 0.89

00:42:27.000 These are multi-millionaires.

00:42:29.000 Hey! 0.99

00:42:30.000 I was going to say, Steve!

00:42:31.000 Well, you're young.

00:42:33.000 That's good.

00:42:34.000 Billionaires, too.

00:42:35.000 You've got billionaire clients.

00:42:37.000 I got a clip on my...

00:42:40.000 My Instagram, you know, it's a young lady.

00:42:42.000 She's got a really great channel, too.

00:42:44.000 She just talks like sometimes the best person to go to is a person that you don't know, you don't talk to.

00:42:48.000 And they're around.

00:42:49.000 And they're willing to talk to you.

00:42:50.000 And they're willing to sit down.

00:42:52.000 So I had clients of mine that wanted to start an alcohol mezcal.

00:42:57.000 And I think I gave you guys a bottle like last year or so.

00:42:59.000 And they wanted to start a mezcal company.

00:43:02.000 So I put them together with...

00:43:06.000 The inventor of Grey Goose Vodka, who's my client.

00:43:08.000 You would never know him.

00:43:09.000 We call him Vodka Bill.

00:43:10.000 Vodka Bill.

00:43:11.000 He's in the 70s.

00:43:13.000 He sold that company for $2.2 billion to Bacardi back in 2012.

00:43:18.000 I put him in touch.

00:43:20.000 I put the two brothers in touch with those guys, and he mentored those guys.

00:43:24.000 And today, those guys are in...

00:43:25.000 They've got with Buffalo Wild Wings. 0.99

00:43:29.000 They're in Total Wine.

00:43:30.000 They're in...

00:43:32.000 All major hotels.

00:43:35.000 And if it were not for them, consulting with this guy.

00:43:37.000 And this guy just sat with them.

00:43:38.000 And he didn't charge them for this.

00:43:40.000 He just sat with them.

00:43:40.000 And he mentored them.

00:43:41.000 And he mentored them.

00:43:42.000 Gave them links.

00:43:44.000 And even put them together with people that he knew in the industry.

00:43:49.000 So that's kind of what I'm going to do.

00:43:53.000 I've got an electrician that's got a multi-million dollar business.

00:43:57.000 He's an electrician.

00:43:58.000 Didn't go to college.

00:44:00.000 Got some great contracts.

00:44:01.000 I got another guy that's making over a million, and he's a painter.

00:44:06.000 Never went to college.

00:44:08.000 Didn't go to trade school.

00:44:09.000 So these stories are out there, and these are people that, you know, he likes cars, by the way.

00:44:14.000 He's got a Ferrari.

00:44:15.000 He's got a Ferrari, I think a Bentley.

00:44:18.000 Okay.

00:44:18.000 Yeah, you guys might have to talk.

00:44:20.000 But, yeah, so that's the whole purpose of this channel.

00:44:26.000 Go on there, DM me, Fresh and Fit, and you're going to get those two books.

00:44:30.000 I'm going to email you personally.

00:44:31.000 Completely free.

00:44:32.000 And we can see right now his phone's blowing up from DMs.

00:44:34.000 Oh, yeah, yeah, yeah.

00:44:36.000 The other message is right now.

00:44:37.000 You know, and the story is inspiring.

00:44:39.000 Yeah.

00:44:39.000 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.

00:44:47.000 No, of course.

00:44:48.000 What happened?

00:44:48.000 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.

00:44:52.000 Because make no bones about it, guys.

00:44:54.000 Like, Steve doesn't need to do this whatsoever.

00:44:55.000 He's already been established.

00:44:56.000 He owns his own accounting firm.

00:44:57.000 He does very well financially.

00:44:58.000 Doesn't need to do this.

00:44:59.000 But he's doing it because it's like, hey, me and my son started this.

00:45:02.000 I'm going to finish it.

00:45:04.000 Yes, it's my way of giving back and honoring his memory.

00:45:07.000 And, you know, like I said, I'm going to walk people through...

00:45:10.000 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.

00:45:17.000 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.

00:45:22.000 That's the whole purpose.

00:45:23.000 And I figured out, like, let the AdSense on revenue, let them pay for your fees and get the free knowledge out there.

00:45:31.000 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%.

00:45:38.000 Yeah, you guys are actually watching the real content versus like just watching us argue with chicks.

00:45:43.000 This is the stuff that's gonna change your life.

00:45:44.000 Is there anyone out there on YouTube With this much value?

00:45:49.000 No.

00:45:50.000 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.

00:45:55.000 The details.

00:45:56.000 He's telling you specifically why.

00:45:57.000 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.

00:46:06.000 And like you said, from the very beginning, if you start right, you end right.

00:46:09.000 If you start wrong, you end wrong.

00:46:10.000 Yeah.

00:46:11.000 And it can cause you dearly.

00:46:13.000 Cool.

00:46:14.000 I can hit some of these chats, yeah.

00:46:15.000 Because I know some of you guys probably have some really good questions.

00:46:17.000 Hey man, put your phone on mute, man.

00:46:19.000 Yeah, guys, and the book is completely free, man.

00:46:25.000 Various layers.

00:46:26.000 Have a great day, gentlemen.

00:46:27.000 I appreciate you guys and all you do.

00:46:28.000 CEO Network and Big Bossing.

00:46:29.000 Shout out to Cody!

00:46:30.000 Guys, get your questions in now, man.

00:46:32.000 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.

00:46:41.000 Any advice?

00:46:43.000 You're doing good?

00:46:44.000 Just make more money?

00:46:45.000 And pay off...

00:46:47.000 I mean, I don't know about buying a car right now, but...

00:46:50.000 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.

00:46:58.000 But if it's too long...

00:46:59.000 Just make it 50k a year.

00:46:59.000 Yeah.

00:47:00.000 If it's too long, then it's bad.

00:47:01.000 Just focus on making more money, bro.

00:47:02.000 If you got to go and just get another job, just do that.

00:47:04.000 But yeah, just pay your bills on time and get that credit score above a 720.

00:47:08.000 That should be your goal.

00:47:09.000 When I was younger, what I did was I got a car I could pay off in a year.

00:47:11.000 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.

00:47:16.000 So if you can't pay it off, pay it off.

00:47:17.000 But yeah, man, focus on getting...

00:47:19.000 I would say for you, just focus on getting your credit score over 70.

00:47:21.000 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.

00:47:27.000 You'd probably know better.

00:47:28.000 Car markets are going to get soft over the next six months.

00:47:31.000 I'm seeing a lot of repos, too.

00:47:33.000 So I've got an in.

00:47:34.000 I've got a lot of car dealers that I work with, and I'm...

00:47:39.000 I got them online, and I always ask them.

00:47:42.000 I always talk to my real estate agents.

00:47:43.000 I always talk to my car dealer guys, because those are the big ticket items.

00:47:47.000 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.

00:47:53.000 And I've always used it as a barometer.

00:47:55.000 Cars is a big measuring thing.

00:47:58.000 So he's telling me right now, they're having trouble right now.

00:48:01.000 I think the new car market's gonna be the new thing, because it's gonna be competitive.

00:48:07.000 And if you guys can hold off, there are going to be some better deals on there.

00:48:10.000 We had on the show Lucky Lopez before, and you mentioned all the repo lots are packed to the brim.

00:48:16.000 And you have to get more space because people can't afford to pay their car.

00:48:18.000 These floor plans right now, they can't pay the note on that. 1.00

00:48:22.000 They got to get rid of this shit. 0.99

00:48:23.000 So these are like the beginning signs. 1.00

00:48:25.000 Dealership owners telling you this.

00:48:27.000 Wow.

00:48:27.000 So he's getting straight from the source, guys.

00:48:29.000 And then what are the real estate guys telling you?

00:48:31.000 Real estate, too, as well right now.

00:48:32.000 I mean, it's...

00:48:34.000 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.

00:48:45.000 Yeah.

00:48:46.000 Still good in Miami.

00:48:47.000 You probably know this, too.

00:48:48.000 They need like four or five, like they're short There's still a shortage, yeah.

00:48:53.000 What is it, like four or five million units?

00:48:55.000 Yeah, we're about short four to five million single-family homes in the United States.

00:48:58.000 Okay.

00:48:58.000 So, I mean, I guess that bodes well for the...

00:49:00.000 The only problem is the rates right now and affordability.

00:49:03.000 So, I guess some of these people might have bought...

00:49:05.000 The rates are kind of in the cash flow pretty bad right now.

00:49:07.000 Kind of the situation where you're probably making a deal...

00:49:10.000 Maybe they got a 2% or 3%.

00:49:12.000 Yep.

00:49:12.000 And then now it's at 8%.

00:49:14.000 Yep.

00:49:14.000 So they can't get that higher price.

00:49:15.000 I was easily getting like 10% cash on cash returns with deals that I was doing in Miami.

00:49:19.000 Now I've got to settle.

00:49:20.000 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.

00:49:25.000 But, you know, the Miami market's good.

00:49:27.000 So it's like I would make that concession because the appreciation is strong.

00:49:32.000 The rental market is strong here.

00:49:33.000 People are moving here.

00:49:34.000 So the growth is on the horizon.

00:49:37.000 But, yeah, any other market, I wouldn't take an 8% cash on cash return.

00:49:40.000 Yeah, absolutely.

00:49:41.000 But in Miami, I could.

00:49:42.000 But yeah, the interest rates have definitely hurt it because interest rates keep going up.

00:49:45.000 They're trying to stave off the inflation.

00:49:47.000 Same thing with the cars.

00:49:47.000 Now, a lot of these people, they got 9%, 10%, 11% low rates on their cars.

00:49:53.000 They're paying for not so...

00:49:55.000 Because they bought these cars where there was a shortage.

00:49:59.000 And now, you know, they're having a tough time making the payments on them.

00:50:02.000 So right now is not the best time to get a car.

00:50:04.000 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.

00:50:10.000 Okay.

00:50:11.000 Yeah.

00:50:11.000 Unless you're going to get a fantastic deal, guys.

00:50:13.000 They're struggling to sell cars nowadays.

00:50:15.000 Especially like those, because it was a heightened market and then it's dropping because they can't sell cars.

00:50:19.000 So they have to at some point, you know, give you a deal on it.

00:50:21.000 Yeah.

00:50:22.000 Yeah.

00:50:22.000 So, you know, they're lost your gain.

00:50:24.000 So timing's everything.

00:50:26.000 Yep.

00:50:27.000 All right.

00:50:27.000 We got here, Ham Holland goes, if you guys had an insurance company, what would be the niche?

00:50:31.000 Auto, life, etc.

00:50:33.000 If you had an insurance company.

00:50:35.000 I'm not going to lie, bro.

00:50:36.000 What would be the auto?

00:50:37.000 For me.

00:50:38.000 What do you think, Steve?

00:50:39.000 I would say auto, yeah.

00:50:40.000 Auto?

00:50:40.000 That's a finesse, bro.

00:50:41.000 They're paying them off accident.

00:50:44.000 Although they're charging a lot of high rates here in Florida because of the last, you know, EN and stuff.

00:50:48.000 Yeah, yeah.

00:50:50.000 Troy, WFedReactStream last night.

00:50:51.000 Couldn't stop talking about it at work today.

00:50:52.000 Thank you so much, Troy.

00:50:53.000 Appreciate that, man.

00:50:54.000 I'm glad y'all enjoyed that Sound of Freedom breakdown. 0.99

00:50:56.000 That was fucking good. 0.96

00:50:57.000 Yuri, man, good things... 0.99

00:50:58.000 Yeah, they rescued kids from Haiti and everything, man.

00:50:59.000 You guys, go watch that episode, man.

00:51:01.000 Good things come to those who wait, but the best things come to those who take action and me.

00:51:05.000 Shout out to you, Yuri.

00:51:06.000 That's a good quote, man.

00:51:07.000 Mr.

00:51:07.000 Al goes, Hey, Myron, you said you will try to get Dr.

00:51:09.000 Stephen Greer on.

00:51:10.000 How's that going?

00:51:11.000 It'd be nice to have him on the show.

00:51:12.000 Working on it?

00:51:13.000 For some of you guys that are wondering, you're probably wondering who is that.

00:51:15.000 That's the leading guy when it comes to UFOs.

00:51:18.000 Definitely going to try to bring him on.

00:51:20.000 And then we got Tony goes, what does Steve say is a better route for trading profits?

00:51:25.000 LLC or S Corp about to open a business bank account to deposit profits and pay myself bi-weekly.

00:51:30.000 Okay, trading profits.

00:51:31.000 So if you're an LSE and you become an S-Corp, you cannot pay yourself a salary.

00:51:35.000 That's another little caveat.

00:51:36.000 So you have to be an S-Corp.

00:51:37.000 Okay.

00:51:38.000 Be an S-Corp, yeah.

00:51:39.000 Tony S-Corp, my friend.

00:51:41.000 Bam.

00:51:42.000 That's a safe bet.

00:51:43.000 Yeah.

00:51:44.000 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?

00:51:52.000 I would do that, yeah.

00:51:53.000 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.

00:52:02.000 You're trying to do these short trades during a short period of time.

00:52:07.000 So these 1099s come out, when you look at the sales and the Purchases, they're huge numbers.

00:52:15.000 You don't want to put that on your 1040.

00:52:16.000 It's just a big red flag.

00:52:18.000 It's problems.

00:52:19.000 Fair enough.

00:52:20.000 So if you're doing the trading on the side and you've got a regular job especially, definitely switch over to that.

00:52:24.000 Marius Pagel goes, or Pagel, starting an online mindset coaching business soon.

00:52:29.000 Would an LLC be beneficial right off the bat?

00:52:31.000 Can I use traveling or home rental expenses as write-offs?

00:52:34.000 Florida's my home state.

00:52:35.000 So that's a great thing too.

00:52:36.000 So that's another thing I'm going to do for you.

00:52:38.000 First, what do you guys do?

00:52:40.000 Yeah, so definitely LLC. But you want to be an S-Corp.

00:52:44.000 Yeah.

00:52:44.000 You want to be an S-Corp.

00:52:45.000 Because if it's not a rental property, become an LLC, but make it an S-Corp.

00:52:51.000 Yeah.

00:52:52.000 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?

00:52:59.000 Yeah, you could do it.

00:52:59.000 So the only thing is just like, okay, I'm going to open up my ABC Inc.

00:53:04.000 You just don't use LLC. Yeah, you could just do a profit.

00:53:08.000 But why?

00:53:08.000 Just get the best of both words.

00:53:09.000 You're going to get the limited liability plus the S-Corp status.

00:53:14.000 So it's like a hybrid.

00:53:15.000 It's not a full S-Corp.

00:53:17.000 It's a full S-Corp.

00:53:18.000 It's treated for tax purposes.

00:53:20.000 So why not get the best?

00:53:21.000 The lawyers came up with the LLC. So use what they came up with.

00:53:25.000 And the IRS has given you the option to treat it as an S-Corp.

