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

Fast Business Start up

“The Top 20 Mistakes Before And After” is designed not as a static report, but as an interactive tool for you to use to understand your options, analyze your strategic business design and spot areas of vulnerability, building as you go to create a comprehensive “map” to use in your corporate formation planning. So close your office door for a short time, pour yourself your favorite beverage, and settle back with pencil in hand. You’re about to spend perhaps the most valuable 20 minutes of your business career.

There are three steps in using this material:

Step 1: Read each Costly Mistake (divided into 10 “Befores” and 10 “Afters”) and answer the question that applies to each issue.

Step 2: Tally up your results, then assess your Asset Protection and Business I.Q. Knowledge. Take a moment to fully absorb the insight you’ve gained, and the advantages of having an experienced, “birds-eye view” of your business strategies.

Step 3: Build your strategic plan, and enjoy the confidence of knowing you’re protecting your business and assets.

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

1. Look for a company that will ask questions AND provide REAL answers to determine the best entity for your situation BEFORE quoting you a price. Not doing this would be like a doctor writing you a prescription without first giving you an exam! This should involve several questions, not just a “cookie-cutter” approach. Remember, if you want to do what is easiest you will get the results that come with such minimal effort — often even worse!  Click here for typical questions that should be asked: http://www.nvinc.com/what_factors_affect.htm

They should answer your questions BEFORE you form your entity. A disturbing trend in the industry is to “get the money now” and promise answers down the road. If a company is unable to answer your questions BEFORE you give them your business, they won’t be able to answer them AFTER no matter how many books, tapes, or seminars they offer. The true measure of a company’s customer service record lies in the reports of current and past clients. Ask for current testimonials (many companies offer quotes from clients dating back several years) and check the complaint history listed with the Better Business Bureau (assuming they even qualify for listing).

2. Look for a company that will tell you ALL the fees associated with the formation of your entity. These should include expedited state fees for filing, record book; including seal and all appropriate records with both written and audio instructions, resident agent services, obtaining the EIN number, business licenses, checking names for availability in ALL states of operation, completing the foreign registration paperwork, members only support via phone and web site with critical information after formation, supplemental support materials, foreign registration fees… plus information on state tax rates for the entity, annual reports and tips on what to do after formation and finally a support service for any strategic questions throughout the year!

This will not be $99!  Don’t be misled by low front end fees and end up with surprises on the back end with more fees!
3. Look for a company that understands the multi-state taxation rules. These rules will affect in which state(s) your entity will have to register to do business. If you have a partner or plan to do business outside the state, this is critical.

Beware of companies that tout tax savings in a tax-free state when you live and operate your day-to-day business in another state. States like Nevada do have powerful benefits, tax savings are typically not one of them unless you live and work IN Nevada.

Click here for fines that may be charged to you if you chose a company that DID NOT understand the multi-state taxation rules.www.nvinc.com /will_your_nevada_corporation.htm (check on this URL)

4. Look for a company that can tell you the answers to these following questions:

A. Why most C-corporations, if audited, would pay 35% tax on any profits earned along with penalties and interest that may cripple their businesses!

B. Can they tell you the problems in the strategy of moving your profits to Nevada to reduce your state income taxes.

C. Ask them if they know the difference between a single member LLC and multiple member LLC and when which one makes the most sense in what situations.

D. When do you need an office, bank account and mail forwarding in Nevada (hint, it is rarely required)?

Does the company you are considering know the answers to these questions?

5. Look for a company that can weed through inaccurate information and sort out what will REALLY work for you. Typically, very successful individuals are able to recognize and take advantage of a golden opportunity that others miss. Look for a company that is willing to take the time to thoroughly analyze your situation and take advantage of the best opportunity.

6. Look for a company that can NOT only form the entity correctly and have tools to help your business get off to a fast start to profits™. You are either forming an entity to protect assets or to start a business most likely. If to start a business, the only purpose is to make a profit. 95% of all businesses fail within 5 years. Find a company that has MASSIVE TOOLS AFTER FORMATION to you’re your business make a profit fast! Plus a 10 year track record is a must.

As you know only about 4% of companies that make it past five years make it past 10 years.

About the Author:

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

If your business is based outside the United States and you want to take advantage of the largest online consumer market in the world, it makes a lot of sense to form a U.S. company with a U.S. Merchant Account.

It is estimated that U.S. consumers will spend an enormous $153.8 BILLION online in 2010. If you are based in another country, like Australia, New Zealand, the UK…and you sell online, the key is to put the U.S. consumers in a position to trust you! One of the best ways to develop trust in the U.S. market is to be a U.S. company with a U.S. Merchant Account.

Now, when a U.S. online consumer is surfing the internet and comes across your product or service, if you are only based in your country, that means NO Recourse to the U.S. consumer, which means NO sale to you! Why does this happen? A U.S. consumer is thinking, if I have an issue with this company’s product or service, how do I have recourse when they are located in another country? How do I go after you if I have an issue? Who do I file a complaint against? With all that doubt, it is much easier for the U.S. consumer to simply hit the back arrow and go to the next web page that has a U.S. product or service that will solve their problem. You lose the sale; and you would have more than likely never known about it!

Imagine, if you form a U.S. company along with your company in your home country. Now, your business is multi-national and you are operating in two countries worldwide! The marketing value can be huge when promoting your company. Plus U.S. companies will be much more comfortable with any legal contracts or agreements with another U.S.-based company.

Now that this all makes sense, the key is the steps to properly form a U.S. company and U.S. merchant account.   The key is that there are many steps from forming the best entity (a corporation or Limited Liability Company), knowing the different tax issues, establishing a proper U.S. office to help with both the U.S. bank and merchant account. Yes, I said a U.S. merchant account. Almost impossible if you are a U.S. company with no recourse back to you. NCP does have a solution for our clients (in most cases).  When you work with NCP you will receive our support tools, with our CPA for U.S. taxes, and how to be compliant with the IRS (the Internal Revenue Service).

Benefits for forming a Corporation or LLC in Nevada for U.S. Business:

Worldwide presence (office in your home country and now an office in the United States).

Gain more United States business and clients because of the comfort level of consumers doing business directly with companies in the U.S.

Potential for more internet revenue from U.S. customers because of the U.S. presence. Check your internet traffic in the U.S. compared to your home country and compare sales percentages to see if you have an opportunity to gain more market share in the U.S.

Here is an example of how Tom Hua and Brett McFall, Founders of the World Internet Summit, use this strategy to drive more people to powerful events. Go to www.WorldInternetSummit.com to see at the bottom of their site how to position two locations in two countries. You can do the same!

Take the next step and call Nevada Corporate Planners, Inc. at 1-702-367-7373 for our NEWLY UPDATED 31-Page Report on ALL the STEPS and FEES to PROPERLY form a U.S. Company. You may also e-mail us at ncp@nvinc.com.

Go to http://www.nvinc.com/testimonials.htm to see video testimonials of other satisfied international clients who have formed a U.S. company with Nevada Corporate Planners, Inc.