You MUST understand each column in the figure below. Do NOT mix them up!
Take a close look at the image. It's a simple and powerful tool to help you wrap your head around the big picture.
Now, before digging in here, please remember one of the big three fatal mistakes of investors is getting “Bad Advice.” The guy on the far right is my old police detective partner, Eddie Stewart.
Be very careful when hiring tax advisors, accountants, CPAs, and attorneys.
As shown here, you hopefully get see each level of government has its own set of laws, rules, regulations, and more. Your challenge is to remain in compliance in all three. Unfortunately for you and me, these different levels of government don't give a flyin' rat's ka-hoonah about the other two. More times than you might imagine, this leads to big-time, major conflicts between them.
Let me give you an example in my town involving evictions and set-outs with the sheriff.