00:53:29.000 So they'll get both.

00:53:32.000 Okay.

00:53:32.000 So start off as an LLC so that you can go ahead and get both sides.

00:53:36.000 But if you just open it as an S-Corp, you're not able to get the benefits of an LLC. Correct.

00:53:40.000 Because now you're just treated as a straight corporation, S-Corp.

00:53:43.000 Got it.

00:53:44.000 So you don't have limited liability.

00:53:45.000 Oh, that's smart.

00:53:46.000 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.

00:53:54.000 So start with LLC, then make an S-Corp.

00:53:55.000 Yeah, a few months in.

00:53:57.000 But do it within a year, right?

00:53:58.000 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...

00:54:05.000 I think there's something that has to do with your bank account.

00:54:07.000 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.

00:54:15.000 I think that's one of the things, too, that I learned along the way.

00:54:18.000 I came across that a couple of times in my experience.

00:54:20.000 What about Teltsport?

00:54:22.000 Well, Chad's probably going to get it anyway. 0.99

00:54:24.000 Damn. 1.00

00:54:24.000 You can't beat that one. 1.00

00:54:28.000 So yeah, LLC beneficial off the bat, then switch over, my friend.

00:54:31.000 And then he said, can I use traveling or home rental expenses?

00:54:34.000 Go back to that last one.

00:54:36.000 He's asking, can I use traveling or home rental expenses as write-offs?

00:54:41.000 Yes.

00:54:42.000 Yeah.

00:54:43.000 So that's the thing.

00:54:44.000 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.

00:54:51.000 Yeah.

00:54:51.000 So that's going to be a special segment that I'm going to focus on too.

00:54:55.000 And they could write off up to a certain percentage, right?

00:54:58.000 Yeah.

00:54:58.000 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.

00:55:08.000 Whatever you're paying for that house.

00:55:09.000 Yeah.

00:55:09.000 Got you.

00:55:11.000 Cool.

00:55:12.000 Double Ace?

00:55:13.000 Goes, LLC, that's 50-50 partnership.

00:55:14.000 My brother and I, our business, grosses about $250,000 a year.

00:55:18.000 We file taxes as S-Corp and our company pays us W-2s as employees.

00:55:22.000 We don't have any other employees besides us two.

00:55:24.000 Is this a solid structure for better tax purposes?

00:55:26.000 Yeah, it's perfect.

00:55:27.000 Yeah.

00:55:28.000 That's perfect.

00:55:29.000 50-50.

00:55:29.000 All right.

00:55:30.000 Sweet.

00:55:30.000 Good stuff, Albo.

00:55:31.000 You're doing it right.

00:55:32.000 The one, Curiso.

00:55:33.000 Five bucks.

00:55:34.000 Appreciate that.

00:55:35.000 Remember, Lord Titus, I have a videography business.

00:55:38.000 Been filing as a sole proprietorship for the past few years.

00:55:41.000 Would an LLC be beneficial?

00:55:43.000 Yes.

00:55:43.000 Get rid of that ASAP. That's an L. And become an S-Corp.

00:55:47.000 Yeah.

00:55:47.000 LLC. LLC. What is a sole proprietor?

00:55:50.000 That's another.

00:55:51.000 Sole proprietor is Schedule C. Yeah.

00:55:53.000 That's Schedule C. That's what happens.

00:55:54.000 You become a sole proprietor.

00:55:55.000 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.

00:56:06.000 Isn't that taxed more?

00:56:07.000 Yeah, so now you're subject to the 15.3%.

00:56:10.000 I just knew one thing, don't be a sole proprietor.

00:56:14.000 Okay, so yeah, bro, you need to switch.

00:56:17.000 So what should he do in his case?

00:56:19.000 Should he go make an LLC immediately?

00:56:20.000 Yeah, go make an LLC, get a tax ID number, and then fill out these two.

00:56:24.000 I don't know.

00:56:24.000 Just write this down.

00:56:25.000 You got to fill out.

00:56:26.000 And you can get this on my book, too, because I talk about the two forms, and I give the links in there.

00:56:30.000 Write this down!

00:56:31.000 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?

00:56:48.000 What box do I need?

00:56:48.000 That's the form for an LLC? Yeah.

00:56:50.000 Okay.

00:56:50.000 So I'm gonna have those two forms.

00:56:53.000 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.

00:56:58.000 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.

00:57:06.000 The stuff that we do, the stuff that I do every day, I'm just going to give it away for free.

00:57:09.000 So do they have to, let's say he's in the state of Florida for simple purposes.

00:57:13.000 He needs to make the LLC in Florida.

00:57:14.000 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.

00:57:22.000 8832 and then 2553.

00:57:24.000 Boom.

00:57:25.000 Write that down, guys.

00:57:26.000 So if you want to start your LLC, Go to your state, state department website, whatever it may be, which is for businesses, right?

00:57:33.000 In Florida, I think it's SunBiz, right?

00:57:34.000 In other states, it's called the Department of State for Businesses, whatever.

00:57:38.000 Every state has its own thing, but either way, you go ahead and create the LLC in your state, wherever you live.

00:57:42.000 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.

00:57:49.000 Correct, yeah.

00:57:50.000 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...

00:57:56.000 2553.

00:57:58.000 112553?

00:57:59.000 No, 2553.

00:58:00.000 2553, yeah.

00:58:01.000 And then those two forms are gonna help them set up as a...

00:58:03.000 That'll turn them into...

00:58:05.000 That'll turn the LLC into an S-Corp.

00:58:07.000 Okay.

00:58:08.000 And then, boom, you're done.

00:58:09.000 Okay.

00:58:10.000 Yeah, then you just go walk down to the bank...

00:58:11.000 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.

00:58:17.000 Yeah, okay.

00:58:18.000 Yeah.

00:58:19.000 I just had an idea, bro.

00:58:21.000 You should start a Patreon and do videos about all this stuff behind the scenes.

00:58:25.000 We talked to me about it because I bring the knowledge and the experience to her.

00:58:30.000 I don't bring what you guys have.

00:58:32.000 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.

00:58:36.000 I grew up...

00:58:38.000 I didn't have a cell phone.

00:58:39.000 We didn't have the internet.

00:58:41.000 Different times.

00:58:43.000 We'll do a value exchange.

00:58:46.000 Don't speak to my network, and I'll have you tips on Patreon.

00:58:49.000 There you go.

00:58:52.000 Cesar Aguilar.

00:58:53.000 Hey, Myron and Steve.

00:58:54.000 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?

00:59:01.000 That's a great plan.

00:59:03.000 It's a great plan, but...

00:59:05.000 Is this the same guy that wanted the car wrapping?

00:59:07.000 I think so.

00:59:07.000 Yeah, I think so.

00:59:07.000 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.

00:59:15.000 You need to know your marketplace at the very beginning.

00:59:17.000 For example, who's going to be your customers?

00:59:19.000 Can you get customers at all?

00:59:20.000 So before you run into that business, make sure your customers lined up before you even jump into it.

00:59:24.000 Yeah.

00:59:24.000 And guys, keep in mind, I didn't start my real estate LLC until I had 10 plus properties.

00:59:29.000 So it's not like you have to go ahead and incorporate all your LLCs, sorry, all your real estate properties into LLCs immediately.

00:59:35.000 I bought all the properties under my personal name, and then I switched them to LLCs after.

00:59:39.000 It's easier.

00:59:40.000 It's easier to buy under your...

00:59:41.000 Yeah, a little tip for y'all real fast.

00:59:43.000 It's way easier to buy a property under your personal name and then switch it to an LLC after.

00:59:47.000 Because if you try to buy under your LLC name, it's going to be...

00:59:51.000 You're going to get shittier rates.

00:59:53.000 You're not going to get as good of deals with lenders, and it's just a pain.

00:59:56.000 What's the form again?

00:59:57.000 Quickly indeed.

00:59:58.000 Oh, yeah.

00:59:59.000 Claim B. Yeah, we talked about that.

01:00:01.000 You know what?

01:00:01.000 That's a great one.

01:00:02.000 Let's talk about this real fast for the people.

01:00:04.000 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?

01:00:10.000 So the first thing, what I used to do when I did it was I'd buy in Steve Colon and a signee.

01:00:18.000 Okay.

01:00:18.000 And a signee.

01:00:19.000 So that left me.

01:00:20.000 Now I think in the state of Florida, they have a box where you could do and a signee.

01:00:23.000 I think I talked to Rogers about that when you guys were doing that deal.

01:00:26.000 So then you go and do the deal because everything's going to be done with your personal credit.

01:00:31.000 It's going to be your social security number.

01:00:33.000 And the bank wants, you know, you don't want to complicate the whole deal.

01:00:35.000 Who's this LSE? Yeah.

01:00:37.000 That's why I didn't even bother anymore.

01:00:38.000 I remember having those issues.

01:00:40.000 And, you know, sometimes you get some people that are just, you know, they're in the...

01:00:44.000 The lending department.

01:00:45.000 Yeah, they get finicky, man.

01:00:47.000 Underwriters start freaking out. 1.00

01:00:48.000 It goes to underwriting, they ask stupid questions, and it's a pain in the ass. 1.00

01:00:51.000 So keep it simple. 0.99

01:00:52.000 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.

01:01:02.000 But yeah, so that's...

01:01:04.000 And you transition it over.

01:01:06.000 Yeah.

01:01:06.000 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.

01:01:15.000 Yeah.

01:01:15.000 Like, what we did with you, you're talking about, like, now you're getting to a level where you're accumulating certain things.

01:01:20.000 Now, the next thing for you to think about is a trust.

01:01:22.000 Yeah.

01:01:22.000 A revocable living trust.

01:01:23.000 Yeah.

01:01:24.000 Right?

01:01:24.000 So, you build it organically.

01:01:27.000 So, as you go and you need certain things, you know, if you have a business, don't try to, like, strike.

01:01:31.000 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.

01:01:34.000 And they had built a trust and they built, like, this holding company.

01:01:37.000 They built these multiple.

01:01:38.000 I'm like...

01:01:39.000 You don't even have a business in property yet.

01:01:41.000 They had the whole structure in place.

01:01:43.000 They spent thousands of dollars doing it.

01:01:45.000 And they got mad at me.

01:01:46.000 I'm like, you don't have to do all this.

01:01:47.000 You don't teach this stuff?

01:01:49.000 I'm like, no.

01:01:50.000 This stuff you do organically as you acquire a new business or a new property.

01:01:54.000 There's levels to it.

01:01:55.000 Just do it organically.

01:01:57.000 They're pretty forgiving, I've noticed, for entrepreneurs, for you to incorporate the stuff after the fact.

01:02:02.000 I mean, hell, I didn't tell Post Properties before I even started.

01:02:04.000 I mean, I just started doing the LLC-ing and the Shell Company, all that stuff.

01:02:09.000 I started doing that this year, guys.

01:02:11.000 You know what I mean?

01:02:12.000 And I've been acquiring property for the past year and a half, two years.

01:02:14.000 So you can take your time with it.

01:02:16.000 Just make sure you get it set up right.

01:02:18.000 As soon as you can.

01:02:19.000 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.

01:02:23.000 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.

01:02:32.000 He had this whole scheme.

01:02:35.000 I don't know what you mean, but I won't say his name.

01:02:37.000 First off, You don't like...

01:02:40.000 Nobody's like...

01:02:41.000 He's got this whole...

01:02:43.000 It's just a lot of these streamers out there.

01:02:45.000 You know what's scary?

01:02:46.000 There's no alternative.

01:02:47.000 It's either him or the other guy.

01:02:50.000 Yeah, it's just unreasonable.

01:02:52.000 They need you, bro.

01:02:53.000 They need you, man.

01:02:55.000 This is unreasonable.

01:02:56.000 Alright, so we got here.

01:02:58.000 As independent contractor and roofing, should I open LLC as a consultant?

01:02:58.000 Who's up next?

01:03:02.000 How should I structure a business doing roofing?

01:03:04.000 So again, LLC, convert to an S Corp.

01:03:09.000 And yeah, independent contractor, roofing.

01:03:12.000 Your workers' comp rates are going to be high.

01:03:14.000 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.

01:03:22.000 And you can save on the workers' comp rate because those rates are high.

01:03:25.000 They're like 30-something for every dollar that you...

01:03:28.000 So if you're a small roofing company, it's just you, maybe a couple of guys.

01:03:31.000 You can structure yourself where you don't have to pay that extra rate.

01:03:35.000 Is it because of the liability of them hurting themselves?

01:03:37.000 Yeah, they fall off.

01:03:38.000 It's huge.

01:03:39.000 Workers' comp.

01:03:39.000 Those guys are very dangerous.

01:03:41.000 Damn. 1.00

01:03:42.000 Okay. 0.99

01:03:44.000 Menline goes, can you pay for business services overseas via crypto and claim it as a loss?

01:03:49.000 Got workers in Chile not a fan of $50 wire fee.

01:03:51.000 Shout out FNF. No, that's, yeah.

01:03:54.000 Whatever the jurisdiction is in Chile, you're going to have to be under their jurisdiction for tax purposes.

01:04:01.000 Crypto, man.

01:04:01.000 Gotcha.

01:04:02.000 Elman Howard, how much annual earnings do you need to make before hiring a financial consultant or accountant?

01:04:06.000 Good question.

01:04:08.000 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.

01:04:21.000 Okay.

01:04:23.000 Mean Green 816.

01:04:25.000 Yep, goes, how do you find a good CPA in your city and how much should I be paying for them?

01:04:28.000 Good question.

01:04:29.000 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.

01:04:29.000 Very good one.

01:04:36.000 And typically, you know, they say, are you happy with that guy?

01:04:39.000 So usually, it's a referral.

01:04:41.000 Yeah.

01:04:41.000 So if someone is doing well in life, that's obviously well spoken for, has a good business.

01:04:45.000 I'm just curious, brother, who's your CPA? And you ask them, and then they can help you out normally.

01:04:49.000 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?

01:04:57.000 And typically, they'll refer you to somebody if they're happy with them.

01:05:00.000 Real quick, guys, do me a favor.

01:05:02.000 We got 3,000 of y'all watching over on YouTube and then another 3,000 or so on Rumble.

01:05:06.000 Can you guys do me a favor and open up a tab on YouTube and come over and like the video on YouTube?

01:05:10.000 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.

01:05:17.000 So it would really help with the algo if you guys went ahead and liked the video.

01:05:20.000 Comment below for the algorithm or something like that.

01:05:23.000 It helps us a lot.

01:05:24.000 But yeah, guys, just like the video.

01:05:25.000 Let's get 100% engagement because we're giving y'all a lot of sauce right now.

01:05:28.000 This is life-changing information.

01:05:29.000 If you want to help us, like the video and put hashtag Fresh and Fit under the comments.

01:05:33.000 Yeah, on YouTube so that we can get back up in the algo.

