this post was submitted on 14 Oct 2024
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From what I gather this is part of the Sovcit bullshit incantation that the person named ( in reality themselves) isn't a real person. The "real person" is someone else (also themselves in reality). The someone else (in reality themselves) is claiming an interest in the named person (again, themselves in reality). They think that by trying to concocted this extra disposable entity they can have the disposable entity take all the blame/punishment while they walk away scot-free.
This is, of course, all bullshit, and no one in the legal world buys it which is why these Sovcits suffer the consequences of their actions in the real world under the law.
It's similar logic to how a corporation or trust works eg a fictional entity that takes the responsibility, the difference being that corporations and trusts are legally recognized and sovcit stuff is not.
What's fun to note is that there are supposedly legitimate ways to use this concept for personal gain, such as creating yourself an LLC and then contracting yourself out as a contractor to do work. Weird as hell, but supposedly has some benefits in the tech world.
All supposedly. Don't know anyone personally who has done this, but have heard the idea brought up multiple times over the years in slightly more reputable online spaces than sovcit-book.
I do IT contracting. There are some benefits to setting up an LLC and doing your contracting/consulting work out of it, but its nowhere near this Sovcit stuff.
With an LLC you can do things like:
The thing is you have to track all of the spending and be able to tie it back to business activities of your LLC. Also, these things you're writing off you can't also commingle with your personal life. If you buy/lease a BMW for your LLC, and the tax man finds out you drive it for cross country family vacations, you can get yourself in a mess of trouble and all your tax actions in the future (even legitimate ones) will be under a microscope for scrutiny.
You can also leave money you've earned in the company accounts to reduce your personal tax liability. If you earn $200k with your contracting in a year, but you only pay yourself a salary of $150k from your LLC, you only pay personal income taxes on the $150k, not the full $200k you earned. That doesn't mean the other $50k is yours to spend on whatever tax free, though. However you can use that for certain expenses inside the company, which again, lowers the tax you pay.
All of this is nothing like the Sovcit stuff. LLC for contracting doesn't mean you never pay taxes, it means you have some measure of control of when you pay taxes, and some things you buy can lower your tax burden, thats all.
I knew a guy that did something like this. He had at least 2 LLCs, one which owned a building and the other owned a restaurant. So his building LLC rented space to his restaurant LLC, which simply never paid any rent. That way he could write off all that rent he didn't collect from himself as a loss for the building LLC. Dumbass still couldn't make the restaurant profitable even without having to pay rent.
It goes a bit deeper. They'll insist that, no, actually it is the federal government that has created this fictitious entity and the secret cheat code to sneak past a judge is to never acknowledge your legal identity references your personal identity.
We have a legal system that absolutely does function differently for different people. And the process by which we apply these competing standards is so confusingly arcane that it's not inconceivable to believe SovCit bullshit could be real. After all, so much of law boils down to what the judge agrees with when adjudicating the case, with an opportunity to appeal to a different judge(s) who apply their own rules.
The delusion is, ultimately, that this system is fair and equitable. That you really do just have to say the correct set of magic words and the judge will nod and smile and send you on your way. In reality, so much of a case is decided before you ever step into a courtroom - firstly based on matters of fact, rather than law, but secondly (and more frustratingly) based on the political inclinations of the prosecutor and the judge with respect to your identity.
There is truth to what you're saying here, but the difference is, learning the correct set of words in the correct order at the right time is what Law School is. I don't know why Sovcits think they can speak so confidently about their legal "spell" and expect it to work in a courtroom.
Sure, but they still don't save you from Facts of the Case, which is what SovCits struggle with. Yes, you can say a series of words to get yourself out of a speeding ticket, but only if the prosecutor or the police fuck up. If the cop who issued the ticket fails to arrive, if you can build compelling evidence against the efficacy of the radar gun, if the prosecutor can't show that you were driving the car...
But if they cover all their bases, they have you dead to rights. Nothing will save you within the scope of the law. No magic words on their own will set you free.