I need you to suspend your disbelief just for a sec
just for a sec
just for a sec an imagine I am Mick Jagger
an imagine I am Mick Jagger
an imagine I am Mick Jagger and I’m on a US tour
and I’m on a US tour
and I’m on a US tour going across small venues across the
going across small venues across the
going across small venues across the u.s. I’ve just arrived in Wilmington
u.s. I’ve just arrived in Wilmington
u.s. I’ve just arrived in Wilmington Delaware at the Queen theater and we’re
Delaware at the Queen theater and we’re
Delaware at the Queen theater and we’re playing a concert and while they’re
playing a concert and while they’re
playing a concert and while they’re serving cold beverages in the back
serving cold beverages in the back
serving cold beverages in the back they’re also serving hot coffee and
they’re also serving hot coffee and
they’re also serving hot coffee and someone orders a hot coffee walks
someone orders a hot coffee walks
someone orders a hot coffee walks through the crowd bumps his elbow and
through the crowd bumps his elbow and
through the crowd bumps his elbow and drops the cup of coffee on people and
drops the cup of coffee on people and
drops the cup of coffee on people and this people have minor burns so what
this people have minor burns so what
this people have minor burns so what happens next you know we’re in America
happens next you know we’re in America
happens next you know we’re in America you get sued so what happens is they sue
you get sued so what happens is they sue
you get sued so what happens is they sue to sweep the street they try to sue
to sweep the street they try to sue
to sweep the street they try to sue everyone they can they try to basically
everyone they can they try to basically
everyone they can they try to basically name the artists they try to name the
name the artists they try to name the
name the artists they try to name the touring company they name the venue and
touring company they name the venue and
touring company they name the venue and the wonderful thing in this world we
the wonderful thing in this world we
the wonderful thing in this world we take for granted a lot of times is
take for granted a lot of times is
take for granted a lot of times is limited liability so the artists even
limited liability so the artists even
limited liability so the artists even though they own the touring company
though they own the touring company
though they own the touring company haven’t done anything wrong directly and
haven’t done anything wrong directly and
haven’t done anything wrong directly and they’re protected from liability so they
they’re protected from liability so they
they’re protected from liability so they can get out of the lawsuit the touring
can get out of the lawsuit the touring
can get out of the lawsuit the touring company though that’s actually running
company though that’s actually running
company though that’s actually running the show if they’re not adequately
the show if they’re not adequately
the show if they’re not adequately insured may be responsible if they’re
insured may be responsible if they’re
insured may be responsible if they’re ultimately held liable and so it’s all
ultimately held liable and so it’s all
ultimately held liable and so it’s all those deep pockets it’s the deep pocket
those deep pockets it’s the deep pocket
those deep pockets it’s the deep pocket from all the money that came from their
from all the money that came from their
from all the money that came from their whole tour not just the venue that was
whole tour not just the venue that was
whole tour not just the venue that was the Queen Theatre in Wilmington it was
the Queen Theatre in Wilmington it was
the Queen Theatre in Wilmington it was all across the United States that it’s
all across the United States that it’s
all across the United States that it’s basically a big pool of assets that that
basically a big pool of assets that that
basically a big pool of assets that that creditor now has access to and what I’m
creditor now has access to and what I’m
creditor now has access to and what I’m here to share with you is there’s
here to share with you is there’s
here to share with you is there’s another way to do it and there’s a
another way to do it and there’s a
another way to do it and there’s a conventional way that most you are
conventional way that most you are
conventional way that most you are familiar with not to set up separate
familiar with not to set up separate
familiar with not to set up separate companies so you set up an LLC let’s say
companies so you set up an LLC let’s say
companies so you set up an LLC let’s say for every venue and so the Queen Theatre
for every venue and so the Queen Theatre
for every venue and so the Queen Theatre would be in its own particular you know
would be in its own particular you know
would be in its own particular you know container and that way the assets
container and that way the assets
container and that way the assets associate with this you know are only
associate with this you know are only
associate with this you know are only basically going to that credit or not
basically going to that credit or not
basically going to that credit or not any of the other assets from the tour so
any of the other assets from the tour so
any of the other assets from the tour so that’s exciting but it’s really
that’s exciting but it’s really
that’s exciting but it’s really cumbersome and not many people go out