01:05:35.000 And then also, open up a tab on YouTube and on Rumble.

01:05:37.000 Watch us on both, man.

01:05:39.000 The viewership is literally split right down the middle.

01:05:41.000 Half of y'all are on Rumble, half of y'all are on YouTube.

01:05:43.000 Just like it on YouTube for the algo.

01:05:45.000 If you don't mind, from the free sauce, like the video and put hashtag in the comments Fresh and Fit.

01:05:49.000 We really appreciate that, guys.

01:05:49.000 Yeah, man.

01:05:49.000 Please.

01:05:51.000 Especially since we're just coming out of YouTube, Joe, and giving you all this sauce, man.

01:05:53.000 Who else is giving you all this kind of information?

01:05:55.000 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.

01:06:02.000 And guess what? 1.00

01:06:03.000 In school, you don't learn this shit. 1.00

01:06:04.000 They don't teach you that. 1.00

01:06:04.000 At all. 1.00

01:06:05.000 I didn't even know it.

01:06:06.000 No.

01:06:06.000 Until Steve saved me.

01:06:07.000 If you do find out, it might be too late.

01:06:08.000 Yeah.

01:06:09.000 So.

01:06:10.000 H&R Block ain't going to do this for you.

01:06:11.000 I'll tell you that.

01:06:12.000 They're definitely not.

01:06:13.000 I paid less taxes.

01:06:13.000 They'll take your money, though.

01:06:15.000 I paid more taxes with H&R Block than I did with Steve, making 10x the money with Steve.

01:06:19.000 I mean, I said hello to Jill.

01:06:21.000 There was a Snipes.

01:06:21.000 Crazy.

01:06:23.000 Okay, we got here.

01:06:25.000 I'm a single business owner.

01:06:26.000 I have an ATM business.

01:06:27.000 Is it appropriate to have an LLC with an ATM since it's passive income?

01:06:30.000 Good question.

01:06:31.000 Really good question.

01:06:32.000 So that's it, yeah.

01:06:33.000 So it's ATM business.

01:06:35.000 I can explain, because I have one of these ATMs too.

01:06:37.000 Basically, it's ATM. You put it at a location, and it makes, it just basically generates passive income for you.

01:06:44.000 It's kind of like a rental property.

01:06:46.000 Yeah, really, it is.

01:06:47.000 So I guess, yeah.

01:06:48.000 So I guess you don't have, yeah.

01:06:50.000 It's simpler too.

01:06:51.000 Yeah, no need for an S-corp on that.

01:06:52.000 Yeah, it's not subject to self-employment tax, so.

01:06:54.000 Yeah.

01:06:55.000 Cool.

01:06:57.000 And then Crying Frankenstein, like the picture, I think video is what he means, like Crying Frankenstein.

01:07:02.000 I appreciate that.

01:07:03.000 And guys, don't worry.

01:07:04.000 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.

01:07:13.000 I love to be transparent with you guys.

01:07:17.000 Brubri831 goes, I have an appliance repair business looking to expand.

01:07:20.000 What would you recommend currently as sole proprietor? 0.99

01:07:22.000 Oh, shit. 0.99

01:07:23.000 I'm an appliance repair business. 1.00

01:07:24.000 Yeah, do not be a sole proprietor.

01:07:26.000 Yeah, LLC, S Corp.

01:07:30.000 There you go.

01:07:30.000 That was easy.

01:07:31.000 Is there ever a situation where it's good to be a sole proprietor?

01:07:35.000 I can't think of one.

01:07:37.000 Unless you're just doing some, like, selling little t-shirts or, like, you know...

01:07:41.000 Some, like, BS job on the side of, like, a real thing?

01:07:43.000 Stuff that you don't really care about.

01:07:45.000 Maybe?

01:07:47.000 Yeah.

01:07:47.000 Guys, sole proprietorship?

01:07:50.000 Don't do that, bro.

01:07:52.000 That's, like, what a woman on the side... 1.00

01:07:55.000 A woman could do, like, she sells cookies on the side of some shit. 1.00

01:07:57.000 You know what I mean? 0.99

01:07:57.000 For you guys that are actually, like, earning real income? 0.99

01:08:00.000 Like, no, man.

01:08:02.000 Girl Scouts.

01:08:02.000 Yeah.

01:08:03.000 This is only good for U.S. law.

01:08:05.000 Well, yeah.

01:08:06.000 We're in America, bro.

01:08:08.000 I mean, Canada, I mean, a lot of first world countries have similar setups, right?

01:08:12.000 But yeah, in general.

01:08:13.000 Talk to your local accountant over there.

01:08:14.000 Yeah.

01:08:16.000 Dodge Roberts goes, is it worth getting LLC when you day trade stocks and forex to save on taxes?

01:08:22.000 Day trading, again, I don't like that schedule because you're going to have to put it in your schedule.

01:08:26.000 There's just high numbers that you're putting in your 1040 that just tracked a lot of attention.

01:08:31.000 Those are outlier returns.

01:08:34.000 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.

01:08:43.000 Because what the IRS does is they put those in a repository and they take all that data.

01:08:47.000 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.

01:08:56.000 That's how they flag returns.

01:08:59.000 So that's why you want a good CPA that knows certain industries so they know, like, look.

01:09:02.000 I know this industry.

01:09:04.000 And they're doing a good job comparing year over year to make sure there's no these crazy swings.

01:09:10.000 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?

01:09:16.000 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.

01:09:23.000 But in which case, you have the wash sales, and that's a whole other...

01:09:26.000 Is there a way to, like, mitigate tax liability through trading stocks, though?

01:09:31.000 I didn't think that there was a way to do that.

01:09:32.000 I mean, I think if you're trading, you're trying to make a profit and make money, so I don't understand the...

01:09:37.000 How are you going to save taxes, bro?

01:09:41.000 With Forex and trade?

01:09:43.000 Maybe there's a way.

01:09:44.000 Maybe.

01:09:45.000 What people used to do at the end of the year...

01:09:47.000 Maybe losses.

01:09:47.000 Yeah, what people used to do at the end of the year...

01:09:48.000 You don't have to report losses, though, right?

01:09:49.000 To get those tax benefits.

01:09:50.000 Right, but you have to harvest those.

01:09:51.000 Like, at the end of the year, you harvest them.

01:09:53.000 But then what happens is if you buy that stock back within 30 days, then you can't take that loss.

01:09:57.000 So, you know, a lot of times, we'll look at...

01:10:00.000 I'll have my clients come in, and we'll look at things that we could do.

01:10:02.000 And one of them is we look at what stocks they have. 0.76

01:10:04.000 And they're dogs.

01:10:05.000 They've had them a long time, and they're going to lose money on them.

01:10:07.000 Then I say, all right, you need to sell those at the end of the year.

01:10:11.000 I think?

01:10:34.000 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.

01:10:44.000 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.

01:10:50.000 People are just trying to get around buying real estate.

01:10:51.000 Bro!

01:10:52.000 Buy real estate, guys.

01:10:53.000 If you want tax liability protection, man.

01:10:55.000 But with crypto, you're not subject to the wash sale.

01:11:03.000 So we talked about it in the tax court with Charlie and Miguel.

01:11:06.000 We'll tell them harvest losses at the end of the year.

01:11:10.000 We've got some crypto stuff.

01:11:11.000 The market's been down.

01:11:13.000 So, harvest these at the end of the year, and then, you know, so you don't lose on it, buy them right back.

01:11:18.000 So you could do it like a 1231, take the loss for it on your return, and then buy it back.

01:11:23.000 I think the IRS is going to close the loop on that eventually.

01:11:25.000 Yeah, but right now you can take advantage of it.

01:11:27.000 That's a little advantage, yeah.

01:11:28.000 Bro, we're giving y'all so much sauce right now, man.

01:11:31.000 Legally.

01:11:32.000 Legally, of course.

01:11:33.000 Yo, man.

01:11:34.000 But yeah, dude, I mean, so yeah, so S Corp for this guy as well, right?

01:11:38.000 Yes.

01:11:39.000 Yeah, S-Corp, bro.

01:11:40.000 We got here Chayamba Luro.

01:11:44.000 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.

01:11:49.000 And you start with an LLC. Should you move to an S-Corp or don't work in the United States?

01:11:53.000 Yeah, definitely.

01:11:53.000 That doesn't matter.

01:11:55.000 Yeah.

01:11:55.000 Cool.

01:11:56.000 Yeah, definitely.

01:11:57.000 Yeah, you got to switch to an S-Corp.

01:11:59.000 Because there's a bunch of guys that do that.

01:12:01.000 A lot of guys, they'll start an online business and they'll move somewhere significantly cheaper to live.

01:12:06.000 But what is it?

01:12:07.000 How much is it up to $100,000?

01:12:09.000 If you make over $105,000 or something like that internationally that you have to pay taxes on?

01:12:14.000 Well, see, the U.S. is the only country in the world that taxes you on your worldwide income.

01:12:20.000 Go figure it out.

01:12:21.000 Of course.

01:12:21.000 Uncle Sam's got to get his money.

01:12:22.000 Yeah.

01:12:23.000 So that's why I was just in Puerto Rico.

01:12:25.000 As a matter of fact, you guys are famous in Puerto Rico.

01:12:26.000 I never had this happen, but shout out to Gene Paul at the cigar bar.

01:12:31.000 So the place I stood at was above, it was Airbnb, but above the cigar bar.

01:12:36.000 Really nice cigar bar.

01:12:37.000 And this nice young kid, and he's a huge fan of you guys.

01:12:41.000 And then all of a sudden he called his brother, his cousin, his best friend.

01:12:44.000 And the next day I was there, they were all there talking about you guys.

01:12:48.000 That's dope, man.

01:12:48.000 And I was like, yeah, I know these guys.

01:12:50.000 Because the conversation just all of a sudden came up and he started talking about it.

01:12:54.000 I said, hey, you should follow these guys.

01:12:56.000 He's like, I know these guys.

01:12:58.000 Shout out to Gene Paul.

01:12:59.000 It's either a good response or a bad response.

01:13:02.000 Even the owner, I think.

01:13:05.000 A couple of the owners, they know you guys.

01:13:07.000 So they said, hey, if you guys ever want to come to Puerto Rico, you could do a really nice cigar bar.

01:13:12.000 Yeah, right in Old San Juan.

01:13:13.000 It's beautiful.

01:13:14.000 Right next to the Ford.

01:13:16.000 I've been to the Ford.

01:13:18.000 It's nice.

01:13:19.000 It's a lot of fun.

01:13:20.000 I don't know if I would live there, though.

01:13:22.000 There's certain areas, and that's what I'm doing.

01:13:24.000 I'm setting up a business there.

01:13:27.000 That's my whole purpose there.

01:13:29.000 But if I set something up there, I'm going to have to buy a property within two years.

01:13:34.000 I just want to throw that in there.

01:13:36.000 It's great, great tax.

01:13:37.000 There's a lot of crypto.

01:13:40.000 The whole condado area is all bought up by crypto millionaires.

01:13:44.000 It's really nice.

01:13:45.000 It's right on the beach.

01:13:47.000 The food there, the restaurants are phenomenal.

01:13:50.000 Isn't that where Logan Paul lives?

01:13:52.000 Yeah.

01:13:52.000 I think he has a crib out there.

01:13:53.000 Yeah, he's in Dorado, which is, that's another really very exclusive area.

01:13:57.000 Yeah, he needs to help, man.

01:13:58.000 Huh?

01:13:59.000 Yo, save, hashtag save Logan.

01:14:00.000 Yeah, right.

01:14:01.000 He married a girl that's been passed around Hollywood.

01:14:03.000 If you know, you know.

01:14:04.000 Or he's marrying her.

01:14:05.000 Okay.

01:14:06.000 Big Bear, man.

01:14:08.000 Can I do an LLC for my econ business?

01:14:11.000 I just started this year.

01:14:12.000 P.S. Chris should just go bald. 0.61

01:14:14.000 That five head isn't doing him justice, WMO. Can I do an LLC for my econ business?

01:14:19.000 I just started this year.

01:14:21.000 Any service or goods business that you're doing, I would definitely do LLC and definitely do S Corp.

01:14:29.000 Only when it's a rental real estate property will I just stick to LLC. Got it.

01:14:34.000 Gotcha.

01:14:35.000 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.

01:14:46.000 Passive income, does it get taxed the same as earned income?

01:14:50.000 Ordinary income.

01:14:51.000 So earned income is income that is subject to self-employment tax because you're actually earning it and working for it.

01:14:58.000 Yeah.

01:14:58.000 So then there's ordinary income.

01:15:00.000 So that would be like business from business profits.

01:15:02.000 Okay.

01:15:03.000 And then there's earned income would be like earned wages, you know, working.

01:15:07.000 So earned income and ordinary income aren't the same.

01:15:10.000 No.

01:15:10.000 So earned income, that's why you have the Schedule C where it's like, it's subject to self-employment tax.

01:15:17.000 And then you break it out.

01:15:18.000 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.

01:15:24.000 The other one is going to be just ordinary income tax that you would pay for.

01:15:28.000 For the rest of the profit.

01:15:30.000 And passive income isn't subject to the same, I guess, tax scrutiny?

01:15:34.000 Maybe that's my poor choice of words.

01:15:35.000 So the thing with passive income is, yes, it's still subject to the same ordinary income tax rate.

01:15:40.000 The only difference is you're limited on the loss that you could take.

01:15:43.000 So if it's passive, you could only take up to a $3,000 loss per year.

01:15:48.000 So in other words, yeah, so if you have gains, So basically, you can't take more than a certain amount.

01:15:56.000 You're limited on the losses you can take, but it's passive.

01:15:59.000 Okay.

01:15:59.000 So, yeah.

01:16:01.000 We got here.

01:16:01.000 All right.

01:16:03.000 Taylor Richard, getting a used car soon, about $9,000.

01:16:06.000 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?

01:16:13.000 Yeah, so definitely.

01:16:14.000 You're going to go to your accountant.

01:16:16.000 You're going to tell him you got the car.

01:16:17.000 You're going to give him the paperwork for it.

01:16:18.000 He's going to list it for you.

01:16:19.000 He's going to ask you, how much do you use it for your business?

01:16:21.000 Oh, I use the 80%.

01:16:22.000 He's going to list it for 80%.

01:16:24.000 You're going to get depreciation, a nice depreciation deduction on it.

01:16:27.000 I have a lot of my clients.

01:16:29.000 And this is going to become a good one.

01:16:30.000 Again, like we're talking about, the market's going to be really good for cars.

01:16:33.000 So if you have a business and you want to get a nice deduction...

01:16:36.000 You know, that's definitely a way to do it.

01:16:38.000 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.

01:16:45.000 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?

01:16:53.000 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.

01:16:59.000 But the depreciation right now is really good, dude.

01:17:03.000 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.

01:17:13.000 I thought it was 80% now.

