When considering a business entity, people are most familiar with the corporation. It is by far the oldest form of business entity literally going back hundreds of years. And that is one of the main reasons corporations are attractive to people interested in the formation of a business structure. Aside from the abundance of case law and precedent, the C corporation, which is the way all corporations are born, has more benefits and deductions than any other entity type. It is a separate taxpayer as well and so allows for the possibility of splitting income between it and the owners or other business entities.

The S corporation on the other hand can be elected simply by filing a form called the 2553 and is a corporation that the IRS allows to be a pass through entity and is therefore taxed at the owner(s) rate, a property which makes it a little easier and a little cheaper to maintain than the C corporation. One of its principal benefits is the reduction of self-employment tax, and so it is a very popular form of business with business owners and accountants.

The recommendation generally is for the corporation to be engaged in a traditional kind of business; I do not advise the corporation, either C or S, to hold an asset that may either appreciate or depreciate as it would generate a negative tax consequence for the company and possibly the owners. A C corporation has several different ways for double taxation to come into play, and even though an S corporation cannot be double taxed, it very often would cause higher taxation when assets are being held. Remember, as a rule of thumb, the corporation is a time tested and strong asset protection and tax reduction tool when used for a business purpose.

We are kicking of the year with an unprecedented number of seminars. The majority of them are what we refer to as “one days” around the office. They are really half day presentations that tell business owners about corporate compliance. Basically how to make sure they are treating their Nevada corporation or LLC as a separate and distinct entity from themselves. What we see all too often is that most owners of closely held companies are so busy “taking care of business” that they forget to take care of their business. Some of the most fundamental requirements of operating a corporation are also the things that are the most foreign to the small business person and so those things get swept under the carpet.

At our seminars we teach people how to properly hold meetings, keep minutes, make and accept resolutions, issue stock, and all kinds of other corporate technicalities that they have heretofore been hesitant to tackle. We have a sister company called The Compass Group that takes care of helping business owners get their corporate records caught up and then keep them current. They are working with thousands of business owners, just like you, and providing a level of peace of mind that only comes when you have all your ducks in a row.

I tell you all this so that you know that we are committed to searching out the services that provide our customers with what they need to protect their assets. If you have ideas of how we can do better or of services that you could really use to grow your business, let me know. Our goal is to be constantly learning how to serve you better.

Nevada has done it again. Passing ground breaking new asset protection rules that offer more protection for business owners.

As of September 2008, Nevada legislators have deemed that with a Nevada Corporation, your shares are protected by a charging order. If you are involved in litigation you could lose the shares of your corporation in order to satisfy a judgment. A charging order only gives a creditor the rights to any distributions or dividends paid out to the shareholders, not control over the company.

Nevada is the only state in the country offering this level of protection. So, how do you take advantage of this extra protection if you don’t live in Nevada? Don’t worry! 72% of the companies formed in Nevada are based in other states. Take advantage of this powerful asset protection tool today give one of our consultants a call at 1-888-388-2902. If you already have a Nevada Company, you should definitely give us a ring so that we can check and make sure that you are in good standing. If you’re incorporated in Nevada, you wouldn’t want to miss out on the tremendous asset protection benefits that Nevada offers!