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  • Will You Add? - Nevada Corporation And LLC Myths

    Marketing Strategy - Spell Out Your Unique Value
    I attended a “Sales Focus” seminar a few years back in which the speaker asked this key question. “Why, based on all the competitive alternatives available to me, would I want to buy from you?” What a great question.Most of the participants in the room couldn’t come up with anything beyond – “We’ve only got experienced professionals on staff.”; “We use proven methodologies.”; “We’ve got a reputation in the marketplace for delivering value-added services.” or “We’re totally committed to our clients’ success.”To which the speaker replied, “Excuse me, but who’s not saying those things?”You must be able to clearly define wha
    hing is slightly more difficult to find out does not mean you get any additional asset protection benefits.

    MYTH # 6:
    Nevada does not share information with the I.R.S., so I can keep my information private.

    TRUTH: Just because Nevada does not share information with the I.R.S. does not mean that the I.R.S. will not have any information on the company. You will need to provide the I.R.S. with the name and social security number of someone involved with the company to obtain an EIN. Further, the company will be required to prepare tax returns (informational returns for S-corp’s and most LLC’s), on which the names and social security numbers of the owners or members will be provided. Thus, the I.R.S. will end up with this information anyway.

    SUMMARY:
    Please do not confuse the lack of an audit with being legal and proper. It is almost comical that there are numerous corporate formation companies that are dispensing legal advice when they are not attorneys

    Web Content Management To Enhance Your Business Online
    It is hard to imagine a world without e-commerce nowadays, and more and more people are trying their hand at creating websites and earning money online. For anyone thinking of running an e-business, you have to give considerable thought and planning to the content management of your website. The web content management for your website involves a number of defined measures and schemes to optimize your site and your business.Strike A Balance Between Content Management System And Website RequirementThe website can help boost the client's presence and business over the internet. The content on the website needs to be in sync with the client's products and
    There is much misinformation that is often spread regarding Nevada corporations and LLC's. When deciding whether you should form a Nevada Corporation or LLC, you should understand precisely what a Nevada corporation or LLC can provide. With this in mind, you need to be aware of the myths and half-truths that are commonly (and incorrectly) taken as facts.

    MYTH # 1:
    Having a Nevada corporation will provide me with complete asset protection.

    TRUTH: This simply is not true. While having a Nevada corporation can provide some asset protection benefits, the extent of these benefits depends on each unique situation. (You should consult with a lawyer to find out if a Nevada corporation is right for you.) Further, it is common that the principal shareholder(s) of a corporation will have to provide a personal guaranty for many obligations of the corporation, such as leases, credit accounts, etc... As such, when a personal guaranty is given, the Nevada corporation does not provide any asset protection benefit for the obligation that is guaranteed.

    MYTH # 2:
    I can avoid taxes in my home state by having a Nevada corporation

    TRUTH: NO! If a Nevada corporation is conducting business in another state, and that state has a state income tax, then the corporation will have to pay that state's income tax on the income earned in that state. Simply depositing any income into a Nevada bank account will not magically relieve you having to pay tax on the income.

    MYTH # 3:
    Bearer shares are a great way to provide privacy and bolster my asset protection.

    TRUTH: RUN, don't walk, away from anyone who recommends bearer shares. The rationale for bearer shares is that since the laws of the State of Nevada do not prohibit them, then they must be allowed. It is true that bearer shares are not illegal under the laws of the State of Nevada. However, just because it may not be illegal, does not mean it is a good practice. The proponents of the bearer share strategy will say that you can use bearer shares to provide asset protection because, whenever you may have a potential claim/creditor try to attach your assets, you can simply hand the shares of the corporation over to a friend or family member to hold the shares. That person is now the owner (i.e. bearer) of the shares, and thus you can tell the creditor that you have no interest in the company or stock for the creditor to attach. This strategy also assumes that the attorney trying to collect on the debt/claim is a moron. Any remotely competent attorney will ask if you ever owned any interest or stock in the corporation, and when did you transfer your interests. To which, you will either: 1) tell the attorney of the bearer share strategy, which creates all kinds of fraudulent transfer issues, as well as possible income and/or gift tax ramifications that you do not even expect; or 2) commit perjury to avoid telling the attorney who you transferred your shares to.

