AVAILABLE TO ALL BENEFICIARY MEMBERS
Chapter 1: Building a Strong Foundation
The University Technicians Network (UTN) offers a unique opportunity for individuals to grow from sole proprietors to trust-based business owners. Temple opened the meeting by emphasizing the importance of creating a professional profile on the network. A profile, complete with real names and branding, helps build credibility within the community and beyond. Temple discussed the four quadrants of business ownership—employee, self-employed, business owner, and investor—highlighting how participants can move progressively toward financial independence.
Temple's personal story served as inspiration: after completing relevant courses and opening a sole savings account, he successfully utilized power of attorney to expand his business. Temple urged all participants to take similar steps to lay the groundwork for wealth and business development.
Next Steps:
File 2024 tax returns using Form 1040 and Schedule C.
Obtain a trust EIN and file Form 1041.
Open sole proprietor bank accounts for both the social security number and trust EIN.
Itemize personal belongings and assign monetary values for potential business use.
Identify services to offer, create invoices, and consider opening an online store under the trust's name.
Obtain a Treasury Direct account and review Melvin Stamper’s Fruit from a Poisonous Tree for deeper insights.
Chapter 2: Navigating Digital Documentation
Mastering digital folder requirements is essential for smooth business operations. Temple detailed the necessary documents: a State ID, Treasury Direct account, and IRS Form 2848 (Power of Attorney). He stressed the importance of using the trust EIN rather than a social security number for financial transactions.
Temple shared success stories, such as turning on utilities in Tallahassee using the trust EIN without transferring existing accounts. The key takeaway: separating personal and trust transactions is crucial to avoid confusion and maximize benefits.
Temple also highlighted the significance of filing simple tax returns to access funds, noting how IRS agent scrutiny has slowed down certain processes. By keeping a well-organized digital folder, attendees can ensure they are ready for any financial or business-related tasks.
Chapter 3: Transitioning to a Trust
Temple explained how to transition from sole proprietorship to trust ownership. Utilizing the IRS website’s free forms, participants can complete the 1041 form to formalize their trust status.
In this context, the trust name acts as the employer. Becoming unincorporated before moving into the trust is a necessary step. Temple also demonstrated how to calculate service values using fair market rates, referencing housekeeper services as an example.
Attendees were encouraged to increase their lines of credit as their Treasury funds grew. Temple explained how to allocate funds across multiple accounts using Form 8888 and how to utilize trust accounts for both banking and credit-building purposes.
Chapter 4: Tax Mastery and Financial Management
Accurate tax form completion is essential to avoid penalties or delays. Temple outlined best practices for filling out the W-9 and 1040 forms. He stressed using the trust EIN on W-9 forms for business transactions and retaining the social security number for individual tax returns on the 1040.
Temple debunked the misconception of using social security numbers on the 1041 form, reiterating the importance of the trust EIN. He recommended tax software like Taxat.com to simplify the filing process.
Managing estate and trust accounts is another vital skill. Temple explained how to deposit Treasury checks into either a sole proprietor or trust EIN account. He illustrated the importance of communicating with banks and landlords as a business entity and demonstrated tax software’s refund-generating capabilities.
To conclude, Temple emphasized the role of the grantor in a revocable trust and the critical nature of understanding personal finances from a business perspective. His final advice: embrace the process of gradual business growth while leveraging all available tools and knowledge to ensure long-term success.
Final Thoughts:
Understanding the Treasury, trust formation, and tax forms are key components of running a successful business. By following the outlined steps and learning from Temple’s experiences, attendees can confidently navigate the world of trust-based financial management and unlock new opportunities for growth and stability.
This will enable the masses to learn how to operate in the digital world without the lack of knowledge of wealth.