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Lesson · Structure · protection

Own everything. Control everything. Owe nothing to a lawsuit.

Asset protection is about layers — entities, trusts, and titling that make you a hard target long before anyone files a claim. You set it up when you don't need it.

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REASONABLE
The salary standard the IRS actually enforces

WORKED EXAMPLE

$100,000 of profit, taxed two ways

SE tax $15,300SE tax $4,590
No salary splitSalary $30,000
Distribution $0Distribution $70,000
Full 15.3% hit$10,710 stays put

Key points

An LLC chooses how it is taxed

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Disregarded
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Sole proprietor
✓
Partnership 1065
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S-corp 1120-S
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C-corp 1120

How it works

How the election actually gets made

01
Form 2553 for S-corpForm 8832 for C-corp treatment
02
Watch the 75-day windowRoughly two months and fifteen days
03
Then run real payrollW-2 salary before distributions

How it works

Stack LLCs without stacking returns

01
One LLC per propertyIsolates each asset's liability
02
Elect disregarded statusThat LLC files no separate return
03
Holding company reportsOne return, Schedule E per property

Key points

What the election costs you

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Payroll and filing fees
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State franchise taxes
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Separate bank account
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No commingling funds
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Savings shrink at high income
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Annual maintenance

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The strategy, the checklist, the key numbers, and links to the actual tax code. Print it, take it to your CPA. Free, no strings.

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Asset Protection

Cliff notes + checklist + the law

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