    HINT: Any asset protection theory that relies on you committing perjury is not much of a strategy.

    MYTH # 4:
    Using a nominee director/officer is a good way to provide privacy and bolster my asset protection.

    TRUTH: Why would you trust a total stranger to have control over your company and assets? The use of nominee directors and officers are usually recommended by self-proclaimed business and legal experts. You will be hard pressed to find a licensed attorney who recommends this strategy. While you may derive some privacy from having a nominee officer and director, this privacy will be lost once the nominee is served a subpoena and asked to provide the contact information for the owners of the company. The nominee will then be legally required to provide this information, and your privacy is gone. Further, the use of a nominee also offers no additional asset protection.

    MYTH # 5:
    Privacy = Asset Protection.

    TRUTH: Just because something is slightly more difficult to find out does not mean you get any additional asset protection benefits.

    MYTH # 6:
    Nevada does not share information with the I.R.S., so I can keep my information private.

    TRUTH: Just because Nevada does not share information with the I.R.S. does not mean that the I.R.S. will not have any information on the company. You will need to provide the I.R.S. with the name and social security number of someone involved with the company to obtain an EIN. Further, the company will be required to prepare tax returns (informational returns for S-corp’s and most LLC’s), on which the names and social security numbers of the owners or members will be provided. Thus, the I.R.S. will end up with this information anyway.

    SUMMARY:
    Please do not confuse the lack of an audit with being legal and proper. It is almost comical that there are numerous corporate formation companies that are dispensing legal advice when they are not attorneys

    Effectiveness of a Cheap Loan
    Getting a loan with a low rate is the dream of every borrower. After all the price of a loan is its interest and everybody wants to pay the lowest possible price of the thing he buys. So the borrower wants the interest to be as low as possible. For such borrowers there are loans in the market with low rate of interest bearing the name Cheap Loan.Cheap loans are generally offered against collateral. If you offer collateral for your loan it will lessen the risk of the lender. This is because in case of failure or default from your end he will have chance to use the collateral to recover his money. So he does not hesitate to offer loan with low interest.
    provide any asset protection benefit for the obligation that is guaranteed.

    MYTH # 2:
    I can avoid taxes in my home state by having a Nevada corporation

    TRUTH: NO! If a Nevada corporation is conducting business in another state, and that state has a state income tax, then the corporation will have to pay that state's income tax on the income earned in that state. Simply depositing any income into a Nevada bank account will not magically relieve you having to pay tax on the income.

    MYTH # 3:
    Bearer shares are a great way to provide privacy and bolster my asset protection.

    TRUTH: RUN, don't walk, away from anyone who recommends bearer shares. The rationale for bearer shares is that since the laws of the State of Nevada do not prohibit them, then they must be allowed. It is true that bearer shares are not illegal under the laws of the State of Nevada. However, just because it may not be illegal, does not mean it is a good practice. The proponents of the bearer share strategy will say that you can use bearer shares to provide asset protection because, whenever you may have a potential claim/creditor try to attach your assets, you can simply hand the shares of the corporation over to a friend or family member to hold the shares. That person is now the owner (i.e. bearer) of the shares, and thus you can tell the creditor that you have no interest in the company or stock for the creditor to attach. This strategy also assumes that the attorney trying to collect on the debt/claim is a moron. Any remotely competent attorney will ask if you ever owned any interest or stock in the corporation, and when did you transfer your interests. To which, you will either: 1) tell the attorney of the bearer share strategy, which creates all kinds of fraudulent transfer issues, as well as possible income and/or gift tax ramifications that you do not even expect; or 2) commit perjury to avoid telling the attorney who you transferred your shares to.

    HINT: Any asset protection theory that relies on you committing perjury is not much of a strategy.

