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.

Even some of the new credit cards that say zero interest balance for 6 months, if you go on the discussion boards or search the internet for the credit, and put the credit card name in and “complaints,” you’ll see a list of people on sites that signed up for a card and, within 30 days, their interest rate is at 29%.  They just moved over $6,000 from another card at 14%.  Their interest rate doubled!

What happens when your interest rate doubles and it’s $30,000, $40,000, $50,000 of debt?  That makes a huge difference.  One thing, if your mortgage interest rate goes up a little bit, yes, it’s on a bigger number, but if your mortgage goes up $500 or $600 a month and your credit card goes up $500 or $600 a month, that’s the problem that’s coming for people who are on the edge of not even able to afford their mortgage.  That’s what’s going to lead into even more foreclosures than we even first thought, in my opinion.  I think it’s going to happen like clockwork.

If you have the entrepreneurial spirit but don’t have the cash to start a business, you may have considered using your personal line of credit (e.g. credit cards, home equity line of credit) to kick start your company. This may seem like a good idea if you want to get going right away, but it’s important to consider the consequences before you spend.

At all costs, avoid using personal credit to pay for business expenses. Here’s why: If you’re new to the business arena, chances are likely that you’ll underestimate the actual cost to start a business and find yourself deep in debt and broke within a few months. The number one reason why most new businesses fail is lack of cash flow. You’ve probably heard the adage, “If you fail to plan, you plan to fail.”

Here is where most people fail to plan: They wait until they desperately need cash before applying for credit. The truth is that you’ll increase your chances of getting a line of business credit if you apply for it before you actually need it.

First, it’s imperative to keep personal credit and business credit separate. If your business has some credit bumps and bruises along the way, you’ll want to ensure that it won’t affect your personal line of credit. If you max out your personal credit cards for business expenses, you won’t have any credit left to take care of your daily needs. That’s why you want to establish two separate lines of credit.

The other reason for keeping your revolving debt ratio low is that when you apply for a business line of credit, half of the formula for determining your eligibility for a corporation or LLC line of credit is based on your personal credit score and your personal revolving debt ratio. When you apply for a business credit card after you form the LLC or corporation, it is 95% of the formula. If your personal credit is maxed out, the bank will assume that you don’t have the cash flow to pay back your loan.

Use this three-step formula if you want to start your business now:

•  Stop using your personal credit cards. Start paying down the balances and using cash for your daily needs. People who max out their credit cards are usually strapped for cash, and people who are strapped for cash are considered high risk to lenders. The ideal ratio for your personal credit cards is 5-20% debt to the total limit available.

•  Form a business entity that is separate from your personal expenses. Don’t form a sole proprietorship. Instead, form a corporation or LLC. This will protect your personal assets from business liens, lawsuits, or creditors.

•  Apply for a business credit card. Again, keeping your personal line of credit separate from your business line of credit will protect your personal assets.

This three-step formula will ensure that you get the cash flow you need to operate your business, and it will help you get your business off to a fast start. The longer you wait to initiate the process, the less likely you’ll see your dreams come to fruition. Start a business with a plan, and you’ll be on the right track to success.

Here is what you will learn on this powerful financial Teleseminar:

* The truth about D & B, and mistakes to avoid!
* What you must do differently to build up Corporate Experian!â„¢ Business Credit (It is not the same approach as D & B)
* Steps you must go through before you build your business credit profile!
* When to use vendor credit vs cash!
* Secrets to maximize your vendor credit!
* How to access cash (even in today’s current credit crisis)!
* What banks will not tell you when it comes to obtaining cash!
* What are the current criteria to obtain cash, credit score from revolving debt limits!
* Plus much much more!

I literally invested over $15K of my own money on these 4 events and products to grow NCP and Fast Business Credit and I wanted to pass on the best strategies and resources to you as a New Year’s Gift!

I have over 100 typed pages of notes from all the events with great resources and strategies!

There will be no selling on this webinar, no product to purchase at the end (I know it does not sound American not to have an offer). These are pure tips and strategies to help grow your business in 2009!

Here are some of the strategies that you will learn:

-The best internet resources to grow your business and bring massive traffic!

-How to use for video, article and other types of marketing. Plus what is not working!

-A great resource that will finance your services for your clients up to $8,500!

-Advanced copywriting tips to help your conversion with your sales letter and online copy writing!

-Resources to help your online conversions!

-Update tips and strategies on joint ventures and other profitable relationships!

-Tips on developing an information product to your business!

-Best ways to add continuity to your business and how to position that in what you sell already!

The best pattern to develop more online revenue for your offline business.

NCP is adding to our business in 2009 and using this same patterns to provide more front end solutions for entrepreneurs and new affiliate programs! Click below to register!

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Click Here To Register:

(There is no fee for this plus there will be no offer or sales at the end,
my gift to you!)
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^* FICO, myFICO, and 300-850 score are trademarks and/or registered trademarks of Fair Isaac Corporation.