01:17:14.000 Yeah, they drop down for the...

01:17:19.000 Bigger weight.

01:17:20.000 That's going to phase out too.

01:17:22.000 Now it was 100 last year, 80 this year, then it's going to go to 60.

01:17:26.000 Every year it's going to drop 20%.

01:17:27.000 So take advantage of it now.

01:17:29.000 80% is still pretty good.

01:17:31.000 That's very important.

01:17:32.000 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.

01:17:44.000 How much they put down, which is huge.

01:17:46.000 So if it's worth 200,000, They're able to write off 160K. In the first year.

01:17:50.000 In the first year.

01:17:51.000 Yeah.

01:17:51.000 Wow.

01:17:51.000 And then the rest of the 20%, then they'll just take that over the next four years.

01:17:56.000 Okay.

01:17:57.000 Wow.

01:17:58.000 It's still a good deduction.

01:17:59.000 Yeah.

01:17:59.000 And I think that's where Fresh talked about, because a lot of people ask, oh, yeah, I want to buy a car.

01:18:03.000 I want to buy a car.

01:18:04.000 The only way it really makes sense to buy a car and lease it nowadays is if you're a business owner.

01:18:08.000 Right.

01:18:09.000 Yeah, pretty much.

01:18:09.000 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.

01:18:14.000 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.

01:18:19.000 It can cost you anyway, so you might as well get benefits off it.

01:18:21.000 Yeah.

01:18:23.000 Yo, guys, I'm a new...

01:18:24.000 Don't do it through fraud, though, guys.

01:18:26.000 Yo, guys, I am new to Fresh and Fit, and I must say you guys have an amazing team.

01:18:30.000 Shout out to the mod team and greetings from Netherlands.

01:18:32.000 Shout out to you, bro.

01:18:33.000 Shout out to the mods, man.

01:18:34.000 Assalamualaikum, Habibi!

01:18:35.000 And then we got here Asked...

01:18:37.000 Okay.

01:18:38.000 I'm an LLC filed as S-Corp for taxes.

01:18:40.000 Would you recommend I set up a private retirement account funded by my LLC to invest in real estate?

01:18:45.000 So he says, I own LLC filers, and I said, okay, would you recommend?

01:18:49.000 Yeah, you could do a solo 401k.

01:18:52.000 A solo 401k.

01:18:53.000 You could even set it up as a Roth, too.

01:18:55.000 You don't need the immediate tax deduction for it.

01:18:57.000 That would be the best way to put your earnings in there.

01:18:59.000 Roth IRA? Yeah, you can put up to $66,000 in one year.

01:19:03.000 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.

01:19:09.000 But I like the 401k because you could take loans against it.

01:19:12.000 So you need access to that money.

01:19:13.000 You don't have to wait until you're like, you know, retirement age.

01:19:16.000 Yeah.

01:19:17.000 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.

01:19:24.000 But yeah, definitely.

01:19:26.000 That's the solo 401k.

01:19:27.000 You should look into that.

01:19:28.000 Okay, cool.

01:19:30.000 G goes, should I create a company if I earn money from YouTube?

01:19:33.000 Yes.

01:19:35.000 Absolutely, bro.

01:19:36.000 Yeah.

01:19:37.000 I run a trucking business as a sole proprietor.

01:19:42.000 They started an LLC trading luxury watches.

01:19:46.000 Should I switch this to an S-Corp and should I change my sole proprietorship business as well?

01:19:50.000 Thank you FNF the goats.

01:19:51.000 Yes.

01:19:52.000 All of the above.

01:19:53.000 Yeah.

01:19:53.000 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.

01:20:01.000 So you should be running two S-Corps if I'm not mistaken.

01:20:03.000 Yep.

01:20:04.000 Two different businesses.

01:20:05.000 What are you doing, man?

01:20:05.000 Yeah, bro.

01:20:06.000 Come on.

01:20:07.000 Just a question, Myron.

01:20:08.000 Did these Monday things apply to Aussies? 0.87

01:20:11.000 I might not have been paying attention.

01:20:13.000 Sorry.

01:20:14.000 I mean, this is the U.S. tax code, but I think...

01:20:18.000 The Australian tax code is very similar to the US tax code.

01:20:23.000 All the first world countries are.

01:20:25.000 Canada.

01:20:26.000 Tom Wheelwright, Robert Kiyosaki's accountant, he wrote a book called Tax-Free Wealth.

01:20:34.000 And in that book, he also put in the beginning that all the first world countries have very similar tax codes.

01:20:39.000 Yeah, they do.

01:20:39.000 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.

01:20:50.000 We definitely have the most sophisticated and most complex tax structure.

01:20:54.000 Yeah.

01:20:54.000 On purpose.

01:20:55.000 Just a question, Myron.

01:20:56.000 Do these money...

01:20:57.000 Read that one.

01:20:57.000 Oh, sorry.

01:20:59.000 And guys, from this point forward, are we 20 and up?

01:20:59.000 We got here.

01:21:01.000 Yeah, 20 and up.

01:21:02.000 Best way to find a mentor for your new business?

01:21:07.000 So, you know, that's what I was talking about.

01:21:09.000 Like, I'm going to have guests on my show that are just guys that you don't know who they are.

01:21:14.000 They're quiet money and they're successful.

01:21:16.000 And these guys will give free advice to you.

01:21:20.000 That's their jobs.

01:21:22.000 And they will sit with you and talk with you because they want that.

01:21:22.000 It's alpha.

01:21:25.000 You know, you're basically feeding their ego.

01:21:26.000 They like that.

01:21:27.000 They're like, okay, let me help.

01:21:28.000 If you're really serious about it, you just go.

01:21:28.000 You know, they'll help you out.

01:21:30.000 Just walk in and say, hey, listen.

01:21:32.000 These guys are bored.

01:21:35.000 They made their money.

01:21:36.000 They made their success.

01:21:37.000 They're like, you know what?

01:21:38.000 What do I do nowadays?

01:21:39.000 And it's just like, if you are adamant about becoming better, they can see the driving you, they see the ambition.

01:21:44.000 You know what?

01:21:45.000 Well, Johnny, I got you, brother.

01:21:46.000 I'm going to give you my knowledge.

01:21:47.000 For free!

01:21:48.000 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?

01:21:53.000 I'll sit down and give him all my time.

01:21:55.000 And tell him everything he needs to know for free.

01:21:58.000 If he's humble and willing to learn and listen, why not?

01:22:00.000 Take him out to lunch.

01:22:01.000 Lunch is, you know, spend 20 bucks.

01:22:05.000 Well, if you tell me that, I'm going to say no. 0.97

01:22:07.000 Yeah, but that's because you're famous, nigga. 1.00

01:22:08.000 No. 0.96

01:22:10.000 He could buy lunch for himself.

01:22:12.000 Well, you know what I mean.

01:22:13.000 You offer.

01:22:15.000 Talk to rich guys that are famous.

01:22:18.000 He'll probably give you free advice and pay the bill.

01:22:22.000 Van Chazelle, $10.

01:22:23.000 Appreciate that.

01:22:25.000 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,

01:22:41.000 what type of business license you need.

01:22:43.000 They know everything when it comes to starting the business and they don't charge a lot of money for it.

01:22:46.000 It's not like they can do these corporations for you.

01:22:48.000 Can they keep their business incorporated in their home state when they move? 0.99

01:22:51.000 Yeah, they can, but that's a pain in the ass, though. 0.97

01:22:53.000 If you're going to move the whole thing over, then you've got to go back and file over there. 0.98

01:22:56.000 It's like, no.

01:22:57.000 I would just keep it all to that one state that you're in.

01:23:00.000 It's simple.

01:23:01.000 Ghost Raven, if I start an epoxy...

01:23:03.000 No, sorry.

01:23:03.000 Read that one.

01:23:05.000 These came in after, Mo, or...?

01:23:07.000 These are early.

01:23:08.000 Okay, these came in earlier.

01:23:09.000 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.

01:23:12.000 Steve, I have a midterm rental arbitrage Airbnb business where I manage real estate, but I don't own it.

01:23:17.000 LLC or S-Corp?

01:23:18.000 LLC, that's an S-Corp.

01:23:20.000 Okay.

01:23:20.000 Because it's an active business, right?

01:23:22.000 Yeah.

01:23:22.000 So that's an example of- That's more of an operation.

01:23:24.000 Yeah.

01:23:25.000 Okay.

01:23:25.000 Smart.

01:23:26.000 Smart.

01:23:27.000 So basically, because a lot of people do this, they don't own the property.

01:23:31.000 They just simply get it leased out through Airbnb and they get a percentage and the owner doesn't do anything.

01:23:36.000 So the owner is able to keep that as LLC and passive income.

01:23:38.000 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.

01:23:45.000 So you need to escort, but the owner can LLC it.

01:23:48.000 I think I got to change my dinner plans.

01:23:50.000 I got my reservation because I don't know what she's cooking over, but it smells delicious.

01:23:54.000 I mean, smelling it.

01:23:56.000 Yeah, she's back cooking some.

01:23:58.000 So what do we got here?

01:23:59.000 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?

01:24:06.000 Is there an advantage?

01:24:06.000 Yeah.

01:24:08.000 Again, I don't know what the filing requirement is in Delaware.

01:24:11.000 There's a return you got to file, right?

01:24:13.000 Yeah, you have to update it every year to keep it up.

01:24:17.000 Let's see, should I do an S-Corp in Delaware?

01:24:20.000 Well, I have the LLC out of Delaware.

01:24:22.000 Remember, this is real estate, guys.

01:24:23.000 So you have a resident agent that has to put their information in for that?

01:24:28.000 Yes.

01:24:29.000 Yes, I did it.

01:24:29.000 And then you pay a fee for that every year.

01:24:30.000 Okay.

01:24:31.000 Yeah.

01:24:33.000 So, yeah.

01:24:33.000 But I have it as an LLC, not as an S-Corp because it's real estate.

01:24:37.000 And it's the parent company.

01:24:38.000 Yeah.

01:24:39.000 It's not your lower level.

01:24:41.000 Okay.

01:24:42.000 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?

01:24:47.000 I think in your case, it's an active business.

01:24:49.000 It's an operational business.

01:24:50.000 I would do it in the state that you're in.

01:24:52.000 Yeah.

01:24:53.000 In Virginia.

01:24:54.000 Yeah.

01:24:54.000 Do it in Virginia as an LLC, then switch it over to an S-Corp.

01:24:56.000 But remember, my LLC out of Delaware is staying an LLC because it's a real estate business.

01:25:01.000 That's why.

01:25:04.000 DL Saint!

01:25:06.000 Shout out to DL Saint, man.

01:25:07.000 I really want to know a podcast.

01:25:08.000 Shout out to him, man.

01:25:10.000 This is a message man needed to hear.

01:25:12.000 Respect to Myron Fresh, Big Mo, and Chris.

01:25:15.000 Shout out to Brother Steve.

01:25:16.000 Keep leaning from the front, John.

01:25:17.000 I appreciate that, St.

01:25:18.000 Man.

01:25:18.000 Trying to get people to the sauce.

01:25:19.000 Guys, go check out his YouTube channel, by the way.

01:25:21.000 He does a podcast where he helps guys.

01:25:23.000 He has a lot of wisdom, a lot of knowledge from his years on life.

01:25:26.000 Military vet, been around the world.

01:25:28.000 Definitely someone that you want to watch.

01:25:31.000 D House, 50 bucks.

01:25:32.000 Need advice, 30 years old, 105K salary.

01:25:34.000 I'm paying too much of taxes.

01:25:34.000 I'm already maxing my company for 1K match.

01:25:37.000 So go...

01:25:39.000 DM me on there, because I talk about W-2 wage earners just like you, and I give strategies in that one book.

01:25:45.000 It's called The Lie About Tax.

01:25:50.000 The first book that I'm going to send to you, go in there.

01:25:52.000 It's going to have strategies for W-2.

01:25:54.000 There's like 10 strategies that you can apply immediately.

01:25:57.000 For W-2 earners to lower their tax liability?

01:25:59.000 Cool.

01:26:00.000 Can you give us like two or three of them?

01:26:04.000 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.

01:26:12.000 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.

01:26:17.000 But if you want to save now, you can put up $6,500 into there.

01:26:24.000 Also, I don't know what type of work that you're doing.

01:26:27.000 So you can look at different things where you might be able to take some advantage of Some of the employee expenses.

01:26:33.000 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.

01:26:41.000 Go ahead and go in there.

01:26:42.000 Those will be the time that are going to apply in 90% of the cases.

01:26:48.000 Okay.

01:26:48.000 You know, unfortunately, when you're W-2, it's your very limited.

01:26:51.000 That's why, like, starting a business is so good.

01:26:53.000 Yeah, if you have an option to become an independent contractor, always opt for that option.

01:27:00.000 Because now you've got the whole tax code at your disposal.

01:27:04.000 Bam.

01:27:04.000 Nice.

01:27:05.000 All right.

01:27:06.000 We got here Eric Campos, 20 bucks.

01:27:08.000 Appreciate that.

01:27:09.000 Talk to you.

01:27:09.000 Thank you, my friend.

01:27:11.000 Vigoronomy by Rod Eric goes, Fresh Fit Money Clips will help pass out the books.

01:27:16.000 Thanks, Steve, for supporting the page.

01:27:17.000 Shout out to you, my friend.

01:27:17.000 There you go.

01:27:19.000 What small business or side hustle would you recommend for guys in the military?

01:27:22.000 Also, what do you guys think about AI OnlyFans business?

01:27:26.000 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.

01:27:32.000 That's number one, so you don't get in trouble, right?

01:27:34.000 And I'll tell you that as a former government employee.

01:27:35.000 And then as far as like a side hustle, what's your skill set, bro?

01:27:39.000 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.

01:27:49.000 I mean, what do you think, Steve?

01:27:51.000 I agree.

01:27:51.000 Yeah.

01:27:51.000 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.

01:27:56.000 But I have no idea.

01:27:58.000 What is it?

01:27:59.000 I mean, well, that's never going to get official intelligence.

01:28:02.000 I'll tell you that right now.

01:28:03.000 Bro, you try to push that up through your chain of command.

01:28:06.000 That's never going to get approved.

01:28:07.000 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.

01:28:13.000 You might have Army CID knocking on your door.

01:28:17.000 You know what I'm saying?

01:28:18.000 RBCID, open up.

01:28:19.000 You know what I mean?

01:28:20.000 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.

01:28:29.000 So if you're doing OnlyFans, that's essentially pornography.

01:28:32.000 The government might look at it as pornography on the side. 1.00

01:28:35.000 And I guarantee your chain of command won't approve that.

01:28:37.000 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.

01:28:50.000 And then, bam, next thing you know, you're getting a court-martial and you're over.

01:28:54.000 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. 0.99

01:29:03.000 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. 0.65

01:29:10.000 So these are things you got to keep in mind when you're in the military, guys.

