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The Insiders Guide To Incorporating And Protecting Your Assets 10 15 09

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  • 1. N’t t
  • 2. Master Resell/Giveaway Rights You do have the right to sell this report, offer itas a bonus in your packages, (digital or physical) give it away for free to yourclients, on your blog, with material you send out, etc. You also have the rightsto pass these rights along to anyone who received this report. You do not havethe right to change the content in any way or quote it without giving credit tothe author.Dedicated to Your Success!Scott LetourneauCEO © 2009, Nevada Corporate Planners, Inc., ALL RIGHTS RESERVED. This report/book contains material protected under International and Federal Copyright Laws and Treaties. Master Resell Rights as details above.
  • 3. TABLE OF STRATEGIES Be Sure to read your SPECIAL ONE TIME OFFER on page two only available to those that review our “Insiders Guide”!SCOTT J. LETOURNEAUCHAIRMAN AND CHIEF EXECUTIVE OFFICERNEVADA CORPORATE PLANNERS ...............................................................................1DISCOVER HOW YOUR COMPANY CAN SURVIVE THE ODDS AND RANK IN THE RARE 5%THAT ARE STILL IN BUSINESS AFTER FIVE YEARS!.......................................................3DID YOU START YOUR BUSINESS WITH A DREAM OR A VISION?NCP HELPS YOU MAKE IT A REALITY FASTERTHAN ANYONE ELSE! 4HAVE YOU MASTERED THE FASTEST WAY TO GROWYOUR COMPANY? .................................................................................................5COULD YOU USE A BUSINESS LINE OF CREDIT.............................................................6 (NOT TRADE CREDIT) OF UP TO $100,000?................................................................6ESTABLISHING THE PROPER FOUNDATION FOR YOUR BUSINESS ......................................8IS YOUR KEY TO SUCCESS!.....................................................................................8WHY INCORPORATE?..............................................................................................9SOLE PROPRIETORS ARE ROLLING THE DICE...............................................................9INSURANCE IS NOT A FOOL-PROOF SAFETY NET .......................................................14DON’T EXPECT SYMPATHY FROM THE COURTS, EITHER................................................14BE SURE TO PLAY BY THE RULES..........................................................................15ADDITIONAL BENEFITS OF INCORPORATING..................................................................17DO I NEED AN ATTORNEY TO INCORPORATE?...........................................................19WHICH STATE IS BEST TO INCORPORATE YOUR BUSINESS?...........................................20TAKING A CLOSER LOOK AT EACH OPTION… ............................................................21WHY NEVADA? 21 Understand the "Circle Of Liability™" And You’ll Understand the Real Benefit of Incorporating In Nevada! ................................................................................................................21THE BEST INVESTMENT YOU CAN MAKE...................................................................2416 REASONS TO INCORPORATE IN NEVADA................................................................26WHAT’S MY BEST CHOICE: NEVADA OR DELAWARE?..................................................32CHOICE OF ENTITY COMPARISON.............................................................................38 Taxation............................................................................................................................................38 Fringe Benefits..................................................................................................................................38 Tax Form Filed.................................................................................................................................38 Tax Year End.....................................................................................................................................38 Foreign Owners................................................................................................................................38
  • 4. Charging Order................................................................................................................................38 Taxed at State Level..........................................................................................................................38 Save SE taxes....................................................................................................................................38 Double Taxation................................................................................................................................38 PSC Problems...................................................................................................................................38 Management......................................................................................................................................39WHAT FACTORS AFFECT YOUR ENTITY CHOICE? ........................................................40WHAT DOES NCP HAVE TO OFFER THAT OTHER ENTITY-FORMING SERVICES DO NOT?...40HERE ARE A FEW CRITERIA TO LOOK FOR WHEN SELECTINGA COMPANY TO HELP YOU START YOUR BUSINESS: 44SEVEN CRITERIA THE COMPANY YOU CHOOSE MUST MEET .........................................45BEFORE YOU LET THEM FORM YOURNEXT CORPORATION OR LLC!................................................................................45A SUMMARY OF THE KEY TAX LAW CHANGES FOR 2009!............................................47STANDARD MILEAGE RATE.....................................................................................49WHAT MUST YOU CONSIDER WHEN SELECTING THEBEST ENTITY FOR YOUR BUSINESS?........................................................................52LLC PARTNERSHIP ILLUSTRATION............................................................................52FOUR VITAL AREAS..............................................................................................61TO SUPPORT YOU AND HELP YOUR BUSINESS GROW:................................................61WHAT’S THE MOST COMMON REASON FORBUSINESS FAILURE? ............................................................................................65STEP 1: FAST START TO INCORPORATE YOUR BUSINESS! ...........................................73STEP 2: FAST START SUPPORT TOOLS TO HELP YOUR BUSINESS GET OFF TO A FASTSTART TO PROFITS AND STAY AHEAD OF YOUR COMPETITION!......................................77STEP 3: FAST START BUSINESS FOUNDATIONAL SERVICES TO INVEST IN AND HELP YOURBUSINESS GET OFF TO A FAST START TO PROFITS! ..................................................80STEP 4: FAST START PROFESSIONAL REFERRALS-TAXES AND LEGAL, MERCHANT ACCOUNT,PAYROLL, CASH ADVANCE, CREDIT REPAIR AND RETIREMENT PLANNING! .....................86STEP 5: FAST START PROFITS FOR YOUR BUSINESS-MAKE NCP ANOTHER PROFIT CENTERFOR YOUR BUSINESS!...........................................................................................86STEP 6: FAST START TO JOINT VENTURES!........................................................................................................................87STEP 8: VISIT OUR FAST START BLOGS AND LEAVE YOUR COMMENTS: .........................90STEP 10: UPCOMING FAST START EVENTS FOR YOUR BUSINESS!.................................91WANT TO ADD ANOTHER $500 TO YOUR BANK ACCOUNT EACH MONTH? $1,500?$2,500? WITHOUT BREAKING A SWEAT?................................................................94WHAT DO OTHERS SAY ABOUT DOING BUSINESS WITH NCP?.....................................95READY TO GET YOUR BUSINESS OFF TO A FAST START?...........................................100BECOME AN AFFILIATE PARTNER WITH NCP:...........................................................101
  • 5. "Hi. Im Scott Letourneau and I started NCP to help business owners navigate the confusing maze of corporate formation decisions. At NCP, our mission is to help your company get off to a fast start, then keep it squarely focused on success. We want to ensure that your business is one of the 5% still thriving after five years (vs those that fail.) We help entrepreneurs achieve their dreams! Scott J. Letourneau Call us. We can help." Incorporating and Business Credit Expert Scott J. Letourneau Chairman and Chief Executive Officer Nevada Corporate PlannersOver 12 years ago, Scott Letourneau founded Nevada Corporate Planners, Inc. and FastBusiness Credit, Inc. in 2003. He is also a busy lecturer, consultant and author.Mr. Letourneau is recognized and recommended by top professionals, such as Sandy Botkin,Attorney/CPA, and Attorney Dr. Arnold Goldstein, as the foremost expert on not only Nevadacorporations and entity structuring, but also creating and structuring entities nationwide.To his 5,000+ clients, Mr. Letourneaus expertise has allowed them to incorporate withconfidence and "get their business off to a fast start".Mr. Letourneau has a BA in Finance, a Master Practitioners Degree in NLP and is the authorof "The Top Costly Mistakes to Avoid When Incorporating".He has appeared on CNN Headlines News with Pat Summeralls Success Stories and hasalso been interviewed by Channel 8 News, in Las Vegas, and various radio stationsthroughout North America for his expertise and experience.He was a contributing author in the book released in 2008 by Entrepreneur Magazine, StartYour Own Information Marketing Business!!Scott is a rare combination of the best training from Tony Robbins, Dan Kennedy, MichaelGerber and Jay Abraham all wrapped into one speaker (coach).Mr. Letourneau is happily married to De Ann, an amazing classical violinist, and a proudfather of three beautiful girls, Gracie, Rosie and Faith! 1www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 6. A One-Time Only Special Thank You Offer Available to those that Review our “The Insiders Guide to Incorporating Your Business and Protecting Your Assets” To Gain Access to This Special Offer You Must Call NCP at 1-877-515-0505 with 72 Hours of Requesting this Guide! Here is what you will receive when you call…  Free Bonus Gift #1: A free 30 minute consultation with one of our senior business analysts who are the best trained in our industry. You will have the opportunity to speak to the best, avoid costly mistakes and gain insights from years of experience to help your business start off on the correct foundation and get off to a fast start! ……$200 value!  Free Bonus Gift #2: “Top 20 Costly Mistakes Made Before and After Incorporating” You will have an opportunity to test your business and asset protection I.Q. with our 20 question test. You will discover the most costly mistakes and how to avoid them before and after you form your corporation or LLC. Nowhere else will you find these powerful insights in one report!..........$47 value!  