A viewer asked: How does it work if I borrow multiple millions of dollars against my XRP from my LLC and send it to myself? This recording is Jake Claver's answer, in full and unedited.
Covered in this recordingcorporate veil
More on this subject: jakeclaver.com.
What this recording covers
Claver outlines the structural mechanisms required when borrowing against company-held digital assets without compromising the corporate veil of a limited liability company. He explains that extracting capital from an entity must follow strict formal protocols to preserve liability protection. One approach involves executing a formal promissory note from the individual back to the entity, establishing a clear debt obligation accompanied by scheduled interest payments. Because limited liability companies often utilize pass-through taxation, borrowed funds do not count as taxable revenue, though personal distributions cannot be deducted as corporate expenses. Alternatively, company owners can distribute capital as dividends rather than loans. Claver stresses that borrowed capital should ideally fund legitimate commercial activities rather than solely personal expenditures. Maintaining rigorous separation between corporate equity and personal finances ensures the legal shield remains intact.
Where this fits
This page hosts a recorded video and a short summary of what it covers. It is general information, not investment, tax, or legal advice, and not a recommendation to buy or sell any asset or to form any entity. Rules change and older recordings may describe a position that has since moved. Speak to a qualified professional before acting.