Own or Rent...How do you grow?

[somoz]

nice one TB. that is fuckin priceless. glad to know we got a reliable source here at the IC. watch ur inbox get flooded now!!

 

[Guest]

it's funny this got brought up......i remember reading a thread over on OG titled 30,000watts help me do it........and there was just a war started over this topic of getting corporated or an LLC i think it was and what you were and were not allowed to get away with.......i wish i could post that link. whan whan. was a good read though and i think it's still up on the mirror of OG. i'll go take a gander.

Corporations can assume the following recognized titles (I am no CPA or attorney so heads up):

* "C" Corp. {Ford, IBM, Intel etc etc) ... this entity can live forever and joe blow can do the same thing. Closely held private corporations (you own the stocks) or publicly held (stocks owned by other dickheads but who owns the most). This entity allows for maximum flexibility.

* Sub-Chapter S - These are harder to pass on and have limitations. Good for the small guy but not as flexible as "C" Corps. Ask your CPA.

* Partnerships (Including LLC's) - Pain in the ass *sorry*. Make sure your Articles of Incorporation "your bible" clearly spell out liabilities and assets shared in %'s between the partners (lawsuits included). Screw up here and you are fucked.

Tip: Never treat your personal checking account and business account as one and the same.

Tip: Make sure your corporate annual minutes are up to date.

There are other tips and advantages / disadvantages to each but those are the biggies I can think while medicated....

Peace

PS....Do not be surprised if your incorporation attorney and C.P.A. do not agree to the entity structure ("C" Corps vs. Sub-Chapter S Corps etc etc). It is up to YOU to DECIDE. I had to do it.

PSS .... Anyone can incorporate. It is no big deal and makes nobody a big shot or the like....quite the contrary. It opens your eyes on how to work just a little bit smarter and having the protections afforded a simple or multi-level corporation. This is what college did to me...... hahahhaha.... I dig these animated thingies.....

 

[Guest]

Good information, Y'all:

It would drive me nuts not to own where I grow. It's too easy for a Landlord to gain access to the property if he's a stranger and if you grow on a friends property that's one more person who knows what you're doing. If something happens you don't think he'll give you up?

In a big city like where I am, it's still pretty hard to obtain a warrant unless there's traffic in and out or some other silly shit. Rats are not taken seriously. Besides, it's very political town and you never know who people are. If you can live in a nice neighborhood so much the better.

I did think about incorporating so you saved me a lot of research. I'm past the Manolo Blanik and leather bustier faze and would like to make some real investments.

If you are investing in residential real estate another strategy is to buy a liability insurance policy for one million dollars at a cost of around $45.00 per month in case a renter decides to slip and fall and sue you.

If that one property is under a subsidiary company (its own company), the assets of that one subsidiary are at stake and NOT the parent company.

This is where the smart investor will do a "equity depletion" of a property via an open line of credit to protect his/her equity in the event of a lawsuit.

The creditors are ALWAYS paid first before joe slip and fall but you have your equity safe in hand.

When attorneys see no deep pockets they get bummed and go away along with joe slip and fall.

Now if joe slip and fall is a grower and you are the landlord - I am sure and "equitable" agreement can be struck.

This stuff is not really all that hard.

Incorporation has a "Area 51-likeness" that is all caca and smoke and mirrors.

Learn Quickbooks and you are set or just have the CFO (the wife learn the software - fuggit).

 

[ClosetMonster]

I rent places in sections of 3 months periods. You cannot stop what isnt there. In & out 70 days. It is not hard to convince people that you are student or whatever your story is, then just grow where they would least expect it (the bedroom) sleep in the living room, plust it helps if your a girl.

 

[Guest]

nice one TB. that is fuckin priceless. glad to know we got a reliable source here at the IC. watch ur inbox get flooded now!!

- No sooner said then done here come the PM's (no names wil ever be mentioned) ....

