Why YOU SHOULD STOP Creating 5 LLC Bank Accounts

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Clint Coons Esq. | Real Estate Asset Protection

Күн бұрын

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🔒 Are you considering setting up multiple LLC bank accounts for your business? Think again! In this video, I'll uncover why this strategy could spell disaster for your finances and leave you vulnerable to costly mistakes.
It's a common misconception perpetuated by some internet sources that setting up five separate bank accounts for your Limited Liability Company (LLC) is the key to effective business management. However, we're here to debunk this myth and reveal the hidden risks behind this approach.
Tune in to learn why the five-bank account strategy may not be the solution you've been led to believe. Don't miss out on this crucial information that could save you from costly mistakes down the line.
🔔 Stay ahead of the curve. Subscribe for cutting-edge insights on real estate investing, business strategies, and more!
Show Notes:
0:00 Intro
1:15 The Main Issues
3:18 Liability in Your Accounts
6:15 Assets in Entities
9:43 Outro
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ABOUT CLINT COONS
Clint Coons, Esq. is one of the founding partners of Anderson Law Group, Clint has grown his legal and tax firm to over 400 employees by assisting real estate investors with creating and implementing solid entity structuring plans. His success in these regards is in large part due to his personal investing experience. A successful attorney, real estate investor, and speaker, Clint has used his innovative and dynamic strategies coupled with knowledge borne from experience to help thousands of people save millions of dollars and build real wealth.
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The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.
#llc #bankaccounts

Пікірлер: 121

@ClintCoons Ай бұрын

Have questions about this video? Sign up for a free consultation to get your questions answered by my team. Visit: aba.link/y18

@thymeparzival Ай бұрын

The 5 bank accounts of the Profit First Model aren’t the issue, the issue is that holding large amounts of money in your LLC increases liability risk if your business were to be sued. The solution is to hold monetary assets (over 100k) in a second LLC and loan money back to your first LLC with interest that’s paid back to you.

@virgobee23 Ай бұрын

This makes alot of sense!!! Thank You.

@karikasumi888 Ай бұрын

Great info. Hope i can come to the workshop soon

@SergioB-MakingMillionaires Ай бұрын

Very informative! 🔥

@JoeSmith-kn5wo Ай бұрын

Man I just stumbled on this video in the recommendations. I happen to getting ready to leave the corporate world again after running a few startups in the past and this sounds like great advise.

@ClintCoons Ай бұрын

You got this!

@S1N2D3S Ай бұрын

Great Video. Thank you for sharing!. Question: In your example above, is the Wyoming LLC the same concept as a Holding Company or is that different strategy? Thank you for your response!

@ClintCoons Ай бұрын

Great question, to assist you further, I highly recommend you request a free 45-minute consultation to discuss this with my team so we can provide with you an answer that is unique to your situation. Visit: aba.link/y18

@KristenNichole Ай бұрын

First video I’ve watched regarding this topic that actually made sense. Thank you.

@ClintCoons Ай бұрын

Glad to hear it!

@ChristianPierreW Ай бұрын

Good video. Thanks.

@AdeAde0224 Ай бұрын

Great information

@zapshoe3530 Ай бұрын

Good info😄

@HopeProphecy Ай бұрын

Very helpful. Can you use that banking LLC as the holding LLC for the business LLC? Or would you recommend a separate Holding LLC that doesn’t not invest or hold money?

@ClintCoons Ай бұрын

You could but I prefer to use a separate LLC

@Agentxile Ай бұрын

I watched KZfaqrs who recommended the five-account strategy. Thank you for the correct information.

@mrjuannorris_ Ай бұрын

Technically, he’s not saying that having multiple accounts is wrong. The moral of the story is don’t have a lot of money in your operating business account. Particularly for me, the cost of running my business is extremely low and it has four accounts, but there’s never really any money in those accounts >$3000. 90-95% of profits gets filtered up to my holding company and dispersed again for buying assets. But I do see the advantage of what he’s saying for credit purposes. Obviously that’s not what the point is, but this sounds like a potentially great way to build credit for your business, and to create a solid track record. I would look into it for that reason alone, after looking at possible tax implications.

@Rummy316 Ай бұрын

Talking about the “profit first” book.

@virtualcreationcorp.6179 Ай бұрын

Clint is amazing....period💟

@archiepennoh Ай бұрын

THANK YOU

@khackney86 Ай бұрын

Great video

@user-bt6jn6wg2b Ай бұрын

Hey Clint, if you own an office building inside of your active business LLC, Should one put the Office building in the Wyoming asset holding company?

