Yesterday, we held a Facebook live on whether setting up an Llc for investing makes sense.
A couple of weeks ago, I was chatting with a group of very successful women business owners. This group is almost like an unofficial mastermind.
If you’re not familiar with masterminds, think of it as having an unofficial board of advisors for your life, career, business, or anything.
It’s one tool in my arsenal to get ahead and recommend to friends, clients, and even random strangers.
We discussed several different topics when the conversation shifted to taxes back to the chat—specifically, tax planning.
I asked the group if anyone had a workaround for getting an EIN (an employee identification number) because the IRS has a huge backlog. Pre-pandemic, you could get an EIN online in five minutes. As of this writing, it’s taking months.
The reason for the EIN?
I’m setting up an LLC and moving my crypto investments under the LLC.
Setting up an LLC for your investments doesn’t inherently have a tax benefit, more of a legal benefit.
What do I mean by a legal benefit?
You can shelter your assets and keep them from prying eyes with the LLC.
Setting up separate entities for your assets allows you to shelter your assets in the event of litigation or any other event requiring your assets.
Where the tax benefits come in is what I do with the investments.
It’s the activity that matters. Are you going to be an active investor or a passive investor?
Want more details?
WATCH this week’s vlog before it comes down.
How much attention do you pay to tax planning?
As one of the women in the unofficial mastermind said, having things in your name is a poor man’s game.
So, speak to a tax advisor about structuring your assets properly.