You will have the opportunity to purchase our top selling, Nevada Incorporating Secrets 2 CD set, loaded with the insider facts to incorporating in Nevada at a 50% discount! In this cd you will Discover Huge Benefits of having your entity in Nevada! This CD will clear up a lot of confusion for you if you’ve ever considered incorporating in Nevada . Plus, learn the key questions you need to ask to help determine what entity is best and other valuable strategy insights! You will only pay $97… $48 for this powerful 2 CD set! This is a one-time offer on the day you call (must be within 72 hours of requesting this guide). 2www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 7. Discover How Your Company Can Survive The Odds And Rank In The Rare 5% That Are Still In Business After Five Years! From NCP CEO, Scott Letourneau Dear Entrepreneur, In my ongoing efforts to deliver actionable value to you, I have invested more incomprehensive research and streamlined systems to help your business get off to a fast startthan anyone else… because I want you to be one of the TOP 5% that are still in businessand thriving after five years! If your goal is to protect your assets or determine the best entity or structure for yournew partnership, business, real estate opportunity… you’ve come to the right place. Not onlydoes NCP track cutting-edge research to give you the best information on which entity isoptimal for your needs, but we have also created one of the most comprehensive networks ofprofessional resources in the U.S. to keep you moving in the right direction. That correctly-focused forward momentum is crucial in our challenging business worldtoday. As if cutthroat competition, a fluctuating marketplace, and the double-edged sword ofthe new global economy weren’t enough, forces threaten from outside your business aswell… According to the FBI, More than 250,000 Criminals Make their LIVING Each Year Through LAWSUITS! Will Your Assets Be Protected? And not only do you have to survive lawsuits, but the scrutiny of the IRS, too.Amazingly enough, in a self-audit last year the IRS determined they were $300 BILLIONSHORT in tax collections --- and that their biggest culprit was NOT large corporations.They’ve decided that small business owners just like you cause most of their shortages,especially sole proprietorships. That makes sole proprietorships that file a Schedule C taxreturn 300% more likely to get hit with an IRS audit versus those who do not! The IRS Has A $300 Billion Per Year Tax Gap. Is Your Business A Target? Do You Have A Strategic Plan To Avoid Destructive Audits? As you read our guide, you’ll discover why sole proprietorships are such huge IRStargets. That alone should scare off most business owners, yet over 67% of all U.S.businesses still operate as sole proprietorships. It makes terrible business sense… but then, 3www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 8. these well-intentioned (yet naive) sole proprietors stubbornly cripple themselves even moreby dramatically REDUCING their opportunity to utilize business credit. Did You Start Your Business With A Dream Or A Vision? NCP Helps You Make It A Reality Faster Than Anyone Else! Let me ask you an important question: What is your dream, your vision? Are youone of the 500,000 every month looking to start a business? Perhaps you will become anAwakened Entrepreneur, as Michael Gerber describes in his recent book, Awakening theEntrepreneur Within. (Be sure to listen to my timeless interview with Michael Gerber, avaluable bonus that you’ll receive as a new NCP client that will inspire you to take your dreamto a new level.) Perhaps, your dream for your new business is to provide quality services to yourclients and make a difference in your marketplace. You’re no doubt excited, yet maybefeeling a bit overwhelmed. You may have the ability to start a successful business, yet maynot have a handle on the key strategies to get you there quickly. If anything rings true here, I know how you feel. I was there twelve years ago when Istarted NCP. I was on a mission to provide top-quality service for those who wanted toincorporate in Nevada. I considered it my duty to dispel the misinformation that was soprevalent back then (and still is) about this valuable, yet misunderstood strategy. Believe me; I know what it’s like to be an entrepreneur. Over the last eleven years, Ihave invested an enormous amount of money with many top professionals to ensureconscientious, accurate service for our clients, including fees paid to Deloite and Touche,multiple law firms and other professionals. I have personally worked many 70-90 hours,seven days a week. I have made (and learned from) every mistake in the book along theway, especially in the HR and employee area. 4www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 9. Have you Mastered the Fastest Way to Grow Your Company? Then I began studying with the world’s top business experts, including JayAbraham, Chet Holmes, Dan Kennedy, Michael Gerber and Tony Robbins. I hired mentors inHR and leadership to help take NCP to a whole new level. We’ve done so much more thansurvive the odds for the past twelve years --- we have prospered. We now have moreopportunity and JVs on the table than ever before to help more entrepreneurs succeed! with Marketing Legend, Top Fortune 500 Sales Trainer, Jay Abraham Chet Holmes Top Internet Guru, Marketing Superstar, Armand Morin Dan Kennedy E-Myth Legend, Business Marketing Chicken Soup for the Soul, Michael Gerber Expert, Joe Polish Co-Author Mark Victor Hansen George Ross, Gene Simmons of KISS Outrageous AdvertisingDonald Trumps attorney Guru, Bill Glazerand business negotiator 5www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 10. After implementing many of the strategies that I learned from these experts, NCP hasbecome one of the most successful and well-respected companies in our field. I consider all those years of mistakes and successes a distillation process, helping meto tailor our services and to transform NCP into what I call a “Launch Pad for BusinessSuccess.” Our goal is to help YOUR company be everything it can be, too --- and more! I share my story with you to encourage you and reassure you that you are not alone. Ihave walked in your shoes. I know what you’re facing. The effort may be massive, but yourresults can be, too --- with the proper support. Today, I actively mastermind and personally network with most of the top marketingand Internet professionals in the world. I work closely with hundreds of other top growthexperts, regularly attend many of the top seminars worldwide, and invest thousands eachyear to stay on the cutting edge of strategy and information. I’ll gladly do whatever I can to gain your trust as our client. I know what’s being offeredout there, and can confidently say that no company comes close to our overall passion andcommitment. We’ve assembled the most comprehensive wealth of cutting edge resourcesand strategies, any one of which can help steer you on the path to success faster, with lessrisk, and as efficiently as possible. Here’s just one… Could You Use a Business Line of Credit (not trade credit) of up to $100,000? In our most recent breakthrough, NCP has UNLOCKED the BANK’S CODE toobtaining Lines of Credit (REAL CASH) for your business! As an NCP client you’ll learnthese valuable secrets, get capital when you need it, and avoid the number one reason for allnew business’ failure: lack of cash flow. We don’t want to see you become just anotherstatistic --- one of the 80-99% that fail in the first five years! In fact, that cash infusion canprovide the marketing dollars to propel your business to the next level. I’ve shared just a few of the many ideas I have to help your company not only getstarted, but to prosper. Read on for even more valuable information, tips and strategies.Should you have any questions, comments or concerns, please give our office a call at1-877-515-0505. Mention that you have downloaded our FREE GUIDE and ask for ourspecial bonus, yours just for calling!! Have a prosperous day! Scott Letourneau 6www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 11. CEO, Nevada Corporate Planners 7www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 12. Establishing The Proper Foundation For Your Business Is Your Key To Success! Anyone who operates a business, alone or with others, may incorporate. Under the right circumstances, the owner of any size business can benefit! But maybe you’re wondering, “How can I be sure I’m choosing theright entity? Wait - what happens if I choose the wrong one? Will the IRS come after me? Will I really be protected against lawsuits? I have so many questions…” Everyone in business is looking for iron-clad protection, striving to “bullet proof” theircompany against today’s ultra-competitive business climate. If you’re like most, you’veprobably asked yourself the questions above... or maybe you haven’t yet decided whetherincorporation is right for you. Maybe you’re still wondering… • Why incorporate at all? And why in Nevada, versus in my home state? • What are Nevada’s benefits? • Why starting your business as a sole proprietorship may prevent your business from having access credit for your business after you incorporate! Hint: You “revolving debt ratio” is a major factor and this is something you will never hear from your CPA! • S-Corporation…C-Corporation…LLC… What’s the difference? • Do I have choices as to how my LLC will be taxed? How do I know which is best for me? • Why is it so important to separate my personal and business credit? What is the different between trade and lines of credit? • What does NCP do to help me be one of the rare 5% of business owners who make it past the first five years? Will they actually help my business make more profits? • Let’s be honest, I intend to compare you to others… but what should I look for? • Why use a company like Nevada Corporate Planners to incorporate my business? The following pages will answer these and many more questions, giving you a solidstarting point for one of the most important decisions you’ll ever make to ensure thesecurity, resilience, and prosperity of your business. We at NCP know that if you understand the importance of incorporation and have afirm grasp on all of your options, you’ll undoubtedly see the value of the services we offer. 