Want to Make Money? This Is How to Start Your LLC the RIGHT WAY!!!
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- Опубликовано: 6 сен 2024
- Pace walks one of his Subto students, Alexis, through setting up her business' LLC along with Brett from Prime Corporate Services.
Links mentioned in the live:
To link up with PCS: www.startwithp...
To get Relay for banking: www.relayfi.co...
To watch next week's Zoom: NEXT TUESDAY, August 30, 2022
PRIME TIME 4PM Arizona Time ZONE us02web.zoom.u...
This is absolute Gold. I can’t believe this type of information is free. I am in shock. Why do we need College again? Lol. Thank you Pace.
I wonder this all the time
😊f
We don’t need college. Unfortunately, many still believe in this shitty system
privacy
me
LLC is not an IRS tax designation. Each LLC will either be a sole prop, subchapter S, or C corp for tax purposes. In most cases you want to use a subchapter S.
After listening to this show, I realized how careless I've been about the LLC and taxation aspect of my business. I booked a consultation call with PCS to see if they can help me get my LLCs set up properly. Thanks for the valuable info!
how'd it go?
I have my LLC's structured this exact way through a real estate attorneys office and I'm about to change it because it's been a nightmare for me in the following ways I never imagined. In the beginning I tried opening a business bank account and was rejected because "I don't own the business". After a lot of headache I eventually got it pushed through. I applied for a business gas card and was rejected because "I don't own the business." Tried again with other business gas cards with the same outcome. I'm doing the property management myself and applied for an online merchant account (so I could accept rent payments online) and was rejected 3 times spending over 2 months going back and forth being told no because "I don't own the business."
Being able to accept rent online is HUGE in this business when you have tenants. There are so many examples of getting rejected for that same reason where my most current reason... I decided I would go on a limb and work with a government agency to allow a low income family to move into one of my units where the agency is covering most of the rent. They asked for business address on file and mailing address. They mailed the first check which was first and last months rent plus security deposit and application fee... to the business address, which does not come to me! I've been fighting with them and rent is a month past due. They're telling me my business address has to be my actual mailing address and I'm telling them no it does not, just send it to my mailing address but they're giving me such a hard time and I still don't have payment until I now jump through a lot more hoops.
So I wanted to share with y'all just "some" of the moments I've personally been beating my head against a wall by forming my LLC's anonymously. It's great for protection, but be aware headaches like these and others will come with it.
Sorry to hear about this. I'm a recent new fan of Pace so I trust his opinion on subject tos/real estate strategies but regarding the legal logistics, am surprised to hear of your experience so curious what PCS had recommended. There's another law firm called Anderson Business Advisors who recommend a more complicated structure but seem to have the problem you experienced figured out. So for example, the property would be owned by a land trust that's owned by the LLC but I believe you would also have another entity, maybe an LLC or an S or C corp that's the actual property manager which I think maybe would be the one to collect the rents, etc. Then you would send the money to one of the other entities. I'm definitely not 100% sure of this but does this sorta make sense? You'd be acting as a manager to get the money plus as I type this, there's also another company I was looking into called Royal Legal Solutions that would also add another LLC layer between you and the management company but then you might encounter the problem you're having now. I'll research this further as this does sound like a PITA but somebody must have an answer?
Sorry for that and thanks for the info. I was about to do the same. Are you located in Wyoming? I’m in Nevada, I was wondering in case you’re out of the state that provides anonymity.
I was going to setup my LLC anonymously but now I’m second guessing because that’s a lot to deal with smh
Hi Four Rings Realty, did you get a response or figured out how to do this differently?
I would like to hear a response from Pace on this
Most landlords have liability insurance. Your insurance company will charge you higher premiums as a landlord. A liability policy pays for your legal defense and pays for any settlement or verdict. The insurance company both indemifies and defends the landlord.
An LLC does not defend or indemnify a landlord in any manner whatsoever. It may temporarily delay an asset investigation, but a liability insurance policy in the amount of a million dollars will protect you against any mold case by a tenant.