    MYTH # 4:
    Using a nominee director/officer is a good way to provide privacy and bolster my asset protection.

    TRUTH: Why would you trust a total stranger to have control over your company and assets? The use of nominee directors and officers are usually recommended by self-proclaimed business and legal experts. You will be hard pressed to find a licensed attorney who recommends this strategy. While you may derive some privacy from having a nominee officer and director, this privacy will be lost once the nominee is served a subpoena and asked to provide the contact information for the owners of the company. The nominee will then be legally required to provide this information, and your privacy is gone. Further, the use of a nominee also offers no additional asset protection.

    MYTH # 5:
    Privacy = Asset Protection.

    TRUTH: Just because something is slightly more difficult to find out does not mean you get any additional asset protection benefits.

    MYTH # 6:
    Nevada does not share information with the I.R.S., so I can keep my information private.

    TRUTH: Just because Nevada does not share information with the I.R.S. does not mean that the I.R.S. will not have any information on the company. You will need to provide the I.R.S. with the name and social security number of someone involved with the company to obtain an EIN. Further, the company will be required to prepare tax returns (informational returns for S-corp’s and most LLC’s), on which the names and social security numbers of the owners or members will be provided. Thus, the I.R.S. will end up with this information anyway.

    SUMMARY:
    Please do not confuse the lack of an audit with being legal and proper. It is almost comical that there are numerous corporate formation companies that are dispensing legal advice when they are not attorneys

    How to Increase Web Site Traffic in Three Steps
    To increase web site traffic, you first need determination, a goal, and a plan of action. Perserverance that comes through a grit your teeth kind of determination is an essential first step towards getting a flood of traffic to your website. Read on to discover how each element comes together to help drive traffic to your website.Be determined to push through the painLearning anything new can be painful. It can also be a wonderful opportunity to explore a whole new world. How you choose to look at it can play a large role on how successful you ultimately become. As you increase web site traffic, a consistent application of your game p
    of the bearer share strategy will say that you can use bearer shares to provide asset protection because, whenever you may have a potential claim/creditor try to attach your assets, you can simply hand the shares of the corporation over to a friend or family member to hold the shares. That person is now the owner (i.e. bearer) of the shares, and thus you can tell the creditor that you have no interest in the company or stock for the creditor to attach. This strategy also assumes that the attorney trying to collect on the debt/claim is a moron. Any remotely competent attorney will ask if you ever owned any interest or stock in the corporation, and when did you transfer your interests. To which, you will either: 1) tell the attorney of the bearer share strategy, which creates all kinds of fraudulent transfer issues, as well as possible income and/or gift tax ramifications that you do not even expect; or 2) commit perjury to avoid telling the attorney who you transferred your shares to.

    HINT: Any asset protection theory that relies on you committing perjury is not much of a strategy.

    MYTH # 4:
    Using a nominee director/officer is a good way to provide privacy and bolster my asset protection.

    TRUTH: Why would you trust a total stranger to have control over your company and assets? The use of nominee directors and officers are usually recommended by self-proclaimed business and legal experts. You will be hard pressed to find a licensed attorney who recommends this strategy. While you may derive some privacy from having a nominee officer and director, this privacy will be lost once the nominee is served a subpoena and asked to provide the contact information for the owners of the company. The nominee will then be legally required to provide this information, and your privacy is gone. Further, the use of a nominee also offers no additional asset protection.

    MYTH # 5:
    Privacy = Asset Protection.

    TRUTH: Just because something is slightly more difficult to find out does not mean you get any additional asset protection benefits.

    MYTH # 6:
    Nevada does not share information with the I.R.S., so I can keep my information private.

    TRUTH: Just because Nevada does not share information with the I.R.S. does not mean that the I.R.S. will not have any information on the company. You will need to provide the I.R.S. with the name and social security number of someone involved with the company to obtain an EIN. Further, the company will be required to prepare tax returns (informational returns for S-corp’s and most LLC’s), on which the names and social security numbers of the owners or members will be provided. Thus, the I.R.S. will end up with this information anyway.