@MusafirsSoul Ай бұрын

Smart advice 👌 Thanks. However why only Wyoming, can the home state be used for the purpose?

@christian-gu5oq Ай бұрын

Wyoming gives you the ability not to show your identity

@mpsmanger4713 Ай бұрын

When you take the money out into your name to move it to the Wyoming LLC , is it not a taxable event?

@quixoticPrancer Ай бұрын

No, because he's talking about LLCs that have elected pass-through taxation status. It's only taxable if you're taking money out of an LLC taxed as a c-corp, because that would be a dividend.

@buildingAbiz Ай бұрын

How do you put the money into the Wyoming llc bank account without paying tax again on that money as profits?

@dmez7020 Ай бұрын

Transferring money is not taxable

@rcruz401 Ай бұрын

From my understanding, any money that goes into that Wyoming LLC holding bank account will be taxed. In my example, we have it as a Partnership 1065 (my wife and I).

@AnastasiaDanielle Ай бұрын

@@rcruz401incorrect understanding. Money transfers are not taxable, profits are

@yz6450 Ай бұрын

@@rcruz401 Hire a good bookkeeper /CPA to explain it to you. Taxed or not depends on what the money is - is it income, dividends, owner contribution, loan, etc.

@khughes691 Ай бұрын

The loan part is good benefit, and the interest payment on the loan can be a nice business deduction... however, the majority of the money leaving the business would be considered a distribution, so it's taxed on the business owner personal tax return? Hence doesn't seem like much tax benefit, it's mostly just legal protection, correct?

@hedgefund996 Ай бұрын

Good Educational Content

@ClintCoons Ай бұрын

Thanks

@ThriveWithLouise Ай бұрын

Great info, so that new llc, can you then create a business out of that or is it only used for the purpose of protecting your assets??

@ClintCoons Ай бұрын

Yes you can. If you would like a FREE 30-minute consultation, you can request one here - aba.link/clintss

@DIGTHEVOICE Ай бұрын

Great info

@ClintCoons Ай бұрын

Glad it was helpful

@sandorvarga.6982 Ай бұрын

ACTIVASION FRATELO.❤

@user-bt6jn6wg2b Ай бұрын

Hey Clint, if you only office building in the active business account in the state you’re operating from should you put the office building in the Wyomi holding company? Leolyan (Lee)

@ClintCoons Ай бұрын

The building should be placed in an LLC registered in the state where the property is located.

@tailormadegrace9234 Ай бұрын

Thanks

@11962 Ай бұрын

Everything coming out this guy's mouth is gold.....

@ClintCoons Ай бұрын

Hah I will let my wife read this comment. 😂

@tomasgonzalez4819 Ай бұрын

Clint. I love your (and ABA's) videos. Great content as always. However, I think there is a missing detail here. Any "move" of money to your banking LLC, directly or otherwise, as you've described it here is a distribution. In a depo in aid of execution, opposing counsel will likely move to garnish distributions - worse case. So while the already transfered $350k is safe, all revenue, moving forward, is not. I'm surprised that you didn't add an MSA as a potential work around. You "pay" the Banking LLC a monthly services fee thereby showing an operating expense not a distribution. I get it. It's only a 10 minute video, and you can't be expected to hit all the nuance. Hence why my position still stands. Great content!

@khughes691 Ай бұрын

Correct me if I am wrong, but in your scenario the business would pay monthly services fees to the Wyoming LLC that could total up to $300k or more (bypassing a distribution)? Seems excessive, but possible I guess depends on the situation... if that is what you meant by paying the Banking LLC a monthly service fee in place of a distribution to yourself (taxed on individual level).

@tomasgonzalez4819 Ай бұрын

@@khughes691 As a single-member LLC (i.e., a disregarded entity for tax purposes), the Banking LLC would enjoy pass-through taxation, which would make it "taxed on individual level" as well. (Not that you mentioned it, but since we're here: The added administrative costs to implement my scenario would be neglible, especially if you're "netting" $300k or more per year.) Also, a monthly management service fee of $25k (or more) is hardly "excessive." That label is purely subjective. Add consulting, marketing, admin, and back-office functions to an MSA and you'll easily (and actually) justify the price tag.

@heidinasser2883 Ай бұрын

Great Video, if you write the check under my name to move it to the Wyoming LLC, shouldn’t I pay taxes on the money im moving?

@thebestken Ай бұрын

You are drawing money from LLC. There is no tax on that. Talk to CPA or learn more about drawing money from LLC.

