May 6, 2025 • 16 mins
In this episode of the Main Street Business Podcast, Mark J. Kohler shows how simple board meetings and a strategic plan can supercharge your finances. He explains how to turn ordinary family gatherings into legitimate, tax-deductible business meetings that strengthen your entity structure. Get inspired to organize your goals, sharpen your decision-making, and create a family office that supports real wealth-building.
Here are some of the highlights:
- Mark explains the concept of a family office, emphasizing that it is not limited to billionaires but can be set up by anyone.
- The benefits of a family office include tax write-offs, better asset protection, and wealth building.
- Mark advises participants to legitimize their LLC or corporation by holding board meetings and documenting the minutes.
- The difference between boards of directors for corporations and boards of advisors for LLCs.
- Mark introduces his "trifecta" concept, which includes a revocable living trust, 1040 tax return, and various assets and operations.
- Encouragement to set up boards for all their entities, even if they only have one or two.
- Mark emphasizes the need to update the plan regularly and share it with tax and legal advisors.
- Grab my FREE Ultimate Tax Strategy Guide HERE!
- You don't want to miss this! Secure your tickets for the most significant business, tax & legal event of the year: Main Street 360
- Looking to connect with a rock star law firm? KKOS is only a click away!
- Are you ready to get certified in EVERY strategy I teach? Start your journey with a FREE 15-minute discovery call to explore the Main Street Tax Pro Certification.
- Check out our YOUTUBE Channel Here: https://www.youtube.com/markjkohler
- Craving more content? Check out my Instagram!
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Welcome to the Main Street Business Podcast with
your distinguished hosts, mark JKohler and Matt Sorenson.
Both are bestselling authorsand have over 25 years of
industry experience, with 10,000client consultations, making
them the leading tax and legalexperts in the nation.
Together, they'll unpack themost complex tax, legal and
financial strategies crucial forsaving more, stressing less and
(00:22):
building generational wealth.
Crucial for saving more,stressing less and building
generational wealth.
Today they're your personaladvisors, ready to break it down
for you and make the tax andlegal game easier than ever.
Here is Mark and Matt.
Speaker 2 (00:34):
When you have a board meeting, you might go to a
resort and say we're going tohave a board meeting and you fly
your family in, your kids, yourbest friend, brother, sister,
mom, dad.
You're going to write off 100%of the travel, you can write off
the dining and you're going tohave a board meeting.
And when you hold your boardmeeting, that's the meeting
minutes to legitimize your LLCor your corporation.
What is a family office?
(00:56):
Let's get this off the table.
According to the financialindustry's definition, it's like
I'm a billionaire, I got ahundred million.
I'm a family office.
I can negotiate bigger deals, Ihave full-time employees, I've
got a kick-ass team La, la, la,la la and everybody is like
tries to get on social media andbrag I got a family office, I'm
(01:18):
like whatever.
So, and it's true To me, mydefinition is you all have a
family office.
It's the third bedroom down thehall with a hide-a-bed in it.
Okay, and so the big takeaway Iwant all of you to have today I
literally mean this this is thebiggest, this is my message
(01:38):
today is every one of you.
I'm going to give you someaction items of setting up your
own freaking family office bynext weekend, and I want you to
have your own board, your ownboard of advisors, board of
directors.
It's your family, it's yourbest friend, it's your mom, it's
your dad, it's your kids.
You need to have a familyoffice for tax write-offs,
(01:59):
better asset protection,building wealth.
You're going to freaking loveit.
It's easy.
My mission in the country rightnow is that everybody should
have a freaking family office,and you already do so.
Let's take advantage of it.
So it's easy, it's not hard,it's not expensive and it has a
lot, a lot of benefits.
So when everybody says they'reall on the web going I got a
(02:22):
family office, do one of thosereaction videos and say so do I.
You dumbass, you know, freakingA, you know.
And as you build your familyoffice, you'll have a team.
Here's the four steps, supereasy.