8www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 13. The information here is only a small part of the contribution that NCP will make to yourbusiness, both in the incorporation phase and beyond. But let’s get right down to business… Why Incorporate? First, let’s look at the basic question at hand: Why bother with incorporation at all? If you’re like many small business owners, right now you’re operating as a soleproprietorship. That’s probably not because you’ve chosen to, but because you don’tconsider your business large or sophisticated enough to need to incorporate – or maybeyou’ve never thought about it at all. If you’re lucky, you’ll never have to pay the price for putting off that crucial next step…but that’s a very dangerous “if.” Sole Proprietors Are Rolling the Dice In today’s ultra-competitive and dangerously litigious business climate, you can’t affordto throw the dice with your most valuable asset. Your exposure is far greater than you maythink, both personally and professionally. As a sole proprietor, regardless of the size of yourbusiness, you personally have unlimited liability if your company is sued. You couldactually lose all of your personal assets. Sharon McNair is a CPA and a member of the Nevada State Board of Accountancy.She tells us that her fellow CPAs often advise their clients that they don’t have to incorporateuntil they reach a certain profit level – say, $30,000. She thinks this is madness – and wecouldn’t agree more. Think about it – just being involved in a lawsuit is so very, very costly,regardless of whether you win or lose the case. It’s pretty twisted logic to think that a smallbusiness can absorb that financial blow better than a larger one. Worse, most people are naively unaware of what can happen to them, bothprofessionally and personally, if their business is hit with even a frivolous lawsuit. Here arejust a few things you would struggle with, or be completely unable to do if yourbusiness is sued: 1. You may not be able to get a loan for a new home, refinance or take a second mortgage on your current home. (We’ll explain why in a moment.) At best, you’d have to pay a much higher interest rate, because you’re now considered a higher risk to the lending institution – through no fault of your own. 2. You may not be able to finance a new car. 3. You may not be able to lease office space. 9www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 14. Why do lawsuits cause such a problem with loans? If you haven’t recently applied for ahome loan, a second, or financing for a car, you may not be aware of how times havechanged. Five years ago financial forms asked, “Do you have any judgments against you?”That meant, “Have you been sued, lost the suit, and had a judgment levied against you?” However, financial institutions have gotten smarter. They’ve tightened up the systemthat they use to rate levels of risk for loan applicants. Today’s loan applications ask a verydifferent question: “Are you currently involved in a lawsuit?” That means that if anyonetries to sue you for any reason, frivolous or not, at the very least you’ll be rated as a muchhigher risk. (Remember, that’s before the suit is even decided.) And that translates to a lotof money out of your pocket! End result: You may be financially paralyzed! Are you willing to forego that dream home, that new car, because someone tripped ona pavement crack in your business’ parking lot? And just imagine what being unable to leaseoffice space could do to your business… Creating a legal entity separates the business from you personally, so that any legalaction can only affect that entity – and not you personally! This is by far the biggest reason to incorporate or form an LLC. It makes no sense tohave a sole proprietorship unless you have no assets or future assets coming… in whichcase you shouldn’t – and wouldn’t – be in business at all. Sole Proprietors Are Risking Their Personal Credit And Capability For Future Financing! You may already be thinking, “I don’t plan to have a sole proprietorship… I’mconvinced that I need to form an entity.” But when will you take action? If you wait 30 days orlonger, do you realize the negative impact that may have on your business? Although it’s notimpossible for a lawsuit to pop up in that short period, a MUCH bigger (and disturbinglycommon) mistake lurks at this important business start-up phase… Using your personal credit cards to finance the start-up of your business is the mostwidespread mistake made. Added to the folly of operating as a sole proprietorship with a“let’s see how we do first before we incorporate” mentality, it’s a recipe for disaster. Here’swhy: Financing your business with your personal credit (credit cards, home equity line ofcredit, etc.) negatively affects your “revolving debt ratio.” That ratio is a major factor in yournew corporation or LLC’s ability to obtain a business credit card at the start,,, and later, abusiness line of credit. 10www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 15. Why is this so important? The number one reason business owners fail, especiallyduring the first six months, is lack of cash flow. That’s when the folly of overestimatingrevenue and underestimating expenses rears its ugly head. And for most small businessowners, that behavior is as predictable as the sun. NCP is one of the few, if not the only company that literally “Cracked the Bank’s Code”on business lines of credit for you. We spent more than four months going back and forthwith a major bank to figure out exactly how they make their decisions as to who gets thosevaluable lines of credit, how much… and who does not. Factors such as the “liquid credit score,” the risk category of your business, grossrevenues, your personal credit score, derogatories, and your revolving debt are all taken intoconsideration. Here’s the bottom line: If you’re starting your business by nearly or completely maxingout your credit cards, the bank will ignore you. Even with a 700 personal credit score, if yourrevolving debt is close to 90% maxed out, that sends the bank a very clear message that youcannot manage your personal debt. Why give you money to start a business? Basically,you’re on your own financially. Don’t be misled by TV or Internet ads about “corporate credit,” either. Usually, theyrefer to “trade lines of credit,” which doesn’t give you actual cash for you to use in yourbusiness as you choose. Now, if you’re building homes or have more than 30 employees,developing trade credit can be important --- but it’s still not cash. You can’t use trade credit tomake payroll, nor to spend on pay-for-click advertising or any of the many other strategiesyou need to start quickly and gain that all-important competitive edge. Want a simple solution? 1. STOP using YOUR PERSONAL CREDIT CARDS ASAP! 2. Incorporate or form an LLC 3. Open a BUSINESS CREDIT CARD and use that ONLY for your business expenses. Yes, it is personally guaranteed, but it will NOT negatively impact your personal revolving debt ratio. That’s key advice as your business gets started. Remember, when your corporationor LLC applies for a business line of credit, half of the bank’s formula in determining eligibilityis your personal credit score --- and most importantly, the revolving debt ratio. 11www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 16. Sole Proprietorships Are 300% More Likely To BeAudited By The IRS Even By Las Vegas Standards, Those Are Incredible Odds! Fact: Sole proprietorships are currently being targeted by the IRS. Why? In aself-audit last year, the IRS discovered a $300 billion tax gap --- meaning that more than$300 billion-worth of taxes go unpaid annually. They concluded that the biggest offenderswere not large corporations, but rather small business owners who owed somewhere around70% of that $300 billion. Of that group, 1/3 were sole proprietorships. You can bet the IRSisn’t going to ignore that low-hanging fruit! In fact, you are 300% more likely to be audited ifyou file a Schedule C. Is Your Business a Hobby, or a Business? Most people enjoy a hobby --- golf, tennis, cooking --- and while they’ll spend moneyon those activities, they’re not a business. Yet when most people join a business opportunityor start a business, though they don’t consider it a hobby, that’s often actually what theycreate because they don’t know the rules of the game. But they have a problem: The IRS is getting much tougher on this subject. Thenumber one reason the IRS goes after business owners is the failure to use proper analyticalrecords. You’d be well advised to use software like QuickBooks® to determine how yourbusiness is really operating --- to update your gross revenue, cost of goods sold, and income. The biggest mistake we see new business owners make is using their online bankbalance as their only business financial barometer. First, that’s the wrong way to makefinancial decisions. Second, it sends the IRS a very clear message: you are NOT seriousabout your business. This single mistake may cause the IRS to consider your business as ahobby. If they do, you cannot write off your hobby’s losses against your earned income ---and that kills one of the biggest reasons to start a business in the first place. 12www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 17. 67% Of All U.S. Businesses Operate As Sole Proprietorships… If Your Clients Are Business Owners, How Do You Protect Yourself? If everything we’ve told you is true (and it is), how do you keep your own businesssafe? To understand the mindset, consider these three simple, yet costly myths:  Myth #1: Sole proprietorships are simple --- the easiest business structure to operate. As you know by now, the worst choice is to operate as a sole proprietorship. Unfortunately, simplicity and asset protection are “inversely related,” meaning the more protection you have, the more complex your situation may become. I know that does not resonate with many of you. But your goal is to accumulate profit and assets, and the more assets you accumulate, the more you must protect them. The good news is that you need not go it alone. The key is to strategize with a knowledgeable, experienced advisor to come up with your optimal protection plan. After all, you need to stay focused on adding value and profit to your new venture, not to become an expert on business start-up methods. You should only have to do that once --- but do it right.  Myth #2: Most start-up business owners cover only one component of the big picture by getting tax advice from their professionals. But there’s more. Could you benefit by having a separate legal entity to help save on taxes? Which entity is best for your venture? As you know now, there are many elements to consider.  