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Episode 33: Garrett Sutton – Protecting Your Wealth

Garrett Sutton, who is my Asset Protection Attorney, heads up Corporate Direct. They help protect investors wealth by using different asset protection strategies such as LLC’s, etc.

He says, “Many corporate structures fail to protect because people don’t maintain them by paying the fees and staying on top of filing requirements. You have to maintain these structures, or you become vulnerable.”

They discuss different corporate strategies and how they vary from state to state. Some U.S. states have lower fees and better safeguards. Wyoming is excellent for Real Estate and Nevada is good for “C” corporations.

Insurance is always your first line of defense followed by a suitable corporate structure. Umbrella insurance policies will often provide additional protection from lawsuits. As the predator will get that first before going after the assets.

There are benefits with “C” corps. One example is the Tax Code now is lower and under section 1202 of the Tax Code, owners are exempt from paying Capital gains on sale if owned for 5 years. But the company must be established as a C corporation from the start. If you start a new corporation, it may be wise to start with a C corporation. Consult with your attorney and tax advisors.

So imagine, the shareholders of the company Ring which was recently sold to Amazon for $1b. Assuming it’s a C corporation and the shareholders have held the shares for 5 years, the owners pay zero capital gains Tax on the gains. This is powerful, thus should not be overlooked.

There are risks with all investment which is why you should consult with a lawyer. But don’t assume that the attorney or anyone else has vetted the deal. You need to conduct your due diligence on the deal and the sponsor/operator. Ask yourself, does the management team have a proven track record. I have been a victim of a Ponzi scheme so be sure to do your due diligence on the deal and the sponsor. As this can set you back and can be avoided with the property due diligence as there are crooks everywhere.

In my opinion, there will be many deals which begin to unravel in the next few years as the stock market is an indicator that we are at an all-time high. If things begin to deteriorate, they will likely show up in bankruptcy and SEC filings. In fact, I am attending the 2018 Bankruptcy Battleground West in downtown Los Angeles just to get prepared for what’s to come. You can find out more about it via this link. Notice, they will begin discussing California’s Insolvency situation. Feel free to find me there if you plan on attending.

University graduates increasingly have a difficult time starting a business due to their debt load. Financial literacy, unfortunately, it is not taught in schools, which is evident by the $1.4T of student loan debt. Currently, student loan debt has an 11% delinquency rate and we are not yet in a recession. Imagine how high it will go once we enter the next recession. That when the entire amount will be the debt of the US Tax Payer since it can’t be wiped out via bankruptcy.

Garrett is releasing a new book called “Finance Your Own Business,” with credit expert Gerri Detweiler. The book is about the various ways to get your business financed. There is so much money which has been so cheap and a few have been smart enough to build wealth with the free money.

Garrett’s website Is, and they offer a free 15-minute consultation program to see if they can assist you.

Also, I negotiated with Garrett to offer you a $100 discount for any new entity formed. You can get that discount via this link.

With a 21% corporate tax rate, it is shocking that there are NOT more business starting. Perhaps it’s still early in the year and the advantages of a business have yet to be fully understood. The tax rate was reduced to provide an incentive to start businesses. We have been at a 50 year low in new business formation. So if you are looking to start one, you can hire Garrett as I did and get a $100 discount and save yourself some money. Click here to get the discount.

Talking Points From This Week’s Episode
• Insurance is your first line of defense from lawsuits.
• Corporate structures require maintenance and upkeep.
• Different assets need different corporate structures.
• Do your due diligence when investing in Syndications.

About Our Guest
Garrett Sutton is a corporate attorney, asset protection expert and best selling author who has sold more than 850,000 books to guide entrepreneurs and investors.

For more than 29 years, Garrett Sutton has run his practice assisting entrepreneurs and real estate investors in protecting their assets and maximizing their financial goals through sound management and asset protection strategies. The companies he founded, Corporate Direct and Sutton Law Center, have helped more than 10,000 clients protect their assets and incorporate their businesses.

Garrett also serves as a member of the elite group of “Rich Dad Advisors” for bestselling author Robert Kiyosaki. A number of the books Garrett Sutton has authored are part of the bestselling Rich Dad, Poor Dad wealth-building book series.

Garrett attended Colorado College and the University of California, Berkeley, where he received a B.S. in Business Administration in 1975. He graduated with a J.D. in 1978 from Hastings College of Law, the University of California’s law school in San Francisco. Garrett is licensed in Nevada and California. Garrett is a member of the State Bar of Nevada, the State Bar of California, and the American Bar Association. He has written numerous professional articles and has served on the Publication Committee of the State Bar of Nevada. Additionally, He has appeared in the Wall Street Journal, and other publications.


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