Number one I want you to havethe right tax and legal
structure.
So we're going to talk about mytrifecta.
So you want to have thatstructure, because you can't
(02:42):
really have a board of directorsor board of advisors if your
structure is kind of jacked up.
So we're going to work on thattoday for a minute.
I want you to have clean entitydocuments.
You can't say I have a boardwithout a board meeting.
You've got to have meetings,you've got to have minutes,
you've got to make sure your LLCand S-Corp or whatever your
structure is, let's make surethe docks are clean.
(03:04):
I have paralegals.
That's all they do every day.
We have literally a cleanupteam.
There's likefixmylegalshumanitycom, like
just fix it, you know, and it'svery affordable to do.
Let's get your docks cleaned up.
Number three I want you to havea plan and a vision written down
.
Now it's really easy to say, oh, I want to be worth more money,
(03:25):
or I want this or I want that,but what is your 10 year plan?
What is your five year plan,your three year plan, this
year's strategic plan?
Have you written it down?
Because when you have a board,you're going to have a meeting
and share that plan.
So we've got to have that.
We've got to have a plan beforewe can even have a meeting.
You're going to get around adinner table and look at each
(03:47):
other really weird.
So we want to make sure we havea plan and then have those
meetings regularly, at leasttwice a year.
That's it, my company.
We provide a service of doingyour board meetings for you for
200 bucks.
So the results of doing this.
One I love the tax write-offs ofa good family board meeting.
(04:09):
I've taken my kids all over theworld and just on a Zoom call
when you have a board meeting,you might go to a resort and say
we're going to have a boardmeeting and you fly your family
in your kids your best friend,brother, sister, mom, dad,
whoever the hell and if you'repaying for it, it's a write-off
for you.
(04:29):
You're going to write off 100%of the travel, can write off the
dining and you're going to havea board meeting.
It's a write-off.
This Christmas Patty and I hadall the kids there at Christmas
in Park City, utah, and we had aboard meeting.
I wrote their airfare off.
The company paid for it.
It was not a family reunion, itwas a board meeting and it's
(04:50):
okay because you take notes andyou have legitimately a board
meeting.
It's not high risk Anybody onthe web or some social media
platform saying you can't have aboard meeting.
They're wrong.
I stand behind this in my booksand my white paper and writings
.
It's so straightforward.
Number two if your LLC consistsof one sheet of paper on
(05:13):
LegalZoom from three years ago,that is not an LLC.
Good luck in court.
You've got to have yourcorporate book.
You've got to have an operatingagreement.
You've got to have minutes andwhen you hold your board meeting
, that's the meeting minutes tolegitimize your LLC or your
corporation.
Super easy, so it makes youmore legit.
It's great.
Now there's no bulletproofasset protection.
(05:35):
I hate it when people saybulletproof and they're trying
to sell these crappy trusts outthere.
Be careful.
But just having good boardmeeting minutes for all of your
entities so easy, so good.
Number three you're gonna havebetter organization, decision
making and a foundation forsuccess In your board meeting.
I want you to prepare with afinancial statement.
(05:58):
How did we do last year?
How are we doing this year?
What are our goals?
What are our plans?
It kind of makes you have yourshit together, which is good.
It helps you build arelationship with your family.
Sorry, I'm a little emotionalabout this.
I texted my kids this week andsaid Tuesday night we're having
(06:24):
a board meeting.
I need you all on Zoom.
I got all my kids Three of themare married and I said I want
your spouses on.
We're going to have a boardmeeting Tuesday night.
We're going to talk about thebusiness.
We're talking about somefinancial matters and I've asked
each one of them to bring theirbiggest win this year.
That's our board meeting.
It gives you something to talkabout.
(06:45):
Teaching our kids aboutfinancial literacy, our mom, our
dad, our best friend, is soimportant.
And it's a little shout out toFarrah and Carter.
Are they in here still?
Oh, there's Farrah.