Myth #3: I’m a good person, and I have insurance. Why would anyone sue me? That’s admirable, but that’s not how the game is played. Desperate people don’t care if you’re a “good person.” If you have money --- or the perception of money --- you’re a potential target! Don’t bury your head in the sand. Now that you’re aware of the pitfalls, take action yourself --- and arm your clients as well --- with the tools and information to be successful. After all, it’s in YOUR best interest to make sure your clients prosper! How do you make that happen? Call NCP and ask for more information on how we can help your clients and your business! We touched briefly on the question of insurance just now. Let’s go a little deeper… 13www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 18. Insurance Is Not A Fool-Proof Safety Net Even though many professionals tell you that you’re protected by insurance, you canstill spend a lot of money defending a lawsuit without ever having a claim against yourinsurance policy. But what if a claim is made? Insurance may provide some level of protection – butworst case, that protection may be only as good as the legal representation you can afford. (Ican’t tell you how many clients have found that their insurance companies weren’t nearly asfriendly when they filed a claim as they were when they first signed up!) True, you can get Errors and Omissions insurance (or “E&O”), business liability, andeven officers’ and directors’ insurance --- and again, a good policy should provide someprotection. But NONE of those will help you protect the corporate veil (a hugely importantbenefit that we’ll talk about more later.) In fact, there is NO insurance policy in existence thatcan do that. If you have a smaller insurance claim of, say, $10,000, your insurance company willusually pay it. However, if you have a claim for $900,000… put the coffee on, because youcan expect a visit from your insurance company’s attorneys. Why? To find a loophole inyour policy so they don’t have to cover you. And of course, even if they do cover you, yourrates will skyrocket – if your policy isn’t cancelled! Don’t Expect Sympathy from the Courts, Either Are you a landlord now, or do you have plans to own real estate in the future? Ifyou’re ever sued, remember that juries are made up mostly of tenants... jealous tenants whodon’t own a house – and yet you have several. This is their chance to get even with everylandlord who ever hit them with a late rent charge or made them get rid of that pet. It’s pay-back time! Is it fair? No – but it’s human nature. And consider this: Most judges earn less than you do. How sympathetic could theypossibly be? You might as well just hand over your checkbook and the title to one of yourhouses – unless you know NCP’s asset protection strategies. The bottom line? Win or lose, even with insurance, you could become financiallyparalyzed by being a sole proprietor. Does it make sense to leave yourself exposed? Of course not, especially when thesolution is not complicated, sophisticated, or reserved for the AT&T’s of the world. Thesolution is to incorporate! Creating a legal entity separates you from your business so thatany legal action will not affect you personally. 14www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 19. Here’s an added benefit of incorporation: As any good marketer will tell you,perception is everything in the marketplace. That “LLC” or “Inc.” after your name helpspeople perceive you as larger than you actually may be. Plus, it adds to your credibility – aswell it should. It shows that you’re aware of the pitfalls lurking out there, you’ve done yourhomework, and you’ve taken the appropriate steps to protect yourself and your company.You’ll be around next year, and the year after that. And that message to the marketplacetranslates to a very direct effect on your bottom line. Be Sure To Play By the Rules It’s essential to do things properly when you incorporate. Remember, when yourcompany incorporated, you created a separate legal entity from you personally. It’simperative that your corporation is treated as such. If the corporation is sued and there aren’tenough assets or insurance, the plaintiff may decide to go through the corporation and afteryou personally. This is called “piercing the corporate veil,” and the consequences to youcan be devastating. (More on that later.) You are essentially a sole proprietorship again,financially paralyzed, with a lawsuit against you personally! How do you keep this from happening? Your new corporate entity MUST: A. Follow corporate formalities, keeping recorded minutes and resolutions; B. Have proper capitalization, which is the amount of money you put into the corporation to get it started; C. MUST NOT commingle funds with your personal account. Under no circumstances can you use corporate money to pay for your personal expenses. Let’s take a closer look at how these three requirements can be breached orcompromised: 1. Lack of corporate formalities. Here’s an example: When an officer of the corporation goes on a business trip, the corporation must have a meeting to authorize that trip. This is hard for some to understand, especially if you’re a one-person corporation and you wear all the hats. Still, you must show in your corporate meeting minutes that the trip was approved, because the corporation is NOT YOU. It must be treated as a separate legal entity. Some people will tell you that an LLC doesn’t have to perform the same formalities as an S- or C-Corporation. (Actually, the main reason that CPAs sometimes recommend an LLC is because of lack of formalities.) While this is somewhat true, it is changing. 15www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 20. We’ve discovered recent court cases involving piercing the LLC veil where the judge looked at corporate cases for guidance, particularly with regard to formalities. Accordingly, use of the term “piercing the corporate veil” has evolved to “piercing the entity veil” or “piercing the LLC veil.” NCP maintains corporate formalities for LLCs as well as for corporations. Our LLC record books have more than 50 pages of resolutions to protect our LLC clients. (We’re one of the few companies in the U.S. to do so for our LLC clients.) 2. Lack of proper capitalization: When you form a corporation, it has to be capitalized. That usually means money is put into a corporate checking account, and stock for the corporation is issued to whoever capitalized it (usually an individual, but it could be another entity.) There are certain guidelines in each state that ask, “Did you capitalize the corporation with enough money/assets, or was it too thinly capitalized?” But what exactly is “too thinly capitalized?” Lately an unfortunate trend has been appearing in the courts. They’ve adopted a sort of “20/20 hindsight” in some situations, and companies in high-liability sectors like manufacturing are especially at risk. For example, let’s say you’re a widget maker with five employees and you’re capitalized at $50,000 and have a $1 million insurance policy - which is appropriate, because widgets are cheap and you don’t sell many. Then one day, Joe Employee cuts off a hand with the box cutter and saddles you with a $3 million lawsuit. The court says, “Mr. Business Owner, when you formed this company you should have known that Joe would slice off a hand someday, and you should have known that your insurance would cover only $1 million of the $3 million he’d want. Since you only have $50,000 in capitalization, we’re going to consider your company too thinly capitalized. Therefore, we’re going allow for piercing your corporate veil to recover the rest.” Crazy? Of course. But true. You can capitalize a corporation or LLC with cash, assets, and, in most states, services. However, services can create a tax problem. For example, say your partner owns 50% of the corporation and capitalizes it with $25,000. You own the other half, and you capitalize it with services (called “sweat equity.”) The IRS says you received an asset without paying anything for it; therefore they treat that $25,000-worth of services as personal income to you. That means you have to claim $25,000 in personal income… but you never earned the money. What you did get was stock in a company, and now you have to pay taxes on it! One solution might be for your partner to loan $24,000 and then have both partners capitalize the entity with $1,000 each. 16www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 21. Just remember, the corporation has to pay back the $24,000 as a loan, whereas in the first case it was a capital investment which does not have to be paid back. This is a potential problem with partners when it is not clear whether the money is capitalization or a loan. 3. Commingling of funds. As a sole proprietor, you no doubt have a company bank account. You can use that money for your business or personal expenses. At the end of the year your CPA will help you determine which part of that money was deductible for business expenses, and which portion was for personal expenses. Often your CPA will find that you spent a lot of money on personal items that are not deductible business expenses. Still, the only consequence to you is that your net profit is higher than you thought, so you owe more in taxes than you expected. It’s very different in a corporation. There must be a separate checking account used for business purposes only. Using that money for personal reasons is called “commingling of funds,” and the consequences are dire. A judge may actually set aside the corporate veil because you ignored the fact that the corporation is a separate legal entity from yourself – leaving you totally exposed. Summary: Incorporating your company helps separate your personal identity from that of your business. Sole proprietors and partners are subject to unlimited personal liability for business debt or lawsuits against their company. Creditors of the sole proprietorship or partnership can bring suit against the owners of the business and seize the owners’ homes, cars, savings, or other personal assets. Once incorporated, the shareholders of a corporation have only the money they put into the company to lose, and usually no more. Additional Benefits of Incorporating • Marketing and Joint Venture Advantage Which sounds better : “It’s the CEO of ABC, Inc on line 1 for you, Bob,” or “It’s the owner/operator (meaning a sole prop) on line 1 for you, Bob”? As a new business owner attempting to get through a gatekeeper, every minor advantage helps! So many miss this door-opening opportunity, even though it could spell the difference between prospering and being out of the game in the first 90 days. We have our own policy at NCP regarding JVs. If a sole proprietorship calls and wants to do a JV, that means one of three things: 1. They have no profits in their business. 17www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 22. 2. They don’t believe they will succeed, so they didn’t spend the money to incorporate. 3. They have a “Let’s try it out first to see if it works, then incorporate later” mentality. Our standard answer is, “Thanks for calling, but we’re unable to work with you right now.” Of course, they never hear the “real reason” they were rejected. Nor will you, because now you know not to make this mistake in the first place. • Tax Advantages – Deductible Employee Benefits Incorporating 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, corporations usually provide an increased tax shelter for qualified pensions 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 require 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. • An Enduring Structure A 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. • 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. • 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. 