All Forum Posts by: Jennifer Gligoric

Do you love being self-employed? Who wouldn’t! Self-employment is the way to go, with the freedom to do what you want with your business without working for the man.

Although you love self-employment, you feel lonely without your 401K that was set up by previous employers. You begin to miss your 401K and wonder if you should call and check up on it to see where it’s at in life and to see if it's happy. Don't.

*Cue cheesy infomercial music* Now introducing a solo 401K! It’s not brand new and has been around for some time but it’s made for business owners just like you! That’s right! It has all the perks of tax advantages, getting a retirement plan, and keeping your freedom.

You may be questioning who can help you with a solo 401K, well you’re in luck! Here at Leafy Legal Services, we are experts in making sure that your assets and plans are protected.

Our team thrives on coming up with wealth-building strategies that work for you. We want to help you keep all that you’ve worked for. After all, it’s only fair.

To learn more about the best legal company around (*cough* us *cough*), click the link below!

If you thought the deal couldn’t get any sweeter, our end-of-the-year tax prep season discount is here! Get a personalized in-depth, confidential, complimentary consultation now!

Call (409) 761-1671 to get started with our team.

Find us on the web at LeafyLegalServices.com or, for you visual learners, check out this brief (<90 sec) Animated Video

@David Russell  Credit score is only part of your fundability issue, it's how you are handling your money and the algorithms lenders use to determine if you are a good borrow.  I HIGHLY recommend Merrill Chandler's GetFundable book "The New F* Word".  (I'm actually attending his two-day bootcamp this weekend).  He is one of the founders of Lexington Law Firm and credit score alone won't help you get funded. There are people walking around with 850 scores who can barely get a credit card & have no debt.  It's all about these 80 algorithms and habits lenders track based on your behavior. What makes you a consumer (bad) or a professional borrower (good).  I even think the book is free on his website.  You can turn it around - or at the very least - work w/your partners to change your behaviors so that you all increase your fundability together.  

@Felicia Hamilton It has to be filed in the county the property is located in but can be notarized anywhere and it would be a Gift Deed not a Quitclaim.  I don't recommend that you do this in your name but an anonymous entity structure to separate this from your other holdings. This can be both protection to you and your relative holding the property if there will be jealousy involved as you won't personally be identifiable so there won't be family "drama".  

@Jason Malabute I'm not sure why you stack many different LLC's like that and it's not something I recommend. You also don't explain why your lawyer advised you to make a California LLC instead of a foreign entity registered to do business in California under an Anonymous LLC?

I have some doubts that structure is going to do for you what you want it to.

Also, while minutes are important it is only a bit of paperwork you keep.  The real corporate veil piercing you need is how you have your bank accounts, EIN & accounting structured on your back end.  The ability to clearly show that transactions are conducted in a way that proves the separation of business entities is key.  Plus it's what you should be doing anyway. You should know exactly the profit/loss and balance sheet for any given property so you can know whether to continue to keep it as is in your portfolio, and you can only do this with accounting and class separations.

If you have the right structure set up, you can do this with one bank account, one EIN and one structure while keeping the rest separate. However, not knowing your particulars makes it very hard to give exact advice. It's vital to know which state you live, where all your properties are located, your homestead (if you have one), values and type of REI business you have now and what you want to have in 3-5-10 yrs to have the right set up for you. How a flipper structures their business is going to be very different than someone who holds, for example.

@Robert Stamper I highly recommend a Solo 401(k) to any of our clients who qualify for one.  It's a very powerful tool you can use to make your money work for you.  However, I do advise that if you take our your own loans for a business, property, allowed investment that you DO have to be just as disciplined being your own bank as you are when making payments to an outside bank and remember that any interest or overage just goes back to you.  It's powerful when you do it correctly.

In 2020 you are able to contribute up to $57,000 (it was $56,000 in 2019), with an additional $6,500 catch-up contribution if 50 or older.

To further break this down:

• As the employee, in 2020 you can contribute up to $19,500, or 100% of compensation, whichever is less. Those 50 or older get to contribute an additional $6,500.
• As the employer, you can make an additional profit-sharing contribution of up to 25% of your compensation or net self-employment income (net profit - half your self-employment tax and the plan contributions you made for yourself). In 2020, the limit on compensation that can be used to factor your contribution is $285,000.

