Typed words on a piece of paper could write how much paper you pull out of an ATM.
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YOU PAY FOR WHAT YOU DON’T KNOW
There are many things I do not know. Lack of knowledge cost me. The lack of words you write on corporate emails, corporate bylaws and/or corporate operating agreements have long reaching effects.
Sure, legal zoom will incorporate your company for $995. But they fail to mention how lack of certain words could possibly cost you a tax assessment on your stock. Remember, the person who does not read is not well informed.Information is knowledge.
There’s knowledge in this article. All it costs you is your time. Not investing 10-minutes here will probably cost you 10 thousand dollars later.
A SIMPLE EXAMPLE OF COST PLEASE
A simple mistake. Let’s say you were advised by an attorney to put your rental house into a corporation. It’s a great protection strategy because you will rent it out. So you put your house in a newly formed corporation. It’s your own corporation so you just pay the filing fees and put it on your personal credit card. You are going “to protect it”. Let’s assume the house has the median worth in the US of $387,600 (2). You transfer the deed of title. After you form the corporation, execute the deed you issue yourself 100% of the shares. Sounds simple?
Well. Let’s see the cost lesson here.
Not investing 10-minutes here will probably cost you 10 thousand dollars later
If your company owns assets before you issue stock to yourself, you have an issue. Companies can incorporate first with no shareholders. If you don’t buy your own shares at time of exchange it is possible to get taxed on the shares at Fair Market Value (FMV) (3).
If you first issue yourself shares without physically exchanging capital, you effectively gave no financial consideration (only legal consideration — which is very different) to the Corporation.
This is a common mistake for people. People often issue themselves shares at time of incorporation. They do not contribute money to the corporate bank account for it. In our example where a person transfers a house (or some other asset) into the corporation without physically depositing money into an account for shares you have created a taxable event.
From the IRS perspective, it is possible for an IRS agent to conclude you earned $387,600. This applies even if it is you own home you already paid for. Whenever you receive stock and don’t pay for it the IRS treats the reception of stock as income. This means you owe them nearly $100,000 in taxes in the example where you receive your own stock. This occurs because you did so without contributing any cash to the corporation’s bank account. Most people don’t know this because the IRS doesn’t proactively audit you. Most fail to disclose this on their personal tax forms. All it takes is an audit to occur and you will get assessed additional taxes and penalties.
Trust me. I know from experience not theory. Beware of book worms. They often have not been through IRS audits. I have been through over five. I know what some IRS agents try to tax you on.
What would you rather pay for? Legal Zoom for $995 who failed to explain this to you or $3,500 to an expert like me to do it based on what the IRS tries to tax you on?
You get my point.
PERSONAL LESSONS WHICH COST ME THAT YOU CAN AVOID
A very expensive lesson cost me Eighty-Three Thousand ($83,000) Dollars. This lesson involved me mailing a contract to someone out of state without proper disclosures. This person was not my client, invested no money with me and paid me no money to me. I was paid to do a contract for someone else who paid me to do a contract between them (I was not party to the contract). That was a sting. I got clipped on lack of words in a piece of mail.
Please make sure to use third party attorneys to send official mail correspondence out of state when you are involved in any capacity (indirectly or directly) on a business transaction discussing money in the State of Oregon.
Trust me. I know from experience not theory. Beware of book worms.
Another expensive lesson cost me north of a quarter million dollars in legal expenses. This involved a legal situation based on associations of individuals who I emailed. The entire case involved speculation involving the extent of my potential involvement based solely on emails. My emails failed to create the disclosures necessary I was not party to any outside activity. Again, I got clipped for another word technicality.
Please make sure to avoid emailing third parties who are not officially involved in your transaction. Do not include people for courtesy if they are not party to any form of contract. Legal due diligence is only conducted on the transacting parties. This applies even if the party is someone’s spouse. You never know what a spouse is up to. If you have no legal due diligence conducted on the spouse don’t assume they are clean. Let the spouse share it with their partner not you.
EXAMPLES OF EARNING MONEY SOLELY THROUGH THE TYPED WORD
Consulting is not simply talking. There is a myth consultants only get paid to talk. You can also create a work product.
True. Attorneys draft corporate documents. In my experience attorneys who edit something are always more affordable than them creating it.
Think about it. How long does it take to make changes? Altering is not the same time commitment as creating.
I have drafted entire structures for clients for anywhere from ten thousand dollars ($10,000) to about seventy-five thousand dollars ($75,000). This sounds expensive. Yes, I agree. It’s a lot to charge for a stack of papers. The reality is these stacks of paper include highly technical documents. No one wants to pay for unnecessary typed words. You must pick industries which require highly technical writings.