    SUMMARY:
    Please do not confuse the lack of an audit with being legal and proper. It is almost comical that there are numerous corporate formation companies that are dispensing legal advice when they are not attorneys

    Relevant? More Often Than Not... No
    This morning I'm combining one of my favorite activities (catching up on my ezine reading) and one of my no-longer favorite activities, trying to figure out the search engines.In doing so, I had a thought to check out a service that, as ezine readers, we often see. I speak of the service tinyurl.com, a good service where you can take those really long links and tighten them up.First let me start by saying it is a good service, and based on how often I see them in use, you'd think a very popular one, right?Well, not according to Google...I've been driving myself nuts over the last few months trying to figure out, or stay ahead of
    to.

    HINT: Any asset protection theory that relies on you committing perjury is not much of a strategy.

    MYTH # 4:
    Using a nominee director/officer is a good way to provide privacy and bolster my asset protection.

    TRUTH: Why would you trust a total stranger to have control over your company and assets? The use of nominee directors and officers are usually recommended by self-proclaimed business and legal experts. You will be hard pressed to find a licensed attorney who recommends this strategy. While you may derive some privacy from having a nominee officer and director, this privacy will be lost once the nominee is served a subpoena and asked to provide the contact information for the owners of the company. The nominee will then be legally required to provide this information, and your privacy is gone. Further, the use of a nominee also offers no additional asset protection.

    MYTH # 5:
    Privacy = Asset Protection.

    TRUTH: Just because something is slightly more difficult to find out does not mean you get any additional asset protection benefits.

    MYTH # 6:
    Nevada does not share information with the I.R.S., so I can keep my information private.

    TRUTH: Just because Nevada does not share information with the I.R.S. does not mean that the I.R.S. will not have any information on the company. You will need to provide the I.R.S. with the name and social security number of someone involved with the company to obtain an EIN. Further, the company will be required to prepare tax returns (informational returns for S-corp’s and most LLC’s), on which the names and social security numbers of the owners or members will be provided. Thus, the I.R.S. will end up with this information anyway.

    SUMMARY:
    Please do not confuse the lack of an audit with being legal and proper. It is almost comical that there are numerous corporate formation companies that are dispensing legal advice when they are not attorneys

    Case Study; Sample Executive Summary for a Product Company Business Plan
    The most important part of a Business Plan is the Executive Summary. The Executive Summary is generally only two pages and is an overview of the pertinent information contained within the business plan itself. Generally Venture Capital Executives, Angle Investors, or Investment Bankers will read these two pages and either put you into 'sounds interesting pile' or 'trash can pile.' Your Executive Summary must be complete, honest, and it must be compelling.Many times entrepreneurs will write a rough draft Executive Summary and then write their business plans. Then go back and re-write the Executive Summary after re-considering all the important points. You sho
    hing is slightly more difficult to find out does not mean you get any additional asset protection benefits.

    MYTH # 6:
    Nevada does not share information with the I.R.S., so I can keep my information private.

    TRUTH: Just because Nevada does not share information with the I.R.S. does not mean that the I.R.S. will not have any information on the company. You will need to provide the I.R.S. with the name and social security number of someone involved with the company to obtain an EIN. Further, the company will be required to prepare tax returns (informational returns for S-corp’s and most LLC’s), on which the names and social security numbers of the owners or members will be provided. Thus, the I.R.S. will end up with this information anyway.

    SUMMARY:
    Please do not confuse the lack of an audit with being legal and proper. It is almost comical that there are numerous corporate formation companies that are dispensing legal advice when they are not attorneys. Why would anyone take advice on protecting their assets from someone who is not legally allowed or qualified to provide such advice, much less actually had to argue in support of any of their half-true positions before a judge?

    The truth is that a Nevada corporation or LLC may be useful to some, but it is not the end answer for every small businessperson, especially those who do not operate in Nevada.

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