When I started my Main StreetTax Pro training we're now at
1,100 accountants around thecountry we're training.
(07:06):
Every week we have a meeting.
I thought this would be cool.
I'll get all my cool strategiesfrom my books and I'll do a
training every week.
And la, la, la and Farrah mayremember this because she was
one of the first to join we had100 people join right out of the
gate.
We had our first meeting inJanuary two years ago, and in
(07:27):
the first meeting it had to bethe first or the second I was
teaching some strategy, like putyour kids on payroll or
something, and everybody's like,oh, don't forget this Mark.
And I was like holy crap, Ididn forget this mark.
And I was like holy crap, Ididn't know that.
I was like I need to know thattoo.
And Carter would join us on aregular basis and I'd be like,
oh my gosh, that's a greatstrategy.
You don't know what you don'tknow.
(07:48):
I found out in my community.
I was learning more from themthan they were learning more
from me, and so when I have ourlittle family board meetings,
I'm looking for my kids too, andyou're working together.
Sorry, okay.
So have your board meeting.
(08:08):
I challenge all of you to haveyour first quarter board meeting
in the next six weeks.
It's cool, it's so easy.
So now let me show you how thislooks.
We're going to work through it.
Then we'll do Q&A.
So my trifecta what I've beenteaching for 20 years almost now
15 years ago I trademarked itwas your trifecta starts with
your revocable living trust andyour 1040 tax return, because
(08:32):
all of your money flows downhillyour K-1s, your W-2s, dividends
, blah, blah, blah.
It's all going to end up onyour 1040.
So that's your foundation.
Now your revocable living trustis going to own everything.
Now you might do some moreadvanced planning trusts, crts,
islets Please watch out forthese irrevocable asset
protection trusts that peoplesell.
(08:52):
They're crap.
But this is your foundation.
Super easy.
Some of you have already done atrust with our office Could
range from $2,000 to $3,000.
You work with one of my lawyersaround the country.
Boom Got it done.
You can update it every four orfive years.
It's wonderful.
(09:14):
The left side is your operations, which could include a W-2
coming in from the side, butthis is really kind of your side
hustle or main hustle.
What am I doing to generateordinary income?
Tax strategy planning?
La la la.
The right side is your assets,your passive income.
On the left side, your assetsworking.
On the right side, your assetsare working.
You want to try to like splitthe two to the left and right
(09:34):
and then down the middle is afirewall for asset protection.
Tax planning occurs on bothsides, but we want to create
this asset protection thatoperations generally create more
liability.
So we want to kind of put ourassets on the right side, never
letting our operations own ourinvestments.
So as we build this, it wouldlook like this I want my life
(09:58):
insurance beneficiary to be mytrust investment accounts, my
home.
When we set up a trust for you,we're going to really work on
making sure it's funded.
We just can't create a trust.
We want to make sure it'sfunded.
Then your investments.
Let's just think of some basicrental properties, Short-term,
long-term syndications don'tcare, you're gonna have an LLC
(10:20):
over here that would own yourreal estate in this example.
Then on the left, you mighthave a side hustle, a little LLC
, and if you're making any moneyat all, boom, you're going to
graduate to an S corporation.
So consulting services, arestaurant, you're a landscaper,
you're selling online,manufacturing whatever.
That's going to be your basictrifecta.
(10:42):
We've got operations on theleft, assets on the right and it
all flows down to your trust.
That's your basic trifecta.
Then we're going to add a boardof directors trifecta.
Then we're going to add a boardof directors.
So the board of directors wouldbe for any corporation you own.
If you already have acorporation, it's easy.
You can literally this weekendyou don't even need my law firm
(11:04):
pull out a sheet of paper and go.
We're having a board ofdirectors meeting, you're on the
board, you're on the board,you're on the board.
And let's talk about ourbusiness.
Yep, we bought this, we soldthat, we got rid of some
employees, hired some newemployees.
We're going to do this.