@michaelrowley6069 Ай бұрын

You file a UCC1 to move money from the blue LLC to the orange LLC. How do you move money out of the orange and into the blue? You mentioned that the money would go to you the investor. Would that be a distribution? Is there a way to keep your excess cash in a way that you aren't lending back to yourself? Could you put it into a trust and put that trust into another WY LLC? Could you create security through obscurity that way? I can see the benefits of loaning the amount to the operating LLC. I just wonder if there was a way to move the money to the holding/lending LLC that didn't involve a distribution.

@quixoticPrancer Ай бұрын

You're thinking of an LLC taxed as a c-corp. His example implies that with the LLC in question, you have chosen pass-through taxation status.

@activemusickid Ай бұрын

Who said you can put a trust into an LLC? As far as I know, you can only put an LLC into a trust.

@mnventuresinc.8292 Ай бұрын

Are you talking about the profit first method ? Basically right

@lalgonultas Ай бұрын

I am a foreigner who does not reside in the USA. I run an online travel agency. I do not organize tours in the USA and I have no customers in the USA. In this case, will I pay fedaral tax ?

@mesbahulhoda9539 Ай бұрын

If your company is incorporated in the US, pretty sure you will have a tax liability.

@Mhapple Ай бұрын

What do you mean put it in your name? Write a check to yourself? If there was some type of legal action, wouldn't attorneys go after the paper trail? If I use a Wyoming LLC from NJ, do I need to register the LLC to conduct business in NJ or since it is just a bank account, it doesn't matter? Also doesn't registering the LLC in certain states mean you lose anonymity?

@ClintCoons Ай бұрын

The WY LLC will not register in NJ because it is not conducting any business in NJ. You ask about the paper trail - if an attorney did discover you moved money into your WY LLC that does not give the attorney a cause of action against the WY LLC to bring it into the case.

@TGArthur 28 күн бұрын

I called your advisory firm and they won't help me due to a pending civil suit we are settling. Can't you help with setting up Operating Agreements for the hodling companies, LLC and S Corp companies I have at least?

@ClintCoons 23 күн бұрын

If you would like a FREE 30-minute consultation, you can request one here - aba.link/clintss

@Karguy4545 Ай бұрын

My question doesn't pertain to this video but since we are talking about a holding llc would it be wise to create a Wyoming holding llc for my savings ? I have it all sitting in my local bank savings account but i feel that it's not safe there. What do Rich people with tons of money do with the cash they have saved up and not invested anywhere yet?

@ClintCoons Ай бұрын

Correct, set up a WY holding LLC for your savings.

@Karguy4545 Ай бұрын

@@ClintCoons is this something you guys can help me setup?and if so, whats the cost?

@ClintCoons Ай бұрын

@@Karguy4545 Yes we can. Sign up for a free consultation to get your questions answered by my team. Visit: aba.link/y18

@activemusickid Ай бұрын

So when you transfer funds from a subsidiary to a holding LLC, are there limits to how much you can transfer? I’d imagine you can’t limit your liability to the point where you just transfer 99% of cash from subsidiary to holding company?

@ClintCoons Ай бұрын

No limit, but you should keep enough operating revenue in your account.

@activemusickid Ай бұрын

But what if you have multiple subsidiary LLC’s under one holding company; wouldn’t transferring funds from neighboring subsidiaries into the shared holding company be considered as “co-mingling of funds?” (For example, a music record label and a music publishing company transferring cash to their shared holding company)

@ClintCoons Ай бұрын

The transferring of funds would be considered a distribution. Co-mingling could be raised when you moved funds between the sub-LLCs.

@lenardob.youmans8949 25 күн бұрын

Would you put a brokerage account in the Wyoming LLC?

@ClintCoons 23 күн бұрын

Yes

@waynecmontgomery Ай бұрын

What about using a statutory Trust out of Delaware or VA for the secondary company?

@ClintCoons Ай бұрын

You can - the point is to keep the business account without a lot of cash.

@waynecmontgomery Ай бұрын

@@ClintCoons I only ask because statutory trust require a lot less reporting and formality than an LLC but has the same protections (depending on state law).

@truhawaii5957 Ай бұрын

How does the taxes work on your banking LLC

@ClintCoons Ай бұрын

The LLC is disregarded and will not be a tax issue unless the account generates income, which would be taxable.

@marinakn2474 Ай бұрын

Do you provide consult to EU citizens who want to set up a LLC in YS? If yes, how can I contact you?

@ClintCoons Ай бұрын

If you would like a FREE 30-minute consultation, you can request one here - aba.link/clintss

@marinakn2474 Ай бұрын

I tried to request but you website wouldn’t allow me to do anything . It says that ‘Yor access to this website is limited by the owner of the website’. I am from The Netherlands. Seems like your website doesn’t allow EU citizens to access it.

