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Digg it UP - Nevada Corporation And LLC Myths
There is a famous cliff on the ocean in Acapulco where experienced divers jump into the sea. It is very dangerous because the water at the base of the cliff surges from a depth of 2 feet to 12 feet. The diver must time his leap so the water is at the greatest depth when he enters or he could easily be killed as many novices before him have been. Timing is the key.This reminds me of the stock market where timing is also the key to wealth or poverty.The ocean waves surge in and out against the cliff in short cycles. The tide moves in and out in longer cycles and is very predictable. When you look at Nature you will see there are relatively predictable c
HINT: Any asset protection theory that relies on you committing perjury is not much of a strateg
Web Content, content, content. What the Search Engines were originally designed for and over time web content has been somewhat put on the back burner of Website Marketing Importance.Good Web Site Content could set your site apart from your competition online by providing the information that surfers find so valuable as well as search engines and putting together great copy that sells could convert visitors into buyers or subscribers.Although web content is important, well-written web copy that demands attention, talks to the customer and gives a proper call to action can be very powerful in your website marketing campaigns.Here is how you can
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
Many people across America have dug a deep hole with debt and find it hard to escape this burden. With so many people having problems with debt, new credit counseling agencies spring up to help people get out of the debt they owe. Although there are many great credit counseling companies, there are also those that are fraudulent that can cause even more damage to your credit. It is important that you know what to look for in a great counseling company so you can avoid fraud.Look for NonProfit CompaniesIf you need credit counseling, consider looking for companies who run as a nonprofit. You should only use these companies as a last resort and no
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 strateg
Have you ever envied, as I have, those fortunate individuals who seemed to know from a very early age exactly what they wanted to do with their lives? And who seemed easily to avoid the series of false starts and disappointments with which most of us have to contend early in our careers.They had their setbacks, no doubt, but dealt with these confidently and comfortably in the knowledge that they were securely embarked on their true course in life.Most of us are not so lucky, and if we come eventually to the idea (the very sound idea) that our future lies in having our own business we face a bewildering range of possibilities, to say nothing of the un
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 strateg
What is auto insurance? Most states require the owner of a vehicle to have a certain minimum coverage. But to protect oneself from law suits and expensive repair bills, it makes sense for the customer to go for more than the minimum coverage.What is liability insurance?Liability insurance is the coverage that the insurance policy gives the consumer, if he/she has caused an accident that has resulted in bodily injury to another party and/or damage to the property of another person. Bodily injury coverage pays for the medical expenses and the likely loss of wages, whilst property coverage pays for the cost of repair or even replacement for the vehicle o
HINT: Any asset protection theory that relies on you committing perjury is not much of a strateg
I owe, I owe, it is off to work I go. This is a common no nonsense saying that has been used for many years. Most of the people that make this statement are saying I am in debt.When you are in debt, you just have to start linking debt to solutions. When you think solutions, your mind often opens up to new ideas. New ideas are a guider that directs you to discovering your choices.Your choices includeDebt managementTime managementDebt consolidationDebt counselingBankruptcyThe last option of course is something you want to avoid, so start thinking debt management. Debt management is a structural process. You begi
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. 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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