馃攳
Setting Up Business Bank and Checking Account - (The TIMELINE?) - YouTube
Channel: Toby Mathis Esq. | Tax & Asset Protection
[8]
- [Toby Mathis] Can you
describe the process,
[9]
timing, deadlines, and tax implications
[12]
of someone writing a cheque
from their personal account
[14]
to a C-corp, LLC and Holding Company
[16]
to get the chequing accounts set up?
[18]
So, first off, you threw a
bunch of stuff out there.
[21]
There's only one that was actually
[23]
a tax designation and that's a C-corp.
[27]
So, assume that, that
LLC and Holding Company
[30]
is a partnership and individual--
[32]
In any case, you're not
going to have a taxable event
[35]
when you contributed.
[37]
Cause you're either going
to call it a contribution,
[40]
or buying stock,
[43]
or a loan, or any number of things.
[48]
But you're stock tax
go under any of those.
[51]
If it's over ten thousand dollars
[53]
that you put in, like you write a
[54]
big ol' fat cheque to a
C-corp, you're going to have
[56]
some imputed interest if it's a loan.
[59]
If it's paid in capital, then there's
[61]
no tax implications and it can
[63]
return the money to you at any time.
[64]
- [Jeff Webb] Yeah, as far as the timing
[65]
and deadlines of getting
that chequing account
[67]
set up, the sooner the better.
[72]
Is it fatal if you don't
get it set up right away?
[74]
No, but just get it done and over with.
[78]
And this process, if you have one of those
[82]
entity binders that we send you,
[85]
just take that whole binder with you
[86]
when you get your account set up.
[88]
- Mhm.
[90]
- Everything they're going to
[91]
ask for is going to be in that binder.
[93]
- Yep.
[94]
If we did it.
[95]
- If we did it.
[96]
- Yeah, if somebody else did it then
[98]
good luck (laughs).
[99]
No I'm just kidding.
[100]
Usually they do one thing
well, they got the filing,
[102]
and then they're like,
operating agreement?
[104]
I have to go get one of those.
[105]
And then, when they get
the operating agreement,
[107]
then it's usually like,
all right, where are
[109]
all the other members?
[110]
They need to sign too.
[111]
And you're like, oh crap,
I should have done a
[112]
manager management.
[114]
There's always these little getchas.
[115]
If you just got to somebody
who knows how to do it,
[117]
and works with banks, that's
usually the easiest part.
[121]
The cool part about the
holding company and a LLC
[126]
that's basically a safe haven.
[128]
It's basically a virtual safe.
[130]
Think of it like putting
cash in your safe.
[133]
So if you walk over and
you put money in your safe,
[136]
do you have to do an IRS notice?
[139]
- No.
[140]
- Is there a tax implication?
[141]
- No.
[142]
- What if I take the money out of my safe?
[144]
- Yeah, there's none.
[146]
- So I could be poppin' money
[147]
in and out of there
[148]
all day long and there's just --
[149]
All you're doing is
just running an account.
[151]
You're supposed to keep track
of what's in there is all.
[153]
- Right.
[154]
- How much should I put in?
[155]
How much did I take out?
[156]
But it's not a taxable amount, so.
[159]
Do you recommend making a
cash deposit, or loan on a
[162]
capital contribution.
[163]
So do you like to put money
in, in exchange for stock,
[167]
or do you like making a loan?
[170]
- When I started my LLC,
[172]
the initial money I put in,
[174]
I put in what we call,
additional paid in capital.
[177]
- Mhm.
[178]
- My company's an S-corporation,
professional and liability
[182]
company.
[184]
But yeah, cause I knew that if
I need to, I could pull that
[187]
money back out.
[187]
- Right --
[188]
- It's free.
[189]
- It's really, there's
people that like it, and I'll
[191]
tell you what.
[192]
Without getting down
too far a rabbit hole.
[194]
If we do a paid in
capital, or if we don't.
[198]
If we loan, and we ever
decide we're going to dissolve
[201]
that company and take a loss.
[203]
We're going to make it
paid in capital anyway.
[205]
We're going to contribute the
loan actually to the company.
[208]
In exchange for stock at that time.
[210]
So you're not super stuck.
[213]
- And here's our general preferences.
[214]
If it's taxed as a partnership,
we make it a capital
[218]
contribution.
[220]
- Mhm.
[220]
- If it's an S-corporation
we prefer that it be
[223]
additional paid in capital.
[224]
- Cause it's easier, because
you just have your capital
[226]
account --
[227]
- Right.
[228]
If it's a C-corporation we
prefer it to be a shareholder
[230]
loan.
[231]
- That's cause you have a
separate tax payer, and there's
[233]
no tax liability.
[234]
So if it goes over ten thousand dollars,
[236]
you got to have a little
[237]
bit of imputed interest,
or pay low interest.
[239]
- Right.
[240]
(gentle music)
Most Recent Videos:
You can go back to the homepage right here: Homepage