If you expose your tenants to carbon monoxide, for example, you might need higher liability limits. Mold rarely kills tenants while carbon monoxide does.
As a landlord, don't be a slumlord and lease out a dangerous property where your tenants are likely to get injured. Just hiding your identity with an LLC will not protect you against lawsuits. Get liability insurance and maintain the property up to safety codes.
I've represented plaintiffs in California for over 45 years. I've also represented major real estate developers.
I could register my car to an LLC and not carry insurance and try to hide out if I get into an accident. I prefer to carry liability insurance. Same principles with landlords.
I met this young woman at a office I worked at a few months ago. I’m glad she got connected with this community, her energy is nice and warm
"Operating agreement is like a prenup for business" BOOM! Man Pace, I'm your newest biggest fan as your ability to take complex subject matter and teach it with simple yet effect analogies is genius man. Props! I wish I had found/met you a decade ago before I encountered some drama that this could've solved.
Wow Pace, your videos are packed with value. Your straight talk and honesty is astounding. Thank you.
This is hilarious youre talking about this today. I got set up with prime corporate services today. Couldn't be happier with the structure they set me up with.
Me
What did it cost?
Paying for the formation of the LLC's is a business expense and tax write off. Its a no brainer. Thanks for the free information Pace!
I literally just set up my LLC the wrong way last week, I have not done anything in it, still waiting on the Article of Organization, came across this content just in time, Pace, you're the man....
Sorry to hear that bro.
I just got hip to Pace, signed into all the FB groups and will be calling PCS to clean up the mess I made with my 5 LLC's. Thank you for this.
Hi Pace
You're right. I set up my LLC 9 months ago. I have an Entity Name which is not in my name and the Registered Agent and address is also different from my own personal information. I setup my business account as well but under my business name. Now all I need is revenue to match all of this going into my account. I have 2 business accounts.
I love this community ❤🎉😊
This is priceless Pace. Can. Not. Wait. For more content like this about taxes and money planning. There's not enough of this on YT. Thank you so much 💗
Not gonna lie, I was one of the bone heads that made an LLC with legalzoom a while back. Then pace recommended PCS and yeah they’re super helpful and will give any answer you throw at them. A little pricey but at least you can write it off
What’s wrong with doing legalzoom?
If you're new to LLCs I advise you learn more about what receipts, documentation and forms are needed for your new business (as a single-member & sole proprietor) come tax time for your state. Have them ready for you CPA. Also some states, like CA, require a statement of information ( Form LLC-12) to be sent to your Secretary of State within 90 days of creating your LLC and have to continuously resubmit it every other year.
I didn't know it was like $800 to create an LLC in CA. Wowza.
Plus you gotta pay that every single year there after. Thanks for the LLC-12 tip!
Leave California😂
Finally a man that will take the time it takes to break things down and making it very CLEAR about anything he speaks of! I am loving how you bring in a new person and they have questions that a new person would have but wont ask! Then to have it answered! To Pace and Family - You are Heaven Sent! Thank You!
Yes
Pace..thank you so much..I am binging on your videos today..You are a fountain of info..
Can't wait to set my LLC holding and get started..One love Bro!
Welcome aboard!
Thank you so much for this FREE content! I booked my call with PCS while watching the vid and, I downloaded Profit First for Real Estate Investing and Tax-Free Wealth to my Audible account. Unbelievable value here!!
How does this man only have 133k Subs??? Absolute GENIUS!
I had an A-ha moment when you used that example with the 3 LLCs, it literally doesn’t tell you who owns it because of the PRIVACY. Absolute Gold.
pace dropping gems.
Hi! Great video! I just have a few questions...
1) Since I don't live in Wyoming, will I have to still pay the taxes and fees for both Wyoming (registered agent fees, etc.) and the state my business is operating?
2) Even though Wyoming is holding the LLC, can't an attorney still find out the owner by looking up who pays the taxes?
3) Does Wyoming holding company take the fall if the business is sued?
4) If so, can the person suing, sue for all the companies under the Wyoming holding LLC?
