#1 TikTok Ads Spy Tool

A Better Way to Make TikTok Ads Dropshipping & TikTok For Business

  • Find TikTok winning products & TikTok dropshipping ads.
  • Analyze TikTok advertisers
  • Get the Latest TikTok Shop Data.
Try It Free

Entrepreneur REACTS | Logan Paul Moving To Puerto Rico

Published on: December 4 2022 by Hayden Bowles

Entrepreneur REACTS | Logan Paul Moving To Puerto Rico

Entrepreneur REACTS | Logan Paul Moving To Puerto Rico

i'm moving to puerto rico so logan paul
is copying me no i'm just kidding but he
is moving to puerto rico which is
something i did about four or five
months ago
he just announced it it makes a whole
lot of sense i'm gonna break that down
tok about the tax benefits
and i'm also towards the end of this
gonna give you my opinion and
perspective on how much money i think
logan makes and what he's gonna save
living here because i think people think
that he's like a big youtuber who makes
you know maybe five or ten million
dollars a year which is crazy i'll tell
you what he probably actually makes and
it will knock some people's socks off
google's net worth estimation for logan
is pitiful very like i know for a fact
that is deeply incorrect so
we're going to tok about all that this
video is going to be sweet and very
ironic i'm coming to you right now
from my condo in puerto rico
so on his absolutely epic podcast
impulsive
logan has announced that he is going to
be moving to puerto rico and why puerto
rico right like
how random yeah taxes it's one it's one
vertikal
yeah it's one it's a big one
it's 96 of a big one which ironically is
the same amount of money you keep every
year if you move to puerto rico
now he says that the tax reason is one
vertikal
which i think was a great joke and the
way that his friends looked at him was
hilarious
we'll keep it plain and simple in this
video he's actually bringing a lot of
attention to this topic that
you know i toked about a little bit i
feel like there's a lot of people who
live here who purposely do not
publicly let people know why they're
here or that they do live here
puerto rico which is a territory of the
united states again i have friends
who've lived here for years i've
personally lived here for the last
couple of months
four months and it's it's purely a tax
play
for people who run a business that can
be operated in puerto rico so a youtuber
would fit that you know he has
merchandise warehouses different things
of that nature and he's making a ton of
money but he's able to
operate the business here so it doesn't
make a ton of sense for him to be in
california paying
literally the worst tax in the u.s he's
paying the highest federal bracket which
is 37 percent
and he's paying like 13.5 percent in
california and i can guarantee you that
number is only going to keep going up
so he can keep his house there and you
know he'll just be paying a high
property tax
he can keep his house there and the
house is going to be free just with all
the money he's saving being here in
puerto rico
same with the house that he's buying in
puerto rico now what i've heard
is that he's actually moving here with
jake they're going halves on a house
just for privacy i don't want to say
where i do know exactly where it is i
don't like their specific house or what
they're deciding
but the neighborhood and area that
they're going into is super cool because
it's a big private community
inside of puerto rico it's something
that very much feels like a resort i
opted not to live there just because i
wanted to experience the city
and puerto rico and more so kind of
what's going on here first i'll probably
end up living there down the road but
from a perspective of them being huge
public figures and you know famous
celebrities whatever you want to call it
um i definitely definitely agree with
that decision to move somewhere very
private where it's i mean it's hard to
get in there when i go to hang out with
my friends i mean it's like three gates
it's all these checkpoints and
calling and so it's super cool great
spot definitely expensive homes in there
go upwards of
40 million dollars i just last week saw
a two-bedroom condo sell for 13
million dollars absolutely wild just a
little ocean view
13 million bucks you know they'll
probably get a home my guess would
probably be 10 million dollars if
they're going halves probably buying
cash
that's 5 million bucks a piece and
they're going to save more than that
just in the first year in taxes so
the actual puerto rico tax law i will
finally tok about it people always ask
this there's two segments to it under
one umbrella there is act
20 and act 22. act 20 means you get 4
corporate tax so your business instead
of being taxed at federal and state
rates based on the business entity
structure
at a ridiculous percentage back in the
u.s so if it's an llc filed as an s corp
where it's basically passed through
personal income
which i doubt that's what their theirs
is um you're gonna be taxed at you know
upwards of 50
depending on where you live like i was
getting taxed at 42.5 percent being in
arizona
and i moved there to try and save on
taxes so it's kind of ridiculous in that
structure
in puerto rico it's just four percent
flat if you make a hundred grand a year
four thousand dollars in tax you make a
million forty thousand a hundred million
you get the idea so it just continues
like that it's a flat rate tax which i
think is great
now it supports the economy here a lot
puerto rico opened up this program
because they wanted people uh
you know i guess with money to move here
to help boost their economy it's as
simple as that
now act 22 is what's the zero percent
capital gains
that doesn't mean if you own real estate
in the us and you're flipping it for a
profit
to my knowledge i don't think because
that's all operated and those are
properties in the states
out here that would mean like there's a
lot of crypto traders a lot of day
traders stok traders people who have
capital gains and you move here and it's