HIGHLY TECHNICAL WRITING PAYS
Highly technical writing industries include (but not limited to): securities, biotechnology, engineering, manufacturing, construction, government bidding, grant writing and intellectual property.
These industry documents mandate legal disclosures with highly sophisticated technical writing. Often attorneys cannot even do the technical writing portions. Failure to include the proper technical skills result in outright denial or stiff penalties from regulatory agencies.
There is a myth consultants only get paid to talk. You can also create a work product.
Attorneys warrant and guarantee their documents will comply with legal disclosures. I cannot offer this guarantee. This is true. I can offer another guarantee. This guarantee attorneys cannot offer. This is a guarantee technical writing will be 100% correct (has nothing to do with legality). The technical will interface with the legalese on an anticipated 80–90% accuracy from the client’s selected attorney.
You can offer the same gurantee to gross five figure fees. My most recent was forty thousand dollars ($40,000), paid within the last thirty days. I practice what I preach.
OFFER REFUNDS IF YOU FAIL TO DELIVER
I always offer a 100% money back guarantee. If my work product doesn’t reduce the cost and cover the proper technical expertise necessary, I refund my clients. It’s that simple.
You need to stand behind your product if you want to be paid for it. Give a simple refund policy. A one pager. Write it on an email. You should have no issue with accountability.
On average I reduce working time loads for attorneys anywhere from 75–90%. This in addition to technical writing application. Technical writing pays. It can pay you too.
THE RESULT OF MY TYPED WORD
A client who previously could not afford an expert attorney, who is very prolific in the field and charges $750 an hour, can retain them. If the client only sees charges in the range of a quarter to one tenth of their attorney’s normal charge I have done my job.
This is the same job you can do.
If we assume their attorney’s standard workload is forty-five hours — with me, I can assume it’s only five to ten hours.
You need to stand behind your product if you want to be paid for it. Give a simple refund policy.
I once was called the “Best Unofficial Paralegal” by one attorney. I have also been labeled an “Excellent Law Clerk”. Many have called me a “Phenomenal Time Saver”. I have been a part of four (4) separate patents which successfully went to market. I have been a part of many more which failed to reach market but garnished USPTO approval.
My results speak for themselves. Gossip and rumors aside, my results speak for themselves.
HOW TO COMPUTE WHAT YOU SHOULD CHARGE
Often my approach is to figure out how to charge based on the savings I provide. In a financial setting you must show one of the following to a client to justify cost:
1) Clients earn more with you
2) Clients spend less with you
3) Clients gain more with you (money, resources, tools, et cetera)
It’s that simple. If you cannot show one of those three points you will not be paid. Trust me it really boils down to these three points.
In the results section example above, the attorney expected to charge about $33,750. In this example I know if I get involved the rate will be reduced to about $10,000 (a standard retainer rate). There should be a reduced legal bill of around $8,500 to review my technical documents. If I provide an invoice for $10,000 the client spends about $13,000 less by going with me.
The client still gets access to the same attorney. The client just pays the attorney less. The client gets a strong legal confirmation everything is legally correct and pays less for the same product.
The difference in a situation with me is: 1) how much the client pays the attorney 2) by letting me do the first drafts to present to the attorney they save their own time, and 3) I warrant technical writing accuracy the attorney cannot warrant.
They both gain and spend less. This is how you must create value proposition financially.
THE TYPES OF ATTORNEYS YOU NEED TO KNOW
I know at least fourteen (14) attorneys really well by this time in my career. Each have intimate work experience with me. They range from securities attorneys to environmental attorneys. I was the compliance officer for a law firm for nearly 4 years in my 20’s. I turn 39 this year. I understand legal contracts at a depth most do not. I know how litigation develops from contracts. I also have a good grasp how tort law works (in application). I have seen litigation firsthand, experienced litigation firsthand and witnessed some amazing results with proper structuring.
The attorneys you need to know are: civil litigation attorneys, criminal defense attorneys, securities attorneys, tax attorneys, regulatory compliance attorneys (in your industry), and corporate law attorneys (State where you live in and Federal).
Cultivate these relationships. Become their friends. Prospect people who are good clients for them. Market their services. If one takes to you and allows you to clerk for them, do it. As a result of me doing this same behavior — I know expert attorneys who are accustomed to my work product. They will gladly take on a client at a reduced rate if they know their initial work product originates from my company.
I cannot warranty other people’s actions. I can only control what happens in my personal companies. You can too. Focus on this part.
GOOD REPUTATION WEATHERS THROUGH A SLANDER STORM
An interesting fact is my company who performs these services has never actually been sued (been open since 2006). I have experienced two demand letters to repay. I had to repay one (1) customer in full back in 2017 (about $12,000) and refund another partially last year (2023). I was paid $250,000 last year for a project and ended up refunding about $60,000 to pass off to an attorney to finish. The attorney completed the project. This company has kept me afloat during my indictment. It has a very good reputation. I have repeat customers for over a decade. Ironically, most of my clients come from attorneys. You would think attorneys would stop referring me clients when I am under indictment.
