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Why is it beneficial to collect a lottery jackpot as a LLC?

Topic closed. 38 replies. Last post 8 years ago by cc63.

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pigsNtrees's avatar - pigsNtrees
Mallorn trees of Lothlorien
United States
Member #26084
November 14, 2005
199 Posts
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Posted: May 21, 2008, 12:20 pm - IP Logged

The world is full of millionares, no problems.  Forbes provides a list of the richest in the world.  There are hundreds of new millionares every year.  None of them have found a need to hide in caves.  If I was afraid of the consequences of winning a jackpot, then I would not see a reason to try to win a jackpot. Why try to make a nightmare of my life?  Hit it big and enjoy what the world has to offer. No other reason to have tons of money!

How do you know these folks have no problems being so high profile? I remember several years ago when Paul Allen (co-founder of Microsoft) had his identify stolen.

You hardly every hear of the ones who win large jackpots going broke and worse who do not flaunt the fact that they win. They keep it private. The ones that get the headlines for the most part, are those that love all the attention a big win brings. However along with that attention comes those who want to part you from your money. When your name is publicized, that allows every person with access to the television, newspaper and the internet, to know who you are, where you live, and how much money you've just won. The winners are pressured into giving to charities, scammed and stolen from, by strangers and family alike. Many go broke because they can't say no to people.

For me I hope to remain as anonymous as legally possible.

Quando Porca Volare!

drunk hobbit


    United States
    Member #59167
    March 8, 2008
    174 Posts
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    Posted: May 21, 2008, 4:33 pm - IP Logged

    No one ever went broke unwillingly, they gladly gave their money away.  Whether it made them feel good, wanted to appease the rightious, felt guilty, or were just plain stupid - they gave it way willingly. That is the problem, nothing else. 

    Insufficient backbone. Zero confidence of identify. Imaturity. No wonder they have to have a zillion lawyers and advisers and take months to get from one point to another.  Grow up, be a secure person, and learn how to ignore people who never contributed to your life before the magic day.  Tell every charity to pump water. Tell relatives to do what they did last year. Learn how to make decisions and live with the results.  Personally, I have no concern whatsoever that I will be able to tell every little whiner where to put their tears. I do it now!

      Sandra Dee's avatar - dandy
      Bayonne
      United States
      Member #61147
      May 13, 2008
      129 Posts
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      Posted: May 21, 2008, 4:50 pm - IP Logged

      No one ever went broke unwillingly, they gladly gave their money away.  Whether it made them feel good, wanted to appease the rightious, felt guilty, or were just plain stupid - they gave it way willingly. That is the problem, nothing else. 

      Insufficient backbone. Zero confidence of identify. Imaturity. No wonder they have to have a zillion lawyers and advisers and take months to get from one point to another.  Grow up, be a secure person, and learn how to ignore people who never contributed to your life before the magic day.  Tell every charity to pump water. Tell relatives to do what they did last year. Learn how to make decisions and live with the results.  Personally, I have no concern whatsoever that I will be able to tell every little whiner where to put their tears. I do it now!

      hmmm, MeFirstYouLast, yeah yeah but I didn't quite get how you feel! ..Green laugh you have a way with words you know .. no crooked lawyer will pull a fast one on you, ha but I have to agree with you 100% - in all my 33yrs of living, I've had one, count 'em, ONE balsy roommate ask for $50 .. the look I gave her, let's just say before the end of the day my money was back in my hands .. people treat you the way you allow them - I dare someone to come up to me with chapped palms .. it's really not rocket science .. if I wasn't so lazy I would go to the local library and read up on how to be an accountant - lawyer - trust - tax attorney and go with a zoro mask to pick up my check and give 'em hell until they put a real one in my hand that same day .. but all those that lost millions, well, they really didn't want millions, I guess


        United States
        Member #59167
        March 8, 2008
        174 Posts
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        Posted: May 21, 2008, 6:16 pm - IP Logged

        In America, in the year 2008, there is no reason not to know everything you want to know about everything yoy want to know.  If you don't know how to handle money, then it is because you are too lazy to learn.  There are hundreds of thousands of librarys in America.  There are cheap computers (but then you have one or wouldn't be reading this), there is cheap acess to the internet.  Everything is out there for those who want to learn.  Nothing is restricted.  Opportunities to succeeed have never been greater, but will continue to increase daily.

        If you can't figure out how to claim a jackpot, without waiting six months, if you can't make a decision without twenty people giving you can input, or you are afriad of public speaking, it is because you are afraid.  Simple, plain and simple.  You don't want to make decisions.  You don't need to pay hundreds of thousands of dollars to have some one tell you to spend your money wisely.  That is common sense!  Money is money.  Just because there is a lot of it doesn't make it some glorified entitiy.  It is only money!