NOTE: Employee 401(k) limits apply by person, rather than by plan. If you’re also participating in a 401(k) at your day job, the limit applies to contributions across all plans, not each individual plan.

You are able to participate in an employer’s 40l(k) plan in tandem with this Solo 401(k). In such a case, the employee-elective deferrals from both plans are subject to the single contribution limit.

Contributions are discretionary and you are under no obligation once initially funded, to make contributions. You always have the option to contribute as little or as much (per plan limits) as you are able.

You’re not wrong, if you didn’t go with us (Leafy Legal Services) it could quite possibly be too much paperwork. Who wants to deal with that? You guessed it, we do.

Take a load off and relax knowing that Leafy Legal Services is taking care of you. Around this holiday season, you’re too busy keeping track of family dinners and the kid’s Christmas presents that you don’t need another thing on your plate.

Creating and running a business is hard enough as it is, don’t let a potential lawsuit take away the assets that you worked so hard for.

Here at Leafy Legal Services, we are experts who make sure that your assets and future plans are protected. Our team is passionate about what we do and we want to help as many people as possible to finally finish what they’ve started and get the protection they deserve.

***Our end-of-the-year tax prep season discount is here, get a personalized in-depth confidential complimentary consultation now!

Call (409) 761-1671 to get started with our team.

You may also find us on the web at LeafyLegalServices.com or learn more in this brief (<90 sec) Animated Video

@Michael Corso  What a great question!  It depends on each person because "wealth" for some might be asset class diversification based on cash flow and holding algorithms and for some, they measure wealth in both financial and non-financial terms seeking a a certain balance that is their sweet spot.

If you’re the type of person who can’t get the song “All I Do Is Win,” by Dj Khaled out of your head, you’re just the person we’re looking for. Not only is the song catchy, but it also speaks the truth for investors and entrepreneurs when it says “got money on my mind I can never get enough.”

As investors and entrepreneurs, we love making our dreams become a reality and making money in the process. When you’re first getting started in this little niche, you may find it difficult to learn the ins and outs of wealth building.

You’re not alone, many people just like yourself find themselves in this situation (even if they’ve been doing it for awhile). It’s time to strategize how you can build your wealth and protect your assets at the same time, we’ll be with you every step of the way.

Here at Leafy Legal Services, our team are experts in making sure that your assets and future plans are protected with tax strategies that allow you to grow your wealth, and who doesn’t want that?

If you want to learn more about us, click the link below or watch our short (and no we aren’t lying, it is short) video about how we can help you!

Our end-of-the-year tax prep season discount is here, get a personalized in-depth confidential consultation now for only $99.00.

Call (409) 761-1671 and use this code: BPQ41019

You may also find us on the web at LeafyLegalServices.com or learn more in this brief (<90 sec) Animated Video

@Vic Hartounian - none of those structures would I recommend. You can have both asset protection and separation but you will have to have either one California LLC or one foreign entity registration in California depending on where your investments are located. A multi-single member LLC in Wyoming seems a very odd choice unless you mean a Series, but that will still get each Child Series (as with all Series) subject to the $800 minimum a year Franchise Tax.

The only irrevocable trust would be one for your Primary & secondary residence - but then it is expensive to break that, you have to figure out your life expectancy to anticipate the trust ending before the end of your life to get any tax advantages and the QPRT no longer has the incredible tax advantages it used to (though it might in 2026 when/if it reverts back to the old structure) since the sweeping changes of the Tax Cuts and Jobs Act (TCJA) in 2017.  That led many financial planners to reconsider the QPRT for California residents looking to both preserve their equity and avoid crippling estate taxes.

There are ways to mitigate around paying multiple California Franchise taxes & still have both flexibility and protection - but nothing will save you from getting around the California FTB "doing business in" California definitions which are incredibly broad and vague so that paying the minimum $800 per year per LLC is inevitable. The right structure will allow you to keep this to one entity while holding properties in another.

*I am not an attorney and I am not YOUR attorney so this is not legal advice. I simply happen to know the most awesome ones. *