Three Reasons:
1. Asset Protection
Thousands of lawsuits are filed daily, many without any merit, filed by people looking for easy money. In our lawsuit-plagued world, using a corporation to separate you personally from the all of the potential liability in your business is almost a legal necessity. When you do business with the public or have employees, you open yourself up to the potential of lawsuits. A properly run corporation can save your assets and give you peace of mind.
2. More Deductions and Tax savings
There are more tax deductions available to "C" corporations than to businesses that are not incorporated. See our Medical Strategy section for taste of the savings you can expect. Business trips and entertainment can be expensed by a corporate structure much easier than by other types of entities. See our section on other Tax Strategies to see how you can benefit.
Moreover, there can be significant tax savings by using the "income splitting" techniques available to "C" corporations. We have an 71 page e-book that we would be happy to send you, detailing certain tax strategies that may work for you. Just ask us for your free emailed copy.
3. Estate planning
The late Sam Walton, of Wal-Mart store fame, placed his business assets in a closely held family corporation giving each one of his four children 20% of the stock. He and his wife together owned the remaining 20%. The family’s corporation became worth billions of dollars but, upon Mr. Walton’s death there was no estate tax due!
Why? Because the company was owned by his children and his wife. And a surviving spouse does not pay taxes on the estate so Mrs. Walton was also able to avoid paying estate taxes on her portion of the assets. This saved the Walton's billions of dollars in taxes, all by using simple corporate tax strategies. The Walton's net worth today is over 100 billion dollars, but without the advance estate planning that Sam Walton did their net worth could very well be worth just a fraction of that.
It is very important to plan in advance, so that your loved ones can avoid having to sell most of the estates assets to pay the taxes on it.
Incorporating a Business
Incorporating a business is often a smart move for private business owners. It will offer advantages such as added privacy, tax benefits, and. protection from personal liability. Since hundreds of new corporations are formed every day across the United States now is the time to incorporate your business and watch it grow in astounding ways.
Locations for Incorporating a Business
You can choose to incorporate a business in any state but certain states offer more advantages than others. For many years, Nevada was considered the most cost-effective location to incorporate. However, Nevada can impose hidden costs after your business has started. Therefore, you will not save as much as you would expect on start-up fees.
Some advantages of incorporating in Nevada include no implementation of corporate state Income taxes or franchise taxes. Nevada also has no minimum capital requirements and allows for nominee shareholders. While these advantages are enticing, Nevada will add annual fees in places you wouldn't suspect. Nevada corporations are also subject to frequent audits because the state has battled with the IRS for years due to the withholding of information.
If you are interested in receiving the tax benefits that Nevada has to offer without the hassle you should consider incorporating your business in Wyoming. We can help you to turn your privately owned business into a Wyoming corporation. When you incorporate in Wyoming, you will experience added privacy, tax breaks, and excellent protection of assets.
Whether you're a small business owner with no employees or with hundreds, there is no greater way to protect yourself and your personal assets from the threat of lawsuits than by incorporating. Incorporating is also a legal and simple way to cut your taxes, lower your audit risk, increase your privacy, build credit, raise capital and let you live the corporate lifestyle.
Roughly a million corporations are formed each year and the number is growing every year. Why? Because a corporation is a legal person created by state statute that can be used as a fall guy, a servant, a good friend or a decoy. A person whom you control... yet cannot be held accountable for its actions. Imagine the possibilities!
If you operate a business (even a home based or part-time business), contemplate starting a business, wish to protect your personal assets or are thinking about estate planning, establishing a corporation can provide a simple and inexpensive foundation.
Can you be sued?
The average man or woman in the United States today experiences five lawsuits in his or her lifetime. The odds are that one of these is a devastating lawsuit.
You can and must safely shelter your assets from lawsuits before a lawsuit strikes. The law deals quite harshly with those who seek last minute transfers of assets in an attempt to defraud creditors. What this means is that you must realize now that you can run into financial trouble. You must recognize and come to grips with your own vulnerability. When you get this reality under your skin, only then will you have the sense of urgency necessary to take action to protect yourself from the virtually inevitable.
Most of those who have assets to lose occasionally consider taking action to protect their assets and lower their taxes. The reminder may strike around tax time or when a lawsuit or other tragedy strikes. However, the consideration often fades when the danger subsides. Then the procrastinator is usually leveled with a financial blow that robs the individual of hard-earned resources.
Do not let another day go by without establishing your own corporation or LLC.
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