Video instructions and help with filling out and completing What Form 2220 Liability

Instructions and Help about What Form 2220 Liability

Now why do I make this recommendation to create an LLC it is because an LLC provides two forms of protection now this initial protection doesn't really apply right now to currency but I'm going to explain it to you anyway so you get a good understanding how LLC's work LLC's will provide inside protection as well as outside protection so yes lle are limited liability entities they cover limited partnerships and limited liability companies all right so limited liability companies look like this they're boxes okay now this is a limited liability company right here these are assets these pieces of candy so I have the orange and the yellow those represent Denar $25,000 notes going in there a whole bunch of them and I've got some blue ones too rental property that I have and put that in there and then I've got a bunch other stuff cash as savings maybe put a vehicle in there and what else you might have some gold I throw it all in there now does this protect me absolutely because with LLC's when they're created these boxes you just boxed up all of your assets so you own the box you do know you no longer own the assets themselves you own the box so as the owner of the box you're insulated from whatever happens inside of the box so if you have assets inside of here and something happens and a lawsuit develops inside of the box anything happen to me has anything happen to me no no nothing's happened to me because I own the box the box can have all the liability at once but nothing happens to Clint you see the asset protection there you see how I'm unprotected because the liability states trapped in this box and I can just roll the box away afterwards and all that problem that happened inside of here will stay with the box but is that asset protection it doesn't sound like it does it because what did I put in here initially everything yeah but what were those things NARS yeah but anyway weren't they hard pieces of candy I put in hard pieces of candy into one box a whole bunch of them and look what's happened because of one lawsuit do not come up and talk to me and say that you slipped on a piece of candy okay I've now warned you there's candy on the ground up here oh I'm sorry took candy all right the point is is that the candy you put all the assets into one box we put dissimilar assets in here one lawsuit turned it all into sugar everything was at risk inside of this one box so when we talk about asset protection we're going to break your assets up based upon asset classifications that is if they're safe assets put all the safe assets into one box so can I borrow this one right here look what's your favorite flavor orange or blue okay Gil will leave some oranges here you got purple okay so if all of this stuff faith this is all dinar in cash and gold goes into there you know why that's never going to create liability for you it's never you're not going to be sued from holding that type of asset because it doesn't do anything people aren't getting hurt what are you going to have somebody over see the dinar here you want to hold one as soon as they grab it you pull it back real quick and give them this sharp paper cut across their hand and then they start screaming because they're haemophiliac and they start bleeding out right there and you can't start the bleeding as that sound observed you I think so and so that's I mean I just thought of that off the cuff that'd be there the only thing only liability you might ever have from owning dinar inside of a box where somebody could sue you but other than that nobody's going to get hurt so put all of it all of your safe assets into this one box and you will be protected this is from outside protection because I put safe assets in here I'm not concerned about something happening in there what I'm concerned about is something happening on the outside of the box that is Clint being sued now my real estate that you own and this you know I know only a few people said they have rental real estate right now but if you have writ real estate it wouldn't go in this box you would create additional boxes so you would have something that looks like this you would have a box here this would hold your cash dinar and then you would create a separate box for real estate now would I put all of my real estate into one box no I would break these boxes up for the dangerous assets based upon your overall equity value so I look at the property and say how much equity do I have on this property if I had two of three pieces of property in two of them had equity the total equity here was three hundred and fifty thousand I might put that in both of them into one and then I would say for my third property if it had two hundred fifty thousand dollars in equity I'd stick that into a third limited liability company so now if anything happened with this LLC right here LLC number two this is number three this is number one you're down here and your wife's right here okay as well and you guys own all of these LLC's if anything happened with number two then the only thing you stand to lose is what's in number two flex behind door number one and door number three remains protected because it's a separate legal