Beware of the
“Top 20 Costly Incorporating Mistakes”

Even One Could Cost You Your Business (and have the IRS contacting you)!!
 

I’ve talked to literally hundreds of business owners over the years.  If there’s one thing I’ve learned beyond the shadow of a doubt from those who have been sued, needlessly poured money down bottomless tax or expense holes, or whose businesses have failed, it’s this:

NOT ONE was excited over the few bucks they saved by using a low cost incorporator — or worse, flying solo — to incorporate or establish an LLC for their business.

Years and untold dollars later, they sorely regret the hard work, stress, and many, many lost hours of time with family and friends — consumed instead by lawyers, bankers, accountants and creditors, while picking up the pieces of the wreckage from a devastating lawsuit or bankruptcy.

All those losses could have been prevented by proper planning with the right company to support them. All those losses were the indirect, and sometimes direct result of “penny-wise, pound foolish” thinking.  They’ve learned (the hard way) the value of having a company like NCP to be at their side, constantly guarding against missteps and roadblocks.

I hear the same basic horror stories told over and over again.  And while I’d never say “I told you so,” I’ve learned from them as well.  Let me share with you the 20 most common mistakes they’ve made, both before and after their entity formation:

 10 Costly Mistakes Before Entity Formation:

1. Forming an LLC and NOT knowing how it’s taxed (Are you a single or multi-member LLC?  Will you be disregarded for tax purposes, taxed as a partnership, a C-, or an S-corporation?) Should the LLC be managed by managers or members? Don’t assume managed by members. That may not be the best approach. Why a single member LLC does NOT have the same protection as a two member LLC in some states.  Do you know what state does not allow you to use an LLC is you are a licensed professional? Do you have foreign owners? Are you familiar with the 30% with holding rates.

2. Forming an LLC for real estate and NOT knowing which is best.  Is the property investor vs. dealer? (Make the wrong choice, and be doomed to a life of unnecessary taxes.)

3. Forming an entity and the partners are not on the same page. Most partnership fail. Those that make, many times partners end up suing each other or one is left holding the bag with both the IRS for taxes and with massive debt. FYI…dissolving the entity does not make your problems go away!

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.) Hope you are not planning on having an investors or foreign owner.
5. Forming an S corporation when your company anticipates future value (There must be a better approach… and indeed, there is!) There is some cases in which the S corp makes more sense for some industries.

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

7. Forming an entity in Nevada and NOT knowing when to foreign (qualify) register, and for what reasons.  (“Can’t you just get a mailbox?”) Very few actually qualify for being a Nevada based unless you truly have nexus here (same concept for Wyoming).

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.) The IRS is all over this one. Don’t think you will avoid employment taxes by just making your worker an independent contractor!
9. Forming an LLC taxed as a partnership WITHOUT having an “official” partner.  (Maybe the IRS won’t notice…) Looking to strengthen the charging order position? Do you know the two key tests to determine if you really have a partner vs throwing a name on the operating agreement?
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, D & B®, Corporate Experian®, Corporate Equifax® and testimonials.)

 Questions? Call today at 1-888-627-7007!

10 Costly Mistakes After Entity Formation:

1. NOT completing corporate AND LLC formalities (Yes, LLCs should have them too -even single member LLCs disregarded!).
2. NOT completing the LLC operating agreement (Unless you’ve got a lemonade stand, it’s essential) There are at least 6 different options let’s hope you have the right (especially if you elected to be taxed as an S corporation).
3. NOT properly capitalizing the entity, and especially not being crystal clear with partners about your capitalization (A disaster waiting to happen!) What does, “my partner is putting money into my new company,” really mean anyway?
4. Putting LLC Members on payroll vs guaranteed payments (Do you know the advantages?) This is a fast way to invite the IRS to your business for an audit.
5. Forming an LLC taxed as an S corporation and having the incorrect operating agreement (A subtle, but effective nuance that must be handled properly.) FYI, none of the online companies that I have spoken to do this properly.
6. NOT completing a buy sell agreement for the partners  (Again, being crystal clear will save your sanity.)  This is why so many partners end up suing each other, they each have a very different idea of what value they brought to the table!
7. Falling behind on employee payroll taxes to the IRS and your state  (This will cost your business dearly — at best.