We looked at our financials andyou have a conversation with
people that can give you somegood advice.
What should I be doing withsocial media?
You know, I texted my son rightafter lunch and I said, hey,
(11:28):
what can you do for Farrah onher social media?
He's like oh, I do this, thisand this.
I'm like all right, I'll lether know.
I mean, my children have bettersocial media strategies than I
have, so I listen to them, Italk to them.
Then you could also have a boardof advisors.
If you have an LLC, you have aboard of advisors.
Every time we set up an LLC forour clients, we make sure we
(11:49):
implement a board of advisors.
If you have a corporation, youset up a board of directors.
So if you have 10 LLCs, youhave 10 boards.
Now you can have one boardmeeting and have 10 sheets of
paper out there and you have onebig board meeting.
You cover all of them at once.
This is sweet, right.
Then we go next level.
(12:11):
Bam, I was playing with this onthe plane last night.
I was kind of tidying it up alittle.
So this is kind of a mastertrifecta.
When you work with one of mytax lawyers, we'd build a
trifecta and then hand it off toyour tax person, your insurance
person.
And look at this, it's superfun.
You might have a W-2.
(12:32):
You may say, oh my gosh, thisis crazy.
I swear.
Half of you in the room alreadyhave this.
We just got to diagram it.
Look at this.
Here's your W-2.
You or your spouse, day job401k.
Are we doing matching out?
What are our investments inthat day job 401k?
Because we want to get thematch and get the hell out.
(12:52):
Then you might have a sidehustle Board of advisors for
that LLC.
What are we doing there to takewrite-offs as we do a sole
proprietorship?
Maybe we have an HRA for healthexpenses.
Boom flows into our 1040.
Oh, you've got an S corporation.
I've got a partnership.
I have one S Corp in my life.
Then I have my LLC.
(13:14):
That's a law firm and an LLCthat's another company or
another company.
I have a board of directors formy S Corporation.
It could be an LLC taxed as anS Corp.
Then it'd be a board ofadvisors.
I take a W-2.
I do my K-1.
I have a family managementcompany.
I pay kids under age 18 out ofthis.
I may have an HRA through myspouse Now my kids are older
(13:38):
than 18 now.
So I still have this company,kohler Family Management.
It's at Wells Fargo but I don'tpay the kids out of here.
I might use it for healthcarestrategies.
I have a health savings account.
Patty and I just pooled ourHSAs.
We're buying another 20 cowsinside of our HSA.
We have a cattle operation andmy health savings account, as
well as a long-term rental inChicago, so I'm self-directing
(14:01):
my HSA.
I could have a solo 401k or asafe harbor.
I have a safe harbor 401kbecause I have other employees.
Patty has a solo 401k.
We use our 401k to self-directand invest in all assets or
whatever the hell we want.
We have Roth IRAs for all ofthe kids and me and Patty.
We do that every year, nomatter what your income level is
(14:22):
or your age.
I want to do a Roth IRA everyyear.
So that's our tax for yourpre-tax section.
See, many of you already havethis but do we have it written
down?
Do we have a vision of it?
Because if you can see it, youcan believe it and if you
believe it you'll do it.
That's the power of this.
It's not rocket science, it'sjust getting it on freaking
(14:44):
paper.
Then you might have yourafter-tax investments.
This is real estate.
I own three different buildingsthat I self-rental to my
operations.
That's a dash four election.
I don't have to be a realestate professional.
We can talk about that if youwant.
I have two short Patty and Ihave three short-term rentals.
Each one of them we put on thetool belt and worked on them.
(15:07):
You can go to my social mediaand look at me drywalling and
fixing this and fixing thatpainting and putting up a deck,
and I walling and fixing thisand fixing that painting and
putting up a deck and blah.
I love that.
That's my happy place.
I have a ranch operation.
You can have a COPE, a chargingorder protection entity, out of
Wyoming or Ohio.
There's six or seven differentstates I like for that, not
Nevada or not Delaware.
