Can Form 1120 Schedule M 3 Equity 2019-2024

Hi, this is Lee Phillips. I'm doing a series on the formalities that are required in order to maintain the LLC or the corporation. I've been saying that at the front of each one of these series and you're going to say, "All LLC's don't need to do the corporation formalities, the corporate formalities in order to maintain the corporate shield." Well, maybe even under statute in your state, that is true. However, when you get into court, the way you prove that this is a real company and not just your alter ego is by being able to show the judge, "Hey look judge, I did all this, this, this, this. You know, I followed all the formalities." One of the formalities is, "Did you keep proper books? Do the tax returns, the books, the ledgers everything line up?" And if you show me a tax return that shows very little income and the books of the company show a lot of income, there's something wrong there. If the tax return shows a lot of deductions and those deductions can't translate over into the company because personally you did a lot of this stuff and took an office deduction, then I've got a problem there. This is kind of akin to commingling and we do another one on commingling and I tell you that commingling is the 800-pound gorilla in the room. That means if you do that, you lose the limited liability shield, you lose the corporate shield. This is akin to that, and that means that the books, the taxes, everything, the ledgers all have checked bludgers all have to line up and we haven't slipped any money in that week, all mingled or taken any money out that we commingle. Now, your accountant's going to do...