8. NOT meeting with your CPA to set up a chart of accounts  (Running your business off a checking account balance is a fast track to bankruptcy.) If you want to be treated as a business you better have a 5 year business plan also!

9. Registering your domain name to your operating entity (This may account for 70% or more of your lead generation-a huge asset at risk.) This is free and clear virtual real estate at risk!
10. NOT obtaining the proper business licenses (Being out of compliance can punch gaping holes in your bottom line.)

We at NCP pride ourselves on conscientious, well-informed expertise to help you avoid these costly mistakes.  We take the time with you to ensure that we understand every relevant aspect of your company, and diligently do our homework so that you’re fully prepared for whatever the business world throws at you.  Remember, you get what you pay for!

Plus our Top 5% Club Coaching Program will help you grow your business and put thousands back in your pocket! We have worked with the best of the best when it comes to growing companies including, Jay Abraham, The World Internet Summit, Stephen Pierce, Spike Humer and many others!

Call us today at 1-(888) 627-7007 or 1-702-367-7373, and find out if it is too late to fix your costly mistakes, or if you have not incorporated or formed an LLC, how we can help your business get started properly to protect your current and future assets!

Remember, we do incorporate in ALL 50 STATES and have systems to help you get off to a fast start to profits™!

Dedicated to Your Success,

Scott Letourneau
CEO
E-mail: ncp@nvinc.com

Nevada Corporate Planners, Inc.
Fast Start to Profits™!
7477 W. Lake Mead Blvd. Ste. 170
Las Vegas, NV 89128
(888)627-7007; (702)367-7373 Ext. 1103
Fax: 702-220-6444
www.nvinc.com
www.FastBusinessCredit.com

Visit our Blogs at:
www.FastBusinessStartUp.com
www.FastBusinessCreditSecrets.com

www.ScottLetourneau.com

Follow me on:

www.facebook.com/NevadaCorporatePlanners
www.twitter.com/NVInc

P.S. Do you have a real strategy to help you acheive your 2012 financial goals?

Are you ready to take your business to the next
level in 2012 and beyond with the #1 marketing
strategy in the world?

The one that give you the most leverage at the
lowest cost to you (especially important in this
economy)?

Join Scott Letourneau, Armand Morin, Spike Humer,
Sohail Khan, Saen Higgins, Richelle Shaw, Rachel
Quilty, Jim Chianese and Lee Phillips at the 2012
Ultimate Joint Venture Boot Camp, January 27-29 in
Las Vegas! See complete details and to register at
www.TheUltimateJointVentureBootCamp.com

Check our our free JV training by our top trainers at http://budurl.com/LikeJVBootCamp

The Limited Liability Company (LLC) is a powerful entity that originally started in Wyoming in 1977 and became more popular in the late 1990’s.

It is a hybrid between a partnership and corporation.

Most are unaware that an LLC can be taxed in four different ways: disregarded, partnership and S or C corporation.

*******************************************************
Need an LLC formed for your business or to
protect your safe assets?

Call NCP at 1-888-627-7007 or 1-702-367-7373
for a free 30 minute consultation on your
best options.
******************************************************

The IRS established federal default rules to simplify this determination in 1997. A one member LLC by default will be taxed as a disregarded entity for tax purposes and a two member LLC will be taxed as a partnership for tax purposes.

Now let me share with you 12 LLC secrets questions that you need to ask to keep you up out of tax trouble but help you better avoid pitfalls down the road.

1. Can an IRA invest in an LLC?

2. What are the advantages of an LLC over an S corporation?

3. When should an entity convert to an LLC?

4. What are the consequences if an LLC is “doing business” in a state but is not registered as a foreign LLC?

5. When do LLC members have limited liability?

6. How will a single member LLC, taxed as a disregarded entity for federal income tax purposes be treated for state tax purposes?

7. How much capital must be contributed to an LLC?

8. What type of reporting is required if real estate is contributed to an LLC in exchange for a membership interest?

9. When can an LLC make distributions to members?

10.  What is a series LLC and what issues does it bring?

11. How are interests in an LLC transferred?

12. What is the “charging order”?

Need an LLC for your business or to protect your safe assets?

