Nevada Corporation – Advantages

Nevada Incorporation – Advantages of Forming a Corporation in Nevada

Details on the advantages of incorporating in Nevada. This is something to take very seriously as there are ways to use this business structure to your tax advantage.

Nevada Incorporation Tax Advantages – Deductible Employee Benefits

Incorporating in Nevada usually provides tax-deductible benefits for you and your employees. Even if you are the only shareholder and employee of your business, benefits such as health insurance, life insurance, travel and entertainment expenses may now be deductible. Best of all, Nevada incorporation usually provide an increased tax shelter for qualified pension plans or retirement plans (e.g. 401K’s).

Easier Access to Capital Funding

It’s easy to raise capital for a corporation through the sale of stock. Investors are much harder to attract to sole proprietorships and partnerships because of personal liability. Investors are more likely to purchase shares in a corporation, where there is a separation between personal and business assets. (Some banks, as well, prefer to lend money to corporations.) This is not as common at the small business level as it sounds, because the process can be complicated and requires the proper attorneys to make sure you are not violating any security laws. Unfortunately, many small businesses seek investors and never consult with a securities attorney.

Nevada Incorporation – An Enduring Structure

A Nevada corporation is the most enduring legal business structure. Corporations may continue on regardless of what happens to its individual directors, officers, managers or shareholders. If a sole proprietor or partner dies, the business may automatically end, or it may become involved in various legal entanglements. Corporations can have unlimited life, extending beyond the illness or death of the owners.

critical issues of starting a business

Easier Transfer of Ownership

Ownership of a corporation may be transferred through the sale of stock without substantially disrupting operations or creating the need for complex legal documentation. Below are a few other reasons for Nevada incorporation: Anonymity
Corporations can offer anonymity to its owners. For example, if you want to open an independent small business and don’t want your involvement to be public knowledge, your best choice may be to incorporate. But if you open as a sole proprietorship, it’s hard to hide the fact that you’re the owner. As a partnership, you’ll probably be required to register your name and the names of your partners with the state and/or county officials in which you’re doing business.

Centralized Management
With a corporation’s centralized management, all decisions are made by the board of directors. Shareholders cannot unilaterally make binding agreements on behalf of the business simply because of their investment. With partnerships, each individual general partner may make binding agreements that may result in serious financial difficulty to you or the partnership as a whole.

Marketing Advantage of Incorporating
This is perhaps the biggest overlooked advantage of them all! We live and do business in a competitive world. You already know that 95% of businesses fail in the first five years. When starting off in a new business, the first impression you make on new prospects is critical. One mistake could cost you your entire business. In fact, many great “could have been” businesses were only three to five new customers short of reaching the next level of success.

What message do you send as a sole proprietor?

First, let’s get a marketing perspective on sole proprietorships and the image that they project. The typical CPA recommends that if you don’t have over $40,000 in net profit, incorporating in Nevada may not make sense for you and may not reduce your taxes. That’s no secret.

Knowing this, what message are you sending when your business card bills you as “Owner/Operator”? New prospects know that you didn’t incorporate, and they probably assume that they know the reason why – that you probably don’t earn $40,000 in profits, and your CPA recommended for tax reasons that you remain a sole proprietorship. Worse, you didn’t believe in yourself enough to invest the money to incorporate.

Are those the messages you want to convey when trying to attract new business?

For Nevada Incorporation, you send a very different message : “This is John Smith, CEO of ABC, Inc.” That “foot in the door” strategy is far superior to “This is John Smith, Owner/Operator of ABC.”

Bottom line? From a purely marketing point of view, incorporating in Nevada makes sense 100%.

Learn the advantages of Nevada Incorporations or forming an LLC.

By John Hinkle

Nevada corporation

Getting a loan for an LLC and building corporate credit – If I were to open up an LLC for the purpose of buying property, how would I get a loan? Are there lenders that deal exclu… … information as possible about advantages and Disadvantages and State fees for the State of California.Also is it recommended to get an LLC in a different state like lets say Nevada or Arizona because of tax advantages.

Nevada Corporation

If you own a Nevada Corporation, the legitimacy of your company relies on several factors. Basics like a Nevada telephone number listed in your company’s name, a Nevada business license and address, a Nevada bank account and contract.

What Are The Requirements In Establishing a Corporation?

This is a general discussion of the requirements needed to establish a corporation. This type of business entity should be considered when your are starting an online business.