(15:28):
Life insurance, investments,boats, rvs Patty and I are in
the market for a suite RV.
I think we're going to go fifthwheel on this one Boat home,
domestic asset protection trust,charitable trust, you might
have carry forward losses,short-term or long-term rentals,
got it, got it and it all flowsinto the trust.
(15:49):
Got to keep it updated.
That's it Isn't this fun.
And if you meet with your taxlawyer once a year, you're like,
okay, I get it and you share itwith your accountant and you
have a strategy session.
Anyway, I just want to saythank you.
I love being here with you.
I hope this was helpful and youguys control your own destiny.
(16:09):
You're the captain of your ship.
Have your board meetings, haveyour first quarterly board
meeting this year, and it'llreally bless your life.
It's a lot of fun.
Welcome to the Main Street Business Podcast with
your distinguished hosts, mark JKohler and Matt Sorenson.
Both are bestselling authorsand have over 25 years of
industry experience, with 10,000client consultations, making
them the leading tax and legalexperts in the nation.
Together, they'll unpack themost complex tax, legal and
financial strategies crucial forsaving more, stressing less and
(00:22):
building generational wealth.
Crucial for saving more,stressing less and building
generational wealth.
Today they're your personaladvisors, ready to break it down
for you and make the tax andlegal game easier than ever.
Here is Mark and Matt.
Speaker 2 (00:34):
When you have a board meeting, you might go to a
resort and say we're going tohave a board meeting and you fly
your family in, your kids, yourbest friend, brother, sister,
mom, dad.
You're going to write off 100%of the travel, you can write off
the dining and you're going tohave a board meeting.
And when you hold your boardmeeting, that's the meeting
minutes to legitimize your LLCor your corporation.
What is a family office?
(00:56):
Let's get this off the table.
According to the financialindustry's definition, it's like
I'm a billionaire, I got ahundred million.
I'm a family office.
I can negotiate bigger deals, Ihave full-time employees, I've
got a kick-ass team La, la, la,la la and everybody is like
tries to get on social media andbrag I got a family office, I'm
(01:18):
like whatever.
So, and it's true To me, mydefinition is you all have a
family office.
It's the third bedroom down thehall with a hide-a-bed in it.
Okay, and so the big takeaway Iwant all of you to have today I
literally mean this this is thebiggest, this is my message
(01:38):
today is every one of you.
I'm going to give you someaction items of setting up your
own freaking family office bynext weekend, and I want you to
have your own board, your ownboard of advisors, board of
directors.
It's your family, it's yourbest friend, it's your mom, it's
your dad, it's your kids.
You need to have a familyoffice for tax write-offs,
(01:59):
better asset protection,building wealth.
You're going to freaking loveit.
It's easy.
My mission in the country rightnow is that everybody should
have a freaking family office,and you already do so.
Let's take advantage of it.
So it's easy, it's not hard,it's not expensive and it has a
lot, a lot of benefits.
So when everybody says they'reall on the web going I got a
(02:22):
family office, do one of thosereaction videos and say so do I.
You dumbass, you know, freakingA, you know.
And as you build your familyoffice, you'll have a team.
Here's the four steps, supereasy.
Number one I want you to havethe right tax and legal
structure.
So we're going to talk about mytrifecta.
So you want to have thatstructure, because you can't
(02:42):
really have a board of directorsor board of advisors if your
structure is kind of jacked up.
So we're going to work on thattoday for a minute.
I want you to have clean entitydocuments.
You can't say I have a boardwithout a board meeting.
You've got to have meetings,you've got to have minutes,
you've got to make sure your LLCand S-Corp or whatever your
structure is, let's make surethe docks are clean.
(03:04):
I have paralegals.
That's all they do every day.
We have literally a cleanupteam.
There's likefixmylegalshumanitycom, like
just fix it, you know, and it'svery affordable to do.
Let's get your docks cleaned up.
Number three I want you to havea plan and a vision written down
.