cumbersome and not many people go out
cumbersome and not many people go out and set up hundreds of LLC’s for the US
and set up hundreds of LLC’s for the US
and set up hundreds of LLC’s for the US tour but there’s there’s an easier way –
tour but there’s there’s an easier way –
tour but there’s there’s an easier way – there may be an easier way and what if
there may be an easier way and what if
there may be an easier way and what if there was an easier way well I’m here to
there was an easier way well I’m here to
there was an easier way well I’m here to tell you there is and it’s called the
tell you there is and it’s called the
tell you there is and it’s called the series LLC it’s a particular type of LLC
series LLC it’s a particular type of LLC
series LLC it’s a particular type of LLC that Delaware invented in 1996 and it’s
that Delaware invented in 1996 and it’s
that Delaware invented in 1996 and it’s a way to take one LLC and break it down
a way to take one LLC and break it down
a way to take one LLC and break it down in its component parts so give a problem
in its component parts so give a problem
in its component parts so give a problem with one aspect of the company that that
with one aspect of the company that that
with one aspect of the company that that company that that particular protected
company that that particular protected
company that that particular protected series isn’t necessarily responsible for
series isn’t necessarily responsible for
series isn’t necessarily responsible for everything else that happens against the
everything else that happens against the
everything else that happens against the company so if you have a problem and one
company so if you have a problem and one
company so if you have a problem and one let’s say at the Queen venue it can’t go
let’s say at the Queen venue it can’t go
let’s say at the Queen venue it can’t go against the assets elsewhere this tour
against the assets elsewhere this tour
against the assets elsewhere this tour revenues
revenues
revenues and this is surprisingly common even
and this is surprisingly common even
and this is surprisingly common even Bruce Springsteen in 1977 had a tour and
Bruce Springsteen in 1977 had a tour and
Bruce Springsteen in 1977 had a tour and it was just after a dispute with his
it was just after a dispute with his
it was just after a dispute with his business manager and he decided to call
business manager and he decided to call
business manager and he decided to call it the lawsuit tour and so this this is
it the lawsuit tour and so this this is
it the lawsuit tour and so this this is very common to get sued in the United
very common to get sued in the United
very common to get sued in the United States and so what people do with like I
States and so what people do with like I
States and so what people do with like I say is separate out these liabilities
say is separate out these liabilities
say is separate out these liabilities but the exciting thing about this series
but the exciting thing about this series
but the exciting thing about this series LLC is that it’s really not limited to
LLC is that it’s really not limited to
LLC is that it’s really not limited to just Delaware Delaware was the first
just Delaware Delaware was the first
just Delaware Delaware was the first state to have it thirteen states have
state to have it thirteen states have
state to have it thirteen states have adopted it since then and then the
adopted it since then and then the
adopted it since then and then the uniform law commission which is an
uniform law commission which is an
uniform law commission which is an organization that gets together and
organization that gets together and
organization that gets together and creates laws across the u.s. just
creates laws across the u.s. just
creates laws across the u.s. just enacted an act that’s trying to unify
enacted an act that’s trying to unify
enacted an act that’s trying to unify the way these laws are created so before
the way these laws are created so before
the way these laws are created so before I tell you about you know a little bit
I tell you about you know a little bit
I tell you about you know a little bit more about the series LLC I want to give
more about the series LLC I want to give
more about the series LLC I want to give you a little bit of an explanation on
you a little bit of an explanation on
you a little bit of an explanation on limited liability in the United States
limited liability in the United States
limited liability in the United States because we take it for granted two
because we take it for granted two
because we take it for granted two hundred years ago if you were to invest
hundred years ago if you were to invest
hundred years ago if you were to invest in shipping in a sailboat going across
in shipping in a sailboat going across
in shipping in a sailboat going across the ocean the owners were personally
the ocean the owners were personally
the ocean the owners were personally responsible not only for the cargo and
responsible not only for the cargo and
responsible not only for the cargo and the ship but everything that went wrong
the ship but everything that went wrong
the ship but everything that went wrong we ran into a dock or if it ran into
we ran into a dock or if it ran into
we ran into a dock or if it ran into another ship the owners are responsible
another ship the owners are responsible
