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REGISTER NOW FOR THIS Webinar Replay
Register here: http://budurl.com/AssetProtectReplay
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1. If you have an LLC did you have it managed by managers or by members? Do you know the difference?

2. Does your LLC have the correct operating agreement? If the LLC was taxed as an S or C corporation is there language that covers that in the
operating agreement?

3. When you formed an LLC did you pay attention to how it will be taxed (there are four options)? Did you proactively make a choice or check some
boxes on the SS4 application or worse you let someone else do it for you and this was never addressed?

4. Do you know when a single member LLC disregarded for tax purposes makes sense to protect assets and when it does not make sense for running a
business?

5. Are you familiar with the “charging order” and recent cases and it related to a single or multimember LLC?

6. Do you know why your professionals all want you to incorporate in your home state and why you get different answers from them consistently?

7. Do you know when you should NOT incorporate in Nevada, Wyoming or Delaware?

8. Do you have any assets of value owned by your living trust?

9. Who are the shareholders or members of your corporation or LLC? Is it you or your living trust? Do you know how to tell when that is a bad
strategy or it is not?

10. If you are internationally based and established a U.S. business do you know for sure whether you set up a “real” company or one that may look like
a “sham” by compliance standards?

11. Do you own real estate in your own name, but since there is no equity you have concluded what is worth protected?

If you are able to answer all of these questions confidently, then congratulations! You are in great shape, and there is no need to register
for my live training. You can take the night off!

If you struggled with some of them or did not know the answers, then it is very likely that your business and assets are at risk right now. Your
company and your dreams could be toast tomorrow in the event of an unexpected lawsuit or financial setback.

(By the way, the #1 asset protection myth is, “I am a good person and no one would ever sue me, I am out there making a difference.” This is always
a tough wake up call for a lot of good business owners – unfortunately, the real world does not work that way.)

It has been my experience that one distinction can often change your entire life. In the same way, just one adjustment in how you structure your
business or assets will make all the difference between your being in or out of the game! The bad news is that MOST business owners use the wrong
strategy to start, protect and grow a business. We hear about it every week at our office, especially when partners are involved.

Here is the good news. In 100 minutes I will teach you what I have learned, researched, experienced and  implemented in my 16 years as an expert in
this field – all based on real business results. I have worked with the best of the best in the world on these subjects and I will be sharing this information on the training.

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REGISTER NOW FOR THIS Webinar Replay
Register here: http://budurl.com/AssetProtectReplay
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Now, if for some reason you are still operating as a sole proprietorship (probably because your CPA told you to keep it simple because you do not
make enough profits to justify incorporating), your financial well-being could be at risk. Sole proprietorships are a big IRS target and often end
up losing money that’s rightfully theirs in overpaid taxes. For bigger businesses, the risks of not having the right foundation in place are even
greater.

This live online training is for:

• Those who have incorporated online or on your own (you are most vulnerable).

• Those who were “set up” by their professionals and have no idea why certain recommendations were made or what the overall strategy was.

• Sole proprietorships looking to transition to a separate legal entity

• A business owner who has been in business for 5-10 years and still running all their business through the same single entity (would you ever
invest all your money in one stock?).

•  Those who have no assets because of the recent financial crisis and do not have a lot of time or money to start over and build up again (or risk
screwing it up with bad information this time).

• Professionals who are smart enough to be open minded to learning a few strategies that will help them better serve their own clients.

• Leaders in organizations with downlines or teams who could benefit from information that will help them make a fast (and secure) start to profits.
When your members do well, so will you!

This live online training is NOT for:

• People with big egos who think they know it all and whose only purpose is to complain and prove others wrong.

• People who believe they should have no accountability or responsibility over protecting their own wealth – that it’s something that should be taken
care of by someone else.

This is your opportunity to get authoritative, strategic and time-sensitive answers to all the questions we explored at the beginning of this message,
plus a lot more profit-building business insights – all free.

Do not miss this free, 100-minute consultation with the business startup expert. This is a ONE-TIME event and it is LIVE. I will take time to answer
specific questions about your individual business situation and you can ask them all anonymously during the session – there’s no such thing as a bad
question  – you’ll be surprised how many other business owners are wondering about the very same issues!

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Register here: http://budurl.com/AssetProtectReplay
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Even if you think all your assets are protected I know you will learn several strategies to make sure you are really protected and structured
properly.

Nevada Corporate Planners, Inc.
Start Your Business with Confidence^sm
7477 W. Lake Mead Blvd. Ste. 170
Las Vegas, NV 89128
(888)627-7007; (702)367-7373
Fax: (702)220-6444

www.IncorporateWithConfidence.com
Email: support@IncorporateWithConfidence.com

If you have formed an entity for your business, ideally an LLC taxed as an S corporation it is a different process. You have to keep in mind that with the big picture the LLC is a separate legal entity from you and it must operate as such. Let’s assume you have started your entity; the next step is to generate revenue to cover the overhead of the business. After that is it time to pay yourself and there are certain rules you must be aware of based upon the type of entity. It may take a couple of months as revenues come in to be in a position to take money out of the entity for yourself personally. Keep in mind, especially if you have a partner, you really must have the accounting records updated on the company to determine if there is a profit in the company in order to start paying out you and your partner. Many times there may be money in the bank account but a loss on the books because of startup capital or loans or lines of credit.

