Limited liability company

I'm following certain journalists, and they have spent years trying to figure out where the money came from for his homes.

Who actually bought it? He has these mysterious LLCs and, like, like shell companies.

And he goes on television screaming about Trump's grift.

I, I think the investigations are making him crazy, and we'll talk about those later in the show because now it's not just, uh, Jennifer Newsom's, uh, nonsense, uh, or what his staff members are involved in.

It's a one-bedroom apartment.

Three LLCs.

Three out of one bedroom apartment.

Not in a commercial building.

We're going to put it in there.

We're going to create LLCs, right? We're going to do all the things with the correct structure.

And as it turned out, right in the first few months that we were meeting, he was able to not write his $25,000 quarterly check to the IRS.

So he saw immediate benefits.

You now need to rely on a business name registration or a trademark registration, or your actual company name or LLC name.

We don't have LLCs, but again, the, uh-

So I would have to go create a business filing name as Apple Pies if I want to get applepies.com.au?

Yes, that's right.

In the UK, it's slightly different.

If you keep money in a corporation, you're not taxed on it, and then for LLCs, you, you're taxed when the money leaves the company.

Well, with the kind of conflicting rules that they go- have going on with the shortening of remittance basis, because what it used to be is y- you used to have, you know, several years before you had to, you know, and it depended on how long and so on, but it was, um, seven years closer.

Now they've shortened it to four years, which means, say you're a partner in a law firm, well, you're getting pass-through income from your LLC, and the, the chance of double taxation is increased rapidly, um, because of the different rules between how corporations can pay out in the United States and how they can pay out in the UK.

Yeah

... you really have to understand what this, the impact of this is.

Well, I think, uh, what's particularly interesting about this particular, uh, proposed changed, uh, change in UK law is the fr- the fact that it, it targets LLCs, US LLCs in particular.

And US LLCs, I mean, even by US standards, are kind of strange.

I have another question for you.

Do you only work with businesses of a certain type, meaning LLCs, or do you also work with S corps?

Both.

You know, tell us about that.

But yeah, entities as well.

A lot of times in the U.S., LLCs are made to be very fashionable in the U.S. and used in a lot of real estate deals because of the uh, favorable terms they provide on, on, on the, um, uh, on the tax front and on the, um, you know, protection as far as liability protections that they provide, but the best entity to actually utilize for syndicated deals is a limited partnership.

For example, when Blackstone, uh, launches a billion dollar fund or a $10 billion fund, they don't, uh, structure that in a, uh, LLC, they structured in a limited partnership.

It's just a better vehicle to use, uh, So Canada Revenue Agency actually recognizes a limited partnership, whereas a LLC distributions that are paid through an LLC, they see that as dividends.

So, uh, that creates a-another kind of layer of, um, uh, you know, uh, compliance items that we have to, uh, uh, jump through.

Um, and, uh, but yeah, entities as well, a lot of times in the U.S., uh, LLCs are made to be very fashionable in the U.S. and used in a lot of real estate deals because of the, uh, favorable terms they provide on, on, on the, um, uh, on the tax front and on the, um, you know, protection as far as liability protections that they provide.

But the best entity to actually utilize for syndicated deals is a limited partnership.

For example, when Blackstone, uh, launches a billion-dollar fund or a $10 billion fund, they don't, uh, structure that in a, uh, LLC.