another ship the owners are responsible so they’re afraid to take risks and the
so they’re afraid to take risks and the
so they’re afraid to take risks and the nice thing about this limited liability
nice thing about this limited liability
nice thing about this limited liability system to bargain with the government
system to bargain with the government
system to bargain with the government where the government was to encourage
where the government was to encourage
where the government was to encourage commerce they let you basically limit
commerce they let you basically limit
commerce they let you basically limit your risk and there was a case in about
your risk and there was a case in about
your risk and there was a case in about two hundred years ago called the Rebecca
two hundred years ago called the Rebecca
two hundred years ago called the Rebecca was the first time the courts
was the first time the courts
was the first time the courts established the principle of limited
established the principle of limited
established the principle of limited liability where if there was a problem
liability where if there was a problem
liability where if there was a problem the ship they said the owners weren’t
the ship they said the owners weren’t
the ship they said the owners weren’t responsible for anything beyond their
responsible for anything beyond their
responsible for anything beyond their investments and that was really
investments and that was really
investments and that was really revolutionary
revolutionary
revolutionary the next major revolutionary thing that
the next major revolutionary thing that
the next major revolutionary thing that happened in the incorporation system was
happened in the incorporation system was
happened in the incorporation system was the 14th amendment to the Constitution
the 14th amendment to the Constitution
the 14th amendment to the Constitution so you may be familiar with you know
so you may be familiar with you know
so you may be familiar with you know after the Civil War there were three
after the Civil War there were three
after the Civil War there were three amendments the 14th amendment what it
amendments the 14th amendment what it
amendments the 14th amendment what it did is it took people and made them into
did is it took people and made them into
did is it took people and made them into citizens and you may think well those
citizens and you may think well those
citizens and you may think well those are human beings well guess what
are human beings well guess what
are human beings well guess what according to the US Supreme Court in a
according to the US Supreme Court in a
according to the US Supreme Court in a case about 20 years after that which was
case about 20 years after that which was
case about 20 years after that which was Santa Clara County versus Southern
Santa Clara County versus Southern
Santa Clara County versus Southern Pacific Railroad they actually the
Pacific Railroad they actually the
Pacific Railroad they actually the justices got together before the oral
justices got together before the oral
justices got together before the oral argument and they said as soon as the
argument and they said as soon as the
argument and they said as soon as the oral argument started we don’t hear any
oral argument started we don’t hear any
oral argument started we don’t hear any arguments about whether this railroad is
arguments about whether this railroad is
arguments about whether this railroad is a person because we all agree this
a person because we all agree this
a person because we all agree this railroad is a person and so it’s
railroad is a person and so it’s
railroad is a person and so it’s happened as a result of that is the 14th
happened as a result of that is the 14th
happened as a result of that is the 14th amendment has allowed States to innovate
amendment has allowed States to innovate
amendment has allowed States to innovate their corporate laws so there is no
their corporate laws so there is no
their corporate laws so there is no federal corporation law it’s all
federal corporation law it’s all
federal corporation law it’s all state-by-state and the advantage is
state-by-state and the advantage is
state-by-state and the advantage is you’re titled the equal protection under
you’re titled the equal protection under
you’re titled the equal protection under the law
the law
the law so if you incorporate in Delaware you’re
so if you incorporate in Delaware you’re
so if you incorporate in Delaware you’re allowed to use that business in
allowed to use that business in
allowed to use that business in California you’re allowed to use that
California you’re allowed to use that
California you’re allowed to use that business in Arizona you can go to any
business in Arizona you can go to any
business in Arizona you can go to any state you want and do business there and
state you want and do business there and
state you want and do business there and and the exciting thing is the Internal
and the exciting thing is the Internal
and the exciting thing is the Internal Affairs our governor under the state
Affairs our governor under the state
Affairs our governor under the state works or it’s set up so it’s governed
works or it’s set up so it’s governed
works or it’s set up so it’s governed under the state of Delaware
under the state of Delaware
under the state of Delaware so these states can start up innovate