Call NCP at 1-888-627-7007 or -1-702-367-7373 for a free 30 minute consultation on your best options.

Dedicated to your Success!
Scott Letourneau, CEO

Nevada Corporate Planners, Inc.
Fast Start to Profits™!

7477 W. Lake Mead Blvd. Ste. 170
Las Vegas, NV 89128
(888)627-7007; (702)367-7373

Fax: 702-220-6444
www.nvinc.com
www.FastBusinessCredit.com

Visit our Blogs at:
www.FastBusinessCreditSecrets.com
www.ScottLetourneau.com

]]> http://fastbusinessstartup.com/12-llc-secret-questions-you-need-to-ask-to-protect-your-assets-and-financial-future/feed/ 0 http://fastbusinessstartup.com/joint-venture-boot-camp-holiday-sale%e2%80%a6over-in-24-hours/ http://fastbusinessstartup.com/joint-venture-boot-camp-holiday-sale%e2%80%a6over-in-24-hours/#comments Fri, 30 Dec 2011 21:08:16 +0000 admin http://fastbusinessstartup.com/?p=1675

This week, hundreds of thousands of people will get up as early as 4 A.M. wait in lines outside their favorite stores for the big after-Christmas sales.

In fact, I know several of those people and I find it amusing at best, not because they want to get up early to save a few bucks, but because these same people are the ones that don’t want to spend a few hours per week working on their own business.

Most of these shoppers would shriek in horror if they were asked to get up at 4 A.M. to study or get in a few extra hours of self enhancement or business development.

Priorities are often skewed toward the illogical and often those same “warriors of the retail sale” are complaining about not having enough time or money due to the drain that their business creates on them.

Now for the good news, actually pretty great news. You can register here for the Ultimate Joint Venture Boot Camp by clicking on the link below.

No cold weather, parking lot traffic, or crazed bargain shopper to fight off!

The Ultimate Joint Venture Boot Camp is discounted by 20% when you register online by December 31st or call our offices by Friday December 30th at 1-888-627-7007.

This isn’t one of those multi-thousand dollar events that, in addition to your ticket to the event, will cost you $250/night to stay in an overpriced hotel that you never see because you are in the seminar all weekend either.

In fact, the tickets are less than $300 for this 3 day boot camp.  Your instructors are all going to pack their presentations full of information that will show you how to use host-beneficiary relationships to explode your business in 2012 without the headache of spending a large percentage of your income on advertising that often doesn’t work.

The Ultimate Joint Venture Boot Camp

With presenters that have used joint ventures to grow million dollar businesses, I challenge you to look at The Ultimate Joint Venture Boot Camp and not say that this is the Ultimate Place to be to start your 2012 off with a Bang!

Will one seminar change your life? Not if you don’t attend. Heck, if you pick up even one or two nuggets of information and meet the other like-minded people there to set up joint ventures with you, you may have a whole different lifestyle in just several months instead of years from now.

I know the power of a single contact made while attending a seminar or a solitary concept uttered that has changed my life on more than one occasion.

www.TheUltimateJointVentureBootCamp.com

Of course, The Ultimate Joint Venture Boot Camp 2012 is
definitely not just another seminar. It is a true experience that goes well beyond the insightful sales and marketing strategies taught from the experts at the front of the room.

It is an opportunity to belong to an elite community. You see people love to belong to a community, as Seth Godin says in his book Tribe.

The more you are able to connect like-minded people, the more the community will appreciate you for connecting with them in the first place.

We decided to create, not just a workshop, but an opportunity for passionate people to come together, spend time in a small group format with the speakers and each other, to build bonds, and work on ideas to build a company.

This is the 3rd year for this event, which was intended to only be a 1 time affair. But with the economy not exactly helping us and with the demand from entrepreneurs and professionals requesting the fastest way to expand with little or no money out of pocket, we are back by popular demand with the hottest line up of speakers yet.

Registering for the Boot Camp is easy and a very smart decision, but don’t take our word for it, see what our past attendees have said by clicking here.

Still need to register? Visit this link.