1. Pay taxes (if you have to) in the state the business is registered and operating in only.
2. Literally anyone can pay anybody’s taxes. So no, it’s not sufficient evidence alone in the case of an attorney.
3. If the holding llc is structured as owning, not just operating or servicing the llc, then yes
4. If holding company owns multiple llc’s, there is potential that all assets under it may be included in a suit.
It’s not common for suits to be so large that other companies owned by the larger entity are at risk or required to offset an ordered payment or settlement. But it does happen and is possible. Separate your LLC’s and holding companies in the way that best protects you and your business(es) as a whole. Find a good CPA. Find good property management. 😊
@@bradleysmith9540 thank you so much!
This is a video that will keep on giving for up & coming investors too. Pace you’re the man.
Thanks man!!
THANK YOU PACE & TEAM. Ultimate GO-GIVERS.
Thanks for the invite
This advice is CRITICAL !
Thanks Pace
Thank you Pace! I think you are the most informative real estate creative finance guru on utube! Keep it up bro!
This has been the most informative, fun, and digestible wealth of knowledge. Thank you for keeping a healthy community thriving and growing.
Thank you Alexis and thank you Pace, for your dedication and always going above and beyond for us. 👊
I’m so grateful for Pace!
@@alexisjmorgann nice to see your reply Alexis. Your absolutely right on that one.
This video is pure GOLD! I've been stuff on this topic for years. Subscribing
Had a call (zoom) scheduled with Brandon from PCS the other day. Sat on my computer for 15 minutes waiting for hosts to show up. Never did.
Same happened to me twice! Had to get switched to somebody else who no longer is with the company. They seem to have a high turnover rate
If this is your free content I can’t even imagine what the paid course is like ❤
Super awesome knowledge! Thanks Pace & Team!
I don't think that a prior felony should disqualify someone for housing.
This might be your best video especially the story at the beggining.
Pace, thank you so much! Thanks for always giving out this Freemium content! I've learned so much in just the past month ish that I've subscribed!
Great information.Subscribed
I setup with PCS last year, but have never heard any of this! definitely need to make a call!!
Solid "Been There, Done That!" Advice, Pace. Great live-changing advice. Thanks for sharing.
Yes would love more info
Yes!
I'm so happy I found you man you're a blessing givinf this info
I thank them very much , i bug Ryan frequently
I’ve never understood why people don’t get these very simple concepts. I grew up understanding this: privacy and anonymity (from the public and the government) are crucial. So many people make horrible mistakes and then they lose everything, only to say “why didn’t I take the time or attention to properly protect myself before”.
Thank you Pace for sharing this information much appreciated it. I just had a call with Anthony this morning and I am very excited to get started with your program. God Bless!
That's awesome! Glad you found us.
Get a trained guard dog or two! They’re NOT cheap but they’ll protect your kids, you and your wife, your house, everything. Your kid falls into the water, dogs go straight in and save them. gunfire? No problem, they run towards it. Better to stop something/someone before it happens than see them on a camera after they’ve done it.
This is so helpful. Thanks for this crucial tip.
Lol just talked to prime corporate and I gotta say the first story sold it for them. I'll me locking up that asap haha thanks thank you for ALL THE FREE CONTENT!!!!!
Thank you pace for the resources
That akward moment when they say you aren't serious unless you're spending $2,000 to set this up, or the $400 for the LLC.... but you need at least one or two deals to be able to get the money to set all this up in the first place. Lol
This is all complete nonsense
25:45 llc states.
57:56 books tax free wealth & profit first
You guys are awesome. Thank you 🤙🏽. Big ones holdings for sure
BIG ONES 💰🤭
Thank you Pace, this was awesome. I have to call them. Please do a taxes video like this and include how you take the family to Disneyland and write it off. If you don’t mind sharing who does your taxes and if we could also,
instead of Anderson.
Also who do you use for umbrella insurance?
This is like LIQUID GOLD 🙌🏾 I needed this mr pace omg yes this was so worth the watch😊
Thank you so much for this valuable information.
I’m so grateful for all these info . Thank you so much
I’m so grateful for Pace!
Great video. PACEed just right. Full of pertinent info.