so these states can start up innovate
so these states can start up innovate it’s like the laboratories of democracy
it’s like the laboratories of democracy
it’s like the laboratories of democracy all 50 states can kind of innovate and
all 50 states can kind of innovate and
all 50 states can kind of innovate and determine what they think is the best
determine what they think is the best
determine what they think is the best law and Delaware has been way on the
law and Delaware has been way on the
law and Delaware has been way on the forefront so you’re all familiar with
forefront so you’re all familiar with
forefront so you’re all familiar with big companies why they’re incorporating
big companies why they’re incorporating
big companies why they’re incorporating Delaware and partly it’s because they
Delaware and partly it’s because they
Delaware and partly it’s because they had great corporate laws when
had great corporate laws when
had great corporate laws when corporations were first getting started
corporations were first getting started
corporations were first getting started and so they’ve developed this whole
and so they’ve developed this whole
and so they’ve developed this whole trend of case law through the Court of
trend of case law through the Court of
trend of case law through the Court of Chancery which is a special business
Chancery which is a special business
Chancery which is a special business court without judges with judges without
court without judges with judges without
court without judges with judges without juries and so it’s an exciting time to
juries and so it’s an exciting time to
juries and so it’s an exciting time to basically to incorporate in Delaware and
basically to incorporate in Delaware and
basically to incorporate in Delaware and do business elsewhere but corporations
do business elsewhere but corporations
do business elsewhere but corporations became a little old-fashioned they
became a little old-fashioned they
became a little old-fashioned they became a little staid you had
became a little staid you had
became a little staid you had stockholders he had directors he had
stockholders he had directors he had
stockholders he had directors he had officers you have always Duroc recei of
officers you have always Duroc recei of
officers you have always Duroc recei of meetings and so in 1977 the state of
meetings and so in 1977 the state of
meetings and so in 1977 the state of Wyoming invented something called the
Wyoming invented something called the
Wyoming invented something called the LLC the limited liability company and it
LLC the limited liability company and it
LLC the limited liability company and it was slow to take off very slow in fact
was slow to take off very slow in fact
was slow to take off very slow in fact in fact Delaware which is known for
in fact Delaware which is known for
in fact Delaware which is known for being first wasn’t quite last but they
being first wasn’t quite last but they
being first wasn’t quite last but they waited till 1991 to have their own law
waited till 1991 to have their own law
waited till 1991 to have their own law now we’re no longer this world where
now we’re no longer this world where
now we’re no longer this world where corporations are controlling you know
corporations are controlling you know
corporations are controlling you know that all the new entities now LLC’s are
that all the new entities now LLC’s are
that all the new entities now LLC’s are being formed three or four to one
being formed three or four to one
being formed three or four to one compared to corporations so it’s not
compared to corporations so it’s not
compared to corporations so it’s not uncommon to have corporation corporate
uncommon to have corporation corporate
uncommon to have corporation corporate law basically shift to a new form of
law basically shift to a new form of
law basically shift to a new form of entity and what I’m here to talk about
entity and what I’m here to talk about
entity and what I’m here to talk about is why are using a boring old
is why are using a boring old
is why are using a boring old corporation or a boring old LLC when you
corporation or a boring old LLC when you
corporation or a boring old LLC when you could be using a series LLC to protect
could be using a series LLC to protect
could be using a series LLC to protect multiple assets where you can set up one
multiple assets where you can set up one
multiple assets where you can set up one LLC and have these internal chambers
LLC and have these internal chambers
LLC and have these internal chambers within that it’s like a safe deposit box
within that it’s like a safe deposit box
within that it’s like a safe deposit box right so you go to the bank if you go
right so you go to the bank if you go
right so you go to the bank if you go into volt and know everything’s lined up
into volt and know everything’s lined up
into volt and know everything’s lined up on the walls it’s available to everyone
on the walls it’s available to everyone
on the walls it’s available to everyone but you can have little boxes with keys
but you can have little boxes with keys
but you can have little boxes with keys within this one company where if you
within this one company where if you
within this one company where if you have it if you have a judgment against
have it if you have a judgment against
have it if you have a judgment against the company you have to get a judgment
