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Real Money Talks

As an entrepreneur, small business or practice owner, or high-level executive, do you ever find yourself wondering if you’re using all the tax, entity and wealth strategies available to you or if your investments are truly producing all they could be? Happily, you don’t have to put up with that any longer. I have the solution. Real Money Talks! We're having the right conversation about money.
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Now displaying: April, 2019
Apr 25, 2019

Most people dread tax day, especially those that aren’t prepared and don’t have a plan. If you plan your business and your income correctly using business entities like LLCs, or S Corps, you not only can deduct many operating expenses, but you can even file an extension which lessens that time pressure and gives you an opportunity to step away from the herd.

The only catch is that to be effective and in compliance with legal regulations, you have to do some strategic work up front. First thing is you have to decide what your business and investment goals are and find the right combination of legal entities and where you want to do business. Then you need to make sure that you are in compliance in case you ever have an audit or legal issue. We are here to talk about all of this and offer some options in getting the legal stuff done right.

Disclaimer: We are not lawyers, CPAs, or licensed financial planners.

You can find Scott here:

Ask Loral
(775) 588-9200

Show Notes

  • [03:31]  We are now moving into the next era of money. The current old system was formed in 1933.
  • [04:07] We are going to talk about being a company with the legal right to make money and take advantage of 81,000 pages of deductions.
  • [04:16] We are talking about how to live inside corporate life. We are going to walk through the absolute need for corporate compliance.
  • [04:41] If you don't have a company, you need to decide which type of company you should have and which state you should be in.
  • [04:55] You also need to know how to use the deductions and keep your corporate compliance up in case you are audited.
  • [06:00] We are also going to talk about income, assets, and the choices you need to make to invest off of Wall Street.
  • [08:01] You shouldn't be doing your taxes yourself. You need a tax strategist.
  • [08:45] Loral has a Wealth Cycle product that gives you the basics. You need to find a business to put your taxes in order.
  • [10:14] If you are using an S Corp. The expenses are deducted from the S Corp before you distribute the money to yourself on your personal return.
  • [11:35] Do it yourself without proper guidance is costly when it comes to fixing the mistakes.
  • [13:08] Sometimes you should move to a different state. It depends on where you want to live and how you want to be taxed.
  • [14:43] Your investments should drive the decision on where some of your corporate structure is.
  • [16:07] Do paperwork or be poor. You need to be in compliance with your corporate structure and your deductions.
  • [17:04] A corporation can do anything you want it to do but think and speak for itself. Minutes and resolutions is how your company speaks. You need to treat it as a separate company.
  • [18:31] There are required formalities. There are about 165 minutes and resolutions that need to be kept as a company.
  • [20:09] Minutes are the voice and thought process why decisions are made. A lot of things need to be documented and recorded.
  • [22:15] You need a calendar for 30 days before things are due. Once you put an entity in the air don't take it down.
  • [25:29] The biggest gap is because people don't know they end up doing nothing.
  • [28:15] What do you want and what are you going to have and how are you going to plan your legacy? Create things properly from the beginning.
  • [29:46] You can reconstruct minutes and resolutions by recollection, but you can't back date them.
  • [32:42] Corporate records need minutes and resolutions and ownership certifications. It's imperative to keep up on these minutes and resolutions.
  • [34:38] You type in everything that you have done to create a resolution. Loral has a software product for this.
  • [36:13] You may need diversification and multiple entity structures. Lay out everything and then start growing into it.
  • [40:00] You can have an entity within a trust and move generational money.
  • [46:29] We offer an interactive business guide that will help you document your entities and give you that peace of mind.

Links and Resources:

Loral’s Real Money Talks

Apr 18, 2019

A topic that comes up over and over when we are doing business is Canada. My husband is Canadian. There are a lot of Canadians that want to do business with us here in the US. Here to talk about doing business with Canada is Dave Hare who is a licensed CPA both in the US and Canada.

Dave is a cross-border CPA. He has done corporate business both in the US and Canada. Then he decided to leave the corporate world behind and venture out on his own. He owns 5 multi unit properties and is a successful real estate investor. He recently signed a 5 million dollar deal. Dave talks about the differences between US and Canadian tax entities and cross border investing to maximize your money.

You can find Dave here:

DHare77@gmail.com

Show Notes

  • [01:24] Dave got his degree in Michigan. Then he worked for several years for public accounting firms. After he became a CPA, he went over to the Canadian side and work for companies like Caterpillar and Volkswagen.
  • [02:01] Eventually, Dave decided to branch out on his own and do his own thing instead of working for corporations.
  • [02:18] Dave approached Loral about investing in real estate about a year and a half ago. He signed up for the big table. Now he has five multi unit properties.
  • [03:10] Dave learned how to raise money through Loral, and he became pretty good at it.
  • [03:26] Dave became part of Loral's team in September. Dave drove 37 hours to get to Tahoe and begin working with Loral.
  • [03:47] They have been working on some solid deals including the marina deal and major renovations. He also recently signed a $50 million contract.
  • [04:31] Dave surrounded himself with the right people and the right team. Build a diverse team that will provide you the expertise you need.
  • [05:09] It's tough to find it's cross-border team members.
  • [05:21] Three business structures that apply in Canada are partnerships, limited companies, and sole proprietors.
  • [05:50] Partnerships are where you join with someone to set up a business. You will have a partnership return. Each partner does their own taxes. The tax write offs go to your personal tax returns. Any money you make on the partnership returns go straight to your taxes.
  • [06:20] You have to be careful because of liability issues and tax issues.
  • [06:36] Sole proprietorship's in Canada give you write offs towards your T4 income. This is a great tax strategy from that standpoint.
  • [07:57] You want to make sure you protect your personal assets like your house and your vehicle. You have to be careful with liability issues with a sole venture.
  • [08:55] As a sole proprietor, you may be able to write off 10 to 20% of your house if its use for your business. If you use more than that you might be able to use it as a carryover.
  • [10:12] With the company, the carry forward losses can be used now and in the future.
  • [10:29] If you have T4 income and you start making more money your taxes will be high, so you might want to look at other entities at that point.
  • [11:12] You might want to move into a limited company. You will have more flexibility on write offs.
  • [12:04] If you work from your house, your business will take a 10 to 20% of your house expenses.
  • [13:05] In Canada, you can now write off entertainment expenses if you take out the entire office. You can now write off 50%.
  • [13:56] For business driving, you can use electronic tracking and write that off. You need to be very careful about your record keeping and the rules.
  • [14:36] As a sole proprietor, everything is questioned.
  • [15:05] The benefits of setting up an entity in getting Incorporated. Set up a limited liability company to protect your assets. You will also have more right off opportunities. You can also protect yourself by having an operating agreement or contract.
  • [16:23] If you have a company in Canada, you can also set up a US structure like a c corp.
  • [18:55] Be careful of withholding taxes when setting up entities for businesses that are cross-border.
  • [19:59] Make sure you set things up right from the beginning.
  • [20:21] You can avoid exchange rates by keeping your money someplace where the tax rates are lowest like the US and then using a US credit card.
  • [22:42] To talk to Dave,you need to think about trusts, whether you have children involved, whether you can send money down to the US, and possible insurance products. The plan needs to be individually tailored to you.

Links and Resources:

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