01:29:13.000 You don't have as much freedom as a private citizen to do certain things.

01:29:16.000 So, yeah, bro, just be very careful.

01:29:18.000 I mean, what do y'all think?

01:29:20.000 I agree.

01:29:20.000 Especially if you got a clearance.

01:29:21.000 Especially if you got a clearance, they're going to come and they're going to, they can revoke your clearance.

01:29:25.000 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.

01:29:31.000 Clearance.

01:29:32.000 SCI. That stuff is all going to be unfavorable.

01:29:36.000 And all it takes is one person to snitch and hate on you and be like, oh, look at this guy doing this stuff.

01:29:39.000 And then, bam, internal investigation open on you.

01:29:42.000 Army CID's at your door.

01:29:43.000 Yeah, it sounds cool, but I wouldn't tell anyone what you want to do with that.

01:29:48.000 Yeah, but it's going to have to go up the chain of command anyway.

01:29:50.000 Your superior's going to know.

01:29:51.000 Keep it up to yourself.

01:29:54.000 Don't do the OnlyFans stuff, bro, if you're going to be in the military.

01:29:56.000 That's my suggestion.

01:29:57.000 Don't do anything that can be looked at negatively.

01:30:00.000 I purchased my home last year this month.

01:30:02.000 What benefits can I get by moving out and renting my current home to a family member?

01:30:05.000 Can I start an LLC with that?

01:30:06.000 Yeah, definitely start the LLC with it immediately if you're going to do that.

01:30:11.000 Cool.

01:30:12.000 You guys are getting so much sauce, man.

01:30:14.000 This is like, bro, this is probably one of the most value-packed episodes we've done in a very long time.

01:30:18.000 Shout out to Steve.

01:30:18.000 Yeah, shout out to Steve.

01:30:19.000 Hey, Fresh to Fit, I own a restaurant, but I made it as a sole proprietor.

01:30:23.000 Wow. 1.00

01:30:24.000 Stupid. 1.00

01:30:26.000 No, bro. 1.00

01:30:27.000 Just hold it.

01:30:28.000 Just hold it.

01:30:29.000 It's fine.

01:30:29.000 As it's my first business and didn't have much help, I worked with what I got.

01:30:33.000 How can I go about making it an LLC S Corp?

01:30:36.000 Is it even beneficial to do that with a restaurant?

01:30:39.000 Most definitely with a restaurant.

01:30:41.000 There's so much liability in there.

01:30:42.000 It's incredible.

01:30:44.000 Yeah, do that like ASAP. But see, that's the problem.

01:30:46.000 Plus the tax savings on it.

01:30:47.000 It's like you're missing out on that.

01:30:48.000 But here's the question.

01:30:48.000 How long has he had the restaurant open?

01:30:50.000 Yeah, well, yeah.

01:30:50.000 So you're going to get to come up with a name.

01:30:52.000 You're going to start from scratch.

01:30:53.000 Okay.

01:30:54.000 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.

01:30:59.000 No, he's not even an LLC. He's just a sole proprietor.

01:31:02.000 He's just operating the business under his own name.

01:31:04.000 This is the issue, though.

01:31:06.000 We've been taught.

01:31:08.000 Wrong way to do business.

01:31:09.000 Or not at all.

01:31:10.000 And we run into things like this, and it's like, wait, why are we not getting full benefits?

01:31:14.000 Because we don't know.

01:31:15.000 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.

01:31:22.000 DBA, yeah.

01:31:23.000 And whatever the name of the restaurant is, and it all, and he's putting it on a schedule. 0.99

01:31:27.000 Damn, he get taxed like crazy. 0.99

01:31:28.000 Yeah, he's probably playing employees, and man. 1.00

01:31:31.000 On the table, Cash?

01:31:33.000 Yeah, bro.

01:31:33.000 Yeah.

01:31:34.000 Yeah, yeah, yeah.

01:31:35.000 It's like he needs to do it right now as he's watching the show.

01:31:38.000 Like yesterday.

01:31:38.000 Make an LLC right now, bro, while you're watching us live.

01:31:41.000 Like yesterday, bro.

01:31:41.000 Jesus, come on.

01:31:42.000 Yeah, Jesus, make that LLC right now, and then you're going to go ahead and turn that thing into an escort. 1.00

01:31:46.000 He's legal, bro.

01:31:47.000 You're legal.

01:31:47.000 Get that taco truck.

01:31:49.000 Get the taco truck.

01:31:50.000 Make an escort.

01:31:51.000 Come on.

01:31:51.000 Hey, yes, races, bro.

01:31:53.000 I'm just kidding.

01:31:53.000 It's okay.

01:31:54.000 He's watering.

01:31:54.000 Yeah, he's one of those.

01:31:55.000 He's one of those. 0.97

01:31:57.000 Superguts.

01:31:57.000 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.

01:32:09.000 Okay.

01:32:10.000 Okay, so they're properties.

01:32:11.000 You don't know.

01:32:12.000 Okay, so again, we're talking about properties.

01:32:14.000 So I have this in my business as well, too, in my CPA practice.

01:32:18.000 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.

01:32:27.000 So you guys will default to a partnership.

01:32:29.000 And again, it's real estate rental activity, I'm assuming.

01:32:33.000 So you can structure it that way.

01:32:36.000 It'll be a separate return, but you'll have partners.

01:32:40.000 It'll default to a partnership tax return, not an S-corp.

01:32:44.000 Okay.

01:32:44.000 And guys, do me a quick favor.

01:32:46.000 I'm looking right now.

01:32:47.000 We got 3,000 y'all watching on YouTube alone.

01:32:49.000 But I see that we only have 1.9k likes.

01:32:53.000 Guys, I need y'all.

01:32:55.000 To stop what you're doing, see that like button right below the video?

01:32:58.000 That little thumbs up?

01:32:59.000 I need you guys to smash that like button right now.

01:33:02.000 We should be at 100% engagement for this video because we are giving you guys so much sauce right now helping y'all.

01:33:07.000 We are literally saving y'all thousands of dollars right now as we speak.

01:33:10.000 And also, the real supporters that support Fresh and Fit, do me a favor.

01:33:15.000 Hashtag Fresh and Fit in the comments down below.

01:33:17.000 That's all we ask for, bro.

01:33:18.000 It's free.

01:33:18.000 Literally comment it right now as you're watching, guys.

01:33:20.000 Boom.

01:33:20.000 That's it.

01:33:21.000 Like the video, man, because we're giving you a lot of sauce.

01:33:23.000 You guys have been requesting this episode for a long time, by the way, too.

01:33:25.000 I know you got it.

01:33:26.000 And you guys are getting it.

01:33:26.000 And we're answering your questions.

01:33:28.000 You guys have one of the best accountants.

01:33:30.000 Literally answer your questions right here, right now.

01:33:31.000 Betty, Steve.

01:33:33.000 For a regular appointment with a CPA to talk about these things.

01:33:35.000 I was just going to say that.

01:33:36.000 How much is the cost?

01:33:37.000 So, anywhere from $300 to $500.

01:33:39.000 I know if I have a contact with someone and say, hey, what do I got to pay?

01:33:42.000 It's typically anywhere from $300 to $500.

01:33:44.000 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.

01:33:54.000 Just like the video.

01:33:55.000 That's all you gotta do.

01:33:57.000 And DM him to get his two free books for y'all.

01:34:00.000 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.

01:34:08.000 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.

01:34:12.000 I could only imagine being 18 years old hearing this info, bro.

01:34:15.000 I wish I had a curve, bro.

01:34:16.000 I'd be smarter.

01:34:18.000 Man.

01:34:19.000 You know, and if you're going to be a, you know, obviously.

01:34:22.000 Guys, comment it in the comment section.

01:34:24.000 I see you guys putting hashtag Fresh and Fit.

01:34:25.000 Not in the live chat.

01:34:26.000 Put it in the comment section.

01:34:28.000 Put hashtag Fresh and Fit.

01:34:29.000 Shout out to you guys, man.

01:34:29.000 Just below.

01:34:30.000 Click comments.

01:34:31.000 Fresh and Fit.

01:34:31.000 Boom.

01:34:31.000 Hashtag Fresh and Fit.

01:34:32.000 For the Algo.

01:34:33.000 We appreciate it.

01:34:34.000 Sorry, you had something fresh?

01:34:34.000 You were trying to say?

01:34:35.000 No.

01:34:35.000 Or Steve?

01:34:35.000 Oh, so what I was going to say is you don't need to be an expert, actually, on a tax code.

01:34:39.000 I don't expect anybody.

01:34:40.000 But I want to break things down and explain.

01:34:42.000 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.

01:34:45.000 You've got to get the team in right in the beginning.

01:34:48.000 That's what you did.

01:34:49.000 Yeah.

01:34:49.000 That's what you did, too.

01:34:50.000 That makes a difference.

01:34:51.000 Not only did you save thousands of dollars in taxes, but you also got good advice going forward.

01:34:56.000 Yep.

01:34:56.000 And also, basically...

01:35:00.000 You're going to get this information for free.

01:35:03.000 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.

01:35:12.000 Yeah.

01:35:12.000 You know, step by step.

01:35:14.000 Absolutely for free.

01:35:14.000 He's not trying to make a dollar off y'all.

01:35:16.000 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.

01:35:21.000 WST! Yeah, he's doing it for the passion.

01:35:24.000 Like the video, guys.

01:35:24.000 I see 2.2K. We should be at 3,000 right now.

01:35:27.000 3,000 right now.

01:35:28.000 Lord...

01:35:29.000 What do we got here?

01:35:30.000 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?

01:35:43.000 That's a packed question in there.

01:35:45.000 U.S. citizen create foreign LLCs or S-Corps, subsidiaries, foreign irrevocable trusts, shell companies, and DBAs.

01:35:52.000 Foreign LLCs or S-Corps, I don't know anything about, to be honest with you.

01:35:57.000 So, I mean, every jurisdiction, every other country right now is different.

01:36:00.000 Subsidiaries, foreign irrevocable trusts.

01:36:03.000 No comment on that one.

01:36:05.000 You gotta look into the countries for which you're trying to do these things.

01:36:05.000 Sorry.

01:36:10.000 Every country is different, bro.

01:36:12.000 So he wouldn't be able to tell you that because it depends on what country you're trying to do it with.

01:36:17.000 Yeah, he's not there.

01:36:19.000 What else we got here?

01:36:20.000 Shout out to Wayne.

01:36:22.000 Oh, 10 YouTube memberships.

01:36:23.000 Thank you so much, man.

01:36:24.000 Shout out to you.

01:36:24.000 I appreciate that.

01:36:26.000 Casey Travis goes, I'm a trucker driver...

01:36:29.000 I think it means I'm a truck driver and get paid at 1099.

01:36:33.000 Should I open an LLC or S Corp?

01:36:35.000 And is that legal to pay yourself if employed as an independent contractor, especially in the trucking industry?

01:36:40.000 Yeah, so you're going to be a 1099.

01:36:42.000 Immediately become an LLC S Corp.

01:36:44.000 Give the person who's paying you, whoever's paying you, On 1099, you're going to fill out a specific form.

01:36:49.000 It's a W-9 form.

01:36:51.000 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.

01:37:02.000 Now, here's the W-9.

01:37:03.000 You sign it.

01:37:04.000 You say, I want the checks to come here now.

01:37:07.000 What's the W-9 form?

01:37:08.000 So W-9 is basically a form to...

01:37:10.000 Let's say I hire him to do some consulting with me, and I'm going to pay him as an independent contractor.

01:37:16.000 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.

01:37:30.000 So he gives that to me, and he signs and says, please, Steve, give me the...

01:37:34.000 The checks in the name of this LLC. Bam.

01:37:37.000 I didn't know that truckers can be 1099 employees.

01:37:40.000 So for all you guys out there, because a lot of truck drivers actually listen to us.

01:37:43.000 Yeah.

01:37:43.000 Yo, try to be a 1099, guys, if you can.

01:37:47.000 And that way you can write off more and more aggressively deduct your taxes.

01:37:50.000 Absolutely.

01:37:50.000 Legally.

01:37:51.000 Smarter.

01:37:51.000 And file your trucking company as a LLC and then switch over to an S Corp.

01:37:58.000 All the truck drivers out there, because a lot of y'all listen to us.

01:38:00.000 Free game.

01:38:01.000 Mm-hmm.

01:38:01.000 There you go.

01:38:15.000 Great question.

01:38:17.000 That does not matter whether you buy it with your personal check or not.

01:38:19.000 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.

01:38:28.000 90% of the 90% of the company vehicles that people write off and purchase, they purchase them in their personal name.

01:38:35.000 Because their businesses are new.

01:38:36.000 They don't have established credit.

01:38:37.000 So they just typically buy them in their name.

01:38:39.000 I still list them.

01:38:40.000 The IRS doesn't care.

01:38:41.000 As long as you're actually using it for a business purpose, that's all that matters.

01:38:45.000 They don't care how you procure it.

01:38:47.000 I think another important thing too, bro, is if this vehicle that you're about to buy is over 6,000 pounds...

01:38:54.000 Maybe finance it.

01:38:55.000 That's a great...

01:38:55.000 Maybe finance it versus buying it, you know, cash.

01:39:00.000 All cash, yeah.

01:39:00.000 Because then you can actually get...

01:39:01.000 Remember, like we said before, what is the...

01:39:03.000 Do you know the statute that...

01:39:04.000 Section 179.

01:39:06.000 Section 179 allows you to go ahead and write 80% off of a 6,000 pound or more weighted vehicle.

01:39:12.000 And there's also bonus depreciation, too, that you can actually...

01:39:15.000 Bam.

01:39:15.000 So, yeah, bro.

01:39:16.000 If the vehicle...

01:39:17.000 It's a van, so it's probably going to be over 6,000 pounds.

01:39:20.000 Buy that van, finance it.

01:39:22.000 You can buy it under your personal name and still get the tax benefits, and you get 80%.

01:39:25.000 So if it's $100,000, you can write off $80,000, and then you get bonus depreciation on top of that.

01:39:29.000 Amen.

01:39:30.000 There you go, my friend.

01:39:31.000 Well, we just say, man!

01:39:33.000 Bro!

01:39:34.000 What other YouTube channel is giving y'all this kind of sauce?

01:39:36.000 I don't know anybody.

01:39:38.000 Dave Ramsey?

01:39:40.000 Not even him!

01:39:41.000 Oh, just kidding.

01:39:42.000 Yeah.

01:39:43.000 Don't get into debt, man!

01:39:44.000 Don't get into debt!

01:39:47.000 You know what I mean?

01:39:51.000 I get it.

01:39:53.000 Here's the thing.

01:39:53.000 I like Dave Ramsey.

01:39:54.000 He gives you very good financial tips for someone who's kind of a moron with money. 0.99

01:40:00.000 It's what I call retard-proof advice. 1.00

01:40:03.000 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.

