Building a Legacy: Why Your Business Structure Matters More Than You Think Have you ever heard the saying, “You can’t build a strong house on a weak foundation”? Well, the same is true when it comes to building a legacy for your business and your family. Many business owners make the mistake of thinking that simply setting up an LLC is all they need to do to protect their future. But here’s the reality: a single-member LLC is seen as a “disregarded entity,” meaning that in the eyes of the law, there’s no true separation between you and your business. In other words, your personal assets could be at risk. That’s why, when it comes to building a lasting legacy, you need a smarter strategy. Let me walk you through a structure that I teach daily to people who are serious about securing their future. Step 1: The C-Corp as Your Operating Company The foundation of your business legacy starts with having an operating company set up as a C-corporation. Why a C-Corp? Unlike an LLC, a C-Corp is treated as a completely separate legal entity, meaning it can stand on its own, protecting you personally from its debts or legal issues. When you build your operating company as a C-Corp, you’re creating that solid foundation for everything else. Step 2: The Parent Company Now, here’s where things get interesting. Your operating company should be owned by a parent company, which is also a C-Corp. This creates multiple layers of protection and flexibility in managing your businesses. Think of it like this: the parent company is the “boss,” overseeing the operating company and other assets. Step 3: The REIT (Real Estate Investment Trust) If you own property or plan to invest in real estate, a REIT (Real Estate Investment Trust) is essential. A REIT is basically a property management company that owns income-producing properties, such as office buildings, apartment complexes, or even commercial spaces. Your operating & parent company rents its office or building space from your REIT. What makes this strategy powerful is that REITs are required to distribute 90% of their taxable income to shareholders, providing significant tax advantages.