Dinarian in the said:
It has taken me 24 hours to decide to comment so hopefully this will be read by at least some in hopes of saving someone of massive heartache, and my thoughts flow in no specific order.
What qualifies me to offer these pearls of wisdom is simply first hand experience...doing time in a federal penitentiary for attempting to minimize my tax liability by operating my life and businesses within a program that many of you are buzzing about.
Rest assured, regardless of what you think or have been told, the burden of proof is on YOU and you do not have the resources to win the battle.
When an representative of a three letter agency comments with "We simply don't like these things", you have a long fight with a short stick.
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Do your homework with professional advisors CLOSE TO HOME; being able to walk into an office is far more comforting and productive than communicating by email or fax or phone, especially in crisis situations.
Flying to Nevada, California, etc to attend a 3-day seminar in which someone will convert your life into a maze of entities and you "live hapily ever after" is not reality. Having a portfolio of LLCs, business trusts, family trusts, charitable foundations, complex irrevocable trust systems, UBTO's, and EINs running out of your ears makes you feel really important.
This is the way the ultra rich live, right? At least that's what you were told when you wrote the check. Daily, monthly, quarterly management of same is absolutely overwhelming.
Try opening a bank account, buying a car, a house, converting utilities and phone service into the name of one of these entities. It can be done, I did it.
But the people you will deal with have no idea because 99.999% of the real world don't know what you are talking about.
Oh yea, and show me the documentation that says you have the authority to act on behalf of entity ABC. There are those that claim that UBTO's are a silver bullet because they don't need an EIN and therefore operate outside the system, but yet they will give you a number that "looks like" an EIN and tell you to call it something else when dealing with legal documents. Beware.
I now operate my successful businesses out of LLC's, and yes the net profits are applied to my personal 1040 and taxed accordingly. This blessing that my family and all of you have been presented with is part of God's plan and everything that you do with it should bring glory to His name.
Please do not confuse wise fiscal strategy with greed, do not think that you are smarter than the "authorities" because you aren't. God has and WILL continue to provide. I pray this has been enlightening.