Now it's really easy to say, oh, I want to be worth more money,
(03:25):
or I want this or I want that,but what is your 10 year plan?
What is your five year plan,your three year plan, this
year's strategic plan?
Have you written it down?
Because when you have a board,you're going to have a meeting
and share that plan.
So we've got to have that.
We've got to have a plan beforewe can even have a meeting.
You're going to get around adinner table and look at each
(03:47):
other really weird.
So we want to make sure we havea plan and then have those
meetings regularly, at leasttwice a year.
That's it, my company.
We provide a service of doingyour board meetings for you for
200 bucks.
So the results of doing this.
One I love the tax write-offs ofa good family board meeting.
(04:09):
I've taken my kids all over theworld and just on a Zoom call
when you have a board meeting,you might go to a resort and say
we're going to have a boardmeeting and you fly your family
in your kids your best friend,brother, sister, mom, dad,
whoever the hell and if you'repaying for it, it's a write-off
for you.
(04:29):
You're going to write off 100%of the travel, can write off the
dining and you're going to havea board meeting.
It's a write-off.
This Christmas Patty and I hadall the kids there at Christmas
in Park City, utah, and we had aboard meeting.
I wrote their airfare off.
The company paid for it.
It was not a family reunion, itwas a board meeting and it's
(04:50):
okay because you take notes andyou have legitimately a board
meeting.
It's not high risk Anybody onthe web or some social media
platform saying you can't have aboard meeting.
They're wrong.
I stand behind this in my booksand my white paper and writings
.
It's so straightforward.
Number two if your LLC consistsof one sheet of paper on
(05:13):
LegalZoom from three years ago,that is not an LLC.
Good luck in court.
You've got to have yourcorporate book.
You've got to have an operatingagreement.
You've got to have minutes andwhen you hold your board meeting
, that's the meeting minutes tolegitimize your LLC or your
corporation.
Super easy, so it makes youmore legit.
It's great.
Now there's no bulletproofasset protection.
(05:35):
I hate it when people saybulletproof and they're trying
to sell these crappy trusts outthere.
Be careful.
But just having good boardmeeting minutes for all of your
entities so easy, so good.
Number three you're gonna havebetter organization, decision
making and a foundation forsuccess In your board meeting.
I want you to prepare with afinancial statement.
(05:58):
How did we do last year?
How are we doing this year?
What are our goals?
What are our plans?
It kind of makes you have yourshit together, which is good.
It helps you build arelationship with your family.
Sorry, I'm a little emotionalabout this.
I texted my kids this week andsaid Tuesday night we're having
(06:24):
a board meeting.
I need you all on Zoom.
I got all my kids Three of themare married and I said I want
your spouses on.
We're going to have a boardmeeting Tuesday night.
We're going to talk about thebusiness.
We're talking about somefinancial matters and I've asked
each one of them to bring theirbiggest win this year.
That's our board meeting.
It gives you something to talkabout.
(06:45):
Teaching our kids aboutfinancial literacy, our mom, our
dad, our best friend, is soimportant.
And it's a little shout out toFarrah and Carter.
Are they in here still?
Oh, there's Farrah.
When I started my Main StreetTax Pro training we're now at
1,100 accountants around thecountry we're training.
(07:06):
Every week we have a meeting.
I thought this would be cool.
I'll get all my cool strategiesfrom my books and I'll do a
training every week.
And la, la, la and Farrah mayremember this because she was
one of the first to join we had100 people join right out of the
gate.
We had our first meeting inJanuary two years ago, and in
(07:27):
the first meeting it had to bethe first or the second I was
teaching some strategy, like putyour kids on payroll or
something, and everybody's like,oh, don't forget this Mark.
And I was like holy crap, Ididn forget this mark.
And I was like holy crap, Ididn't know that.
I was like I need to know thattoo.
And Carter would join us on aregular basis and I'd be like,
oh my gosh, that's a greatstrategy.
