Quotes from Garrett Sutton

unlike a corporation, real estate, intellectual property as well as stocks and bonds in a brokerage account can be transferred in and out of an LLC at their basis, thus incurring no taxation.

California residents must be cautious when considering the use of an LLC. The fees are onerous.

So do not worry about asset protection being unaffordable.

Real estate offers huge financial advantages to those who will learn the system.

There are great advantages to investing in real estate, both as a cash flow business and as a wealth builder.

In addition to the annual LLC franchise fee of $800, the state of California hits LLCs with a fee based on their gross receipts. This fee has nothing to do with whether your company is profitable or not. It is only based on revenue generated, so you can lose money and still owe the fee.

Real estate investors can accelerate their wealth building much faster than with other assets, such as stocks, bonds, and tax-deferred retirement funds.

Our financial, tax, and legal systems are set up to reward property owners

Most of us don't realize that real estate investments allow our money to accelerate at a greater pace than typical paper investments.

as a real estate investor, you will be putting other people's money—the lender bank's and your tenants'—to work for you.

Anyone may so arrange his affairs that his taxes shall be as low as possible: he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one's taxes. (Federal Judge Learned Hand,Helvering v. Gregory , 69 F.2d 809 (2d Circ. 1934))

Break-even = fixed expenses + (1- variable expenses / sales)

To protect what you have worked for and all that you have, you must know how to limit liability.

If you have a business that is not operated as a limited liability entity, your personal assets and all of the assets of the business may be in jeopardy.

Our firm charges $125 a year and the service is free for the first year you form your entity.

you must file annual reports and pay an annual fee to your state.

So on your cards, brochures, contracts and checks you want to have Inc., LLC or LP displayed so that people know they are dealing with an entity and not you personally. This will prevent a claimant from arguing that they thought they were dealing with you personally and should be able to collect against you personally.

Open and use a separate bank account for your entity's activities.

Prepare or Have an Advisor Prepare Separate Tax Returns.

Meet with several accountants, attorneys, and other service providers to get a feel for them and their practice.

Of course, your advisory team can only take you so far.

The two main reasons you need to own your own corporation are for protection against law suits and against excessive taxes, yet there are many other reasons and other strategies. The point is, if you are serious about being rich and keeping your wealth, understanding corporations and other legal structures is an important part of your ongoing financial education.

The balance you strike between the obligations of work, family, and community will also be important.

Be sure to have a good CPA on your team. Many traps deal with taxation, and can be avoided with proper accounting advice.