Wow! I didn't know what I didn't know! You just earned the hell outta this new subscriber 👊🏼👍🏼
Awesome, thank you!
Much appreciated ... good vibes :)
Great vibes , right!?
This was a gold mine, and I watch a lot of videos.
Thanks for the info. I'll be using PCS so this is helpful.
Glad you enjoyed the video!
@@PaceMorby Thanks! Do you have a ballpark estimate of how much a Wyoming holding company & 1 LLC in any given state will cost (not in CA)? I ask because I'm saving money to set this up in a couple weeks. I'm guessing under $1k for both?
Love this one...So helpful!
First, my experience was nice. The people were great! After watching your video, I can't help but wonder if I asked enough questions lol. Holding with sub. Thank you Pace!
great info
Great information. saw you on bigger pockets. looking to learn more about working with property owners to take over there rentals will minimal cash investment.
Sounds great!
How do you make sure someone else doesn’t claim ownership of your business?
1st time I created my llc and went to the bank to open a bank account. Banker asked for city business license ($$), state business license($$), insurance for the llc($$). My insurance was ok for insuring the llc but I needed the landlord to agree to let me run my "little business" out of the place that I rented. The landlord was ok with me running my business BUT took the opportunity to increase my rent ($$) to reflect the fact that a virtual business was run out of HIS property... so not a big fan of creating an LLC before having your 1st deal!
But then at least the lease is in your business name, not your personal name, which would leave you open to personal liability right? Or did you sign the lease in your name?
If you are self funding... just go do a deal!
But if you are getting involved with partners, creative financing, stuff that involves more people.... you should probably get that LLC
🤔🤔🤔 didn't Pace say don't use your home address?
This is so helpful, Pace, thank YOU!
You're so welcome!
What's the CPA/tax service besides Prime that Pace uses?
Tommy, you're the man, "it's date night"
I’d love to follow up and know how things are going for this young gal coming in a year later!!?
Not really understanding the convicted felon scrutiny, I'm a convicted felon, someone who has made mistakes in the past although many, many years ago, totally resocialized, college, tax paying citizen, motivational figure and the examples of reform with me goes on and on and I continue to move forward and get better by being a positive example in my community
Ramsey, bro. I appreciate you sharing this with me. Keep at it!
Many people are judgemental, don't worry about it & keep at it...
Just recently came across your content and I love itt!! Thank you for sharing this knowledge.
Ramsey I resonate with you .
I think all the more reason to set better examples to the ones that do contain scrutiny.
Yeah, it's always like that from people who think they're somehow different at a human level from someone who has a felony. If you notice, in HIS story, it was everyone BUT the felon acting crazy. In most cases, felons are going to want to avoid more flack, especially if they're on papers.
@wh5rk I spent over half my life on papers and I've rented to felons and people with clean backgrounds. I've had more shit from uppity people with no record than I've ever had from a felon. You sound goofy just saying "it depends on the charges". No, it doesn't depend on the charges. Someone being a felon or not is literally ZERO indication of whether they will be a good tenant or not. A sex offender is obligated to be on the public registry and that doesn't require a background check because it's public, because it's easy as fuck to find. Anyone else, I'm not particularly concerned about because they're no more "prone" to being shitty tenants than people with no record. They already served their time, what the fuck do they need to be double penalized for? You goofy ass people sound ridiculous supporting double-jeopardy, which is exactly what barring someone from renting for being a felon is.
"Here, I know you already served your penalty and may be trying to turn your life around, and that if you DO fuck up that it'll be easy and fast for you to be in jail, but let me stick my nose into your business and drag up your past and make it harder for you to live NOW, which is a large part of the reason people re-offend is because people refuse to treat you like normal people... Yeah, that sounds about right. Let me penalize you AGAIN even if you already did your time and make basic shelter more difficult for you to achieve, even though you served your penalty already. Yeah, that will be the best rehabilitation... to block basic necessities like housing, and then expect someone to stay straight and act like a respectable member of society even though we refuse to treat them like one!"
Goofy ass mf.
