Are You Really Protected?

Being the start of the year did you decide it was easier to operate as a sole proprietorship?  Did you get too busy to incorporate and perhaps you are  entrenched in day-to-day business life.  I do encourage you, however, to protect yourself by moving your incorporation strategic planning up in priority on your “to-do” list.

Here’s a sobering thought: Considering that right now there are more than one million practicing attorneys, and more than one million law students slated to graduate in a few years… I see a blizzard of lawsuits in our business future. I’d say the odds are against us! When you further consider the additional taxes your business may be paying by operating as a sole proprietorship, and the increase IRS audit risk you take on, you’re putting your business in a challenging situation.

On the other hand, if you have already incorporated with another company, I hope that process went smoothly for you and that everything is working well in your business.  I also hope that you’ve avoided the costly mistakes common in the following areas that will leave your assets exposed:

• Did you issue stock?
• Who owns that stock? (Hopefully it’s not issued to your living trust if it has any value.)
• Did your Nevada entity register to do business in your home state? (Even an Internet business typically must register.)
• If you have an LLC, do you know how it is taxed? (Hint: there are four options, all with different operating agreements.)
• Do you have a plan to separate your business and personal credit? Even if you incorporate or form an LLC, if you are using your personal credit to operate your company, you’re tempting fate.  The key is to minimize personal guarantees especially with vendor credit.  Still using your personal credit card for your business? That means you’re risking your personal credit and preventing your business from securing more credit in the future!

NCP has a program to prevent this from happening to you! I encourage you to call us , even if you have incorporated elsewhere, to see how we may help you.

Call us today at 1-888-627-7007, and you’ll learn how we can help you separate your business and personal credit, and at the same time, get your business the respect it deserves from the financial industry!