18www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 23. • 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. Do I Need An Attorney To Incorporate? An attorney is not a legal requirement to incorporate. You could prepare and file the articles of incorporation yourself. But, you must fully understand all the requirements of your intended state of formation. That’s what NCP is here for. We make sure you know everything you need to know, and give you the tools to make sure you’ve done everything you need to do. NCP does not require a retainer before you get started. You will receive all the fees up front so you know exactly what you be charged! Costs are not out of control with NCP! In fact, when people hire an attorney to incorporate, the attorney often actually outsources the work to a company like NCP (and then tacks on a $1,000 fee for his trouble!) Working directly with NCP is like buying wholesale instead of retail. This will save you money up front. You can use NCP’s service to incorporate and not only save money on attorney fees, but you’ll rest assured that all forms are filed properly. We recognize that there are areas where an attorney should be retained, especially when it comes to shareholder and buy/sell agreements, raising money, contracts, or to have your documents reviewed. However, NCP will conscientiously inform you any time an attorney should be consulted. If you need a referral, NCP is happy to provide one for you! 19www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 24. Which State is Best to Incorporate Your Business? Oh, yes, like any other subject, there are lots of opinions, and like any subject thereare exceptions to the rule. There is not adequate room to cover every angle in this report, butlet’s cover the key fundamental points on the top four options. Keep in mind, NCP does incorporate in all 50 states. If you have a higher tolerancefor risk, you may want to consider incorporating in your home state. Either way, NCP canhelp you form your company and protect your assets. The Four Most Common and Best Options: • Nevada -The front runner. Nevada Secretary of State Ross Miller has recently (in March 2008) announced plans to amplify Nevada’s place in the incorporating marketplace with many changes coming in 2008. His goal is to surpass Delaware for the #1 spot! • Delaware –The long time stand by, and the most popular, especially for the large East Coast law firms. Going public? Delaware may be your best option (although do not count Nevada out.) • Wyoming - The new kid on the block, with slight benefits, but most are irrelevant to legitimate entrepreneurs overall. • Your Home State –simple, easy, least thought-involved choice --- the biggest default selection. 20www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 25. Taking a Closer Look at Each Option… Why Nevada? Let’s be real up front. Misconceptions abound when it comes to the supposedadvantages of Nevada incorporation --- that it’s only good for hiding money, that you’llmagically save state income taxes… There are exceptions, but most businesses do not fitthem. Every industry and subject has misinformation, and ours is no different. But thathaving been said, don’t make a decision until you hear all the facts. Once you’ve decided to incorporate, the question becomes, “Where?” For many, thebest choice really is Nevada. Why? Understand the "Circle Of Liability™" And You’ll Understand the Real Benefit of Incorporating In Nevada! We’ve already talked about your dangerous exposure to lawsuits by operating as asole proprietor. By now you’re well aware of the unlimited liability you have personally ifyour company is sued, the very real danger of losing your personal assets if you lose thecase, and the extremely high cost of just being involved in litigation, regardless of whetheryou win or lose. You realize that even a frivolous lawsuit can keep you from getting a home or car loan,up your interest rate, bar you from leasing office space… The many, many possibleconsequences could spell financial paralysis and doom for your business and your family. Once you’ve established your corporation or LLC, you know that while businessinsurance may (or may not) help, it can’t help you protect the corporate veil --- the shield yourbusiness wields against our litigious world. It only makes sense that if you’ve gone through the proper steps of incorporation toprotect your personal assets from lawsuits, you want the best assurance possible that noaggressive lawyer can take that protection apart, throwing you once again into “The Circle ofLiability™”. 21www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 26. The “Circle of Liability™” Step 2: Lawsuit! Step 1: Step 3: Did you operate the Incorporate your corporation properly? business = No commingled funds liability protection Separate legal entity Proper Capitalization If not, possible result: Piercing of the entity veil = back to being sued personally/viewed as a sole proprietorship again! Operating Your Business as a Sole Proprietorship= • Unlimited personal liability • Bad marketing perception • Financial Paralysis! As you know, a corporation is a separate legal entity from a sole proprietorship. That’swhy it has limited liability. But remember, there are three things you must do differently thana sole proprietorship to gain this liability protection: • You must maintain corporate minutes and resolutions; • You must have proper capitalization; • You must NOT commingle business and personal funds. 22www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 27. If the corporation (or LLC) is sued and you haven’t done these things properly, thesuing party may realize that you have personal assets outside of this entity. They mayattempt to pierce the corporate veil and go after you personally! That means they are attempting to set aside the corporation and say you did notoperate it properly. If they are successful, you’re right back to being viewed as a soleproprietorship with UNLIMITED liability and potential financial paralysis! Again, while you can buy errors and omissions (E & O) or business liability insurance,there is NO insurance that will protect the corporate veil. Let me ask you this: if theinsurance company could make money on that kind of insurance, would they sell it to you? Ofcourse they would --- but they don’t. What does that tell you? So what’s your best move? The very best solution is to incorporate in Nevada.Nevada is very pro-business, and the corporate veil has only been pierced twice in the last 30years in Nevada. There have been many cases where a Nevada corporation did not operate properly(meaning they did not do all of their formalities, thinly capitalized the company and evencommingled funds), yet Nevada protected the corporate veil because the owners did NOTcommit outright fraud. As a business owner, you want to be sure that your hard work, carefulplanning, and conscientious observation of proper business methods will be protected by thelaws of the state you incorporate in. Nevada provides this level of protection. Common Objections: 1. “I was told just to incorporate in my home state and keep it simple.” Just a reminder: If it’s simple to set up in your home state, it will be simpler for someone to come after you and go through your entity and after you personally. Simple and asset protection are inversely related. 2. “I thought I would save taxes by incorporating in Nevada. Is that all there is, just more protection?” This is very common sentiment. I truly must emphasize the challenges with being a sole proprietorship. If you incorporate in your home state and do not operate the corporation properly, you may be right back to being viewed as a sole proprietorship. I cannot stress enough the severity of this problem. If saving on taxes is a great priority, we offer equally great products, such as Sandy Botkin’s program, to help you accomplish that. But please don’t miss the overriding threat to your business. 23www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 28. “But My Business Is Halfway Across The Country…” You may wonder how Nevada incorporation applies to your business when your business operations are NOT in Nevada. The answer is that they don’t have to be. Here’s how it works: First, incorporate your business in Nevada (in whatever form of corporation or LLC you decide is best for you.) This makes Nevada your domicile. Then register your new corporation in your state of business. This is called “foreign registration”. You then open a bank account and office in your home state, and your business is off and running. If your company is sued, it will most likely be in your home state. If the plaintiff (the person suing you) wants to go beyond the corporation (or LLC) and after you personally, the case will most likely go back to the state of domicile, which is in this case Nevada – where you get the most protection. (Why “most likely”? We can’t control what your local attorney might do. They may want to use your local law to handle your case. Bear in mind that if it’s simpler for you, it’s also simpler for someone going after you to get you!) Remember, if you incorporate in a weaker state (without Nevada’s protection) and your veil is pierced… That’s right. You’re right back where you did not want to be. You will be held personally liable. You might lose the lawsuit – and lose many of your personal assets. Plus, you may be financially paralyzed! The Best Investment You Can Make Next question: How much does it cost to incorporate in Nevada first, versus incorporating in your home state only? Without being dismissive, the answer is that you can’t afford not to. You’ve put in a lot of hours, blood, sweat, and tears to develop your business into your major asset and a significant part of your net worth. If you’re like most successful people, you probably work 10, 12, 14 hours per day. Your goal is to protect all your hard work, and the most valuable asset you have. Want numbers? As of this writing, it will cost you about $895 to incorporate in Nevada first, a $500 Nevada fee for foreign registration (plus whatever your home state charges for registration) and only $500 annually for Nevada renewal (this $500 includes our registered agent fees, Nevada Secretary of State fee and the Department of Taxation fee). Keep in mind our competition rarely gives you the complete picture up front. They want to get you in the door first with the appearance of “low fees”. I don’t know about you, but I don’t like surprises. (Please call us today at 1-877-515-0505 if you are uncertain about the required eight steps.) 24www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 29. Does that sound like too much money to protect not only the most important asset you (and your family) have, but also the wellbeing of all the employees, contractors, and clients that depend on you? Please don’t miss the forest through the trees on this one. This additional investment adds a reinforced foundation to your business! This is what most new businesses will spend on office supplies in the first 30 days. Nevada Corporate Planners has set up over 5,000 business entities in Nevada, providing them with a barrier that protects them from devastating legal repercussions. And just in case you think this risk seems overblown, consider this: • In 1990 there were 655,191 lawyers in this country. • Today, just eighteen years later, there are more than 1,143,358* active lawyers nationwide. (And let me tell you, they don’t call them “active” for nothing.) * American Bar Association 2007 estimate 25www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 30. 