the company you have to get a judgment
the company you have to get a judgment against that particular protected series
against that particular protected series
against that particular protected series in order to get the assets and so it’s a
in order to get the assets and so it’s a
in order to get the assets and so it’s a way to segregate out these assets and
way to segregate out these assets and
way to segregate out these assets and real estate investors are using it so
real estate investors are using it so
real estate investors are using it so that they can set up let’s say ten
that they can set up let’s say ten
that they can set up let’s say ten properties instead of having ten
properties instead of having ten
properties instead of having ten CAES they may set up series LLC with
CAES they may set up series LLC with
CAES they may set up series LLC with protected series one protected series
protected series one protected series
protected series one protected series two protected series three and they can
two protected series three and they can
two protected series three and they can internally it’s really exciting they can
internally it’s really exciting they can
internally it’s really exciting they can establish these series without having to
establish these series without having to
establish these series without having to go back to the secretary of state so it
go back to the secretary of state so it
go back to the secretary of state so it empowers you to literally create people
empowers you to literally create people
empowers you to literally create people without even the further government
without even the further government
without even the further government authority so you are allowed to
authority so you are allowed to
authority so you are allowed to basically create as many people as you
basically create as many people as you
basically create as many people as you like and you may say well John 10 LLC is
like and you may say well John 10 LLC is
like and you may say well John 10 LLC is okay I understand ten but their series
okay I understand ten but their series
okay I understand ten but their series LLC’s out there with a hundred thousand
LLC’s out there with a hundred thousand
LLC’s out there with a hundred thousand series in them they’re not limited to
series in them they’re not limited to
series in them they’re not limited to you know a handful of series and so this
you know a handful of series and so this
you know a handful of series and so this world we’re moving into with entities
world we’re moving into with entities
world we’re moving into with entities this is a new type of entity that’s
this is a new type of entity that’s
this is a new type of entity that’s gonna be really exciting that’s already
gonna be really exciting that’s already
gonna be really exciting that’s already being used as about a hundred thousand
being used as about a hundred thousand
being used as about a hundred thousand series that are already filed of those
series that are already filed of those
series that are already filed of those we don’t know how many protected series
we don’t know how many protected series
we don’t know how many protected series are out there but this is gonna be an
are out there but this is gonna be an
are out there but this is gonna be an exciting world because regular
exciting world because regular
exciting world because regular businesses whether it’s an entrepreneur
businesses whether it’s an entrepreneur
businesses whether it’s an entrepreneur that’s a serial entrepreneur and they
that’s a serial entrepreneur and they
that’s a serial entrepreneur and they want to incubate different businesses or
want to incubate different businesses or
want to incubate different businesses or whether it’s a real estate investor or
whether it’s a real estate investor or
whether it’s a real estate investor or maybe even big businesses let’s say you
maybe even big businesses let’s say you
maybe even big businesses let’s say you had autonomous vehicles you have every
had autonomous vehicles you have every
had autonomous vehicles you have every vehicle in its own series or you have
vehicle in its own series or you have
vehicle in its own series or you have Getty Images and they’ve got different
Getty Images and they’ve got different
Getty Images and they’ve got different copyrights and every copyright goes into
copyrights and every copyright goes into
copyrights and every copyright goes into its own series it’s a way to
its own series it’s a way to
its own series it’s a way to revolutionize the way we think of
revolutionize the way we think of
revolutionize the way we think of entities where entities aren’t static
entities where entities aren’t static
entities where entities aren’t static entities are constantly evolving and the
entities are constantly evolving and the
entities are constantly evolving and the organization is actually becoming a new
organization is actually becoming a new
organization is actually becoming a new organization as it acquires assets and
organization as it acquires assets and
organization as it acquires assets and it may not even be people that establish
it may not even be people that establish
it may not even be people that establish these new organizational assets it could
these new organizational assets it could
these new organizational assets it could be the companies themselves automating
be the companies themselves automating