01:40:08.000 And taking risk a lot of times means using other people's money Yeah.

01:40:37.000 Well said.

01:40:38.000 Yeah.

01:40:39.000 Persian Prince.

01:40:40.000 Yeah, thank you guys.

01:40:41.000 Thank you for this, guys.

01:40:42.000 Especially the nugget behind Y Register, the S-Corp holding company in Delaware.

01:40:46.000 I'm at this decision stage on my real estate business, so this was helpful.

01:40:49.000 We got you.

01:40:53.000 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.

01:41:00.000 Is this guy snitching on himself?

01:41:01.000 Oh, the money I made on the table.

01:41:03.000 Yuri Bezmenov goes, bought a rental house with money I made under the table over the last 10 years.

01:41:08.000 Oh, man.

01:41:09.000 Okay, here we go.

01:41:09.000 Allegedly.

01:41:10.000 Haven't filed taxes in roughly 10 years.

01:41:11.000 Is that his real name?

01:41:12.000 I hope not.

01:41:13.000 How can I protect myself when filing?

01:41:15.000 How do I claim my money saved to purchase rental to pay minimal tax?

01:41:18.000 This guy, bro.

01:41:19.000 This dude...

01:41:22.000 Here you go.

01:41:23.000 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.

01:41:31.000 Yeah, yeah, yeah.

01:41:31.000 So here's the first thing I would do.

01:41:33.000 Get your transcripts going back six years, because the IRS only goes back six years, okay?

01:41:38.000 Okay.

01:41:38.000 Get them.

01:41:38.000 Step one.

01:41:39.000 What do you want to do?

01:41:40.000 You want to find out in there, has anybody filed a 1099 on you that triggers their filing requirement?

01:41:45.000 If not, and nothing shows up, Don't snitch on yourself, obviously.

01:41:53.000 And I just, you know, I would say, hey, you got a 1099 for, you know, 25 grand.

01:41:58.000 Did you know that you had that unit file?

01:42:00.000 Let's get that filed.

01:42:01.000 Sometimes these guys wind up getting refunds.

01:42:03.000 The problem is you can only get those refunds.

01:42:05.000 They expire after three years.

01:42:06.000 So we don't do that in a timely manner.

01:42:08.000 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.

01:42:17.000 So you're probably okay.

01:42:20.000 How the hell did you buy a rental house with money you made under the table when you have to...

01:42:24.000 You must have bought a cash.

01:42:25.000 No doc loan?

01:42:27.000 Yeah, there's no way he was the loan.

01:42:29.000 Unless like...

01:42:30.000 Maybe he had a lot of money to put down on it.

01:42:32.000 Yeah, maybe he had cash.

01:42:33.000 I'd be interested how the hell you...

01:42:35.000 He either did it with private equity, aka hard money loan...

01:42:38.000 You know what time that is.

01:42:39.000 Or he bought a cash on YouTube.

01:42:42.000 I'm not even going to go further than that.

01:42:43.000 You guys know what that sound effect means, though.

01:42:45.000 So, yeah.

01:42:47.000 So pull your transcripts.

01:42:49.000 You can pull your transcripts.

01:42:50.000 Or you've got a plug in the setup with somebody.

01:42:53.000 Yeah, something's off there.

01:42:55.000 That's a good question, though.

01:42:56.000 You know, that's a very common thing, especially here in Florida.

01:42:58.000 When I came down here, I'm like...

01:42:59.000 I'm sorry with these people.

01:42:59.000 You didn't work at Teddy, you didn't even file your taxes?

01:43:01.000 Yeah.

01:43:01.000 Because I came from New York, and more people are more compliant there.

01:43:05.000 Yeah.

01:43:05.000 And then you come down here, it's just crazy.

01:43:08.000 People do weird odd jobs in Miami and Florida, bro.

01:43:10.000 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?

01:43:16.000 I have a doctor.

01:43:17.000 I have a doctor with an established practice that does very well. 1.00

01:43:20.000 This fucking guy hasn't filed his taxes in over 10 years. 1.00

01:43:23.000 What the? 1.00

01:43:24.000 How do these guys get around?

01:43:26.000 I don't know.

01:43:27.000 I don't know.

01:43:27.000 So the first thing I do is I pull the transcripts just to see what's there.

01:43:31.000 See what the IRS has in their computer system on you. 0.99

01:43:34.000 They're going to say, catch me when I die, nigga. 0.99

01:43:36.000 Catch me when I die. 1.00

01:43:37.000 All right.

01:43:38.000 Where are we at here?

01:43:39.000 Yeah, Yuri, listen to what Steve just told you.

01:43:42.000 Keep yourself out of jail.

01:43:43.000 Shout out to the IRS for giving 10 YouTube memberships.

01:43:45.000 Yeah, he's watching.

01:43:46.000 IRS is in the chat right now.

01:43:50.000 R.P. Josh, I have a cleaning business and a painting business with my brothers-in-law.

01:43:54.000 They are from Venezuela.

01:43:55.000 I can't have an LLC taxed as an S-Corp, so should I leave it as an LLC or a C-Corp?

01:43:59.000 Now, see the thing with when you go to S-Corp, there's one nuance is you can't have any foreign members.

01:44:04.000 So I don't know if they're U.S. citizens or not, a resident, but that's the thing.

01:44:08.000 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.

01:44:16.000 How about if he just does Escort by himself and pay them out, it's $10.99?

01:44:19.000 Yeah.

01:44:20.000 There you go, my friend.

01:44:21.000 That's probably the best way.

01:44:22.000 Do the S-Corp, get the tax benefit, and then pay them off from a 1099 perspective.

01:44:26.000 Yeah, that's exactly what I was suggesting.

01:44:28.000 Have a high 5-fig-a-month online business.

01:44:30.000 Our LLC is currently set up in Delaware with a registered agent.

01:44:33.000 Now we're looking to set up in the UAE free zone.

01:44:35.000 Any tips registering internationally while living in the United States?

01:44:38.000 Yeah, no, I don't.

01:44:39.000 Sorry.

01:44:40.000 This is strictly U.S. tax code.

01:44:42.000 Yeah.

01:44:42.000 Guys, we're going to...

01:44:43.000 Okay, there's a lot of questions here.

01:44:44.000 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.

01:44:50.000 Let's see here.

01:44:51.000 Aaron M. Angus, hey FNF, I'm just tuning in.

01:44:54.000 I love what I'm hearing so far.

01:44:55.000 Are you guys also going to cover business credit card today while Steve is here?

01:44:58.000 No, but we will cover that on another episode because we knew that we would have a lot of certain time.

01:45:02.000 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.

01:45:07.000 But we will do a business credit card episode either next Monday or the Monday after that.

01:45:11.000 We're debating whether we're going to do travel credit cards first or business credit cards first for 2023.

01:45:15.000 Probably travel.

01:45:17.000 You know what?

01:45:18.000 Mo, do a quick poll in the chat.

01:45:19.000 See what they want on YouTube.

01:45:21.000 Do a quick poll.

01:45:22.000 Business credit card or travel credit card first, and then that'll be what we cover next Monday.

01:45:27.000 Okay, so what else do we got here?

01:45:28.000 Brian Grant.

01:45:29.000 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.

01:45:39.000 Suggestions to lower personal taxes due?

01:45:41.000 Good question.

01:45:41.000 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.

01:45:46.000 He's making about $10,000 from his side hustle.

01:45:48.000 How to lower personal taxes?

01:45:51.000 I mean, so basically, one-year LLC. I would still do the S-Corp, even though it's $10,000.

01:45:57.000 I don't know.

01:45:58.000 I'm hoping that maybe you're going to make more than $10,000 on this business going forward.

01:46:01.000 But then from there, now you're opening yourself up to the entire tax code, and you can write off your phone.

01:46:06.000 You can write off your car.

01:46:09.000 Any travel.

01:46:10.000 You know, right now, a big thing that people are missing, the IRS has given everybody a hundred percent deduction for meals.

01:46:16.000 Oh, really?

01:46:17.000 I take a lot of clients out.

01:46:18.000 Wow.

01:46:19.000 I ran off all my meals 100%.

01:46:21.000 They did that because COVID. That was under Trump, right?

01:46:23.000 Yeah, because COVID. Okay.

01:46:25.000 Because COVID, yeah.

01:46:26.000 So they got, you know, they got decimated with all the shutdowns with COVID and stuff.

01:46:29.000 To kind of stimulate the restaurant business back.

01:46:31.000 Steve, you know what I did, bro?

01:46:33.000 Remember I told you when I made my sister an employee?

01:46:36.000 Yeah.

01:46:37.000 So I made her an employee whenever we go to eat.

01:46:39.000 It's a write-off.

01:46:40.000 Yeah, it's a write-off.

01:46:41.000 That's a business meeting.

01:46:45.000 Yeah, that's an employee meeting.

01:46:49.000 Yeah, so definitely.

01:46:50.000 So that's 100%.

01:46:51.000 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.

01:46:58.000 So just use your business card for that.

01:46:59.000 Yeah.

01:47:01.000 I have a lawn service here in Louisiana.

01:47:04.000 It's just me doing it.

01:47:05.000 Should I keep it as an LLC? Escort, my friend.

01:47:08.000 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.

01:47:16.000 Like, now!

01:47:17.000 Okay?

01:47:18.000 Like, I'm literally talking like, as we're talking...

01:47:20.000 Okay, let's say someone is watching, listening to this podcast right now as we speak.

01:47:24.000 They have a side hustle.

01:47:25.000 Maybe they're at their W-2 job.

01:47:26.000 They've had their LLC open for a year.

01:47:28.000 What should they do right now to switch over to an S-Corp?

01:47:31.000 So basically fill out those two forms.

01:47:32.000 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...

01:47:44.000 IRS form 8832?

01:47:45.000 8832 and then 2553.

01:47:47.000 They're easy forms to fill out.

01:47:48.000 I mean, it'll literally take like maybe 10 minutes.

01:47:50.000 And that will transition their LLC over to an S Corp.

01:47:54.000 Both forms or just one of them?

01:47:55.000 Both forms.

01:47:57.000 Yeah.

01:47:57.000 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.

01:48:05.000 And I'll explain that in more detail.

01:48:06.000 That's what I'm going to walk you guys through because I don't even like doing this stuff, honestly.

01:48:10.000 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.

01:48:15.000 So I'd rather the client like do it.

01:48:16.000 And like, there's no value in me doing this for them.

01:48:19.000 You know what I mean?

01:48:19.000 Okay.

01:48:20.000 So yeah, man.

01:48:21.000 All y'all that are listening, switch over to an S Corp.

01:48:23.000 Immediately, he just told you guys the two forms.

01:48:25.000 IRS form 8832 and...

01:48:28.000 Sorry.

01:48:30.000 2553.

01:48:31.000 You can literally Google them right now and start filling them out, guys.

01:48:34.000 Yeah.

01:48:35.000 The sauce would not exist without you two.

01:48:37.000 Don DeMarco, for all of you, truly grateful.

01:48:39.000 We got you, bro.

01:48:42.000 That's what we're trying to do, man.

01:48:43.000 Trying to change lives, help you guys become better men.

01:48:44.000 Shout out Wayne again.

01:48:45.000 10 more YouTube memberships.

01:48:47.000 Shout out to Wayne, man.

01:48:49.000 Because, bro, ain't nobody giving y'all more value on YouTube than us. 1.00

01:48:51.000 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. 0.99

01:48:57.000 We're giving you guys solutions to actually dig yourself out of this stuff, man. 1.00

01:49:00.000 We actually give y'all actionable information in detail with experts to help you guys get to where you want to go.

01:49:07.000 And the most important part, We do it completely free.

01:49:10.000 We're not charging y'all nothing for this.

01:49:12.000 We live good, so you can live good.

01:49:14.000 Yeah.

01:49:14.000 Simple.

01:49:15.000 You know, you guys are sending in the Super Chats and answering, but bro, it's worth the value.

01:49:17.000 I mean, 20 bucks to answer a question.

01:49:20.000 We should do business credit cards because business credit cards give you access to a lot more than just travel.

01:49:24.000 I want to see what the poll say, Mo.

01:49:26.000 What's the business?

01:49:27.000 75% business credit cards.

01:49:29.000 Business credit cards.

01:49:30.000 Yeah.

01:49:32.000 Shout out to you, Wayne.

01:49:32.000 Thank you so much.

01:49:33.000 The process, Nate Tilly's pursuit of excellence goes, yo, I reached out to Fresh.

01:49:37.000 The processing, I want to teach how to get local businesses more clients as a service.

01:49:40.000 Been doing it 40k a month for three years now.

01:49:43.000 I think y'all are widely overlooking and sleeping on this opportunity.

01:49:46.000 Much love, y'all.

01:49:46.000 Thanks.

01:49:47.000 Shout out to you, bro.

01:49:49.000 I'll look into it.

01:49:50.000 Okay.

01:49:52.000 IRS, WStream, why y'all need to like this video?

01:49:58.000 WStream, why y'all need to like the video?

01:50:00.000 Steve giving y'all all this valuable info to improve your life.

01:50:02.000 Some of y'all are going to hear from me in April.

01:50:04.000 I always get mine.

01:50:05.000 That's true.

01:50:08.000 One way or another.

01:50:11.000 IRS in the chat, man.

01:50:13.000 Avery Watson, he's definitely looking at that dude that hasn't followed for 10 years.

01:50:17.000 Why would you say that, bro?

01:50:20.000 I would need an in-on account with a random name.

01:50:23.000 Hopefully that's what it was, bro, but that's crazy.

01:50:26.000 Okay, Avery Watson goes, I'm working on the irrevocable trust now with properties.

01:50:31.000 The lawyer said I should be LLC and land trust.

01:50:33.000 Should I be an S-Corp?

01:50:34.000 Also, I'm a travel healthcare worker.

01:50:36.000 I have option of 1099.

01:50:38.000 If I switch, won't I need to wait for two years to buy more houses?

01:50:42.000 So you have a revocable...

01:50:43.000 So, I mean, this is real estate, again.

01:50:45.000 So I'm going to go back to real estate.

01:50:48.000 You can remain an LLC. You don't need to do the S-Corp.

01:50:50.000 Yeah.

01:50:51.000 Good question here.

01:50:52.000 It says, I'm a tribal healthcare worker.

01:50:53.000 I have the option of a 1099.

01:50:55.000 If I switch one, I need to wait two years to buy more houses.

01:50:58.000 This is a good question.

01:50:59.000 Oh, yeah.

01:51:00.000 So it's a two-part question.

01:51:02.000 I'll tell you right now, bro.

01:51:04.000 Do not, okay?

01:51:06.000 I made this mistake.

01:51:08.000 Yep.

01:51:09.000 Do all your real estate stuff while you're still a W-2 employee.

01:51:12.000 Okay?

01:51:13.000 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. 0.98

01:51:20.000 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.