The Ultimate Joint Venture Boot Camp Registration page with a 20% discount until Dec 31st online. Questions? Please call our office today at 1-888-627-7007!

*If you’ve already registered, please disregard this notice.

Dedicated to Your Success,
Scott Letourneau
CEO

P.S. You won’t believe your ears when you hear how much coaching we are giving away just for visiting our Facebook Fan Page and clicking the “like us” button.

Check it out and “Like Us” Here to get hours of Joint Venture Training from the Best in the World

Nevada Corporate Planners, Inc.
Fast Start to Profits™!
7477 W. Lake Mead Blvd. Ste. 170
Las Vegas, NV 89128
(888)627-7007; (702)367-7373
Fax: 702-220-6444
www.nvinc.com
www.FastBusinessCredit.com
www.TheUltimateJointVentureBootCamp.com

You don’t need to the folllowing in place until the last week of January or later…

1. A business checking account to accept money into your new entity in the name of the LLC or corporation (meaning you are content to operating a schedule C for the first month).

2. Complete any contracts with vendors, supplies or affiliate agreements in the name of the LLC or corporation (if you do that means all will need to be updated and changed if possible).

3. A business license (which doing it as a sole proprietorship and three weeks later setting it up under the entity is a waste of money -you will need a new license).

4. Liabilty protection. If you don’t mind taking a big risk under your own namer personally.

If you are planning to be IN BUSINESS in JANUARY accepting revenue, contracts signed… all in the name of the new entity, CALL NCP ASAP to get the process started!

NCP forms corporation and LLCs in all 50 states (including incorporating in Nevada of course), helps you build business credit and Keep the IRS off your back! Most importantly we have the tools and systems to help your business get off to a fast start to profits!

Here is some GOOD NEWS!!

There are solutions to all these problems but only if we hear from you ASAP!

Plus there are Immediate Tax Savings! Sec. 195 of the IRC states that capitalization of start-up expenses (up to $5,000) may now be immediately written off against personal income (S corp and LLC taxed as a flow through).

The old rule (a few years ago) said these costs had to be capitalized and written off over at least 60 months. The entity MUST be formed in 2011 to take advantage of this write-off in 2011!

    Two Special December Bonuses

Special Bonus #1: When you form an entity in December or schedule one to be formed in January, you will receive TWO FREE tickets to the Ultimate Joint Venture Boot Camp, January 27th, 28th and 29th in Las Vegas! A $394.00 Value! See complete details at www.TheUltimateJointVentureBootCamp.com

Special Bonus #2: Plus when you form a corporation or LLC in the month of December with NCP you will receive the following extra special bonus:

Estate Planning Survival Package:

-15 point review to ensure your assets are protected from creditors and your kids will never have the State (or unwanted family members) raise them if you are gone.

-½ Hour consult with attorney Joseph Dadich, the creator of Blueprint ($499 Value);

-Autographed Copy of Autographed copy of new book ‘Celebrity Estate Plans Gone Bad – Secrets Every Woman Needs’;

-FREE Life-Saving Medical Release document ;($477 Value); (authorize someone to get access to medical records);

-FREE VIP WILL ($677 Value) (will help to distribute to property, nominate a representative…at least put your intentions in writing (don’t let the state dictate how your assets will be distributed…still need a living trust to avoid probate;

Total bonus value: $1653.00 value!!

Call us today at 1-888-627-7007 to set an appointment for our senior business analysts to answer your questions and help you get started (avoid the end of the year rush and stress)!

This is the time of the year when we see financial stress multiplied, and it can be avoided.

If you are looking to form an LLC (most popular) or corporation in the month of December or by the start of the year (a big mistake to start at that time), keep the following points in mind:

• If you wait until 2012, by the time the entity is filed and everything is in place, more than likely you will be operating as a schedule C for two to three weeks of the beginning of the year.

You are risking an audit! There is a $300 Billion tax gap and the #1 culprit is sole proprietors that file a schedule C!

• Even if online companies tell you that your articles will be filed within 24 hours, you will NOT be ready to start business at that time! Bottom line; if they telling you the full story! Starting your business is NOT the same as having articles filed!