Hey all >>>>> I am NOT an attorney or Certified Public Accountant (C.P.A.) so PM's on legal advise or taxes is not my field of expertise but I do know a few things about both areas because I have to know - unfortunately.

 

[Guest]

Thunderbolts...

Thanks for the great info, as it helps many of us! Maybe you could cut and paste some of those tips for us...I'm sure everyone would be thankful!

cg=)

 

[Guest]

Thunderbolts...

Thanks for the great info, as it helps many of us! Maybe you could cut and paste some of those tips for us...I'm sure everyone would be thankful!

cg=)

No problem. Here are a few more thoughts to digest and mull over.....

When you incorporate you are in essense a "representative" of a thing or entity called a corporation. Corporate officers are kept secret when you incorporate in Nevada or Delaware. There are obvious and not so obvious reasons a "silent partner" may want to indeed be SILENT and not known.

Your company title is whatever you decide at your first meeting with your incorporation attorney. This is filed with the respective State Attorney General(s) office and this is your attorneys job not yours.

Your attorney will provide you with a corporate kit (your second meeting with the attorney) after 30-60 days after your first meeting. It contains a binder with all your relevant company information. You are assigned an E.I.D. number for tax purposes (I forget what EID stands for anyway). In essence, this is the corporations ID number for life. Think of it as a corporations social security number which uniquely identifies your ass.

You also get a gizmo that looks like a hole puncher but it is a stamp. You place corporate contracts in this one handed hole puncher looking gizmo and it places or embosses a circular raised bumpy certificate of authenticity on any official paperwork - contracts etc etc...... It is called your corporate seal and it comes complete with name and date of incorporation for you to play with. I stamped a whole bunch of blank paper thinking it looked cool and laughed at my silly ass (as though it meant squat).

This all cost $800.00 to get rolling (attorneys fee) and the dude is a retired judge who specializes in incorporation law.

Important TIP: Make sure you can meet with your incorporation attorney RIGHT BEFORE YOUR FIRST CORPORATE ANNUAL MEETING. Why? To ask your attorney to provide you with a template "fill in the blanks" for your annual minutes.This covers your ass big time and is MEGA important.

 

[GoaT Is Nice]

I rent a tiny studio apartment, so I sleep with my grow pretty much, it is pretty cramped. I grow in a cabinet in the corner.

me too.. what are you using for odor control?

 

[Guest]

Sorry as I did not mean to hijack this thread.

I guarantee you the info will NOT be broken down as I presented on any marijuana site to cover ones ass.

If so, I would love to see a link because keeping my ass(ets) covered is pretty high on my list of priorities.

Peace

 

[Dr.Feelgood]

Great advice, TB!

So suppose you want to grow big for a few years, bank the revenue, and quit. Would you establish a corporation in Nevada, rent property in home state via subsidiary real estate corp (would the real estate corp be created in home state or Nevada? And how do you cover your ass when it comes to the real estate corp?), grow in property, place money in retirement fund (for one person or some sort of corporate-wide retirement plan?), and then close down everything? Would you need to spend more money to provide a net income of zero? Do you NEED a net income of zero? Would any un-spent money go into a corporate savings account and would it be safe?

Lots of questions, I know. But I'm just trying to figure out the logistics of it all.

Oh yeah...doesn't anyone wonder where the money comes from? And do you just bull$hit the annual minutes? Thanks!

 

[Guest]

Great advice, TB!

So suppose you want to grow big for a few years, bank the revenue, and quit. Would you establish a corporation in Nevada, rent property in home state via subsidiary real estate corp (would the real estate corp be created in home state or Nevada? And how do you cover your ass when it comes to the real estate corp?), grow in property, place money in retirement fund (for one person or some sort of corporate-wide retirement plan?), and then close down everything? Would you need to spend more money to provide a net income of zero? Do you NEED a net income of zero? Would any un-spent money go into a corporate savings account and would it be safe?

Lots of questions, I know. But I'm just trying to figure out the logistics of it all.

No problems on the questions. All of them are very good.

