Forming a C corporation to take advantage of fringe benefits when your business doesn’t fit the C corporation model. (Can you spell nightmare?)

Asset Protection and Business I.Q.

Question # 6: Which are reasons NOT to form a C corporation?

A) C corporations have lower tax brackets than individuals
B) Double taxation
C) Too much profit to reinvest
D) When a flow through entity may make more sense
E) Focusing on business expenses may be more important than fringe benefits
F) All the above
G) A and B
H) B, C, D and E

Costly Mistake Number 7:

Forming an entity in Nevada and NOT knowing when to foreign register, and for what reasons. (“Can’t you just get a mailbox?”)

Asset Protection and Business I.Q. Question # 7: Which are common reason(s) that would cause an entity to need to foreign register (or qualify) to do business in another state?
A) An employee in another state
B) An office located in another state
C) Equipment located in another state
D) An independent contract in another state
E) All of the above
F) A, B, and C

Costly Mistake Number 8:

Forming an entity and hiring independent contactors and employees WITHOUT knowing the rules. (It makes a difference as to which states you’ll need to foreign register.)

Asset Protection and Business I.Q. Question # 8: Which statement is false concerning employees?

A) They create less liability than independent contractors for your business
B) Employees create nexus for your company in the state they are doing the work
C) Your company will pay half of the 15.3% payroll taxes on each employee
D) The IRS is mostly attempting to convert employees to independent contractors

Costly Mistake Number 9:
Forming an LLC taxed as a partnership WITHOUT having an”official” partner. (Maybe the IRS won’t notice.)

Asset Protection and Business I.Q. Question # 9: What entity or person (assuming you are one of the partners) will qualify as a partner for an LLC taxed as a partnership?

A) A single member LLC owned by you
B) An S corporation owned by you
C) A C corporation owned by you
D) A foreigner
E) All of the above
F) B, C and D

Costly Mistake Number 10:

Selecting an inexperienced or disreputable company to help you form your entity. (There’s no excuse for not checking references with the BBB, local professional organizations and testimonials.)

Asset Protection and Business I.Q.
Question # 10: Which characteristics should be considered when choosing an entity formation company?

A) A company that has been in business for at least five years
B) A company that has a national known attorney
C) A company that has research and invests in internal training
D) A company that provides other business development services
E) A company that is recommended by top local organizations
F) All of the above

www.nvinc.com For more information call 1- 877- 515 – 0505 (local 702-367-7373) today!

Scott Letourneau is the founder and CEO of Nevada Corporate Planners, Inc. Over the past 13 years NCP has assisted more than 5,000 business owners form LLCs and corporations to get their business off to a fast start to profits™! Questions? Call NCP at 1-888-627-7007. www.nvinc.com

Costly Mistake Number 3:

Forming an LLC and having it managed by members instead of managers* (A sure way to lose flexibility and control)

Asset Protection and Business I.Q.

Question # 3: What is/are the benefit(s) of having your LLC managed by managers?

A) Many times you do not need to disclose the owners (members) in annual state reports
B) Managers have more authority than members
C) Members added in the future will not necessarily have a say in management
D) It looks more like a limited partnership
E) An operating agreement is not required
F) There are more tax advantages
G) All the above
H) A and B
I) A, C and D
J) C and E

* “Managers of an LLC” is defined as the person or entity that manages the day to day operations of the LLC.

Costly Mistake Number 4:
Forming an S corporation and NOT knowing the shareholder rules (Imagine discovering years later that you’ve violated an S corporation shareholder rule — and that you now owe years of expensive C corporation back taxes.) Asset Protection and Business I.Q.
Question # 4: Who can be a shareholder of an S corporation?

A) A U.S. citizen

B) Another S corporation
C) C corporations
D) All LLCs
E) A living trust
F) All of the above
G) A, B and D
H) A, B and E

Costly Mistake Number 5:
Forming an S corporation when your company anticipates future value (There must be a better approach, and indeed, there is!)

Asset Protection and Business I.Q.

Question # 5: When is an S corporation NOT your best choice?

A) When you are considering investors for your business
B) When you are considering foreign partners
C) When the company will develop a great asset value
D) When you are going public
E) When you live in California
F) All of the above
G) A, B and C
H) A, B, C and D

www.nvinc.com For more information call 1- 877- 515 – 0505 (local 702-367-7373) today!

Scott Letourneau is the founder and CEO of Nevada Corporate Planners, Inc. Over the past 13 years NCP has assisted more than 5,000 business owners form LLCs and corporations to get their business off to a fast start to profits™! Questions? Call NCP at 1-888-627-7007. www.nvinc.com

The merchant account cash advance world does like the retail establishments.  I know that’s a bad word, especially if you look at the stock market over the last couple of months.  But that’s what we’re comfortable with.  We’re looking for that retailer.  We understand that they have issues right now.

We’re also looking to back the guy that’s willing to advertise in this day and age, because we know that with their competition faltering, the guy that is advertising is going to drive the additional business to the doors. There may be less of it, but that’s the guy that we want to be behind.

We are looking for the under-capitalized businesses and we are looking to be able to infuse them with cash to let them get to the next level.  They may have insufficient collateral.  It’s not an issue for me.  I’m not looking for any collateral.