be the companies themselves automating this process with artificial
this process with artificial
this process with artificial intelligence to establish rules to say
intelligence to establish rules to say
intelligence to establish rules to say that you know as it acquires an asset
that you know as it acquires an asset
that you know as it acquires an asset we’re gonna create a new series fund the
we’re gonna create a new series fund the
we’re gonna create a new series fund the series keep track of the records in that
series keep track of the records in that
series keep track of the records in that series and we may even use further
series and we may even use further
series and we may even use further technology to bulletproof that just so
technology to bulletproof that just so
technology to bulletproof that just so people don’t accuse us of mischief we’re
people don’t accuse us of mischief we’re
people don’t accuse us of mischief we’re gonna use this thing called the
gonna use this thing called the
gonna use this thing called the blockchain where you can just you can
blockchain where you can just you can
blockchain where you can just you can basically put things on a public ledger
basically put things on a public ledger
basically put things on a public ledger or a private ledger where you could you
or a private ledger where you could you
or a private ledger where you could you can’t change it over time so anyone goes
can’t change it over time so anyone goes
can’t change it over time so anyone goes back and questions what assets were
back and questions what assets were
back and questions what assets were owned when when someone you know someone
owned when when someone you know someone
owned when when someone you know someone dropped the coffee you can prove
dropped the coffee you can prove
dropped the coffee you can prove definitively and this is this is a
definitively and this is this is a
definitively and this is this is a really innovation in risk it’s a real
really innovation in risk it’s a real
really innovation in risk it’s a real innovation and basically trying to
innovation and basically trying to
innovation and basically trying to mitigate the risks associated with deep
mitigate the risks associated with deep
mitigate the risks associated with deep pockets it turns those deep pockets into
pockets it turns those deep pockets into
pockets it turns those deep pockets into little pockets and it isolates
little pockets and it isolates
little pockets and it isolates liabilities to only those assets which
liabilities to only those assets which
liabilities to only those assets which really should be at risk and allows
really should be at risk and allows
really should be at risk and allows businesses to really do things that are
businesses to really do things that are
businesses to really do things that are beyond the scope of what they’ve ever
beyond the scope of what they’ve ever
beyond the scope of what they’ve ever been able to do before and like I say
been able to do before and like I say
been able to do before and like I say it’s only 1% of new LLC’s now we
it’s only 1% of new LLC’s now we
it’s only 1% of new LLC’s now we got 13 states that have it we got a
got 13 states that have it we got a
got 13 states that have it we got a uniform law that just came online teller
uniform law that just came online teller
uniform law that just came online teller was the first state to have it and it’s
was the first state to have it and it’s
was the first state to have it and it’s just really exciting that you can
just really exciting that you can
just really exciting that you can basically anyone can use these but you
basically anyone can use these but you
basically anyone can use these but you haven’t heard about it because they
haven’t heard about it because they
haven’t heard about it because they don’t teach it in law schools they don’t
don’t teach it in law schools they don’t
don’t teach it in law schools they don’t teach it in business schools you don’t
teach it in business schools you don’t
teach it in business schools you don’t read about in entrepreneurship books
read about in entrepreneurship books
read about in entrepreneurship books this is something that’s not well
this is something that’s not well
this is something that’s not well publicized that’s why I’m here to
publicized that’s why I’m here to
publicized that’s why I’m here to basically share with you and invite you
basically share with you and invite you
basically share with you and invite you to look into the series LLC to determine
to look into the series LLC to determine
to look into the series LLC to determine well that’s something you would think
well that’s something you would think
well that’s something you would think about using or maybe someone you know
about using or maybe someone you know
about using or maybe someone you know because the limit is your imagination
because the limit is your imagination
because the limit is your imagination the number of series limit is your
the number of series limit is your
the number of series limit is your imagination and your ability to keep
imagination and your ability to keep
imagination and your ability to keep track of the records so I’m gonna ask
track of the records so I’m gonna ask
track of the records so I’m gonna ask you not to think big about business but
you not to think big about business but
you not to think big about business but to think small
”
Be First to Comment