My results speak for themselves. Gossip and rumors aside, my results speak for themselves.
Actually, the opposite.
Attorneys are most qualified to review case pleadings and judge the merits of a case. I have the fortunate privilege to have multiple attorneys, with a diverse range of backgrounds, conclude their clients should work with me despite the allegations levied against me. The results have been astounding. My project management business thrives because of strong legal support. Technical writing has nothing to do with allegations surrounding gold out of Africa nearly a decade ago.
MY TECHNICAL SPECIALITY
I specialize in Public Private Partnerships (P3). I have drafted everything from Sovereign Guarantees to Build Operate Own (BOO), Build Operate Own Transfer (BOOT) & Build Operate Own (BOO) contracts. I placed bids for clients and won them contracts into the billions (literally). I am still a Master Project Manager (MPM®) with professional liability insurance in good standing. I have only one claim history in my entire career 18-year career. This is the work that took me across thirty-three countries.
Ironically, I never experienced trouble from any person who personally invested into any of my personal companies. Only those who tried to blame me for third party actions outside of my P3 world. A good reputation will weather bad slander storms.
THIS IS NOT ABOUT ME IT IS ABOUT YOU
Every person reading has an industry. Every person has a specialty. Every one of these are considered a profession. I have highlighted how my industry worked for me. This is so you know I have solid experience with measurable verified results. You can become a consultant who compiles highly technical documents if you have the same.
Technical writing requires a lot of time. Technical writing requires a lot of patience. Patience is your greatest attribute. I happen to be a best-selling author who has the talent of writing. I understand not everyone does. Despite this reality, you don’t have to be talented to earn a living at technical writing. You only must be good.
Want a high value technical writing hustle? Find high self-worth inside. Your worth exists. Unfortunately, not all my secrets will not be discovered in this free article. You must pick up a copy of my international best-selling book “I Made It Then I Didn’t” or order “Many Paths To Profit” for that.
The concept I teach in this article is free. My personal stories are not. Don’t let pennies get in the way of dollars. There’s no such thing as a free lunch. Buy my books today to discover your worth. I think your worth a whole lot more than what people value you. There’s a catch to everything! You always pay for what you don’t know.
To Your Knowledge Success!
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Sources
1) The life of Christopher Knight Lopez a Professional Hustler turned International Best Seller and Published Author of “I Made It Then I Didn’t” & Co-Author of “Many Paths To Profit” with the original shark from Shark Tank Kevin Harrington.
2) Bankrate. “Prices hit another all-time high as existing-home sales slide”. Ostrowski Jeff, Petry Michle. 23 July 2024. Accessed 17 August 2024. Link: https://www.bankrate.com/real-estate/existing-home-sales/
3) Internal Revenue Service (IRS) Publication 525. Taxable and Nontaxable Income. For use in preparing 2023 Returns. Website Link: https://www.irs.gov/pub/irs-pdf/p525.pdf
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Certain elements in this story may have been fictionalized to illustrate a creative story. This is a form of artistic expression not narration of fact. Not a form of investment advice. Please consult a professional registered to give you advice about your individual circumstance. This article is for educational purposes and entertainment purposes only. Please do not email the author about advice on investing or strategies on making investments.
About Christopher: Christopher Knight Lopez is a Professional Hustler turned International Best Seller and Published Author of “I Made It Then I Didn’t” and Co-Author with Kevin “The Shark” Harrington “Many Paths To Profit”. Christopher has opened over 7 businesses in his 15-year career. Christopher’s purpose is to take advantage of various market-driven opportunities. Christopher is a certified Master Project Manager (MPM), and Accredited Financial Analyst (AFA). Christopher previously held his Series 65 securities license examination and was a Master Financial Planner (MFP). Christopher also held his General Lines — Life, Accident, Health & HMO. Christopher has managed a combined 286mm USD in reported Assets Under Management & Assets Under Advisement. Christopher has work experience in 33 countries, raised over 50mm USD for various businesses, and grossed over 13.0mm in his personal career. Christopher worked in the highly technical industries of: biotechnology, finance, securities, manufacturing, real estate, and residential mortgages. Christopher is a United States Air Force Veteran. Christopher has a passion for family, competitive sports, fishing, martial arts and advocacy for entrepreneurs. Christopher provides self-help classes for up-and-coming entrepreneurs. Christopher’s passion to mentor comes from belief that entrepreneurs need guidance. The world is full of conflicting information about entrepreneur identity. See more at www.christopherklopez.com.
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