01:51:28.000 If you're thinking about buying real estate, guys, okay, and you have a W-2 job, and you're like, you know what? 0.96

01:51:33.000 I'm going to quit this job and do my entrepreneurship stuff because it makes more money.

01:51:37.000 Don't Do it.

01:51:38.000 Stay with your W-2 job because lenders like to see consistent income from a saved job over you being an entrepreneur.

01:51:46.000 Because if you are an entrepreneur, what they're going to say is, we want two years of tax returns with your entrepreneur venture.

01:51:51.000 You're not going to have it because you just started it.

01:51:54.000 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.

01:52:04.000 Because I'm telling you, it will mess you up with getting loans.

01:52:06.000 Here's another golden one.

01:52:08.000 And that's great.

01:52:09.000 That's perfect.

01:52:10.000 However...

01:52:11.000 That was my mistake.

01:52:12.000 You are going to be in the same line of work where he wasn't in the same line of work.

01:52:17.000 So he went from government job to doing something different.

01:52:19.000 So get a CPA. Why?

01:52:21.000 And I do these letters all the time for this specific reason.

01:52:24.000 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.

01:52:34.000 Oh, wow.

01:52:35.000 So that's a way around it.

01:52:38.000 The two-year thing.

01:52:39.000 But you're right with the business stuff.

01:52:40.000 Once they do that, it creates a problem.

01:52:42.000 It creates a, like, whoa, what's going on now?

01:52:44.000 As long as they see it's the same, like, oh, this is health work.

01:52:48.000 Oh, he just changed it to the same income.

01:52:50.000 Got it.

01:52:51.000 You need a CPA. You need a CPA to write you a letter.

01:52:57.000 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.

01:53:08.000 Dude, that's literally life-saving advice.

01:53:10.000 So two options.

01:53:12.000 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,

01:53:27.000 hey, still same line of work, same earning, pretty much.

01:53:30.000 Boom, they could write.

01:53:31.000 What, does it got to be notarized, probably?

01:53:32.000 No, they just sign it.

01:53:33.000 I just sign it.

01:53:33.000 I just put it on a letterhead.

01:53:34.000 I write what the, you know, I say, like, what do they need to hear?

01:53:36.000 And that suffices most of the time?

01:53:38.000 Yeah.

01:53:38.000 Okay, so that'll suffice for the lender.

01:53:41.000 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.

01:53:49.000 Just wait.

01:53:50.000 Get your real estate stuff done before you quit that job or decide to go the entrepreneur route.

01:53:54.000 Because I made that mistake.

01:53:55.000 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.

01:54:00.000 Even if you're making a bunch of money, they don't care.

01:54:02.000 They want two years of tax returns.

01:54:03.000 And tell them how many CPA letters did you need on a lot of deals because these banks were being glitches.

01:54:08.000 Steve wrote me a couple of letters, guys, to get around that stuff.

01:54:12.000 They don't even look.

01:54:13.000 They just put them in there.

01:54:14.000 And they want more profit loss statements. 0.99

01:54:16.000 It's going to be a pain in the ass, dude. 0.99

01:54:19.000 That's another thing, too. 0.99

01:54:20.000 If you're going to get into business, get yourself reading a financial statement for dummies.

01:54:26.000 And I'm not even kidding you.

01:54:27.000 You don't have to be an accountant or just basic.

01:54:29.000 Learn how to read a financial statement.

01:54:31.000 Because if you're going to run a business, you're going to want to know where you stand.

01:54:34.000 And that's going to be, you know, that's important.

01:54:35.000 Yeah.

01:54:36.000 So, a really good question, bro.

01:54:38.000 Because a lot of people make that mistake.

01:54:39.000 They try to buy real estate and they just quit their W-2 job.

01:54:41.000 Oh, man.

01:54:42.000 That's going to be a problem.

01:54:43.000 Unless you plan to buy houses cash or do hard money loans, which you don't want to do that.

01:54:49.000 You're going to have issues with finding lenders to give you money.

01:54:55.000 Let's see here.

01:54:56.000 AJ, Mary, got a house with my wife. 1.00

01:54:59.000 Oh.

01:55:01.000 Allegedly filed the loan under single.

01:55:03.000 What do I do if I'm trying to put this under an LLC for tenants?

01:55:06.000 I do have a small ATM business under a different LLC. Wife's on board with post-pernuptial provided she has one house. 0.94

01:55:12.000 One house.

01:55:17.000 What's your thoughts on that, Steve?

01:55:20.000 Under single.

01:55:22.000 Allegedly filed the loan under single.

01:55:24.000 What do I do if I'm trying to put under my LLC for tenants?

01:55:29.000 Well, she's now on...

01:55:31.000 He's married now, though.

01:55:36.000 Wait, so...

01:55:37.000 Okay, the loan's single.

01:55:40.000 So now you're on the hook for the, you know...

01:55:42.000 So she has access now to rights to the property, but you're on the hook for the loan liability, 100%.

01:55:50.000 That doesn't seem very fair.

01:55:54.000 I do have an ATM business under a different LLC. Yeah, keep that separate.

01:55:58.000 Website board with posts, prenuptial.

01:56:00.000 Yeah, so it sounds like you're on the hook 100% for the loan.

01:56:04.000 And she has 50% of the rights of the property and not on the hook for the loan.

01:56:09.000 Because he got the house while he was married with her, so it would be considered marriageable assets at that point.

01:56:15.000 Yeah, but then he probably put her in that title, too.

01:56:17.000 They're both...

01:56:18.000 But then the loan, they're going to come after him for the loan.

01:56:23.000 Hey, man!

01:56:24.000 Come on, man! 0.99

01:56:27.000 Goddamn! 0.97

01:56:28.000 Yeah, but definitely keep the LLC separately. 0.98

01:56:30.000 So I'm not sure what you're trying to ask.

01:56:31.000 Hopefully things work out.

01:56:34.000 He's trying to put it under an LLC for tenants.

01:56:37.000 So he probably wants to rent that house out.

01:56:39.000 But he didn't specify...

01:56:40.000 Yeah, because you could do the quick claim deed to the LLC, so that shouldn't be a problem.

01:56:43.000 The bank doesn't care because ultimately...

01:56:44.000 But either way, his wife's going to have taxes because he's married to her, right?

01:56:47.000 Yeah, but ultimately the bank has what's called a mortgage...

01:56:50.000 That trumps all.

01:56:51.000 So they don't care about who's titled this and that.

01:56:54.000 They have their first rights to that property if you default on a loan.

01:56:58.000 So as far as doing the LLC, yeah, do it to protect your liability and the asset.

01:57:02.000 But the financing is something different.

01:57:05.000 That's a whole separate issue.

01:57:07.000 So the two don't have anything to do with it.

01:57:09.000 I wish he specified if it was a single family home or if it's like a multi...

01:57:12.000 Yeah, because if it's a single family home, he's got to leave.

01:57:16.000 I mean, but if he's going to put tenants in there, I would say definitely...

01:57:19.000 You got to LLC it anyway, right?

01:57:20.000 Yeah.

01:57:22.000 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?

01:57:27.000 And maybe rent other units out, you got to LLC it anyway.

01:57:29.000 Because if they sue you, they can come after your personal license.

01:57:32.000 So that's a layer of protection for the limited liability.

01:57:34.000 So yeah, you want to put that over it.

01:57:36.000 Okay.

01:57:37.000 All right.

01:57:37.000 And don't buy a house with your wife.

01:57:40.000 Like, come on, man.

01:57:41.000 Cheyenne Ballero goes, wait, no foreign owners?

01:57:44.000 So as an Amazon Wholesale FBA owner, U.S. LLC, not from or live in the U.S., from Africa, no excuse being broke.

01:57:50.000 I can't switch to an S-corp?

01:57:52.000 An S-corp?

01:57:54.000 Okay, he's a foreign owner.

01:57:55.000 Oh, yeah, you're a foreigner. 1.00

01:57:56.000 Yeah, unfortunately, no.

01:57:58.000 Yeah, you gotta, no, you can't do it.

01:57:59.000 That's unfortunate, yeah.

01:58:01.000 Some people do get away with it, actually.

01:58:02.000 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.

01:58:08.000 Yeah.

01:58:08.000 Which kind of acts like a social security number.

01:58:10.000 Yeah.

01:58:12.000 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.

01:58:17.000 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.

01:58:25.000 So it's kind of like, I think...

01:58:26.000 A loop.

01:58:27.000 Yeah, it could be a little bit.

01:58:28.000 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.

01:58:34.000 Yeah.

01:58:35.000 Guys, by the way, we got 2.9, almost 3,000 of y'all watching on YouTube, but we only got 2.4k likes.

01:58:40.000 Let's get up to 3,000 likes, man.

01:58:42.000 Like the video, we're giving you a lot of sauce.

01:58:43.000 Thank you, Chayamba.

01:58:44.000 Who's up next?

01:58:48.000 Rumble Rants.

01:58:49.000 What about these other guys here below?

01:58:51.000 Or those came up before?

01:58:53.000 Cut off, because we're tight on time.

01:58:56.000 Okay.

01:58:56.000 But did they come in before?

01:58:58.000 No, these are later.

01:58:59.000 These are later.

01:59:00.000 Okay, guys.

01:59:00.000 Yeah, 50 and up for the Super Chats, guys.

01:59:02.000 Rumble Rants.

01:59:05.000 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?

01:59:11.000 LLC, no S-Corp.

01:59:12.000 Yeah, LLC for real estate property, guys, because it's considered passive income.

01:59:15.000 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.

01:59:26.000 Yeah, and then each property is going to be a separate LLC. Yes.

01:59:29.000 With a separate bank account.

01:59:31.000 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.

01:59:41.000 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.

01:59:48.000 Yeah, we got something.

01:59:48.000 Oh, that's great.

01:59:49.000 We'll do a full episode for y'all on that.

01:59:50.000 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.

01:59:57.000 That's going to be really valuable for you guys that have multiple doors.

02:00:00.000 Yep, that are going to have multiple doors. 0.85

02:00:03.000 What's up, gents? 0.92

02:00:04.000 I currently have NLC. I'm a 1099 truck driver.

02:00:06.000 I want to have my own fleet of W2 trucks drivers working for me, and I want to invest in real estate eventually.

02:00:11.000 Should I still switch to S-Corp?

02:00:14.000 Yes.

02:00:15.000 For the trucking company?

02:00:15.000 Yes.

02:00:16.000 Absolutely.

02:00:18.000 What else here?

02:00:20.000 This is good, man.

02:00:21.000 We got a lot of guys that are set up as LLCs that didn't even know this stuff.

02:00:24.000 Yeah.

02:00:25.000 That's crazy.

02:00:26.000 And then the sole proprietors, I'm like, bro.

02:00:26.000 Yeah.

02:00:26.000 Wow.

02:00:29.000 That's cool.

02:00:31.000 The guy running the restaurant.

02:00:32.000 Yeah.

02:00:32.000 I want that.

02:00:33.000 How many years?

02:00:34.000 We just saved him tens of thousands of dollars.

02:00:36.000 You don't know what you don't know.

02:00:37.000 So now you know you can make a change for it.

02:00:39.000 But I mean, we're not taught to actually like learning stuff in school anyway.

02:00:43.000 It's just kind of like you got to learn on your own.

02:00:47.000 BPO says, I'm a commercial fisherman and file all taxes under my name.

02:00:50.000 Is there a more advantageous way to approach taxes for my own owner-operated fishing business?

02:00:56.000 Yep, I got a few of them.

02:00:57.000 Yeah, so definitely.

02:00:58.000 And you know what?

02:00:59.000 Because you're buying a lot of gas.

02:01:00.000 You get a tax credit for the fuel.

02:01:02.000 Oh, wow.

02:01:03.000 Yeah, it's pretty substantial.

02:01:06.000 Nice.

02:01:06.000 Yeah, so you want to file a...

02:01:09.000 You can definitely become an LLC and S Corp.

02:01:09.000 Yeah, definitely.

02:01:12.000 Definitely.

02:01:13.000 Yeah.

02:01:13.000 Cool.

02:01:14.000 What's up next here?

02:01:16.000 6ix9ine goes, I bought a Tesla in California for $9,500.

02:01:20.000 Tax incentive.

02:01:22.000 I'm signed up for the Uber.

02:01:23.000 Would I be able to form an S-Corp and buy the car of myself and work it as an S-Corp after?

02:01:30.000 I think he means buy the car for myself and work it as an S-Corp after.

02:01:34.000 And he bought a Tesla to drive Uber.

02:01:37.000 Yeah, so definitely.

02:01:38.000 It doesn't matter that you bought it after.

02:01:40.000 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.

02:01:52.000 Uber's a valid side hustle.

02:01:54.000 Yeah, it is.

02:01:55.000 And they're able to go ahead and do that as a 1099, right?

02:01:58.000 Absolutely.

02:01:59.000 So they're able to write everything off.

02:02:00.000 Well, they're smart.

02:02:01.000 Uber is super smart.

02:02:03.000 Because they're a contractor too, right?

02:02:05.000 Not correct?

02:02:06.000 Yeah.

02:02:08.000 So 1099.

02:02:09.000 So, okay.

02:02:10.000 Real quick.

02:02:11.000 So let's say someone here wants a side hustle, but maybe they don't have a skill set yet.

02:02:15.000 They're not able to do so.

02:02:16.000 The best way to do it is create an LLC. Yeah.

02:02:19.000 Turn an LLC for Uber.

02:02:21.000 Yep.

02:02:22.000 Turn it into an S-Corp.

02:02:23.000 Go ahead and procure a vehicle.

02:02:26.000 They can write the purchase of that vehicle off.

02:02:29.000 Even if it's under 6,000 pounds?

02:02:32.000 Yeah, because you still get the depreciation.

02:02:34.000 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.

02:02:45.000 Do it for Uber.

02:02:46.000 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.

02:02:56.000 And then you can write all that stuff off.

02:02:57.000 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.

02:03:03.000 Yeah, I'll buy a used car.

02:03:04.000 A used car for sure.

02:03:05.000 Yeah, because a lot of miles on it.

02:03:07.000 But they should finance it though, right?

02:03:09.000 If it's over 6,000 pounds?

02:03:10.000 Yeah, depending on the price on it.

02:03:11.000 I know the rates right now are kind of tough.

02:03:13.000 The thing with Uber, though, you're going to put miles on a car and it's going to fuck it up.

02:03:16.000 Yeah, I would definitely not buy a brand new car.

02:03:17.000 I didn't have to do that because I did it at the beginning of my career and it was...

02:03:20.000 That was a great one because I had an x-ray company.

02:03:24.000 I bought a fleet of Honda Elements because we had these x-ray machines going in there.

02:03:29.000 And I bought them all brand new thinking it was all cool and everything.

02:03:32.000 And then I winded up...

02:03:33.000 You're a best bet.

