Legally Avoid Income Taxes

Only Government Employee’s and Registered Corporations must pay income taxes.  But while there is a Corporation in your name, and that Corporation must pay income taxes on its income, its income is not the same as your income, and you are not the Corporation.  So, never is it actually your responsibility to pay income taxes.  Your Corporation in your name, aka your Cestui Que Vie Trust, aka your Social Security Trust, must pay income taxes on the money it generates being traded in the stock market.  But that doesn’t mean you, the flesh and blood homo-sapien, makes any money that is liable to income tax.

If you were born in the united states of America, you are Sovereign.  You’re parents fraudulently and mistakenly signed away your rights without your consent, but fraud vitiates all contracts, and all an American National needs to do become Sovereign is to learn about and recognize their Sovereignty.  Having done so, there are a few things you can then do to notify the world, and the US Government in particular, of your legal status as a Sovereign, putting the power back in your hands.

One of the first steps any American National needs to take is the Redemption Process, also known as the Secured Party Creditor Process.  Becoming a Secured Party Creditor notifies the entire globe of commerce that you own yourself and your Corporation.  It is a way of perfecting Title to your Corporation, your Cestui Que Vie Trust, and taking ownership of it as the true Beneficiary, putting the Trustee’s on notice of their fiduciary duty to manage your Trust moving forward.

However, this process only puts them on notice.  Whether or not this process is actually done does not determine whether or not you are actually Sovereign, it only notifies the world that you are now aware of your legal status and are operating accordingly.  When it comes to legally avoiding income taxes, there are various ways you can do this, depending on the nature of the business in question.  Regardless of your type of employment or the nature of your business, however, there is one particular step you can take to, once and for all, opt out of the income tax system as an individual, so that you will never again be liable for personal income tax.

That is the form W-8BEN.

Now, there are different ways of filling out the form W-8BEN depending on your own personal beliefs and level of sovereignty you wish to obtain.  For example, if you wish to become a Sovereign State Citizen, you would fill it out one way.  If you wish to use personal religious/spiritual beliefs you would fill it out another way.  If you choose to be Stateless, or an International Sovereign, you would fill it out another way.  So, it all depends on the path you wish to take.

You can download the form W-8BEN from the IRS website here, but you should watch any video’s we may have made about this since writing this article, or ask your own questions during a webinar or private consultation to help you fill it out properly.  You should also read the entire instructions for the form W-8BEN as it can be somewhat enlightening.  Also, depending on the type of status you choose, you may also wish to file a form 8822-B and/or a form 56.

As for legally avoiding income taxes on businesses, there are a few different ways this is possible.  One is if you choose to have a Corporation, the best way to avoid income taxes is to always take out lines of credit every year to match your profit.  Credit will always offset your taxable profit and cancel out any income tax payments you may otherwise have owed.  This is, however, in lieu of the fact that you will be paying interest on your loans instead.  This also still forces you into compliance with several jurisdictions within Admiralty Maritime Law.  The trade off, however, is that if you need loans to raise capital for your venture, you need a Corporation or LLC/LLP.

My preferred ways of legally avoiding income taxes for businesses is to operate entirely outside of their jurisdictions to begin with.  Of course, you will find it very difficult to access capital through such avenues as bank loans and government grants when going this route, the trade off is that you never have to communicate with the IRS after obtaining your EIN.  In fact, some of these strategies don’t even need to obtain an EIN.

The first of these strategies is, as you might already know from joining the Freeman Association, the Private Membership Association (PMA).  A PMA does operate under Constitutional Law, and therefore under Contract Law and Common Law, but it does not operate under any Admiralty/Maritime Jurisdictions, as such, it is never required to file any IRS paperwork.  You can open a bank account for a PMA under the originator’s Social Security Number.  If you want, you operate the PMA as a Private Irrevocable Trust.  This may be useful if the PMA plans on becoming very large and lasting more than one generation.  This way, the Trust Documents create structure and organization for the PMA to follow long term.

If a PMA is not a good business model, but the more Corporate or LLC type model works better for you, you just create the business as a Private Irrevocable Trust.  A Trust is basically the same thing as a corporation, except rather than having a Board of Directors it has a Board of Trustee’s.  Rather than having Officers, it has Trustees.  Rather than following Admiralty Maritime Law, it follows Private Equity Law and Contract Law.  As such, it never has any reporting requirements to the IRS, as long as it maintains it’s status as both Private AND Irrevocable.  While I can provide you with some Trust Documents you can use and edit as needed, I would much rather refer you to Brilliance in Commerce to establish a Trust.  Not only have they been doing this for more than 50 years without incident, but they also have a team of “Enlightened” Lawyers who can help advise you any time the need may arise.

The Private Irrevocable Trust has many different names.  The Pure Trust.  The Unincorporated Business Organization Trust (UBO/UBOT).  The Natural Law Trust (NLT).  And so on.  They are all the same thing but with a different title.  They are all Private Irrevocable Trusts as far as the IRS or any bank is concerned.  None of them are income tax liable.

Another strategy you can use, especially if you are just starting a new business out of scratch with no capital and no employees.  You can start a Sole Proprietorship, but do it under your Social Security Number.  DO NOT apply for an EIN through the IRS.  If you apply for an EIN for a Sole Proprietorship through the IRS, you will make that Sole Prop income tax liable.  However, if you use your Social Security Number, you remain under “Voluntary Compliance,” and only have to file anything with IRS if you consent.  So long as you never file anything, you never consent, and cannot be charged income taxes.  It’s that’s simple.

That said, often times, a business owner eventually faces the music and realizes they need to raise capital to take their business to the next level.  If you don’t have access to private funding, such as family and friends who can invest in you, chances are you will need to obtain business loans and commercial lines of credit.  The only way you can do that is by having a business that looks legitimate in the eyes of the banks, and unfortunately, that means becoming a tax paying entity.  Fortunately, however, there is a way to do this AND legally avoid paying income taxes, although you will still have to file them.

The trick is the use the LLC.  The reason for this is because the IRS see’s the LLC as a Tax “pass through” entity.  Meaning that the income tax liability doesn’t fall on the business itself, such as it does in a Corporation, but instead passes through the entity to the owner of the entity.  Now, if the owner of the LLC is income tax exempt, then the LLC doesn’t have to pay any income tax.  It’s that simple.

If you have partners, you still use the LLC instead of the LLP.  The LLC has one Owner, the Trust.  The partners then operate within the Trust as Trustee’s.

So, what this means, is you have to first set up a Private Irrevocable Trust as a tax exempt entity to act as the owner of the LLC.  Then you set up the LLC with the Trust as the Owner.  Now, all Owner’s Draws first get deposited into the Trust, an income tax exempt entity.  So, the LLC simply claims $0 in taxable income, regardless of what it records for revenue and profit.  The Trust doesn’t even have to file anything.

That’s just about everything I can currently think of.  I will update this with new information as time goes on.  There are, of course, thousands of possible solutions out there.  These are perhaps the simplest and most powerful solutions that exist.

If you have any questions, feel free to ask them during our next webinar, on our Slack Channel, or schedule a Private Consultation with me.

 

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