FREENEVADAINCORPORATINGSERVICE: C OR S CORPORATION THAT IS THE QUESTION

FREENEVADAINCORPORATINGSERVICE: C OR S CORPORATION THAT IS THE QUESTION: "SHOULD YOU BE A C OR S CORPORATION All corporations are not created equal,you ned to choose between Ccorporation and S corporation status. S..."

C OR S CORPORATION THAT IS THE QUESTION

SHOULD YOU BE A C OR S CORPORATION
All corporations are not created equal,you ned to choose between Ccorporation and S corporation status.
S corporation allowe for limited liability of owners,officers,directors.
run on a calender year.
full ownership is disclosed.
no tax bracket separation from owners personal tax return,all income or loss is passed through.
no more then 75 shareholders.
no non resident shareholders
only one classof stock
S corporations must pay a reasonable wage.
the main reason to elect S status is if you expect large losses you can offset personal income taxes.
C CORPORATIONS
Limited liability for owners,officers,directors.
unlimited number of stockholders
fiscal year of tax reporting
profits can be kept in the corporation an are taxed at the corporate levelwhich often is lower the at the individual level.
Nevada has no corporate income tax.
the only thing to be concerned with a C corporation is double taxation and this can easily be dealt with proper financial management.

FREENEVADAINCORPORATINGSERVICE: WHICH CORPORATION IS BEST FOR YOU

FREENEVADAINCORPORATINGSERVICE: WHICH CORPORATION IS BEST FOR YOU: "What is a corporation. Black's Law Dictionary defines corporations as follows. 'An artificial person or legal entity,by or under the authori..."

WHICH CORPORATION IS BEST FOR YOU

What is a corporation.
Black's Law Dictionary defines corporations as follows.
'An artificial person or legal entity,by or under the authority of,the law of a state or nation,composed,in some rare instances,of a single person and his successors,being incumbents of a particular office,but ordinarily consisting of an association of numerous individuals,who subsist as a body politic under a special denomination, which is regarded in law as having a personality and existence distinct from that of its several members."
THE CORPORATE BUSINESS STRUCTURE.
A corporation is a seperate entity from its owners,directors and officers and they generally are not inlegal danger for the acts of the corporation.
This seperation is important,considering the many lawsuits in the last few years.
The existence of the corporation is not affected by the death or bankrupsy of the owners or officers of the corporation.
The point is, you can live anywhere in the world and own a Nevada Corporation.

LIMITED LIABILITY COMPANIES (LLCs)

LIMITED LIABILITY COMPANIES(LLCs)
LLCs did not make any sense til the IRS made a ruling in 1998 stating that LLCs could be taxed as either a partnership or a corporation.
if taxed as a partnership you have the ability to pass through any income or loss to the partners,if taxed as a corporation you have the ability to retain earnings or losses in the corporation.
LLCs can have unlimited members unlike an S corporation.
If a person with interest in an LLC is involved in a lawsuit and loses he can only obtain a charging order.Most attorneys will not have there clients accept the charging order becouse of the tax implication.

FREENEVADAINCORPORATINGSERVICE: BUSINESS ENTITIES TO CONSIDER

FREENEVADAINCORPORATINGSERVICE: BUSINESS ENTITIES TO CONSIDER: "The Sole Proprietorship lets say you start a consulting business with no employees and you think a sole proprietorship is the logical way to..."

BUSINESS ENTITIES TO CONSIDER

The Sole Proprietorship
lets say you start a consulting business with no employees and you think a sole proprietorship is the logical way to go,get a state business license and the local municipalities,file a DBA with the county recorder open a checking account and now you are in business.While this is the least expensive way to start out other factors can make it the most expensive way of doing business in the long run.
there is no legal distinction between you and the sole proprietorship and no distinction between your personal assets and your business assets.If a judgement is awarded against your business,every personal asset of the owner can be lost.
Another disadventage is that the business can not survive without you and estate planning and taxation issues are at a distinct disadvantage.
Another disadvantage is that you will find it difficult to raise capital.
From a tax standpoint you are missing out on many opportunities to lower your taxes compared to corporations,more about this later.
The major disadvantages are
PERSONAL LIABILITY
LACK OF CONTINUITY
LACK OF THE ABILITY TO RAISECAPITAL
YOU PAY HIGHER TAXES

WHY INCORPORATE IN NEVADA

High personal tax rates and expectedto rise under the current administration along with booming litigations makes it imperative to lower your taxes and protect your assets.
Nevada, a long time pro business state has made incorporating inexpensive simple and painless.
Nevada is remaining a no income tax state.Some states are allowing lawsuits to pierce the corporate veil,making officers and directors personally responsible for debts of the corporation but not in nevada.
Personal assets such as cash,real estate,securities can be owned by corporations.