zero percent however there are some
restrictions
you have to buy a property within two
years okay
so there's that mortgage companies out
here a little bit difficult to work with
so you might have to buy any cash you
might not i've seen people go both ways
um
also you are going to be paying a five
thousand dollar a year filing fee and
you have to donate ten thousand dollars
a year to a charity
for something a non-profit charity for
someone like logan and jake it's not a
big deal for people who are moving here
they're only moving here because they're
making a ton of money
not a big deal it's basically a 15 000
flat rate to be inside of act
22. now both of those rolled up is now
called act
60. personally i declined act 22
so i no longer actually have the
limitation of having to buy a property
within two years which is great takes a
little bit of stress off the table and
having like go look and like find
something to figure out where i want to
be and
whatnot so that's going to make things
easy because i don't have capital gains
that are very much
year over year i'm not a huge stok
trader i'm not a huge crypto
and for the holdings that i do have in
both of those industries i don't think
that i'm selling anytime soon so
should not be a problem i'm taking
advantage of the corporate tax and
passing that through to zero percent
distribution
back to myself in the us which is the
same exact thing that logan and jake
will be doing
now to get in further to the specifics
with their stuff
um i wanted to tok about the physical
perspective because i'm in an e-commerce
business
and with one of my main brands that i've
been running for years in the health and
orthopedic space
i do have inventory and the thing is
that inventory
is sitting in the united states and
that's where it becomes an issue so for
logan and jake i don't know exactly how
it all works i'm sure they have a
warehouse somewhere
with a ton of t-shirts stikers lanyards
whatever it is that they sell
from their personal merchandise that
creates a little bit of a different
structure
your us entity still has to own that
inventory
now your puerto rican company has to pay
your u.s
company to buy that inventory but you
can't just buy it at break even like oh
i'm just going to make my u.s company
pay no tax because we made no net profit
right
you have to have a minimum surcharge of
3.5
so you know you just charge yourself
four percent extra on top whatever the
cost is you have a little bit of
profit in the u.s you pay your taxes for
that company whatever that's all you
know always get a cpa opinion this is
just my opinion
this is not legal or tax advice always
get proper help
on this but again i've done extensive
research on this and this is why i live
here so it creates a little bit of an
issue from an inventory perspective but
they operate their stuff out of here you
know like for logan and jake like all
the podcasts the youtube videos
i don't know how it's going to work with
the fighting he's trying to get it
but as long as they are what's called a
bona fide resident meaning they spend
over 183 days a year living in puerto
rico
they get access to huge huge huge tax
benefits like we just toked about
so you're living here you have to live
here for over half the year they might
go somewhere else like to london or
miami or wherever to fight
but they're still living here so that
income is taxed here
now to get into how much i think they
make and what they're saving again
it's not that this matters people always
just like are curious about this stuff
especially like celebrities and
youtubers and influencers i'm not
putting this in for click bait but
this is like what i genuinely think that
they make keep in mind i do
know the people in the whole circle of
people who uh convinced them and toked
to them to move here who explained it to
them who've been living here for years
i also know that they work with them on
a business sense and i know
they completely manage a ton of stuff
for them so i have a pretty dang good
idea of what they make especially from
certain things
it's going to be a very rough ballpark
but they make a lot of money you know
they're not a youtuber who just gets
400 000 a month in ad revenue and sells
some merch and does really well there's
a ton and that's amazing by the way and
they could operate that here but with
podcasts with brand deals with their own
merch
with the ad revenue especially with
fights different promotions like
with everything going on i would
literally be
shocked like absolutely shocked if
either of them were making less than 30
million bucks a year
net that would actually be shocking i
would also
not be surprised if they're making 70 80
or 100 million dollars a year
at all i bet they're somewhere in the
middle they probably make 40 50
60 million dollars a year they've got
some expenses on that
if i had to take a swing and a guess
i'll bet that their overhead expenses
are two to three hundred thousand
dollars a month
i don't think they do a ton of paid
advertising in terms of that because
they have the
organic audience for the podcast youtube
instagram stuff like that
to sell their stuff so like inside of my
companies let's say we'll do two million
dollars in sales in one month and we
spend
seven hundred thousand on ads to do that
it's a different structure
all he has to do to do two million
dollars in a month is make one instagram
story
you know like logan's toked about he's
been pretty open there's multiple
multiple days where he does back-to-back
million dollars his only cost on that is
fulfilling
the actual product which is probably 20
25 so
it's pretty crazy to see the margins and
what they're doing i absolutely support
it
love it i think it is amazing they've
done a really really good job at
building the business side of things
especially with the maverick club
the subscription with logan paul and
what they're doing i know the people who
manage that i know their whole structure
what they're doing
they're doing it for mike they're gonna
