Key Questions You Must Have Answers to BEFORE You Incorporate!

Every day we speak to entrepreneurs just like you who call our office after forming an entity on their own or online.  They are hoping we have an “inexpensive fix it program” after realizing they did NOT know the questions that needed to be addressed before forming that new entity to protect their assets and business.

There are at least seven choices for your new business structure:

• C corporation
• S corporation
• Limited Partnership
• LLC taxed as an C Corporation
• LLC taxed as an S Corporation
• LLC taxed as a Partnership
• LLC disregarded for tax purposes

You have an 86% Chance of Making a Wrong and Very Costly Selection!

After 12 years of research with some of the best law firms, tax firms and financial planners in the country, below is a summary of the key questions you need to address before establishing the foundation of your business.  As you can image each question, some more than others, have critical long term affects on your business from both a tax and liability point of view:

1. Are you looking for Investors for your company? (Most unknowingly prevent investors from coming on board because of the wrong entity structure!)

1. What do you expect your Gross Sales to be in the first year? Year 2?

2.  What do you expect your net profits to be in the first year? Year 2?

3.  Do you have a partner for your business (this affects your options for choice of entity)?

4.  What is your personal income level (aside from this new business)?

5.  Do you sell a service or product? (If you form a C corporation you must get this one right!)

6.  Will your business develop a net worth? Meaning, will it develop systems and have a net value over time? Or is it based upon your efforts so that the day you stop working your company stops generating revenue?

7.  Is your goal to sell the business soon? (Important if you’re considering a C-corporation.)

8.  Will the entity keep profits as retained earnings for future growth and expansion? (Important if you’re considering a C-corporation.)

9.  Are you or your partners US citizens or Resident Aliens? Do you plan to bring in any non-US residents?

If you would like to receive the complete list of questions BEFORE you form an entity and to read a case study that puts these questions into play, you can go to www.nvinc.com and download our 96 page FREE report that covers a very complex situation and gives extra tips to help protect your assets and business!

Questions? Still looking to form your entity and get your business off to a fast start to profits in 2010 and beyond? Need help to separate your personal and business credit? Looking for tax and bookkeeping support? Looking for resources to help you with the best way to market and grow your business?

Call NCP at 1-888-627-7007 and we will share with you all the resources you will have access to when you become a client!