Awesome video. I'll watch it again 🎉❤
This was awesome, thanks! 🏆🏆🔥🔥
THANKS MAN!
Whoa ! Anderson Business Advisor shade 😎 I will schedule a call with PCS to see what I’m missing!
A amazing video! Thanks a lot for the content!
My pleasure!
This was great. Love the transparency
I have not yet. Prime quoted me $650 I think. So will do it but after my first deal.
I had bad experiences with Relay Finance. I went to them as online banking because Pace mentioned them in a previous video. I worked with Maggie,Sanjay, and Philip. Submitted my documentation as well as Government ID and a video stating to open up the account. I went back and forth with relay Financial for 3 weeks and just gave up. Constantly asking for more and more information that I didn't have. I gave them my Prime Corporate Services documentation for Articles of Incorporation Ein and any other thing that they asked for. I signed up with Prime Corporate Services as a recommendation from Pace. My Holding LLC is in Wyoming and is only a few months old. This is for the Gator challenge. I also have the two audio books. Profit first and profit first for Real Estate. Powerful information for all of us. So far things are good with PCS.
Any advice with Relay Financial is welcomed.
Did you manage to open bank account? I’m struggling with this as well
@@xyzxxxx4811 Hi guys, any updates? i'm researching the very thing you guys are going through so hopefully you found a solution. Thanks in advance
Try bluevine
Me didn't completely all the paperwork
So where should I go to set up my LLC the proper way? I already have an LLC For my other business but it's a totally different business.
Always dropping free game on every channel ‼️‼️‼️✅🌟
I've heard both strong DO and DON'T get/form a Business Trust. Can you expand on why an Unincorporated Business Trust is a good idea, who to use to set up (if possible), a fair price for formation, and its nuances.
Thanks a lot, for great tips Pace!
What if you have your LLC and you just want to clean up your LLC and make sure you did it correctly. Any of your services that your team can help me with?
Priceless info ,excellent explanation
Thank you for sharing this gold!
You're welcome! Glad you enjoyed!
When you set up a UPS mailbox, they ask if it's for personal mailbox or business mailbox. I went ahead and picked the business mailbox, but afterwards I was wondering if I could of just said regular mailbox because the only reason to get it in the first place is for Privacy. Your not actually gonna be receiving mail through it, right? If anyone can help answer that'd be greatly appreciated.
Yes i was trying to sign up for batchleads today and my card was declined 2 times i know there is money there ready for new bank
When I purchased my office building I hired a lawyer and he set it up this way. So I have two LLC. One that ones my building and one that is my business, but I still need to restructure
I'm just learning subject to....I love the fact that you use zoom. Never thought of that, great idea. Again I'm really new , but intrested in Subject to and creative Financing. Iwould love to get other knowledge fro yn this. I live in SF, Ca.
I understand the concept of having the three LLC’s. What I’m confused about is that Pace stated the LLC’s under your Holding LLC need to be in the state you live in. So, what about the example Tommy gave about clients that don’t have a home base, but travel the country in an RV? Can you use the sub setup that they use in order to, as in my case, get around having to pay the high LLC cost in California?
You should open a foreign LLC, they say best states are Delaware, Nevada and Wyoming. From my research, it’s more advisable for mostly likely to sue business and with a certain income a year. But do your research in your own specific’s.
Such good gems Pace! Great contents! I didn’t know I could start an LLC without using my name. How can I remove my name from my LLC?
Already following you
Priceless Gold! 🙏
Awesome content thanks for The wealth of information you are giving my question to you is what is your take on NEVIS LLC vs a Wyoming or Delaware LLC In regards to starting an umbrella holdings LLC again I appreciate the information you provide and thank you for your time
This is so valuable. Appreciate it.
Getting your LLC is like naming your newborn child. It needs to be done or things will be very difficult.
Fricken awesome knowledge I need to catch up on these videos, hey Im eight months behind..lol😆
Why would I want wholesale account? If I am plan to buy and hold only. Maybe sell if the renter really wants to buy. What account would be needed if the deal best works for me just getting an assignment/finder fee? Especially being in california; would only start with one.