be doing for logan's guy mike soon
they're doing it for the nilk boys they
had set up one for the ace family club
um i know kind of the numbers that they
did and all the dispute and lawsuit
going on between uh the ace family as
well as the person who's running
um all the subscription stuff so it's
kind of interesting to see that side of
things
i'm involved not directly with them but
i know a bunch of their friends the
payment processors and all these people
so
it's just one big circle in the
e-commerce community i love it i love
seeing them do
stuff the right way and seeing all this
business stuff and seeing growth and
people trying new things i think it's
really cool so
absolutely amazing i think that from a
fighting perspective i think that jake
has and logan have a lot of potential to
make a ton of money there which is why
they're clearly taking that serious so
they can make a whole lot of money i
mean their stuff is absolutely
phenomenal
to make that amount of money and be that
relevant and that consistent for this
amount of years
in my opinion they've made that
transition from influencer
to celebrity and i think there's
definitely a different
difference there between having clout
and being famous
that is a phenomenal difference so it's
really interesting to see
um and you know i wouldn't be surprised
if they've been making huge money tens
and tens of millions of dollars
for multiple years over like i wouldn't
be surprised if if logan was sitting on
100 million dollars in cash like would
not be surprised at all
so there's toking about the numbers and
now you do the math on that let's say
even from a conservative number they're
making 20 million
a year okay 1.7 million a month they
would be
saving on that 20 million a year they'd
be paying 10 million in taxes assuming
that 20 was net
at least 10 million dollars in taxes do
you know how much that would hurt
to grab a pen and write a freaking check
for 10 million
not just for an investment or to
something to the irs
i think i would have done something a
long time ago to stop that like that's
insane and i wish i knew more about the
puerto rico stuff
years ago because i definitely would
have been out here and i would have
saved the crap load of money
that i could have invested you know it's
not just for the purpose of sitting on
more cash
this is so we can hire more people have
a more competitive business edge in our
margin
and invest more personally and i think
that's awesome that's exactly what
they're going to be doing so
they're saving huge amounts of money you
know their tax bill might go from 10 or
20 million a year down to like a million
dollars i mean it is
a drastik difference so you could almost
think about it like
they're being paid probably thirty
thousand dollars a day
just to live here being paid because of
what they're saving in taxes that's a
pretty conservative estimate
if they're getting paid thirty thousand
a million dollars a month just being
paid to live here
that's crazy i'm not being paid that
much to live here but
i'm saving a damn good amount of money
and i think it's really cool that
they're taking full advantage
of a legal system that is available to
do this while helping an economy that is
still a part of the united states
without being an actual state
so we'll see what happens especially
with joe biden in office there's
different ballots going through where
they try to make puerto rico
state but everybody who's been entered
inside of the program is grandfathered
in for 15 years so we will see exactly
what happens
i will keep you updated on that but
that's what's actually going on
not from an outsider perspective logan's
moving to puerto rico like all these
people toking about it
who have no idea what they're toking
about i've toked to many many attorneys
and cpas
done consulting calls with dozens of
firms as i filtered through who i was
going to use
asking questions and i live here i'm
literally sitting here
right now the beach is 100 yards away
i'll throw up a picture of where i'm
sitting
like i'm here in puerto rico i have
friends who've been here for years
and i think it's super super cool i was
just having lunch last week
where they're going to be living it's a
beautiful place puerto rico is awesome i
think they're going to have a great time
and they're going to save a ton of money
doing it it's a win-win so that's
awesome you guys let me know what you
think about this
if you're a logan paul jake paul fan you
get to see exactly what they're doing
i think their business structures are
incredible they've done great jobs both
as
entertainers and actors but also as
businessmen so i think that's really
cool
and all the stuff that they have set up
like jake doesn't just have his merch
and his
youtube ad revenue i mean he owns part
of fan joy he has a percentage of
like probably a dozen people's careers
like they've done really well from a
business perspective and i think that
that's
amazing so yeah i got nothing but
positive things to say i hope you
enjoyed this video this breakdown
and a true honest and accurate review of
what's going on here in puerto rico
right now
just because logan is definitely
bringing a lot of attention to it right
now so
it looked like jake was going to be
moving to miami which he was trying to
move to florida
saving like 13 in state income tax now
they figured out they could do puerto
rico and save more like
50 percent i think it's a no-brainer so
hope you enjoyed this video make sure to
drop a quick like down below be sure to
subscribe to the channel
on here i tok a lot about business
e-commerce real estate i tok about how
i got started
how i first started my companies and how
i've been able to grow that and invested
into a multi-million dollar portfolio
while continuing to run my companies and
travel the world at the same time just
having fun so
i try to be as honest and transparent as
possible this video is no different i
hope you enjoyed it
and i'll see you in the next one peace
you