16 Reasons to Incorporate In Nevada 1. Nevada Protects The Corporate Veil. Nevada incorporation offers the best protection of any state against piercing thecorporate veil. (Delaware is very good as well, but doesn’t provide as much protection for theboard of directors, which is Reason #2, below.) In fact, the corporate veil has only been pierced twice in Nevada in the last 30 years.Compared to California, where the corporate veil is pierced in one out of two cases, Nevadais like an iron fortress to your creditors. Your attorney may tell you that when you incorporate in Nevada and register inanother state to do business (lets say, California) if you are sued it will be in California, soyou dont need to incorporate in Nevada. But remember, if you get sued and the plaintiffwants to go beyond the corporation (because there isn’t enough money or insurance in thecorporation) the plaintiff could try to sue you personally. UNDER THE INTERNAL AFFAIRS DOCTRINE, YOU CAN GO BACK TO THE STATE OFDOMICILE (IN THIS CASE, NEVADA) FOR PIERCING ISSUES. The Internal Affairs Doctrine says that "Courts traditionally look to the law of the stateof incorporation in resolving questions regarding a corporations internal affairs.” 2. Nevada Protects The Board Of Directors And Officers. Only SIX states protect the personal liability of both the directors AND officersto their stockholders. Nevada is one of the six states that provide protection in this area,called “Inside Liability.” In 1987, the Nevada Legislature passed a revolutionary law that permits corporationsto eliminate the personal liability of officers and directors to the stockholders of Nevadacorporations. This is one of the chief reasons large companies like Citibank domicile in Nevada.Although Delaware and a few other states soon adopted lesser versions of this law, Nevadaslaw remains among the most thorough and comprehensive in the country. In fact, attorney Jay Mitton, a national seminar speaker, a.k.a. “The Father of AssetProtection,” has a “Golden Rule” for his clients. He requires every one of his clients toincorporate in Nevada first to protect the board of directors. Jay says that it’s very risky to beon the board of directors in any company, and feels that Nevada protection is a must. We have a client who manages middle-weight boxing champions of different divisions.This manager has his boxers incorporate in Nevada. Why? He uses it as a safeguard,because his boxers can be sued if they’re injured and unable to fight in a promotion inanother state. To date, in every case when the out-of-state promoters tried to carry the case 26www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 31. back to Nevada, the Nevada judges said, “We don’t recognize that liability in our state.” Inother words, just because you might have a judgment found against you in another state, itdoesn’t mean it will be in Nevada. A vast majority of states have protection statutes for directors only. These statutesallow corporations to adopt article provisions that eliminate director liability for certainbreaches of fiduciary duty to the corporation. In other words, directors receive protectionautomatically by just filing the articles because of state statute. Only a few states – Louisiana, Maryland, New Hampshire New Jersey, and Virginia –have laws that apply to officers.2 Nevadas protection is provided as a matter of law; that is, no article provision isnecessary. The protection available for directors is equally applicable to officers.3 In other words, when you file Articles of Incorporation in Nevada, this protection isautomatic, whereas in other states you have to write specific language into the Articles inorder to have this protection. If you file the Articles on your own or through an online Internetcompany, you will not get that protection. In most states, including Delaware, article provisions can only cover directors.4 Whenone is both a director and an officer, actions taken solely in the capacity of an officer are notprotected by a director protection statute.5 Quote: According to David Mace Roberts and Rob Pivnick in Tale of the Corporate Tape:Delaware, Nevada and Texas, (52 Baylor L. Rev. 45 [2000]), "Without doubt on this subject,Nevada is more director- and officer-friendly than either Delaware or Texas…" All Nevada corporations now have a Limitation of Liability statement fordirectors and officers imposed by law. In Delaware, that’s not the case. When a Delaware corporations articles of incorporation don’t contain a limitation ofliability statement, the protection provided for directors from personal liability comes under thebusiness judgment rule. As a substantive rule of law, the business judgment rule says that“There is no liability for an injury or loss to the corporation arising from corporate action whenthe directors, in authorizing such action, proceeded in good faith and with appropriate care." This being the case, an act of a Delaware corporate director not in good faith, whichrises to the level of "gross negligence," can lead to personal liability if the corporation has nolimitation of liability statement in its articles. When such a statement does exist, acts not ingood faith are still not protected. In Nevada, a director is not liable to the corporation or its stockholders unless a breachof fiduciary duties involves "intentional misconduct, fraud or a knowing violation of law." 6 27www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 32. This is a very high standard according to attorney David Bruno, whose extensiveresearch has found that other states don’t abide by this standard. Those 28 states use“simple negligence” as their standard of liability. This is a very low standard, and when simplenegligence is found, personal liability will follow.7 However, in Nevada, no director "is individually liable for a debt or liability of thecorporation, unless the . . . director . . . acts as the alter ego of the corporation." 8 3. Nevada Provides Indemnification Of Officers Automatically When Articles Are Filed. As of June 15, 2001, Nevada Revised Statutes (NRS) 78.037(1) allows officers to beautomatically indemnified, whether it is stated in the articles or not. 4. Nevada Has No State Corporate Or Franchise Taxes. Nevada has NO state Corporate Income Tax or Franchise Tax (if you qualify): 9 5. Nevada Does NOT Exchange Information With The IRS. (needs an update) Nevada is one of only two states that does NOT exchange information with the IRS.(However, keep in mind that if you decide to register your company in another state, thatstate will probably exchange information with the IRS.) Here are the facts: Internal Revenue Code (IRC) ß 6103(a) states that tax "returns and return informationshall be confidential," and that no federal or state employee "shall disclose any return orreturn information obtained by him in any manner." For purposes of this law, a "return" is "anytax or information return," §6103(b)(1), and "return information" means: [A] Taxpayers identity, the nature, source, or amount of his income, payments,receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability, taxwithheld, deficiencies, over assessments, or tax payments, whether the taxpayers returnwas, is being, or will be examined or subject to other investigation or processing, or any otherdata, received by, recorded by, prepared by, furnished to, or collected by the Secretary withrespect to a return or with respect to the determination of the existence, or possibleexistence, of liability (or the amount thereof) of any person under this title for any tax, penalty,interest, fine, forfeiture, or other imposition, or offense[.] § 6103 (b)(2)(A).Despite the confidentiality of this information: “Returns and return information . . . shall be open to inspection by, or disclosure to,any State agency, body, or commission, or its legal representative, which is charged underthe laws of such State with responsibility for the administration of State tax laws for thepurpose of, and only to the extent necessary in, the administration of such laws.” 28www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 33. § 6103(d). In the above statute, the term "State" means any of the 50 states,Washington, D.C., Puerto Rico, the Virgin Islands, the Northern Mariana Islands, Guam,American Samoa, and the Canal Zone. § 6103(b)(5). In order to put § 6103 into action, 48 states, Washington, D.C., Guam and AmericanSamoa have entered into "agreements of cooperation" with "the IRS on the exchange ofinformation on taxpayers," according to the CCH Standard Federal Tax Reporter, vol. 15(2002), 36,894.576 at 64,490. Two states that possess no such agreement with the IRS are Nevada and Texas.Id. Update: Assembly Bill 25: Nevada is the first state to adopt a requirement that acompanys record of beneficial ownership must be maintained and available upon request bythe Secretary of State during the course of a legitimate criminal investigation. The entity mustfurther respond to any interrogatories that would assist in the investigation. Companies notcomplying with the provisions could have their charter suspended or revoked by theSecretary of State. "This legislation strikes at the heart of the fraudulent practices but doesnot pose a barrier to legitimate commerce," said Secretary Miller. Also a part of AB25, Nevada prohibits the use of controversial "bearer shares," whichallow the trading of company stock in bearer form by attributing stock ownership to whoeverphysically holds the shares. For years, NCP has stated that this protection strategy does notwork. 6. Nevada Has Low Fees. Nevada has low fees, especially taking into account all the benefits they offer. Filing fees with the state of Nevada are reasonable at $125, while California is $800 and Massachusetts is $500. 7. A Nevada Corporation Or LLC May Be Thinly Capitalized. Cases as low as $200 10 have been deemed acceptable capitalization levels in Nevada. However, in other states such as California, this amount was deemed too thinly-capitalized, which caused the corporate veil to be pierced. 