For your bank account, a good NAICS code to consider is 523910 Miscellaneous Intermediation.
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Find more from Jake Claver by visiting the links below:
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🖥Join my Mastermind Community at https://mastermind.beyondbroke.com
📱Official social media📱
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LifestyleTranscript
00:00Today we're going to get into which banks you should set up your bank account with if you're transacting in crypto or if you're just maybe concerned of liquidity crisis or problems with the banking system.
00:14There's a few banks that I bank with and for multiple reasons. So we have accounts with a regional bank. I like having a relationship with personal bankers so that if we need credit lines or need some help with things, I can go down there and have a discussion.
00:29They can work with us in business. You get a bit more of an intimate touch when you're dealing with a regional bank than you would or state bank when you're dealing with, you know, like Bank of America, Wells Fargo, Chase that are all across the U.S.
00:41You might want to have banks for different reasons. So that's the one for regional bank or state bank. You might have a credit union as well. I would recommend Navy Federal. They're fantastic. Four lines of credit.
00:52And then lastly, you do want a large bank that you're dealing with on a regular basis. And I choose Bank of America for that. Mercury is another fantastic option. If you are a startup, you're a small business in the tech space or if you're dealing with digital assets as well.
01:07So the way I do it with Bank of America, if you are going to set up an account for digital assets, it's not going to be a trading business.
01:13There's a specific NAICS code that you can file under that aggregates the total profit or loss for your business.
01:21You don't have to deal with each of the individual transactions. If you have the assets in your personal name, you're going to have to deal with all that stuff.
01:26If you've got it under an LLC that trades digital assets, it's just on the profit or loss of the business.
01:31And so you have to skip all the junk and the problem that your CPA has.
01:35So look into that if you are a trader. The other way that you can hold digital assets is in a holding company.
01:40And that's what I recommend for most of our clients. Most people just want exposure.
01:44They're going to hold the assets. They want it in an LLC.
01:47That way they can use those assets later on to produce income or use them currently to produce income if they want to lease them to another business.
01:55It's in the business of staking or, again, trading, whatever else that might be.
02:00And what you're going to do is you're going to draft your operating agreement.
02:02And you're going to transfer the assets into that entity through the capital contributions.
02:07And there's a couple other ways that you can do that as well.
02:10We normally just recommend starting the business and using the assets of the capital contributions to start the business.
02:17You're going to want to file that in Wyoming, which I've talked about on lots of other podcasts as the reasons why.
02:22So there's three reasons. One is in Wyoming, there is no state tax.
02:27So don't have to deal with that here in Texas either.
02:29But there's a lot of states that do have state tax, especially in New York and California.
02:33New York, especially if you have digital assets there and you're having issues purchasing digital assets because of certain exchanges, I would recommend filing your LLC in Wyoming and then just setting up accounts on exchanges with that LLC shouldn't have any issue.
02:50Secondary to that, attorney-client privilege.
02:52Don't have to worry about people being able to find you.
02:55If they look up your business, your attorney's name that filed the paperwork is what's going to come up.
02:59It's going to be difficult for the individual to ascertain who's involved or who the beneficiary is of that LLC.
03:05And then lastly, Wyoming is the most favorable jurisdiction in the U.S. currently for digital assets.
03:11Kraken was the first ever effectively chartered bank that was there in Wyoming.
03:15Ripple has moved there.
03:17They have a location there because of the banking regulation there in Wyoming around digital assets.
03:22And then you've also got that they had the first regulation around DAOs.
03:26They're a very progressive state and they want to foster innovation.
03:30And so we've seen a lot of people flock to Wyoming if they are in the digital asset space.
03:35So let's say you got all that done.
03:37You've set up your LLC.
03:38Maybe you've set up your trust.
03:39You have a digital asset protection trust there in Wyoming.
03:41Now we need to set up a bank account.
03:44I, again, if it's just going to be a holding company, I like Bank of America.
03:48One, in 2020, old Uncle Warren, Warren Buffett, moved all of his bank stocks that he was holding with the large banks, JPMorgan, Wells Fargo, and Bank of America.
04:00He consolidated all those to just Bank of America.
04:02He owns, I think, close to or north of 10% of the entire company.
04:07And since then, he's diversified into some regional banks, but that's still the only large bank that he holds.
04:13Uncle Warren's normally not wrong.
04:14They also have over 72 blockchain patents that they've filed over the last decade here.
04:19They're progressive when it comes to that technology, and I believe it'll be integrated with their systems and provide them liquidity if they did have some issues.
04:27And they've also been a Riffle partner publicly since 2018.
04:31So for those three reasons, I like Bank of America.
04:35I feel safe with them.
04:36I'm not so sure on the FDIC insurance, but I don't think that Bank of America itself is going to default and do a bail-in and take creditors' deposits if we get to that scenario where things come crashing down like that.
04:48So that's where we set up our holding company accounts.
04:51You've got, you know, capital contributions page.
04:53You don't have to share that with them when you give them your operating agreement.
04:57You can give them all but that page.
04:59They won't ask for it.
05:00Um, and you're going to tell them that you are taking profits from your investments.
05:07No more, no less.
05:08You don't want to say digital assets or crypto or NFTs or any of the stuff that you might be holding in the holding company.
05:14That doesn't matter.
05:15You're just going to be taking profits from those investments into that account and then making distributions to yourself or your other company.
05:21That's how we set that up for our clients.
05:23Uh, if you do mention crypto, uh, when you're setting up a bank account, again, Mercury is a great option for that.
05:30They don't have physical locations.
05:32They don't have a banker that I can go talk to and get good lines of credit or negotiate things.
05:36And so that's why we have a diverse deal there.
05:39We've got accounts with credit union.
05:41We've got an account with regional bank, uh, or state bank.
05:45We've got an account with bank of America.
05:47And then we also have accounts with Mercury for specific reasons.
05:51So I haven't seen anybody talk about this, how to set up a bank account for crypto.
05:55If you are dealing in crypto, the concerns you might have.
05:59Um, I've talked about LLCs and trusts a lot and establishing those for digital assets,
06:03but I've never put out a public video on what it looks like to set up a bank account for that LLC.