Let me clear up a few points and see if it answers your questions.

You do not need to have any properties in Nevada or Delaware whatsoever. This is not important. Some people think your business needs to be located in those states and that is incorrect. You only need an agent.

The statuatory agent residing in those state is a representative of the company {you choose their honorary title} and pay their fee (one thousand dollars or there abouts yearly sometimes at half that price).

With respect to any real estate corp or property management company, those are unique to EACH property for maximum protection.

By creating separate entities for each property, liability is LIMITED to the value of each corporation = each property.

Next, you want to do whats called "burning money through a corporation" or WRITE-OFFS BEFORE TAXES.

The corporate TAX rate is a flat rate. Up to $50,000.00 of NET income, you are taxed at a flat rate of 15%. It bumps up to 18 or 20% over $100,000 or something like that but the key is NEVER allowing your NET income to ever be over ZERO. Anything over ZERO in NET income is taxed at 15%. The stragegy is if you know you are going to be in the positive for net income at the end of the year, you move money accordingly (into the list of above I provided and then some). Yes this is legal if anyone is going "yeah right". You can personally move around $200,000.00 per person annually no sweat in a corporation...easily....just with the stuff I listed.

You can set up your own 401K retirement plan and IRA plan and HSA (Health Savings Account plans - new fad stuff) and life insurance plans and stock purchasing plans of other companies, buying down debt on properties, interest on all mortgage loans and repairs, 24,000 hours of your time or something like $30,000 in additional write-offs for property management fees (advertising, qualifying renters etc etc ... the foot work).

You can show a positive NET income but why? There is no need to do this nor any rule which says you must. There should be no such thing as unspent money. Money unspent is not doing dick (earning interest) so this needs to be accounted for unless you want to keep large amounts of cash on hand. Take the cash and deposit in the corporate account and send Ameritrade a shitload of money and buy some stocks that you think will take off....why not? Corporate investments and additional write-offs. Risk and reward.

With respect to putting money in a corporate savings account - yes it is safe but it can be held for ransom by any number of ways so this is not highly advised.

TIP: Bearer Bonds have no names associated and are solid instruments for a lock box in Switzerland. It is a corporate investment and lowers your tax base.

I hope that made sense .... sometimes I get side tracked on shit.....

Peace

 

[Guest]

Oh yeah...doesn't anyone wonder where the money comes from? And do you just bull$hit the annual minutes? Thanks!

The annual minutes are basically the companies goals. No bullshitting here.

Your goal is to acquire and manage property and consult which means income and debt loads.

You also *ahem* "consult" with various clients in your respective industry which is the bulk of your income.

Remember there is a parent management corporation which is held by a Trust and they can consult or do whatever the hell they "legally" please so long as the shareholders are all in agreement.

You have a C.P.A. do the corporation's taxes. If you get audited, it is the CPA's duty to represent you in U.S. Tax court. The C.P.A. gets the numbers you provide him unless he is your accountant as well.

Properties are maintained in title to the various subsidiary real estate management companies who are ultimately owned by a parent company held in a trust controlled by you. Bada bing.

 

[Guest]

$ucking brilliant!

TB, a few more questions...

Who would initially purchase the property? The corporation or me, personally, then have the corporation buy it from me? If the property is already owned by me, would this look a little fishy?

Who is this person, your 'agent', living in Nevada? Your attorney? If one has no trusted friends in Nevada...?

This information is priceless, as I have seen nearly nothing covered on this topic on ANY site.

Thanks again TB.

cg

 

[somoz]

haha....told ya TB. get ready to keep ur thinkin cap on for awhile mate! good stuff. way to share the thoughts. keep it up........if ya can. somoz

 

[Guest]

$ucking brilliant!

TB, a few more questions...

Who would initially purchase the property? The corporation or me, personally, then have the corporation buy it from me? If the property is already owned by me, would this look a little fishy?

Who is this person, your 'agent', living in Nevada? Your attorney? If one has no trusted friends in Nevada...?

