Nothing to say

Yes, I clicked “New Post” but I really have nothing to say. So your next 3 minutes of reading will be a complete waste of time. Hey, at least I warned you.

Well, I got my bright orange box from Vonage yesterday. Now I officially have 4 phone numbers. Yep. One for ProNetLabs, one for my Fax line, one for DTF Capital (my mortgate broker LLC) and my Cell Phone number.

Anyways, that reminds me that it might be cool to describe how I want to set up my companies. Okay, so I got this book on tape titled “Own Your Own Corporation” by Robert Kemotherapi. My goal was to figure out a few of things. 1) How to isolate all of my companies from each other so that if one gets sued the others can’t be touched and 2) how to have all of my profits and losses from each company flow through to my main parent company (a heirarchy of sorts) so that if one of my companies gets sued there isn’t even any money in that company (it’s all in the parent company). 3) I also wanted to have some measure of anonymity so that people can’t figure out how much I’m worth or what companies I own. After listening to the book about 4 or 5 times and doing other research (including visiting a CPA) I will probably take the following approach.

 My parent corporation will be a C-Corporation. Yes, a big, hairy, expensive, double-taxed c-corp. My 2 “child” companies will be LLCs that have s-corp elections. Why not just S-Corps, you ask? Well because s-corps can’t be owned by a corporation. The beauty of an LLC with an s-corp election is that all the profits and losses can “flow thru” to the owner (my c-corp). This whole setup allows me to have the wide range of deductions that you can take advantage of with a c-corp while enjoying the simplicity of the LLCs for each biz. With my C-corp I can write off things like my health insurance. I can sell my car to my c-corp and then write off the insurance (since it definately is a company car). I can set up a special protected ERISA retirement fund that not even a lawsuit can touch. I can do a cafeteria plan for my family members over 15. There’s just a seemingly infinite number of cool things you can do with a c-corp. One cool thing is the low tax rate of 15% on your profits (which I hopefully won’t have much of after my deductions).

People harp on the double-taxation of the c-corp. But the thing is, only the income that you pay to yourself is double-taxed. If you leave it in the corporation then it’s only single taxed (and Nevada has no income tax for c-corps). Why would you want to pull any significant amount out anyways? It just exposes that money to personal lawsuits. I’m only going to pull out a small amount to pay myself every month. Just enough to cover my personal monthly bills. Many of my monthly bills are biz-related. Most things I buy are for biz purposes. So I don’t pull out the personal debit card for that, I pull out one of my company debit cards. Even most meals can be written off (even though you can only deduct 50% of the price of those meals).

Okay then on top of that I want to make my c-corp a “Nevada Corporation”. This just means that I’m incorporated in Nevada, not SC. Nevada is the only state that doesn’t share info with the IRS. And Nevada offers maximum privacy. This reduces the likleyhood that I’ll ever get audited and it keeps my name off the public record as the owner of my c-corp.  I plan to obey all laws, mind you. But who wants to be audited? It’s a pain in the neck! Please spare me.

Some decisions I still need to make are as follows: 1)Whether I want all of my corporations set up in Nevada or just the C-Corp. 2)I could possibly set up my C-Corp as an LLC with a C-Corp election. 3) If I go for all three corps as Nevada corps, can they all share the same address?

I’d really like to have this all set up by the beginning of the year. It may take longer for the paperwork to all get processed and finalized too. I’ll need to not only set up these 3 corporations but I’ll also need to do national trademark name searches to make sure my company names are unique and so that somebody can’t take my trademarks in the future. It’s just all a part of setting things up correctly the first time to avoid headaches later.

I feel like it’s like re-wiring a circuit board. It’s a pain in the butt to get all of my bills hooked up to the right biz and get my accounting system set up. But at the end of the day I’ll be able to relax knowing that I’m hardly paying any taxes and each of my businesses and wealth is totally protected from each other and from idiots that might want to sue me.

So here’s where I’ll run my different legs of my current biz plan. Pro Net Labs is run under the Pro Net Labs LLC. Any Real Estate-related or mortgage-related business will be run from the DTF Capital LLC. I will do my stock market trading/investing from my DTF Enterprises C-Corp.

Ah yea! Then I’ll finally have the motivation to write my company websites. I can’t wait because I’ll have a site-within-site concept. Each biz will read “Pro Net Labs a DTF Enterprises company“. The website will be organized much like this website. Where all of my companies are across the top of the page. This site will be a good way to communicate how my plan all fits together. Plus it will give each biz a much larger and more professional feel.

Well there. I guess I found something to talk about anyways. Try to relax a little today, k!