Creating a LLC with a Wyoming Holding Company To Sell My Xbox on Craiglist!

[Chris Seveney]

In the world Guru real estate professionals, there has always been a trend that's both baffling and amusing: overcomplicating business structures. Let's dive into the absurdity of setting up an LLC with a separate Wyoming holding company, just to sell an Xbox on Craigslist. Sounds exaggerated? That's because it is.

Imagine this scenario: You have an old Xbox, and you want to sell it. Instead of a simple transaction, you decide to shield yourself with a complex legal structure. Why? Because someone, somewhere, said it's the best way to manage risks. But what risks are we talking about here? The buyer gets upset about the quality of the XBOX or it jams a disc and decides to sue? Sure, it's a remote possibility. But thankfully you setup a LLC with a holding company to "hide your identity" in case you marry a Kardashian or becoming a secret agent and do not want that person that bought that XBOX to come find you or realize that you own a 2012 honda accord with 120,000 miles that they may try and take?

The irony is, in your quest to protect yourself, you're spending money on creating entities that offer little real protection, especially when you're just a regular Joe or Jane with no significant assets. It's like buying a suit of armor to bring to a pillow fight.

This herd mentality, where everyone blindly follows the latest 'sophisticated' trend without understanding the why and the how, is not just amusing but financially draining. Instead of building castles in the sky, focus on what's practical. Understand the actual risks and address them sensibly.

In the end, remember that sometimes, selling a chainsaw is just that – selling a chainsaw. Don't let complexity kill the simplicity of doing business.

**Please note I am not an attorney or CPA, but have been around the block and have set up these structures only to turn around close them because they made no sense. Now there is a time and a place for setting up a LLC, but 95% of you do not need one.

[Bill B.]

Make sure you document your original cost so you can show the loss on your taxes. :-).