        If you can't win several million dollars, and figure out how to make it last a life time, how are you existing on your current financial income?  Most peole make between $50K and $100K a year.  Divide that into a starting Powerball or Mega jackpot of $10M, and you have a hugmongus increase in funds. But it is still money!  It is impossible to go broke when you have doubled, triped, quadrupled, etc., your current income, and you managed to survive on that income currently. Unless, you are someone who wants to loose.  It won't be a lawyer, tax consultant, or advisor that will cause your to go broke.  It will be you not learning how to handle money.  Laziness rules!

          psykomo's avatar - animal shark.jpg

          United States
          Member #4877
          May 30, 2004
          5124 Posts
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          Posted: May 22, 2008, 11:02 pm - IP Logged

          hmmm, MeFirstYouLast, yeah yeah but I didn't quite get how you feel! ..Green laugh you have a way with words you know .. no crooked lawyer will pull a fast one on you, ha but I have to agree with you 100% - in all my 33yrs of living, I've had one, count 'em, ONE balsy roommate ask for $50 .. the look I gave her, let's just say before the end of the day my money was back in my hands .. people treat you the way you allow them - I dare someone to come up to me with chapped palms .. it's really not rocket science .. if I wasn't so lazy I would go to the local library and read up on how to be an accountant - lawyer - trust - tax attorney and go with a zoro mask to pick up my check and give 'em hell until they put a real one in my hand that same day .. but all those that lost millions, well, they really didn't want millions, I guess

          SD ..........UR ..........( SO SWEET >>>>>>>>!!!!!!!!!) ?

          Correction >>>>>>   ............U sound so sweet !!

          let's HIT the Mega or Power ball JACKPOT !

          ASAP >>>>> & SHARE the MONY$$

          YOU >>>>>>>>>>>>> FIR$T >>>>>>>>>>>>>>>>>> $$LOL$$ !!!!

          PSYKOMO

            Sandra Dee's avatar - dandy
            Bayonne
            United States
            Member #61147
            May 13, 2008
            129 Posts
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            Posted: May 23, 2008, 9:57 am - IP Logged

            SD ..........UR ..........( SO SWEET >>>>>>>>!!!!!!!!!) ?

            Correction >>>>>>   ............U sound so sweet !!

            let's HIT the Mega or Power ball JACKPOT !

            ASAP >>>>> & SHARE the MONY$$

            YOU >>>>>>>>>>>>> FIR$T >>>>>>>>>>>>>>>>>> $$LOL$$ !!!!

            PSYKOMO

            absolutely .......... wait for it ...... wait for it .......... NOT!! I usually come back with a mini epileptic seizure type syndrome after reading one of your posts!! the letters are hella fat [that's not going to work for me] then the words, just stop then continue and then bang, a sentence [?] - while I'm flattered, I already have a knucklehead at home .. but if I should be in-between marriages and YOU'VE won, then I'll gladly call you

            Shifty


              United States
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              March 8, 2008
              174 Posts
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              Posted: May 23, 2008, 4:41 pm - IP Logged

              SD ..........UR ..........( SO SWEET >>>>>>>>!!!!!!!!!) ?

              Correction >>>>>>   ............U sound so sweet !!

              let's HIT the Mega or Power ball JACKPOT !

              ASAP >>>>> & SHARE the MONY$$

              YOU >>>>>>>>>>>>> FIR$T >>>>>>>>>>>>>>>>>> $$LOL$$ !!!!

              PSYKOMO

              Psykomo: You are one of the few people on the planet who can make me speechless.  I never know how to respond to your inputs.  Your are unique!

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                az
                United States
                Member #50932
                March 21, 2007
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                Posted: May 28, 2008, 11:23 pm - IP Logged

                An email isn't worth the paper it's printed on. Swearing an affidavit is easy and establishes an intent as of the time the afidavit is sworn. What that intent is will matter, so you need to make sure you're very clear about giving shares of the ticket as soon as it has been purchased. I think the IRS can be trusted to argue that varying the shares based on the jackpot amount demonstrates that your intent is to share any jackpot you might win rather than the ticket, which requires sharing any prize. I'd keep it simple and just pick a threshold at which the tickets are shared. A jackpot advertised at 25 million will only net about 8 million, whoch  means an annual pre-tax income of about 400k in a safe and conservative investment. With an income that low you're not likely to have  many worries about gift taxes, anyway.

                i believe an email will stand up in court, otherwise why did W's Whitehouse delete all theirs? emails are also dated, which would predate the drawing so i think i'm covered.

                of course a powerball jackpot of 25 million has an annuity pretax payout of 450 thousand so why would you take the cash.

                later jim

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                  Daytona FL
                  United States
                  Member #61963
                  June 12, 2008
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                  Posted: June 12, 2008, 2:07 am - IP Logged

                  I may be missing something here, but as far as claiming a ticket as an LLC, LLP, LP, my guess is that you wind up paying as much as 15% more in taxes, as all income derived from such entities are subject to self employment taxes. I could be wrong.

                  An alternative might be an S corp, where you only have to declare a "reasonable" salary that is subject to SE taxes. If a corporations sole purpose was to play the lottery, that salary migh be what, $1000? All other income is reported (passed through) on the individuals 1040, and isn't subject to SE taxes. I could be wrong, as I don't know how the IRS interprets lottery winnings inside ANY entity.

                  I agree that you don't need to claim a ticket as an entity, but you should move it ASAP to one after you have the check. Unless you told the world you won before claiming the prize. Then, anyone can fall on your sidewalk and claim damages against your winnings before you can move them. I've even seen a web site recommend that you IMMEDIATELY buy a $5 mill liability umbrella policy the minute you win. CYA!