8. Nevada Offers The Best Protection Of Board Of Directors From Shareholder Lawsuits. In order to find the Board of Directors liable, the shareholders must prove gross negligence on behalf of the Board of Directors. In Nevada proving gross negligence is necessary in order to pierce the corporate veil. No other state has such a high test! 9. In Nevada, You Must Only Have A Legal Purpose To Form A Corporation Or LLC. 29www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 34. If you form an LLC, these provisions are critical. You must know whether the state of formation requires simply a legal purpose, or a more detailed legal purpose. This is especially important when you form an LLC that will mainly hold safe assets. Nevada is one of the states that only require a legal purpose. Currently, 14 states (California, Indiana, Iowa, Louisiana, Maryland, Michigan,Minnesota, New York, North Dakota, Oregon, Pennsylvania, Rhode Island, Texas, andVirginia) require a business purpose in order to form an LLC. Because of this, an LLC cannotbe used to hold an asset to protect it from creditors, unless that is deemed a businesspurpose in that state. Each of these states defines the term “legal purpose” in its own way. Since an attemptto form an LLC in any of these states without such a purpose is invalid (and the applicationpresumably would be rejected by the Secretary of States office) it’s not possible to form anLLC in these states without the requisite purpose. And, of course, if an LLC is formed in one of the states above and performs businessin another state, that states business license statutes become applicable. In the other 36 states, an LLC can be formed for "any lawful purpose" which includesholding personal assets. Thus, a person could form a Nevada LLC to hold personal assets,and if no business is performed, the business license statutes will not come into play. Thisprovides an extra layer of privacy not found in the above-named 14 states. 10. In Nevada, There Is NO Joint And Several Liabilities. The other significant change in Nevada law is the abolishment of joint and several liabilities. “Joint and several liability” means that should a judgment be entered against several defendants, they will each assume equal liability for the full amount of the judgment, regardless of their relative fault in causing the damages. Nevada now requires the court to assign a percentage of faults to each defendant, from zero to one hundred, with the total equal to 100 percent. Every defendant found liable is required to pay a share of the total judgment, no greater than his or her fault. 11. Nevada Only Requires The List Of Officers To Be Updated Annually. If your officers change throughout the year, the corporation is not required to update the Secretary of State every time a change is made. The corporation may update it (which requires a fee) or wait until the corporations annual renewal is due. 12. In Nevada, One Person Can Hold ALL The Corporate Positions. One person can hold the offices of President, Secretary, Treasurer, and be the sole Director in Nevada. Many states require at least three officers and/or directors. That means you dont need to bring other people into your Nevada corporation if you don’t want to. 13. Nevada Does NOT Require The Members To Be Listed In State Records. 30www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 35. If an LLC is MANAGED BY MANAGERS (the only way that makes sense), the owners aren’t required to be listed. In other states that may not be the case. If you want to protect the identity of the ownership of your LLC from the public, Nevada makes that possible. 14. Nevada Does NOT Require Stockholders, Directors And Officers To Be U.S. Citizens, Or To Live Or Hold Meetings In Nevada. Directors need not be stockholders and officers, and Directors of a Nevada corporation can live and work elsewhere. 15. Nevada Corporations May Purchase, Hold, Sell Or Transfer Shares Of Its Own Stock. 16. Nevada May Issue Stock for Services. Nevada corporations may issue stock for capital, services, personal property, or real estate, including leases and options. The directors may determine the value of any of these transactions, and their decision is final. 1 Remme v. Herzog, 35 Cal. Rptr. 586, 222 Cal. App. 2d 863 (1964)($157,000 in capitalization 2 Hagglund, et al., supra, at 9. 3 See Nevada Revised Statutes 78.138(7) 4 See Delaware Gen. Corp. Law § 102(b)(7); Cal. Corps. Code § 204(a)(10) 5 See Arnold v. Society For Savings Bancorp, Inc., 650 A.2d 1270 1288 (Del. 1994. 6 NRS 78.138 (7). 7 See Theriot v. Bourg, 691 So.2d 213 (La. App.), writ denied, 696 So.2d 1008 (La. 1997) (a series of bad business decisions led to personal liability for five directors in the amount of $5,798,441. 8 NRS 78.747(1) 9 In order to take advantage of the tax laws of Nevada, your company must have employees in Nevada. 10 Paul Steelman, Ltd. v. Omni Realty Partners, 110 Nev. 1223, 885 P.2d 549 (1994). 31www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 36. What’s My Best Choice: Nevada or Delaware? The main rights in Delaware law benefit shareholders of public corporations. Thisattracts large public companies that trade on various exchanges across the country toprovide the best protection to their shareholders. Delaware’s corporate law, with regard tocorporate takeovers, is the strongest in the US. However, for everyone else, the followingchart illustrates several benefits of Nevada over Delaware: Nevada vs. Delaware It’s No Secret: Nevada Beats Delaware Nevada’s liberal incorporation laws offer more privacy and less disclosure than the once popular Delaware, making it the most advantageous state in which to incorporate. Here are some of the specific differences: Nevada Delaware State Corporate Tax No 8.7%* Disclosure of principal business No Yeslocation outside Delaware Report actual number and value No Yesof stock listed Freely exchanges information No** Yeswith other states and the IRS *To verify this information, call the state corporate tax department of Delaware at (302) 577-3300 **Even though this type of information sharing has not been the practice of Nevada in the past, in todays world the IRS is realistically able to get its hands on any information they deem necessary to further the cause of “fair and reasonable taxation.” In short, Delaware’s state corporate tax amounts to 8.7%. Delaware also requiresdisclosure of the principal place of doing business outside the state, requires the corporationto report the actual number and value of its stock, and freely exchanges information with theIRS. In addition, Nevada’s corporate legislature has recently surpassed Delaware’s in itsefforts to ensure that the rights of small corporations are protected. Delaware for example,adopted a statute that allows the corporation to limit the liability of a director for monetarydamages. However, it has far to go to be compared to similar statutes adopted by Nevada. 32www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 37. For example, the following are acts for which officers and directors would be protected underNevada law, but exposed under Delaware Statues: • Acts or omissions not in good faith. • Acts by officers are not exempt from monetary damages under Delaware law. • Breach of a director’s duty of loyalty. • Transactions involving undisclosed personal benefit to the officer or director. • Acts or omissions that occurred prior to the date that the statute, which provides for indemnification of directors, was passed and approved. Delaware requires that an officer must reasonably believe that he/she is performinghis/her duties in a manner that is in the best interests of the corporation. This is not arequirement in Nevada. “The New Kid on the Block” – Wyoming Wyoming adds a few benefits to home state incorporation, including privacy,nominees, hiding (but that is not asset protection), lower fees… But ask yourself, does itmake sense to save $200 in fees when you’re protecting $1 million of assets? The bottomline is protection. If you choose to hide, saving that $200 may just put you out of business. Like Nevada, Wyoming does not impose a state corporate income tax or other taxes.And like Nevada, the key is you must have nexus in the state of Wyoming in order to qualifyfor the tax savings, otherwise your Wyoming Corporation or LLC will need to register (orqualify) to do business in the state where you live and operate your business. This will negateany taxes savings that Wyoming may have to offer. Even an Internet business mustdetermine where nexus is created in the operation of their business. "The state of Wyoming does not levy a personal or corporate income tax. Wyoming does not impose a tax on intangible assets such as bank accounts, stocks, or bonds, either. In addition, Wyoming does not assess any tax on retirement income earned and received from another state. Further, there is no legislative plan to implement any of these types of taxes." Less State Fees Wyoming initial state fees are less than Nevadas. Wyoming does not require an initiallist of officers or managers, which will save you $125, although Wyoming does not require astate business license of $200. The key, however, is to evaluate the benefit of Wyoming asthe “pivot point” for your business and financial future, not the fees involved. One of the biggest mistakes made every day is using as the main criteria for businessdecisions, “What do you charge?” Price can be the worst way to evaluate the quality and 33www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 38. results of a product or service. True, it’s a factor… but there are so many more importantones. Saving $200-$300 on incorporating fees when you are going to be investing (and mustprotect) tens of thousands in your business is not a wise decision. Asset Protection Many companies conclude that since LLCs started in Wyoming in 1977, Wyomingmust offer the best protection. Let’s be clear: oldest does not mean best. Many more caseshave gone through the Nevada and Delaware court systems and found stronger level ofprotection. Specifically, Nevada vigorously protects officers, directors, and the entity veilitself. Privacy Wyoming allows Nominee Officers and Lifetime Proxies. Attorneys andaccountants are often asked to provide an anonymous "company cover" for their clients foradded privacy. To do this, you need to appoint nominee officers and/or directors for thecompany. NCP recommends that you avoid this strategy, because privacy is very differentfrom asset protection. The key question here is, how did your assets get into the corporation or LLC?Typically, transferring assets into an entity is done in exchange for ownership of the entity.Therefore you exchange one asset (your cash or real estate) for another (most commonly,ownership interest in the LLC.) Money wired from your personal account to the newly-formedLLC also leaves a trail. Unfortunately, privacy as a benefit is in many cases over sold by slipshod corporationformation services. (Frankly, if you really need to hide, there probably is a good reason forthat, and NCP would NOT be interested in your business in that situation.) The “Safe” and “Simple” Choice…Your Home State This may be the best choice for some, especially if you’re operating with a low budget,and particularly if you’re still equivocating: “I’m not even sure if my business will work.” Yourabsolute worst option is to operate as a sole proprietorship, so at the very least you