• Secretary of States around the U.S. are becoming more and more overloaded with filings (mostly due to budget cuts)! This means, even if filing expedited, it can take much longer for your entity to get in place and for you to set up a bank account for any end of the year transactions.

Here is some GOOD NEWS!!

There are solutions to all these problems but only if we hear from you ASAP!

Plus there are Immediate Tax Savings! Sec. 195 of the IRC states that capitalization of start-up expenses (up to $5,000) may now be immediately written off against personal income (S corp and LLC taxed as a flow through).

The old rule (a few years ago) said these costs had to be capitalized and written off over at least 60 months. The entity MUST be formed in 2011 to take advantage of this write-off in 2011!

NCP forms corporation and LLCs in all 50 states, helps you build business credit and Keep the IRS off your back! Most importantly we have the tools and systems to help your business get off to a fast start to profits!

    Two Special December 2012 Incorporating Bonuses

Special Bonus #1: When you form an entity in December or schedule one to be formed in January, you will receive TWO FREE tickets to the Ultimate Joint Venture Boot Camp, January 27th, 28th and 29th in Las Vegas! See complete details at www.TheUltimateJointVentureBootCamp.com

Total bonus value: A $394.00

Special Bonus #2: Plus when you form a corporation or LLC in the month of December with NCP you will receive the following extra special bonus:

Estate Planning Survival Package:

-15 point review to ensure your assets are protected from creditors and your kids will never have the State (or unwanted family members) raise them if you are gone.

-½ Hour consult with attorney Joseph Dadich, the creator of Blueprint ($499 Value);

-Autographed Copy of Autographed copy of new book ‘Celebrity Estate Plans Gone Bad – Secrets Every Woman Needs’;

-FREE Life-Saving Medical Release document ;($477 Value); (authorize someone to get access to medical records);

-FREE VIP WILL ($677 Value) (will help to distribute to property, nominate a representative…at least put your intentions in writing (don’t let the state dictate how your assets will be distributed…still need a living trust to avoid probate;

Total bonus value: $1653.00

Call Nevada Corporate Planners, Inc. today at 1-888-627-7007 to set an appointment for our senior business analysts to answer your questions and help you get started (avoid the end of the year rush and stress)!

IMPORTANT: When you become an NCP client you will have access to many powerful bonuses, including access to our Fast Start to Incorporate Your Business Webinar! This is important even if you have already incorporated!  I will walk
you through the process, from starting your business and the transition to operating as a separate legal entity!

 Top 10 Reasons to Form another Entity

You already have a corporation or LLC, do you need another entity? Do you need more protection?
Here are the top reasons our research shows you should consider such:

10. An LLC to protect the stock of your C Corporation. Don’t let happen to you what did to a prospect a few years ago when he lost his $3 million computer company from a personal lawsuit!

9.   A Single Member LLC to protect the stock of your S corporation. (Same reason as above.) No the SE taxes should not be affected.

8. An LLC to be the member of your successful LLC.
Why let a creditor disrupt your profitable LLC even with the charging order protection.

7. A single member LLC to own the equipment of your business to separate it without tax problems.

6. Another entity for your business if you have survived past two years of business. Consider all the effort you put in over the last two years, would you want to start over?

5. An LLC to own your safe assets like stocks outside retirement plans.

4. An LLC to own your domain name. If your website generates a lot of leads for your business,
why risk it being owned by your main operating company.

3. A single member LLC to own your rental properties all owned by an LLC taxed as a partnership. Get the best of both worlds!

2. Another entity to separate our part of your services. If one service brings more risk to your company than others, separate it out!

1. You just don’t want to be a sitting duck with all your business in one entity; that is too easy of a target!

Let me ask you an important question.

Are you ready to take your business to the next level in 2012 and beyond with the #1 marketing
strategy in the world?

The one that give you the most leverage at the lowest cost to you (especially important in this
economy)?

Join Scott Letourneau, Armand Morin, Spike Humer, Sohail Khan, Saen Higgins, Richelle Shaw, Rachel
Quilty, Jim Chianese and Lee Phillips at the 2012 Ultimate Joint Venture Boot Camp, January 27-29 in
Las Vegas! See complete details and to register at www.TheUltimateJointVentureBootCamp.com