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“It's all legal because you're paying your taxes and you're just creating a layer of privacy. It's illegal if you're trying to commit fraud.”
— Michael Wedaa
Michael Wedaa of Augmentus Business Solutions explains how trusts and LLCs keep your name off your assets, so you are a less tempting lawsuit target. Michael is back for a third visit to talk about his new book, Business Rogue.
He and James walk through the basics in plain English: what a trust really is (a paper directive), why you should pick the trust's name yourself, and how stacking a land trust, a personal property trust and an LLC adds layers of privacy. You will also hear why a suspended LLC can lose its protection, and how to set up two LLCs for a plumber or a veterinary clinic so the trucks, x-ray machines and building are not all exposed at once.
Then it gets fun. Michael covers building business credit through the business credit bureaus, using 0% credit for fix and flips, borrowing against crypto or a retirement account, and why he says never pay off a mortgage. He is clear that all of it is legal, and that you have to do it before trouble shows up.
If you own a business or rental property and wonder how exposed you are, press play.
In this episode
- 0:00:00 Own nothing, control everything: intro
- 0:01:21 What Business Rogue is about
- 0:02:04 Why asset searches make you a target
- 0:05:02 Private LLCs with personal property trusts
- 0:08:20 How to name your trust for privacy
- 0:14:01 Living, land and personal property trusts
- 0:18:54 Which state to form your LLC in
- 0:24:16 How a suspended LLC loses protection
- 0:26:59 Two trusts, partnership returns and K1s
- 0:31:53 Two LLC plan for a plumbing business
- 0:36:53 Protecting a veterinary clinic and building
- 0:40:13 What to do after a judgment
- 0:47:05 Using business credit to buy real estate
- 0:51:25 Building business credit in four tiers
- 1:03:15 Borrowing against crypto to buy property
- 1:08:56 Why never pay off your mortgage
About Michael Wedaa
Michael Wedaa is Augmentus Business Solutions.