You don't know what you don'tknow.
(07:48):
I found out in my community.
I was learning more from themthan they were learning more
from me, and so when I have ourlittle family board meetings,
I'm looking for my kids too, andyou're working together.
Sorry, okay.
So have your board meeting.
(08:08):
I challenge all of you to haveyour first quarter board meeting
in the next six weeks.
It's cool, it's so easy.
So now let me show you how thislooks.
We're going to work through it.
Then we'll do Q&A.
So my trifecta what I've beenteaching for 20 years almost now
15 years ago I trademarked itwas your trifecta starts with
your revocable living trust andyour 1040 tax return, because
(08:32):
all of your money flows downhillyour K-1s, your W-2s, dividends
, blah, blah, blah.
It's all going to end up onyour 1040.
So that's your foundation.
Now your revocable living trustis going to own everything.
Now you might do some moreadvanced planning trusts, crts,
islets Please watch out forthese irrevocable asset
protection trusts that peoplesell.
(08:52):
They're crap.
But this is your foundation.
Super easy.
Some of you have already done atrust with our office Could
range from $2,000 to $3,000.
You work with one of my lawyersaround the country.
Boom Got it done.
You can update it every four orfive years.
It's wonderful.
(09:14):
The left side is your operations, which could include a W-2
coming in from the side, butthis is really kind of your side
hustle or main hustle.
What am I doing to generateordinary income?
Tax strategy planning?
La la la.
The right side is your assets,your passive income.
On the left side, your assetsworking.
On the right side, your assetsare working.
You want to try to like splitthe two to the left and right
(09:34):
and then down the middle is afirewall for asset protection.
Tax planning occurs on bothsides, but we want to create
this asset protection thatoperations generally create more
liability.
So we want to kind of put ourassets on the right side, never
letting our operations own ourinvestments.
So as we build this, it wouldlook like this I want my life
(09:58):
insurance beneficiary to be mytrust investment accounts, my
home.
When we set up a trust for you,we're going to really work on
making sure it's funded.
We just can't create a trust.
We want to make sure it'sfunded.
Then your investments.
Let's just think of some basicrental properties, Short-term,
long-term syndications don'tcare, you're gonna have an LLC
(10:20):
over here that would own yourreal estate in this example.
Then on the left, you mighthave a side hustle, a little LLC
, and if you're making any moneyat all, boom, you're going to
graduate to an S corporation.
So consulting services, arestaurant, you're a landscaper,
you're selling online,manufacturing whatever.
That's going to be your basictrifecta.
(10:42):
We've got operations on theleft, assets on the right and it
all flows down to your trust.
That's your basic trifecta.
Then we're going to add a boardof directors trifecta.
Then we're going to add a boardof directors.
So the board of directors wouldbe for any corporation you own.
If you already have acorporation, it's easy.
You can literally this weekendyou don't even need my law firm
(11:04):
pull out a sheet of paper and go.
We're having a board ofdirectors meeting, you're on the
board, you're on the board,you're on the board.
And let's talk about ourbusiness.
Yep, we bought this, we soldthat, we got rid of some
employees, hired some newemployees.
We're going to do this.
We looked at our financials andyou have a conversation with
people that can give you somegood advice.
What should I be doing withsocial media?
You know, I texted my son rightafter lunch and I said, hey,
(11:28):
what can you do for Farrah onher social media?
He's like oh, I do this, thisand this.
I'm like all right, I'll lether know.
I mean, my children have bettersocial media strategies than I
have, so I listen to them, Italk to them.
Then you could also have a boardof advisors.
If you have an LLC, you have aboard of advisors.
Every time we set up an LLC forour clients, we make sure we
(11:49):
implement a board of advisors.
If you have a corporation, youset up a board of directors.
So if you have 10 LLCs, youhave 10 boards.
Now you can have one boardmeeting and have 10 sheets of
paper out there and you have onebig board meeting.
You cover all of them at once.