I’m looking for an entrepreneur that I can put my money behind and that I can help grow his business.  Because more likely than not, if I give an entrepreneur money, if I give somebody $100,000, he’s going to make more than $35,000 with it.  He’s probably looking to double it.  That’s the kind of business owner a merchant account cash advance professional may be looking for.

A weak financial statement and/or tax return, I’m not surprised.  I own a business and I understand what comes first.  What comes first is getting the business done.

The cleanup after the fact generally holds very little interest to most of the entrepreneurs I’ve met, especially the successful one.  The more successful, the less likely they are to be focused on the small details.  They’re probably going to be paying somebody to do so.

You want to be with a program where there is a process to guide you through the proper steps to build business credit and to work with a coach. This is a very dangerous process to be given tools to do it on your own.

Especially, with D & B the odds of making a mistake and not being in corporate compliance are very high which may cause your file to be “red-flagged” and put you in the costly situation of having to start over and form a new company.

It is not the cost of the new company that is the big problem, is it all the time and effort to update, your vendors, customers…with your new name.

Look for a service where you are assigned a business credit coach! You should have access through email and phone calls and it should be unlimited access to support you through the process. Typically, a business credit builder program will include a month or two with coaching and you may pay for other time separately, some charge a much larger fee on the front end to include 6 months of coaching.

The key is that the coach is not only there to answer you questions but also to help hold your accountable. I know that may not sound like fun, but the bottom line should be to help you get results!

They should be there to question you on where you are at, for example;

“Have you completed this step?  Okay, you’ve completed that.  Now we can do this for you.”

It’s going to be, “We’re going to do some things for you, and you’re going to have to do some things.”  It will all be outlined and you’ll have a coach that will tell you, “Okay, this is where you are.  Did you get that done?  Okay, let’s move on to the next step.”

You should know the expected results in both cash and credit success. Most companies generalize what that means plus over promise on how much you will receive and the time frame.

The results you should expect to experience during the first month, after the corporate compliance section, is some cash success. That would be in the form of a business credit card. At the same time, you would be completing applications and sending them in for vendor credit. You will be receiving vendor cards and should use those, in small amounts, for vendor supplies your business would need.

Over a 4-6 month period of time, as you follow the program properly you should be obtaining vendor lines that could be upwards of $100,000 to $200,000.

Within the first month, as you get some credit card lines where you can use some cash either to use for your business, or to improve your personal credit score (you may want to pay down some of your revolving personal debt to lower your ratios).

The key to maximize your ability to get access to cash lines of credit over a 3, 6 or 9 month period of time is to improve your credit score and pay down your personal revolving debt at the same time. Hopefully, through your marketing efforts in your business that will happen for you!

Ideally, along with working with a coach, you have access to online tools with a back office that will lay out the process for you that you will go through. It is important that it actually guides you through the process and allows you to randomly access all the information where you are likely to make mistakes. Most want to start looking for where to apply for business lines of credit, which would be a big mistake if that was available to anyone just starting. As you know the first step is corporate compliance!

The first section you want to complete is typically called, corporate conformity. This section would include a number of things including:  the business ownership, the tax ID number, the business address, if you needed a phone number listed in 411, so forth.  There are quite a few steps.

The next step is the credit bureaus for the business world, what they mean, how we’re going to get you set up, what is required to do to get your scores, what has to happen to get your ratings.  You will also need to learn how to understand those credit reports.

The key is to work with your coach to monitor the reports during that time, and then  move to tier 2, tier 3, and tier 4 credit.  There are various steps in those and various things to do.

It is very helpful and time saving to work with a business credit builder that will fill out some of the applications for you, setting up some of the vendor credit that they will report, and you’ll have those scores.  Next is the bank application process.

After the bank process, your company will have ratings and everything in place.  Now, you are in a position to start working on credit cards that are non-personal guarantee.

Everybody’s interested in what is called an EIN only business credit card. Because no matter how bad your personal credit is you will obtain one. Because it is not based upon personal credit at all, but on the levels of vendor credit you have established with D & B and your rating.

These EIN only business credit card are non-personal guarantee.  They typically start out at $5,000 to $10,000.  Then you grow from there.

What are Merchant Account Cash Advances?

It’s the Hottest Source of Lending Today!

Does Your Business Have VISA/MASTER CARD Sales Every Month? If so, this May be Your Solution!

The New Kid on the Block:
Merchant Account Cash Advance Lending.

• Banks turn down 7 out of 10 small business applications.
• Banks focus almost exclusively on the entrepreneur’s credit rating.
• Instead of credit scores, this program focuses on cash flow generated by credit card transactions!
• Credit scores look at the struggle of the business and cash flow you look at the success of a business!

For the first time in about 17 years, the American public can’t simply overspend, overcharge their credit cards then go refinance their house in 3 years from now and get back to zero and start over again.

What about Merchant Account Cash Advance Lending?

Merchant account cash advance lending purchases people’s future Visa/MasterCard receipts at a discount. They are paid back by deducting a fixed percentage of the merchant’s daily Visa/MasterCard credit card sales from the processor.

In essence, there isn’t a fixed payment on the merchant and they come to an agreed amount of percentage that they are going to take back from the merchant.