What Are The Requirements In Establishing a Corporation?
by: Jinky C. Mesias

A corporation is the biggest type of business entity. So how does one creates one of these giants? But first it is important to define the term CORPORATION- a corporation is an artificial legal entity which is chartered by a state and formed to conduct business. A corporation is completely a distinct and separate entity from its owners, it has its own life and can be held liable for any debts that it may incur. A corporation is also required by law to pay its own taxes.

Every state has their own General Corporation Law or Business Corporation Law that permits practically anyone to acquire a charter in order to conduct a business. The mechanics involve in the creation of a corporation is termed as Articles of Incorporation and there is also a fee to be paid. The start of creating a corporation is with the filing of the Article of Incorporation and then the payment of the required fee to the state office or the office of the Corporation Commissioner. This process is common to the standard type of corporation however the same process occurs in both the limited liability company and the limited liability partnership since many of their offered benefits are the same as those of the traditional corporation.

starting a business

The Articles of Incorporation are vital components of a corporation and therefore requires for the assistance or the presence of a counsel. The specific content of a certificate of incorporation differs from state to state. Nevertheless, the basic features are the same in all states and these are as follows: the corporation’s name, the number of shares authorized, the names and addresses of the incorporator/s and also included is the address of a registered office and agent for service of process.

When it comes to the filing there are different approaches that can be employed to hasten the processing. Some people make use of interactive software programs that can help quicken the filing process and then there’s the convenient tear-out form available in most guides to incorporating. There are also the easy to fill-in-the-blank forms that can be found in state offices. Incorporators may also seek the assistance of a corporate service company to help them in creating the corporation for them but of course within their set standards. Incorporators may also hire a corporate attorney to help them set up their corporation.

The creation of a corporation does not complete the entire part of the process of setting up a business. There are still some requirements that have to be satisfied and the hiring of an attorney to help in the creation of the corporation is by far the wisest decision that any incorporator may implement. The great thing about having an attorney to help in the creation of a corporation is that all the by-laws and resolutions as well as all the other legalities involved are correctly done. Not only that, incorporators are assured that all their rights and benefits are protected when the time comes for them to operate their business.

About The Author

Jinky C. Mesias

For comments and suggestions about the article kindly visit http://www.attorneyservicesetc.com/practice_area/Corporate-Business-Attorney-Services.html

Incorporating

The corporation was not a business or a government entity, but a combination of the two. Its government supporters–the monarchs– had the authority to write the trade laws and grant monopolies; its business participants–the chartered.

Choice of Entity – Corporation

Taxation: Since a corporation is an entity separate from its owners, the income of the corporation is taxed to the corporation itself at the applicable corporate tax rate. In addition to the corporate tax, employees pay income tax on their income received form the corporation.

LLC Converting to Corporation Can Elect S Status

The IRS posed two fact situations, one where an entity that was an unincorporated entity that is treated as a partnership elects to now be treated as a corporation, and a second case where such converts to a state law corporation under a state law formless conversion statute. All equity holders of the entities are eligible S corporation shareholders, and the resulting corporations are not otherwise ineligible to elect S status.

Starting a Business in Florida

Some Important Advantages of Florida S Corporation

If you live in Florida and want to start an online company, a subchapter S corporation may be the right business entity for you.

There are several advantages of having Florida S corporation. The main benefit of the S corporation is you can avoid the corporate income tax and also the share holders can claim the corporate losses. You can also avoid double taxation if you elect taxation under Subchapter S of the Internal Revenue Code

The elective provision that allow small business corporation and their shareholders to get some special tax deduction is known as S corporation. The main benefit of the S corporation is you can avoid the corporate income tax and also the share holders can claim the corporate losses. You can also avoid double taxation if you elect taxation under Subchapter S of the Internal Revenue Code.

There are some mandatory rules for S corporation which are stated below

a)Maximum 75 shareholders can be there in a S corporation. Some special entities and individuals are allowed o become shareholders.

b)Only US citizens can be shareholders of S corporations.

c)S corporations are allowed to have only one class of stock which is free from federal income tax and some other taxes.

The S Corporation is formed like any other corporation just by filing the articles of incorporation with the state level. For example: For Florida S Corporation you have to file articles of incorporation with the state level i.e. Florida Department of State. Next is the Internal Revenue Service where you have to submit the IRS form 2553. Taxation is done on sole proprietorship or partnership basis than the separate entity. In S corporation the deduction in taxes is done by passing the income to the share holders by "passed-through" method. So naturally the individual tax return of the shareholders will determine the gain or loss by the S corporation.