Let’s review the basics of each structure and how you will be paid then get into more details

Single member LLC disregarded for tax purposes: If you are the owner and the LLC is operating an active business, when you pay yourself you will write a check from the LLC checking account to your personal account. In the memo write the word “distribution”. Since the LLC is disregarded for tax purposes with earned income, all profits and losses will show up on schedule C, just like being a sole proprietorship. All earned income is subject to payroll taxes of 15.3% up to $113,100 in 2013. Any amount above that limit is subject the 2.9% Medicare taxes. If your single member LLC owns real estate, rents are not subject to employment taxes and the sale of the property is either short or long term capital gains.

S Corporation or LLC taxed as an S corporation: The key point is to pay yourself a reasonable salary and the rest as distributions. It may be difficult to determine what salary to pay yourself because it may take 3-6 months for the income to become consistent in your business. Again, the first step is to generate enough revenue to pay the monthly expenses of the business. If that does not happen, you may have to “put” more money into the business from yourself personally. That may be a personal loan to the business (this is after capitalization when you started). Let’s assume you just started your LLC taxed as an S corporation in August and you expect to generate $100K of gross revenue by December 31^st (the tax year end for an S corporation). Let’s assume after expenses you expect a gross profit of $60K. That means there should be $60K left in which to pay yourself. A portion of that will be payroll (you are an employee to the S corporation) and in distributions which are NOT subject to the 15.3% employment taxes. You may be tempted to only take $5K as payroll and $55K as distributions but that is NOT recommended. You may realize the smaller the salary is subject to the less taxes but that is where the IRS expects a reasonable salary. S corporations can get audited especially if there is no salary. Here is how this typically unfolds as your entity is up and running, the entity may not have enough for a payroll so you may have small distributions for a few months of $1,000 here and there. Distributions you will write a check from the LLC to you personally and write “distribution” in the memo. If you get too busy and forget about the end of the year at December 31^st it may be possible you “forgot” to do any payroll in the current tax year (that can be a problem). That becomes a problem!

Let me point out that there are certain rules and taxes that have to be handled when you have an employee (even yourself as the employee). Yes, as an LLC taxed as an S corporation you are the employee. Below is a chart of an overview of payroll issues that you should be aware of. As a client of NCP, in the ncpmembers.com there is a full webinar that will cover all these employee concerns. It is under Fast Start Training/Payroll Fundamentals

Employee Responsibilities:

• New Hire Reporting (in Nevada you must report the employee in the first 20 days of working; if not the business owner may be responsible for things like child support payments! Yes, you do need to report yourself as the owner/employee when you first start payroll).
• Classification of employees vs. 1099 independent contractor (you must know if someone you hire if they are an employee or independent contract from the start).
• Who is on payroll
• Worker’s Compensation Insurance (mandated by the states).
• Department of Labor Compliance
• Record Keeping
• Payroll Processing
• Termination

C corporation. A C corporation has separate tax brackets. It is NOT a flow through entity. The C corporation will file a federal tax return; the 1120. Any profits left in the corporation federal and (in most cases) state corporate taxes will be paid. If you are an officer of the corporation and also a statutory employee, any payroll to yourself will be an expense to the C corporation and lower the profits of the C corporation which in turn will lower the taxes to be paid by the C corporation. You can pay yourself dividends from the C corporation to yourself and they are not subject to the 15.3% employment taxes BUT they will NOT reduce the profits of the C corporation! It is recommended that once your revenues are consistent that you get on a regular payroll with the C corporation and pay yourself every two weeks like most companies or twice a month. You want to avoid as the owner taking money from the corporation without payroll and figuring out later if that was a loan to you personally that you have to pay back or a dividend.

LLC taxed as a partnership. The most important point is that as a partner in an LLC taxed as partnership there is NO payroll! You are NOT a partner AND an employee. You might be thinking then, who am I? There is something called a guaranteed payment which is similar to payroll in that it is subject to the same 15.3% employment taxes. The manager of the LLC who runs day to day functions may be on a monthly guaranteed payment. That is paid as a first priority; even if the partnership is losing money (there must be enough money to make the guaranteed payments. To make a guaranteed payment write a check from the LLC to you personally (assuming you are the manager) and in the memo write, “guaranteed payment”. Once guaranteed payments are made there may also be distributions in profits. Distributions in profits to partners in an LLC taxed as a partnership if actively involved are also subject to the 15.3% employment taxes. If the member is passive only those distributions are not subject to the 15.3% employment taxes. There are more details about passive vs. active on the IRS.gov web site. If the LLC taxed as a partnership is owned by an LLC taxed as an S corporation then the profits will flow through to the LLC taxed as an S corporation and now there would be a reasonable salary from the S corporation and the rest as distributions which are not subject to employment taxes.

