LEGAL OVERVIEW

Last but not least, you need to set up entity structuring. Even if you're a W2 employee with no investments.

Estate planning is something everybody needs to do at some point and will play into your generational wealth strategy along with a Private Foundation.

When it comes to entity structuring, you actually need to form LLCs and set up asset protection and anonymity regardless of whether you are a W2.

We can show you how to save $20k or more in taxes during the first year, but you will want to set up additional tax and legal structures over time to continue to reduce your taxes down to the 0-10% range. Without entities, this would be impossible.

It's also important to protect yourself from catastrophic events, no matter how unlikely, so that you don't have any major setbacks on your journey to time and financial freedom.

Lawsuits are one of these kinds of events and they can happen to anyone. All it takes is a car accident, an injury on your property, a contractual disagreement, or any number of other common life events and you're off to the races. Once somebody knows what you own, they can hire a good attorney to pressure and intimidate you, legally, until you settle out of court. This is a common tactic of frivolous lawsuits.

The way you prevent this type of shenanigans is to set up asset protection before you get sued. If you wait until you're served, it's too late. You need two types of asset protection in general:

Holding companies are where you place your assets. This could be things like real estate properties, but it can also be investments. Anything of value that could be exposed during a lawsuit is important to protect.

Operating companies are were you perform business activities like collecting rent, paying contractors, and signing contracts. These are often referred to as shell companies because they are empty shells - even if someone sues this company, there is nothing to gain and so the lawsuit is either dropped or you can fold the company and start a new one for a few hundred dollars.

Anonymity is something you will want across all of your entities and assets. We use different types of trusts to create anonymity at the County Clerk, the Secretary of State, and during probate. This allows you to look like a beggar on paper and transfer your assets anonymously to your heirs, taking the target off their back.

Here is what a full legal diagram could look like, which includes asset protection structures, estate planning, and tax shelters.