@mikejr1152 Ай бұрын

Is it OK to do this with just a holding company?

@ClintCoons Ай бұрын

Yes

@djlightsout06 Ай бұрын

Is it necessary to loan yourself the money? Can you just wire the money over without filing the UCCC?

@Zenumo1 Ай бұрын

The ucc1 creates a "lien" that must be paid first in the event the business llc gets sued.

@ClintCoons Ай бұрын

You can but you would not be protected. The purpose of the UCC is to make your lending entity a secured creditor.

@stevem0601 Ай бұрын

@@ClintCoons - But doesn't that remove the veil of anonymity?

@marctlm3636 Ай бұрын

How can I work with you directly to structure my LLC and set up a trust?

@ClintCoons Ай бұрын

Hi you can reach out to my team to get started. Visit: aba.link/y18

@ajrockinshockin2893 Ай бұрын

@@ClintCoons Hey 👋 Clint, I went to the link and saved it. I'll be working with your legal team very soon. Thank you for sharing your knowledge. 😊

@activemusickid Ай бұрын

So the banking LLC, would that be a holding company ??

@ClintCoons Ай бұрын

Yes

@tracy419 Ай бұрын

I've been using the 5 pillowcase strategy for years, and it's a lot less paperwork and headaches.

@LearW-tc9ez Ай бұрын

Are you able to explain that strategy?

@tracy419 Ай бұрын

@@LearW-tc9ez it's a lot like the old under the mattress strategy, but I've only got one mattress. (Sorry, figured it would be an obvious joke)

@ClintCoons Ай бұрын

😂😂😂

@iwebexp Ай бұрын

Pulling the money from the LLC in your name to move over banking LLC, doesnt that piece the veil?

@zeusmultirotor8479 Ай бұрын

Filing the UCC is kind of the point. That makes it so that anyone who successfully sues the operating LLC would only get their money after the UCC register loan is paid of. The more UCC filings the less money is available to be taken by people suing the company

@iwebexp Ай бұрын

@@zeusmultirotor8479 that doesn't have anything to do with my question

@kingdomthoughts2023 Ай бұрын

By Wyoming LLC do you mean land trust?

@ClintCoons Ай бұрын

No I am referring to an LLC.

@jdwilk5023 Ай бұрын

Once you move all that money into your name, it’s taxable. There’s got to be a better way to protect that money while also, keeping it in the business so what would be a tax liability can be offset by investing in additional assets versus just giving it to the government.

@ClintCoons Ай бұрын

It's only taxable to move money out if your entity is treated as a C-corporation.

@jdwilk5023 Ай бұрын

@@ClintCoons Yes because an S-corp passes straight through anyway.

@makecostaricahome Ай бұрын

You aba links don't work :(

@ClintCoons Ай бұрын

Which link did you have issues with? Have you tried visiting aba.link/y18

@jeanalexandre1105 Ай бұрын

A lawyer might say giving yourself a loan from a different entity of your making. It's not A loan.

@mesbahulhoda9539 Ай бұрын

Isn't the presenter a lawyer?

@XFactor-we5cg Ай бұрын

How do you think its not a loan? Companies small and large do this all the time. Also usually under a parent company. What do you think it is?

@anntiup Ай бұрын

OK CLINT,OK,OK OK, 👍 🔥 🔥 🔥 🔥

@michaelfrancis-vb7tp Ай бұрын

Why do you use a Wyoming LLC?

@ClintCoons Ай бұрын

Watch this video: kzfaq.info/get/bejne/eNSmosmStZfLYn0.html

@td5222 Ай бұрын

Why Wyoming

@ClintCoons Ай бұрын

Anonymity and asset protection benefits.

@greeceundiscovered9670 Ай бұрын

LLC for a KZfaq channel? Should you have one?

@lalgonultas Ай бұрын

Lol yesterday I watched black American youtuber video that he suggested 5 bank account.

@ventureted Ай бұрын

When you take money out of your business LLC and into your own name aren't you creating a big tax liability for yourself?

@ClintCoons Ай бұрын

I recommend setting up a free consultation to discuss some strategies and how they apply to your unique situation. Sign up here: aba.link/y18

@ventureted Ай бұрын

@@ClintCoons LOL

@lalgonultas Ай бұрын

I think better to sit on my ass on UK company. USA tax huge.

@rebeccasimmers9363 Ай бұрын

Yes, but don't I incur taxes when I pull the money out of the active LLC to create a separate "bank LLC"? Does this still apply if I have a management C Corp that owns several LLC businesses?

@ClintCoons Ай бұрын

You do not unless the operating LLC is treated as a C-Corporation