In summary, the most important item is to have your accounting records from the start of your business. You must have a budget, cash flow and your chart of accounts up and running. We have a tax and bookkeeping coaching program if you need help. We recommend you use QuickBooks® to manage your business and personal budget. Once you have accurate numbers you will be in a better position to determine when any type of payroll or distributions may start. If you are getting ready for payroll, even for yourself, there are so many state and federal rules and we never recommend you do this on your own. Most CPA firms do not want to do payroll (there is too much risk). Our best recommendation is to work with ADP, the largest payroll processing company in the U.S. You may call our local rep here in Las Vegas (even if you are doing payroll in another state) and they will give you our special rate: 702-650-6209 and ask for Sharon Mastrio or another payroll professional. Let them know you were referred by Nevada Corporate Planners for a special rate.

If you need support in forming a corporation or LLC for your business, NCP incorporates in all 50 states, and is here to help you. Take the next step and call NCP at 1-888-627-7007 to schedule a free consultation for your situation.

Let me share with you how we  help you build a stronger fortress around your current assets, which include, real estate, investments, IP, ownership in other companies….

Here is a list of the Top 10 Areas to Protect Your Current and Future Assets and Form another Entity (Take Your Own Quick Audit)

Here are the top reasons our research shows you should consider:

10. An LLC to protect the stock of your C Corporation. Even if your living trust owns the stock of the C corporation that will not provide protection from liability (the exception is a Nevada C corporation because Nevada is the only state in the country with the charging order protection for corporations). Are you a part of a C corporation as a majority owner with other partners? How do they hold their ownership interest? If they own it personally that is an issue. 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. If you own an S corporation and you are sued personally you can lose control of the entire company. If your S corporation provides consulting services and the day you stop there is no value, that may not be a huge concern. If you have any value or residual income that is a big problem. The single member LLC (the only solution, can’t be taxed as a partnership) will provide the charging order protection (in most states, there are a few exceptions).

8. An LLC to be the member of your successful LLC. Even with an LLC if you or your partner are sued personally that will cause a disruption to the operating company with accounting records being reviewed and other legal issues. If you have a successful operating LLC with partners and you are concerned a lawsuit may show up out of the wood work to one of the members personally (which happens often when money shows up) it would be best to have EACH MEMBER have their own separate LLC. Now, the charging order is against their own personal LLC, not the operating company. Make sense?

7. A single member LLC to own the equipment of your business to separate it without tax problems. If you are looking to invest in equipment for $10K or more why own it by your main operating company? I know you want the depreciation, but what if you could get the depreciation AND have it better protected? You may have equipment that is worth $100K, $250K or $1 million or more. This is a simple yet powerful approach.

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? You have heard the old saying, “Don’t put all your eggs in one basket”. This is so true when it comes to protecting your assets. You would never put all your investments in one stock would you? Why would you run your entire business empire under one legal entity? Diversification is key.

5. An LLC to own your safe assets like stocks outside retirement plans. If you have a brokerage account tied to your living trust or your name with investments they are NOT protected from liability. If they are in a retirement account that depends upon state laws. There is NOT a taxable event (in most cases) if you transfer the investments in your brokerage account to a NEW brokerage account in the new LLC name (Sec. 721 of the IRS Code).

4. An LLC to own your domain names. If your website generates a lot of leads for your business, why risk it being owned by your main operating company. Your domain names are virtual real estate that is free and clear. Your domain name may be worth $5K, $25K, $100K or more. If it is owned by your main operating company or you personally that is the wrong approach (but most common).

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! This is stronger then the series LLC which is untested. If you have five rental properties with a lot of equity in each property and you establish five LLCs taxed as partnerships you have five 1065s to complete each year. That adds up.

2. Another entity to separate out part of your services. If one service brings more risk to your company than others, separate it out! Again, don’t put all your eggs in one basket. Conducting seminars brings its own risk separate from your own day-to-day operations.

1. You just don’t want to be a sitting duck with all your businesses in one entity; that is too easy of a target! Worse, did you establish a separate LLC and you are still operating your sole proprietorship?
NCP incorporates in all 50 states and will help your new entity properly build a business credit profile with the important business credit bureas (Dun & Bradstreet®, Corporate Equifax® and Corporate Experian®).

How did you fair? Did you find some areas that need more protection so you can sleep better at night knowing if you were hit with a big lawsuit you would not lose everything? Starting over is no fun.

Our goal is for your business to be part of the Top 5% that succeeds and beats the odds five years from now. If you discovered some areas where you need to form an additional entity (you may have a few strategy questions first).

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

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
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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.
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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

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