The S corporation also provides the employee benefits deferred compensation plans. The stocks are transferable. The shareholders will get the free exchangeability of interest i.e. the shareholders can sell their interest without the permission of the other shareholders. S corporation is always beneficial in terms of self-employment taxes. Owners Social Security/Medicare taxes or self-employment taxes can be saved with the help of S corporation.

IRS treats the income and the corporate losses for S corporation differently. So automatically the business owners who want limited liability, pass-through tax treatment and different IRS treatment will choose the S Corporation status.

In S Corporation, the shareholders are employed within the corporation. So the shareholders manage the corporation’s daily activities and at the end of every year income get distributed.

It is always advisable to take help of the financial advisor who can be the best judge for you to determine whether S corporation will be suitable for your business or not. IF your plan is to draw a less salary from the company and leave the corporate earnings in the corporation for reinvestment then S corporation is not a right choice for you.

In Florida, beside this S corporation another famous corporation is very famous and it is LLC in Florida or in short LLC Florida. Many people get confused in choosing between Florida S Corporation and LLC Florida. Both has its own advantages and disadvantages but the basic structure or format is same for each of them.

LLC gives the best legal support and has the good active trade while the S corporation is easy to handle and it brings down the income tax drastically which is often not possible in LLC.

If you are confused on what to choose between S corporation and LLC then it’s better if you consult your legal adviser.

By Markus Skupeika

How To Incorporate In Florida

Once you have this letter of confirmation from the state of Florida, it’s time to get your FEIN number and file your corporation type with the IRS. I did this as an S-Corp, so my experience may be different than some of the rest of you.

Health Insurance in Florida

Corporations are able to purchase health insurance that cover pre-existing conditions for their employees so many CPA’s recommend using S-corporations status instead of individual.

Limited Liability Company Explained

An Explanation of LLC (Limited Liability Company)

What is an LLC or a Limited Liability Company? Read on for a brief explanation of LLC…

These are some good points to consider when your are starting an online business. Know what type of business entity you want t create before you start your business as it is harder to change the structure once a company is formed.

An Explanation of LLC (Limited Liability Company) starting a small business

In legal terms, a ‘company’ is treated as an individual entity – separate from its shareholders. That is why a company pays its own taxes, maintains its own accounts etc. The shareholders of a company are merely owners of small or large bits of the company. That is why they are considered separate from the company.

What is an LLC?

A Limited Liability Company or LLC is a legally formed company which has a limited liability for the owners.

The term ‘Limited Liability‘ means that the member or shareholder’s financial liability is limited to the amount of his investment in the company. Thus, he is not personally liable for the debts of the company. The only amount that he is liable to pay is the amount he has invested in the company -i.e. – the amount for the shares he is holding.

A LLC with several members is considered as a Partnership for the purposes of taxation by the Government. This ensures that double taxation is avoided.

If there is an LLC with just one member, the Government will treat it as a Sole Proprietorship Company and will be taxed accordingly.

An LLC can have an unlimited number of members.

An LLC has a lot of flexibility in terms of management. The owners of an LLC need not be U.S. Citizens or permanent residents. The owners can manage the company themselves, or hire someone to do the job. However, an LLC does need an Operating Agreement to clarify how and by whom the company will be managed.

In effect, this form of company is a combination of a corporation and a partnership. It gives the shareholders a tax advantage, and provides them with flexibility in creating a management hierarchy for business purposes. At the same time, their liability is limited. This also ensures that the risk of each shareholder is limited.

This type of company is prevalent in almost all parts of the world. Most organizations opt for this company type to ensure that their personal financial position is not threatened or imposed upon for the purposes of the company.

When the shares of a company are partly paid, even then the shareholders are liable for the entire value of the share.

An LLC need not hold Annual General Meetings and keep a record of its Minutes.

Overall, an LLC or a Limited Liability Company is a limited risk and extremely flexible, functional company structure.

By Madhavi Ghare
Published: 3/2/2007

LLC is a Great Business Structure

A limited liability company, or LLC, can be best described as being a mixture of a partnership and a corporation. To put it simply, limited liability company give a business the best parts of a corporation without all of the protocols of a corporation.

Starting an LLC?

Adaptability – When operating as an LLC, you have greater choices in how to go about running your company. Adding additional owners is an easy process, which you cannot do as a sole proprietorship.

Consider LLC Formation

A limited liability company, or LLC, can be best considered to be a composition of a corporation and a partnership. To put it simply, an LLC give a business the good parts of a corporate structure but not all of the formalities usually associated with a corporation.