This is sweet, right.
Then we go next level.
(12:11):
Bam, I was playing with this onthe plane last night.
I was kind of tidying it up alittle.
So this is kind of a mastertrifecta.
When you work with one of mytax lawyers, we'd build a
trifecta and then hand it off toyour tax person, your insurance
person.
And look at this, it's superfun.
You might have a W-2.
(12:32):
You may say, oh my gosh, thisis crazy.
I swear.
Half of you in the room alreadyhave this.
We just got to diagram it.
Look at this.
Here's your W-2.
You or your spouse, day job401k.
Are we doing matching out?
What are our investments inthat day job 401k?
Because we want to get thematch and get the hell out.
(12:52):
Then you might have a sidehustle Board of advisors for
that LLC.
What are we doing there to takewrite-offs as we do a sole
proprietorship?
Maybe we have an HRA for healthexpenses.
Boom flows into our 1040.
Oh, you've got an S corporation.
I've got a partnership.
I have one S Corp in my life.
Then I have my LLC.
(13:14):
That's a law firm and an LLCthat's another company or
another company.
I have a board of directors formy S Corporation.
It could be an LLC taxed as anS Corp.
Then it'd be a board ofadvisors.
I take a W-2.
I do my K-1.
I have a family managementcompany.
I pay kids under age 18 out ofthis.
I may have an HRA through myspouse Now my kids are older
(13:38):
than 18 now.
So I still have this company,kohler Family Management.
It's at Wells Fargo but I don'tpay the kids out of here.
I might use it for healthcarestrategies.
I have a health savings account.
Patty and I just pooled ourHSAs.
We're buying another 20 cowsinside of our HSA.
We have a cattle operation andmy health savings account, as
well as a long-term rental inChicago, so I'm self-directing
(14:01):
my HSA.
I could have a solo 401k or asafe harbor.
I have a safe harbor 401kbecause I have other employees.
Patty has a solo 401k.
We use our 401k to self-directand invest in all assets or
whatever the hell we want.
We have Roth IRAs for all ofthe kids and me and Patty.
We do that every year, nomatter what your income level is
(14:22):
or your age.
I want to do a Roth IRA everyyear.
So that's our tax for yourpre-tax section.
See, many of you already havethis but do we have it written
down?
Do we have a vision of it?
Because if you can see it, youcan believe it and if you
believe it you'll do it.
That's the power of this.
It's not rocket science, it'sjust getting it on freaking
(14:44):
paper.
Then you might have yourafter-tax investments.
This is real estate.
I own three different buildingsthat I self-rental to my
operations.
That's a dash four election.
I don't have to be a realestate professional.
We can talk about that if youwant.
I have two short Patty and Ihave three short-term rentals.
Each one of them we put on thetool belt and worked on them.
(15:07):
You can go to my social mediaand look at me drywalling and
fixing this and fixing thatpainting and putting up a deck,
and I walling and fixing thisand fixing that painting and
putting up a deck and blah.
I love that.
That's my happy place.
I have a ranch operation.
You can have a COPE, a chargingorder protection entity, out of
Wyoming or Ohio.
There's six or seven differentstates I like for that, not
Nevada or not Delaware.
(15:28):
Life insurance, investments,boats, rvs Patty and I are in
the market for a suite RV.
I think we're going to go fifthwheel on this one Boat home,
domestic asset protection trust,charitable trust, you might
have carry forward losses,short-term or long-term rentals,
got it, got it and it all flowsinto the trust.
(15:49):
Got to keep it updated.
That's it Isn't this fun.
And if you meet with your taxlawyer once a year, you're like,
okay, I get it and you share itwith your accountant and you
have a strategy session.
Anyway, I just want to saythank you.
I love being here with you.
I hope this was helpful and youguys control your own destiny.
(16:09):
You're the captain of your ship.
Have your board meetings, haveyour first quarterly board
meeting this year, and it'llreally bless your life.
It's a lot of fun.
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