Quotes from Garrett Sutton

The more road blocks the better.

Successful real estate investors realize the value of surrounding themselves with experts in a range of areas—taxes, the law, real estate, insurance, property management, etc.

On an annual basis you are essentially paying the extra cost of maintaining a Nevada corporation—$325 to the Nevada secretary of state and $125 (or so) for a resident agent in Nevada.

A little education goes a long way in accomplishing four essential goals.

Ordinary people just like you, with ordinary reserves of cash, have achieved great results in real estate investment, and you can too.

Cindy realized that if they created a Wyoming corporation to be the ad agency they could minimize their state taxes.

By having Wyoming, Inc., perform a legitimate service for Your State, Inc., Your State, Inc., has an expense to write off against its income, thus reducing taxable revenues.

So just by shifting income from a taxable state to a no tax state you are saving money.

What does California think of this? They will assert that the Wyoming business is doing business in California and thus must pay all state taxes, including the notorious $800 annual franchise fee. If you live in California know that you will have to do a lot more planning (and may have to pay more in state taxes) when using these strategies.

Assume Your State, Inc. is involved in a day-to-day business where it could be sued. By having all the good assets in Wyoming, Inc., and leasing them to Your State, Inc., you have removed these assets from risk.

but wanted it protected.

While England may have lost control over its colonies, the British East India Company simply changed its name—a simple d.b.a.—and kept on trading.

Please also feel free to read this case a few times as it may take a while to sink in.

The two main reasons you need to Start Your Own Corporation are for protection against lawsuits and against excessive taxes

Own nothing and control everything.

And above all, work smarter instead of harder.

Keep the operating entities—the ones that deal with the public—away from the asset-owning entities.

Consider having the operating entities hold fewer assets and lease expensive assets from the asset-owning entities.

It is recommended that these issues be discussed with your attorney

Sole proprietorships and general partnerships provide no asset protection.

Do not be swayed by glowing testimonials and fancy brochures.

Johnny did not bother to do a background check on Damien.

using the legal system to his advantage

Because sole proprietors report their business profits and losses to the IRS on Schedule C, there is a much higher risk of IRS audit. Schedule C returns are audited at a five times greater rate than corporate tax returns.