This information is priceless, as I have seen nearly nothing covered on this topic on ANY site.

Thanks again TB.

cg

It does not matter who purchases the property. Really. I could draw up scenarios to justify both instances equally. Nothing would look fishy as properties are bought and sold every day.

Preferrably, the company purchases the homes.

The change of title can be something as simple as a "quit claim" filing with the County Recorders office for $15.00 to change the names on the properties title.

The resident agent or statuatory agent or attorney/agent can be someone you find in the yellow pages and does not have to be a friend. I would prefer someone competant though and some footwork is involved (how long in business etc etc.) and follow up phone calls regarding whomever selected. In other words, a bit of due diligence on your part qualifying this position for the company. Hey your first corporate interview !!!!

Sometimes your incorporation attorney can recommend a firm or agent in another state or has his own network of attorney/agents. They are pretty easy to find.

 

[Guest]

haha....told ya TB. get ready to keep ur thinkin cap on for awhile mate! good stuff. way to share the thoughts. keep it up........if ya can. somoz

I don't mind.

These are really excellent questions.

I have never seen this type of information on how to REALLY cover your
ass(ets).

Instead, we often times sound like parrots saying "keep your grows secret and tell no one".

There are better ways but no one seems to take the time to explain shit.

I know damn well there are some posters who know WTF I am talking about but do not share the knowledge .....

Oh well, I am not trying to be a martyr and am just throwing a bit of "something something" on the forum's B.B.Q. of knowledge ........ for what it is worth.

Cheers !!!

 

[Guest]

Sorry for this next one but I am going to do it ...... sorry thread starter....

Lets take a complete hypothetical between someone in two different countries but who are interested in making money legally.

Oh and YES, I sit up dreaming this shit up .... hahahhaha....moving right along..........

Take the quick steps I mentioned earlier to incorporate but now you are a "Partnership".

Now I am going to force some assumptions but the parameters can be negotiated so bear this in mind.

Here we go:

Lets say we agree to split everything 50 / 50 after two years. Assets and liabilities EQUALLY.

Lets say we buy a million dollar house between two people in Las Vegas or California.

Home valuations alone are rising in these areas, albeit slowing down, at around a 25% clip annually.

This means a gross profit of 1/4 million dollars in one year or 1/2 million in two years (at 25% increases) in property valuation alone.

Even if we scale back to 10% annual property value increases, we are realizing $100,000.00 per year increase in our investment or $200,000.00 in two years. Ok that is one way to make a few bucks so you get that part.

Now lets kick in the turbo chargers and do what we do best.... ....

Hahahhaha ......NOooooooo ..... GROW IT .....

Our million dollar house needs a serious grow room pulling mass nuggage on a perpetual system which nets you $whatever$ (should be agreed upon annual weight) .......... you can estimate what your set-ups will produce. There are the local med clubs (for us in med friendly states) and collective networks which need help.

After two years of playing in Las Vegas or California at your get away - sell and split the profits 50/50.

No hard feelings. Business is business.

 

[sonoma]

I'm in........

 

[NiteTiger]

A quick question TB -

I've considered the incorporation angle a few times, and what's kept me from pursuing it were the possible RICO implications.

Basically, you grow through this setup, something goes horribly wrong, and you're sitting across the table from a US Attorney. Aren't you looking at sentencing enhancements given the 'sophiscated scope and scale'?

And, if it goes RICO, aren't all of your Corporate assets now at risk too, legit or not? The tainted percentage implicates the whole schmeer game US LEO likes to play?

Or are you compartmentalizing your grow props from other assets using a different subsidary corporation for each grow, so that if one goes down, the parent company just claims 'rogue subsidary', and amputate the now susp[ect corp from the parent?

Hope that made sense, it's been a looong week today

 

[North-Coast Non]

If you pay your taxes, and Uncle Sam get's his taste all legal and on the up 'n up. Why would they ever fuck with you, assuming you are doing business legally in a Med state.....?