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6
ENTITIES
Getting Your House in Order

I met Kerry Kingsley a few years before I’d worked with the television producer and the Leonard family. Kerry was
63, single, and lived in Scottsdale, Arizona; her kids were grown and on their own. When we met, Kerry had made a
lot of money with her own businesses, but she didn’t have any personal wealth. And she needed it: her mother was
ailing and needed care, and although Kerry loved her work, circumstances demanded that she work less.

Plan for Abundance

When we met, Kerry had already started investing in real estate, owned two businesses—an executive search firm
and a staffing company—and had, in fact, created entities for these investments in the form of three S corporations.
But, as you’ll see in the explanation of S corporations below, the income and expenses from Kerry’s businesses
were flowing through to her personal income tax return each year. By not properly structuring her businesses, Kerry
was setting herself up for a heavy tax burden.
Kerry needed to implement entity structuring that would make better use of tax strategies. When Kerry described
her business situation and entity structure, I said, “You need more people and more help.” As you’ll see, this
example provides an interesting sample sequence of building blocks and underscores the importance of Leadership
and Teamwork in the building blocks of the Wealth Cycle.
We drew out the schematic for her Gap Analysis, and Kerry easily answered the eight questions in fewer than
eight minutes.

Question 1: What Is Your Monthly Income?

“$15,000 a month.”

Question 2: What Are Your Monthly Expenditures?

“I spend about $5,000 each month,” she said. “After taxes, that’s about all I have left.” We had to get Kerry to a
place where she could retain much more of what she was earning.