DB, as with many of the numbers/biz focused topics here there are many ways interpet/manipulate.
I'm a little lost when you say LLC (and corporation for that matter)doesn't want to pay Tax Man...I don't know of any company that wants to Pay the Tax man untill they can SUSTAIN profit (otherwise you are giving up money to the tax man that would otherwise be used for growth to achieve a SUSTAINING profitable cash flow).
An LLC must follow (techinically..some corporations, LLC individuals all move/manipulate #'s that will benefit them the most financially) the same accounting procedures. If the owners/members give themselves huge salaries to minimize PROFIT of said LLC they will still have to pay taxes on their personal income.
I have 2 questions:
Is this 10% Net Profit factual? (u sure it's NOT 10% gross)
When was contract entered?
Where/how can I find contract?
In regards to LLC, it can and does act the same as a corporation with a few more (let's call them leniencies/abilities), but let it be know that any member will have an %ownership of said LLC.
For example: LLC could add a new member (individual or entity (LLC/Corp/Finacer) whom may provide services, Cash, assets, and even labor.
Let's use the cab service again (don't want to use MSLP and have my example used as misleading...)
CAB LLC may add another driver as member of LLC. Driver/member can have his contract written any way both parties agree to; ie: Driver will become 1% owner of LLC and will be paid $20 per hour. (In this case ownership/membership was given to minimize the cost of having an employee...no workers comp, payroll taxes, accounting of the previos mentioned,etc....)
All the while another member is added at 1% ownership and this member provides an asset (another cab) to CAB LLC. This member likes 1% percent ownership as it minimizes his risk if CAB LLC is sued or has other negligent issues to deal with...yet he can still write his contactual membership so that he receives payment based on anything he wishes (such as per mile, per month, per hours, per year, per life of depreciation of ASSET, per any set time period)
Sooo at the end of the day an LLC is NO different than a Corporation other than the words in LLC - It's a tool to LIMIT LIABILITY!
Now in regards to the facility, etc... Yes it is true that another business (assuming MSLP no longer existed) would have to pay to remove hot tub, wieghts, markings...if they didn't want them, BUT we are talking about a marketing company! MP has been a company thats' survival has been based on Sales. MP value lies within its' revenue and nothing more (atleast at this point). With the revenue they are producing; any other competitor would be able to monetize the already existing sales, hence any improvement of brand awareness will add value.
This is why I think now that MP was able to avoid BK...that when they show a profit....well the possibilites are endless...it becomes a game of how to most efficeintly monetize existing rev.
I also think the plan has already been made (of course their will be some adjustments as with any business), but MP is in the execution stage!
Thats why I see all the things they are doing with NSF, website, etc...as positives, as efficeincy, as Profit!
