🔒 Locked.Money 
Legal Frameworks / Tax Benefits 
Explained simply!

🚀 Please find below a concise 4-minute read on how the Legal Frameworks of Locked Money operate and facilitate tax advantages.

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LEGAL FRAMEWORKS/TAX BENEFITS

LM is a self-custodial, asset-management platform – akin to a digital bank

Users can store, manage and protect their digital assets, all in one place.



However Locked Money’s Unique Selling Point is something that nobody has done before – and this is extremely exciting for Crypto and for the entire Crypto Community.  And that is users of the Professional Plan of Locked Money will be able to avoid (or at the very least reduce drastically) Capital Gains Tax on their profits.

Due to our structure, we can shield our users from Capital Gains Tax liabilities.

WHAT REALLY SETS LOCKED MONEY APART?

You're getting access to advanced legal frameworks that most people never even hear about, let alone use.
This means simplified taxes and stronger asset protection, allowing you to keep more of what's yours.

Let's really explore this further...

HOW DOES THIS WORK?
 
Users of Locked Money can become part of a legal entity and so on a personal level, they can distance themselves from tax liabilities.

So therefore when it comes time to tax reporting, the legal structure owns the assets, not the individual user on their personal level.

LETS REALLY BREAK THIS DOWN:
 
Within Locked Money there will be a FREE plan and a PAID Professional Plan.

All plans (including the free) allow users to create as many multi-sig, self-custodial VAULTS as they want. 

These VAULTS have been audited successfully and they are where a user can safely deposit their digital assets (and swap/send/receive/trade etc)

Within the PROFESSIONAL Plan at Locked Money, users will also have access to a LEGAL STRUCTURE. 

This legal structure is called a Series LLC.

A user in the Professional Plan can create their own Vault (or vaults) and then link their Vault to the Series, LLC.

This means that users of Locked Money at the Professional Plan level will become co-owners of this legal entity

Not only does this give an additional level of Asset Protection, but also, whatever frequency of trading or activity happens within the Vault, there will be no Capital Gains Tax (CGT) to pay.
 Plus, there’s more.

Legally there is also NO obligation to report any of your Crypto holdings.

This will not only save users a lot of time – but also a lot of money.

In most countries, you have to pay CGT every year.  But with a Series LLC, you will be able to avoid this legally. 

(Please note, that you will still have to pay personal income tax on any assets or gains you pull into your personal bank account, that is unavoidable.  But CGT can be mitigated)

It is worth noting, that what we are doing is nothing new. 

Legal Structures such as Series LLCs have existed for centuries, and high net-worth individuals have used them (and continue to) - to shield their assets and optimise their taxes.

However, historically, they have been out of the reach of the everyday individual.

Locked Money is set to change that.



So just like how a Trust only serves a wealthy individual, now thanks to the Blockchain, we can offer this legal structure, to everyone.  No one else is doing this.

🔒 Locked.Money 
Legal Frameworks / Tax Benefits 
Explained simply!

WHY IS THERE NO CAPITAL GAINS?
 
Because the digital assets in your vault will be the ownership of the company, and the structure is incorporated in a tax-free jurisdiction. 

This means the user will be able to distance themselves from a personal level, from their assets, and the ownership of their assets will be moved to the corporate level.

However, you always have access to your assets at any time.
 
LM is a self-custodial solution – so although users may distance themselves personally from their assets – users can ALWAYS access their access because their assets are on the Blockchain.
 
Essentially the corporate structure holds the assets – thereby not tying you to them personally.  And so, because they are not tied to you personally – you can benefit from the tax savings.

So to sum up – all that is happening – is the legal ownership is separated – but you will always have access to your assets.

So when the tax for the year ends and you have to prepare your financial activities, instead of having to spend a lot of time on what you have traded — if you have profits etc — none of these obligations will be needed — and instead all you will be reporting is the ownership of this legal unit.  That’s it.
 
You will only be paying taxes which will be personal income tax, when you withdraw from your vault to your personal wallet.
 
So for example, if you offramp your crypto to your bank account, so then this will be declared as a gain and then you will have to pay tax on that.
 
We are fully compliant, we are not promoting tax evasion (obviously) - we are just integrating smart ways you can optimise your taxation.

TO SUM UP:

Locked Money introduces itself not just as another digital wallet or a place to manage crypto assets, but as a comprehensive asset management platform, effectively functioning like a digital bank for your cryptocurrencies. Here's what sets LM apart, particularly with its Professional Plan:

✅ Self-Custody with a Twist: At LM, users have complete control over their digital assets through self-custodial vaults. These vaults, which have passed audits for security, allow you to store, manage, and even transact with your assets.

✅ Tax Efficiency: The game-changer lies in LM's integration of a legal framework known as a Series LLC (Limited Liability Company). For users opting for the Professional Plan, this isn't just about storage or transactions but about tax management.



How It Works:

✅ Legal Entity: By linking your vault to a Series LLC, your assets technically belong to this corporate entity rather than you personally. This shift in legal ownership will distance you from Capital Gains tax liabilities on these assets.

✅ No Capital Gains Tax: The structure of the Series LLC, means that the gains from trading or holding crypto within your vault aren't subject to Capital Gains Tax (CGT). This is because the entity, not the individual, holds the assets.

✅ Non-Reporting: There's no obligation to report your crypto holdings annually, simplifying your tax obligations significantly.

✅ Withdrawal and Personal Tax: When you withdraw funds from your vault to your personal account, that's when personal income tax applies. This is unavoidable but planned for within LM's framework.

ONE SENTENCE HEADLINE:

LM is an Asset Management Platform - but our unique selling point which nobody has yet done in the Crypto World is we are applying a Legal Infrastructure the Blockchain which means that users of Locked Money will be able to shield themselves from Capital Gains tax.

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For full Terms and Conditions - go here (link to article written by Eveline)