02:03:35.000 It's to buy a used, pre-owned car over 6,000 miles.

02:03:39.000 Over 6,000 pounds?

02:03:40.000 Pre-owned, over 6,000 pounds.

02:03:42.000 And then at that point, I would just make sure the car has no issues.

02:03:45.000 Of course, if it's pre-owned, it shouldn't.

02:03:47.000 And then drug that.

02:03:48.000 But buying a new car...

02:03:49.000 Yeah, don't buy it.

02:03:49.000 So don't buy a brand new...

02:03:50.000 Should they finance it?

02:03:52.000 Or should they finance it, right?

02:03:53.000 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?

02:03:59.000 Yeah, if you can get a lease pre-owned, that's awesome.

02:04:01.000 Get a lease pre-owned?

02:04:02.000 If you can.

02:04:04.000 I'm saying you write off the whole lease.

02:04:05.000 Yeah, you write off the whole lease payment.

02:04:07.000 So each payment, you can write it off.

02:04:09.000 So yeah, man, I think leasing is the route to go for Uber.

02:04:10.000 Uber is a great way to pay some money on the side.

02:04:12.000 If you get benefits well from taxes, then awesome.

02:04:14.000 Until you can get a real skill set that will pay you more money.

02:04:16.000 The problem with leasing, though, don't they have that mileage thing where you return it in?

02:04:21.000 The mileage?

02:04:22.000 They do, actually.

02:04:23.000 I would go use.

02:04:24.000 That's what I did.

02:04:26.000 For Uber itself, because of miles, you want to finance it, and then 6,000 pounds.

02:04:26.000 Actually, you know what?

02:04:31.000 Bam.

02:04:33.000 There you go.

02:04:33.000 For all y'all that want to side hustle, that's Uber right there.

02:04:37.000 Back in the day, bro, when I did Uber, there was a big surge almost every weekend.

02:04:42.000 I made hell of money, bro.

02:04:43.000 I'll never forget.

02:04:44.000 It was New Year's...

02:04:47.000 And it was like, everyone was out partying.

02:04:49.000 I was an Uber, bro.

02:04:50.000 I made that night, one night, bro.

02:04:52.000 Wow.

02:04:52.000 $1,000.

02:04:53.000 Yeah.

02:04:53.000 And I did only like, what?

02:04:55.000 12 trips?

02:04:56.000 Wow.

02:04:57.000 Airport, Fort Lauderdale, Las Solas, Las Solas to Miami.

02:05:01.000 That makes sense.

02:05:01.000 Backup.

02:05:02.000 It was like, bro, money raking in.

02:05:04.000 But now it is tough, though.

02:05:05.000 So you know what, man?

02:05:05.000 Yeah.

02:05:06.000 We should probably do an episode for them on, literally, you want to side hustle?

02:05:09.000 Just a whole Uber guide.

02:05:11.000 Right.

02:05:12.000 You did it, right? 1.00

02:05:13.000 I got all my shit back home. 0.99

02:05:14.000 I made my notes, everything like that. 0.96

02:05:16.000 We could do it.

02:05:17.000 Because a lot of these guys that are young might not have a skill set yet to make a viable income on the side.

02:05:24.000 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.

02:05:28.000 The car to purchase.

02:05:29.000 Or it's a full-time job until you get a skill set.

02:05:31.000 How to purchase it and then go into details about Uber.

02:05:33.000 Yeah.

02:05:33.000 Because Uber, you can absolutely make money and get tax benefits at the same time.

02:05:36.000 I didn't even think about this.

02:05:37.000 There's smart people.

02:05:38.000 They work maybe 40 or 50 miles away from their house, and they sign up for Uber or Lyft.

02:05:42.000 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.

02:05:48.000 They got to go there anyway.

02:05:50.000 So then they'll pick up a ride and say, okay, I'm available.

02:05:52.000 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.

02:05:57.000 I've met a couple guys like that. 1.00

02:05:58.000 Damn. 1.00

02:05:58.000 Smart. 1.00

02:05:59.000 That's clever.

02:06:00.000 Guys, 2.5k likes.

02:06:01.000 So we're giving you all the sauce.

02:06:02.000 I need you guys to like the video so we get to 3,000 likes. 0.87

02:06:05.000 Like the video because we're giving you guys so much goddamn value right now. 0.85

02:06:05.000 Come on, man. 0.85

02:06:08.000 It's wild.

02:06:08.000 AJ. We'll be going two hours plus giving you all nonstop constant value, man.

02:06:13.000 Single family home, VA loan.

02:06:14.000 She's Colombian. 0.91

02:06:15.000 Wanted no part in the purchase.

02:06:16.000 Stay at home.

02:06:17.000 Colombian.

02:06:17.000 I found y'all after the fact.

02:06:19.000 Doing a Chris Crow method. 1.00

02:06:19.000 Yeah, you fucked up. 1.00

02:06:21.000 Appreciate what y'all do. 1.00

02:06:22.000 Looking forward to the business CC video for leveraging capital.

02:06:25.000 Yeah, man.

02:06:26.000 Yes, we got a single family home, VA loan, she's Colombian, want no part in the purchase, good. 1.00

02:06:29.000 But bro, if you bought it while you were with her...

02:06:31.000 Bro, she's Colombian? 1.00

02:06:33.000 She'd want a part now, nigga. 1.00

02:06:33.000 Yeah, she might... 1.00

02:06:35.000 But after the fact, she'd want all that part, nigga. 1.00

02:06:37.000 If you're married to her, if you married her and you bought the house, bro, then that's considered...

02:06:41.000 I mean, watch your episodes with the divorce attorneys.

02:06:44.000 They'll tell you that that's considered...

02:06:46.000 And hopefully he didn't bring him from Colombia. 1.00

02:06:48.000 Marriage asset.

02:06:50.000 Is she automatically entitled to 50% of his military retirement?

02:06:55.000 I don't know if they got married.

02:06:56.000 I don't know if he's married.

02:06:58.000 See, that's the thing with the military.

02:07:00.000 Oh, yeah.

02:07:03.000 He is married.

02:07:04.000 Oh, man.

02:07:06.000 Okay, so it's a single family.

02:07:08.000 So he's going to have to move out to rent it.

02:07:10.000 You're going to have to move out more than likely to rent that thing.

02:07:13.000 So yeah, you got an LLC anyway.

02:07:15.000 She swatted no part in the purchase, but bro, she might still be entitled to some of it.

02:07:19.000 Because you bought it when you were married to her.

02:07:21.000 If I was a Colombian girl.

02:07:22.000 Hey man, she don't know what she don't know.

02:07:23.000 I'll say the same thing, yeah.

02:07:24.000 You better not let her hear this call.

02:07:25.000 Hey man, yeah, yeah.

02:07:26.000 She better not be watching this podcast with you, bro.

02:07:29.000 Hey honey! 1.00

02:07:30.000 No hables English, correct? 0.98

02:07:32.000 Correcto?

02:07:34.000 Perfecto!

02:07:34.000 She's probably sitting next to him right now watching this thing like, hmm, okay, we got this, boy.

02:07:39.000 She better not be watching this with you, bro.

02:07:41.000 Yeah, man.

02:07:41.000 Woo!

02:07:42.000 Alright.

02:07:44.000 What do you guys think about real estate wholesaling?

02:07:46.000 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.

02:07:50.000 You use that to get your feet wet, and then you actually want to go ahead.

02:07:53.000 Bro, y'all don't want to be these people that are just leasing Airbnbs or doing wholesaling or whatever.

02:07:59.000 You want to be the actual owner so you get the real tax benefits from real estate.

02:08:02.000 So you want to hustle at the beginning, become a business owner, and reap the benefits with passive income at the end, pretty much.

02:08:09.000 Yeah, because a lot of y'all that do like wholesaling and do Airbnb arbitrage, etc.

02:08:15.000 Y'all are doing all the work for the owner.

02:08:17.000 And he gets the money and he's getting all the benefits and he ain't doing nothing.

02:08:20.000 I think they call it like grunt work.

02:08:22.000 Yeah, you're doing a lot of the grunt work for him.

02:08:24.000 You're making him all the money.

02:08:25.000 Yeah, you're making some money as well.

02:08:27.000 But bro, why not?

02:08:27.000 And he's getting tax benefits.

02:08:28.000 And then they say, oh, I'm an entrepreneur, bro.

02:08:30.000 Look at me.

02:08:31.000 I'm like...

02:08:32.000 Shorty.

02:08:33.000 Shorty.

02:08:33.000 You're a worker.

02:08:34.000 You're a worker, bro.

02:08:36.000 You're out here working for a ninja that really owns the property that's getting all the benefits.

02:08:39.000 He's just pimping you to go ahead and find tenants for Airbnb.

02:08:42.000 Come on, man.

02:08:43.000 Spell entrepreneur.

02:08:44.000 Yeah.

02:08:44.000 E-N-T-R-P-E-N-E! Okay, cool.

02:08:52.000 It's spelled I-D-I-O-T. An idiot. 1.00

02:08:55.000 That's what you are. 1.00

02:08:56.000 Peter.

02:08:57.000 Doing 20K a month cash.

02:08:59.000 No job.

02:08:59.000 Having LLC for previous business.

02:09:16.000 Any advice on how to set myself up the right way to look good for the IRS? FBI, open up!

02:09:24.000 What's your thoughts on this, Steve?

02:09:26.000 Ay, ay, ay.

02:09:27.000 Get somebody to write...

02:09:28.000 He's like, get somebody...

02:09:31.000 Ay, ay, ay, ay.

02:09:33.000 Hey, man, you know what you gotta do, bro.

02:09:35.000 Turn yourself in.

02:09:37.000 Turn yourself in, bro.

02:09:39.000 Turn yourself in now, bro.

02:09:43.000 Yo, but I will say this, though.

02:09:44.000 I know guys that have that same setup, and they'll, like, just blow it in the club.

02:09:48.000 He's scamming or doing something, bro. 0.83

02:09:50.000 Put ass marketing in the club, buying bottles and buying tables. 0.99

02:09:53.000 But I like the 20,000, but no job. 0.95

02:09:58.000 Hey, man, he did Uber, bro.

02:10:00.000 He just took it in cash.

02:10:02.000 Yo! 1.00

02:10:03.000 I don't know if y'all be serious sometimes with this stuff y'all be saying, bro.

02:10:07.000 I got a patroller.

02:10:09.000 Yeah, man.

02:10:09.000 Forget about it!

02:10:10.000 This guy, bro.

02:10:12.000 Oh, Lord.

02:10:13.000 Okay.

02:10:13.000 Yeah.

02:10:14.000 You need to find a job.

02:10:17.000 You need to find a job, bro.

02:10:19.000 Oh, man.

02:10:20.000 Steve.

02:10:21.000 This was two hours of nothing but value.

02:10:23.000 That was great.

02:10:24.000 I was like, wow.

02:10:25.000 I looked at the time.

02:10:26.000 I think the chat got so much value from me, bro.

02:10:28.000 They're like, they owe you some money, man.

02:10:29.000 Yeah.

02:10:30.000 That's awesome.

02:10:30.000 Timestamps are going to be down below in detail, by the way.

02:10:34.000 But where can I find you?

02:10:35.000 And any last comments or thoughts for the chat?

02:10:39.000 So definitely just...

02:10:41.000 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.

02:10:45.000 So one's like $7, the other's like $26 or whatever.

02:10:48.000 So I'm going to give those to you guys free.

02:10:49.000 For free.

02:10:49.000 And again, that's like having a free console.

02:10:51.000 I would sit down with a client for an hour, and that would be like a $350 or $400 or whatever.

02:10:57.000 Yeah.

02:11:16.000 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.

02:11:26.000 I'm going to go over with y'all how to systematically collect rent from your tenants in a no-nonsense headache process.

02:11:50.000 Yeah, so my brother and my...

02:11:54.000 My father had large buildings in New York State.

02:12:00.000 They had a couple hundred apartments and they could have benefited from that system that Roger and I were talking about.

02:12:08.000 We're almost done with it, guys.

02:12:10.000 That is really good.

02:12:11.000 We could probably do it by next month.

02:12:12.000 I think we'll be fully up and running.

02:12:14.000 We're like 80-90% of the way, guys.

02:12:16.000 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.

02:12:23.000 And it's actually, you know what?

02:12:24.000 I wish I had done it sooner.

02:12:25.000 I know. 1.00

02:12:26.000 I wish I had done this shit sooner, man. 1.00

02:12:27.000 Versus doing it all at the end. 0.99

02:12:29.000 And I'm going to teach you guys.

02:12:30.000 What a headache that you would have saved.

02:12:31.000 Yeah.

02:12:31.000 Right?

02:12:32.000 Yeah, man.

02:12:32.000 So we'll literally walk through with y'all.

02:12:35.000 Because being a landlord, if you don't do it right, we'll create a lot of headaches for you guys.

02:12:38.000 I'm going to teach you guys how to avoid a lot of the headaches that I endured.

02:12:40.000 At least you got your hair back.

02:12:41.000 I got my hair back.

02:12:43.000 Between dealing with, during the daytime, dealing with real estate, and then at nighttime, dealing with annoying girls.

02:12:47.000 So, guys, here's Steve Colon.

02:12:51.000 Go check him out at Instagram, seeing beyond the numbers, man.

02:12:53.000 We gave y'all two hours plus of value.

02:12:55.000 A lot of this stuff is life-saving stuff that will save you $10.

02:12:57.000 We're good to go.

02:13:16.000 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.

02:13:24.000 And yeah, Steve, I'll give you the last word.

02:13:25.000 Yeah, and that one's got the rental stuff with the cost segregation and depreciation and all that stuff for rental.

02:13:30.000 That's specific for the newbie getting into the rentium.

02:13:33.000 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.

02:13:38.000 But yeah, definitely get that.

02:13:39.000 There's a lot of good information in there.

02:13:41.000 And that's it.

02:13:41.000 It's always a pleasure to be here.

02:13:42.000 I'm really glad that you guys are back up and running and things are going good.

02:13:46.000 These are the shows that really matter.

02:13:49.000 This is the whole reason why you guys do what you do.

02:13:53.000 And this episode is for everybody.

02:13:55.000 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.

02:14:01.000 So always come back and reference this episode if you're thinking about starting a business, how to do this properly.

02:14:05.000 Yep.

02:14:06.000 We'll catch you guys back here with some lovely ladies in about 45 minutes or so. 1.00

02:14:10.000 Guys, do me a favor.

02:14:11.000 Like the video.

02:14:11.000 Let's get 3,000 likes before we close this thing out.

02:14:13.000 We'll catch you guys on the next one.

02:14:14.000 Steve's links are below.

02:14:15.000 Go check them out, guys.

02:14:16.000 Peace.

Fresh & Fit - August 14, 2023

How To SETUP Your Business To Pay LESS Taxes w- Our Accountant Steve!

Episode Stats

Summary

Transcript