shouldestablish a separate legal entity. Keep in mind that “simple” and “asset protection” are inversely related. That means ifyou want more protection for your current and future net worth, keeping it simple (meaningusing your home state because it costs less) and/or not having separate entities for separateassets are recipes for disaster, and much more expensive than doing it correctly from thestart! The more financial success you enjoy, the more complex your structure should be to 34www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 39. protect them. The key here is to outsource these services to a company that can make iteasy for you. 35www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 40. But Wait….Planning to Move Out of Your State in the Next Few Years? Then your best “pivot point” is Nevada. Here’s why: Imagine you live in and have incorporated your business in California. An unexpectedopportunity arises, and a year later you move to Florida. California has an annual franchisetax fee ($800 at a minimum.) Florida does not. Do you want California to be your state ofdomicile, and now have to foreign register into Florida? In this case, there’s no advantage to being linked to California. So do you dissolve theCalifornia corporation and form a new one in Florida? That strategy means you’d lose 1-2years of track record, which is very important when it comes to establishing business lines ofcredit. If you anticipate even a possible change of circumstances in the next 2-3 years, thebest approach is to incorporate or form your LLC in a state like Nevada and foreign registerfrom the start. Start Your New Business With The Wrong Entity, And If You’re Audited Five Years From Now, You Could Lose All Your Profits! Unfortunately, most books on the subject of “Which entity is best for you” describe onlythe general pluses and minuses of sole proprietorships, S- and C-Corporations, LLCs, andlimited partnerships. What these books DO NOT do is help you figure out which entity is bestfor your particular situation — and why. We once had a New York client in the pest control business who decided on his ownthat he wanted to form a C-Corporation. We advised against it, but the client insisted. Hisaccountant was very upset with him two years later when he decided to sell his business,because he should have had (as we had advised) a flow-through entity – and he paid theprice. Moral of the story: a little knowledge can be a dangerous thing. He’s not alone. Many people get incomplete advice from attorneys, accountants andwell-meaning friends who just didn’t understand their “big picture.” We often get clients who have already formed their first corporation with theirattorney’s help, and now want to form a second or third. When we ask them what kind ofcorporation (S-corp or C-corp) the first is, their answer is, “I don’t know.” We ask, “Well, whatwas the benefit of using that type of corporation?” And they’ll say again, “I don’t know.” It’sobvious that they’d never grasped the implications (or importance) of their decision. 36www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 41. In fact, one client came to us for help in forming his second corporation, havinglearned a hard lesson the first time around. After cooking up a great name for his newcorporation (and that’s as far as he’d gotten), he left a message for his attorney asking whattype of corporation he should use. Three weeks later he received a bill for $3,200, with thenews that his attorney had formed an LLC for him – with absolutely no input about this poorman’s situation, his needs, or the future of his new entity. NCP prides itself on the individual attention we give each and every client, ensuringthat they are fully “armed” and ready to make that vital decision. We understand the ins andouts of each type of entity, and even more importantly, make sure that you do, too –BEFORE you make that crucial decision. Here’s just a brief overview of the benefits and differences between entity types: (Bearin mind that this is a general summary. The details of your situation may bring othernuances to light - call us at 1-877-515-0505, and we’ll go over everything with you.) 37www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 42. Choice of Entity Comparison Category C-corporation S-corporation LLC (taxed as a partnership)* Terms: Articles of Articles of Articles of Incorporation Incorporation Organization Bylaws Bylaws Operating Agreement Board of Board of Directors/Officers Directors/Officers Managers Stock holders Stock holders Members Stock Stock Certificates Certificates Certificates Taxation Taxes paid at entity level, 15% lowest Flow through entity Flow through entity bracket Fringe Benefits Only to less than Yes 2% stock holder No Tax Form Filed 1120 1120S 1065 Tax Year End Fiscal Year Calendar Year Calendar Year Foreign Owners Yes No Yes Charging Order No, but can have No, can not have Yes stock held by LLC stock held by LLC Taxed at State Level Usually Not usually, a few Not usually, a few states tax as C- states tax as C- corps at state level corps at state level Save SE taxes No, not a flow Yes, usually a Not usually through reasonable salary is necessary.Increase in basis with debt No No Yes at ownership level Double Taxation Yes No No PSC Problems Yes No No PHC Problems Yes No No Number of owners No limits No more than 100 At least two, no max. Types of Owners Unlimited Only individuals, Unlimited estates, certain trusts (no LLC as partnership or C- corp) Category C-corporation S-corporation LLC Basis Carryover basis from Carryover basis Carryover basis property contributed. from property from property 38 www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 and receive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTER Incorporating! and a 30 minute free consultation, a $200 value plus a special one time offer after you call!
  • 43. No basis from debt of contributed. Basis contributed plus entity. from loans to basis from share of corporation. No liabilities. basis from other debt of entity. Tax on Distributions Distributions taxable Generally can make None to the extent to shareholders. No distributions to of basis (making a deduction to extent of higher basis critical). corporation. shareholder’s basis Appreciation on any without tax. in-kind distributions Appreciation on any taxable to in-kind distributions corporation. is taxable at the shareholder level.Management Shareholders elect a Shareholders elect If manager- board of directors. a board of directors. managed, only Board of directors Board of directors managers have elects officers. elects officers. general authority. Officers hold Officers hold authority to act on authority to act on behalf of corporation. behalf of Formalities on taking corporation. corporate action. Formalities on taking corporate action.Ability to transfer all Transferee takes all Transferee takes all Transferee cannotownership rights rights of transferor, rights of transferor, become a member including rights to including rights to without approval of participate in participate in current members. management. management.Liability of owners Shareholders liable Shareholders liable Members liable only only to extent of only to extent of to extent of contributions. contributions. contributions. *Keep in mind that an LLC can be taxed in one of the four ways: • Disregarded for tax purposes • Partnership • S corporation • C corporation Also, an LLC may be a single member or multimember, and each has a different operating agreement. These options present multiples ways to make a mistake. The 39 www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 and receive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTER Incorporating! and a 30 minute free consultation, a $200 value plus a special one time offer after you call!
  • 44. question here is: How is your LLC going to be taxed? Most don’t know, yet still attempt toform their LLC on their own. Not knowing can be costly! I spoke to one client whose brother formed an LLC taxed as an S corporation on hisown, and did not know that obtaining the EIN number with the S election on it was notenough. Three years later an audit cost him over $50,000 in taxes, penalties and interestbecause according to the IRS, the LLC was not “officially” taxed as an S corporation. (Don’tfeel bad if you didn’t recognize that costly mistake --- many very savvy business ownerswouldn’t.) What Factors Affect Your Entity Choice? Now that you’ve seen the highlights of each type of business ownership, let’s turn ourfocus to the key questions that must be asked to determine which entity will be best for yoursituation. (Again, please note that these are only some of the key questions we ask to come upwith the correct answer for you. Be sure to call 1-877-515-0505 for a complete evaluation ofyour situation.) 1. What type of business do you operate? Do you sell a service or a product? 2. What is your gross revenue expected to be for the first 12-months? 3. What are your expected net profits during that same 12-month period? 4. Do you have a partner? 5. Will your business develop a net worth? Have inventories or receivables? 6. Will your business be purchasing a lot of equipment with debt? 7. If you, as owner, stop working, will revenue stop coming into the company? 8. What is your (and other owners’) earned income level? 9. What are your liability concerns? 10. Is your goal to sell the business soon? 11. Are fringe benefits, such as health insurance, important to you? 12. What are the state tax consequences? 13. Do you own other C-corporations? 14. Will property be dealer or investor property? 15. Will the entity keep profits as retained earnings for future growth and expansion? What Does NCP Have to Offer That Other Entity-Forming Services Do Not? Nevada Corporate Planners is in its twelfth year in business. In that time we haveworked with more than 5,000 business clients! 40www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 45. NCP is used exclusively in Nevada by nationally-renown attorneys, such as:  Dr. Arnold Goldstein, author of more than 100 books on finance and law. NCP is the ONLY Nevada incorporating company to be featured in his next book, So Go Ahead and Sue Me: How to Protect Your Assets from Greedy Attorneys.  Sandy Botkin, attorney/CPA, and one of eight people politically appointed to the chief audit counsel of the IRS. Mr. Botkin teaches attorneys, CPAs and individuals how to optimize business expenses. He is the author of 2002’s top-selling tax advisory book, Save Taxes Big Time! (In fact, NCP wrote the chapter on Nevada corporations in that book.) Mr. Botkin has chosen NCP as the only incorporating company in the US linked to his website (www.taxreductionsinstitute.com). NCP gets results! There is no way, top professionals like Sandy Botkin, a national know CPA/Attorney would put his reputation on the line and refer his clients to NCP unless we did what we said we did and more! Same reason, top marketing expert Jay Abraham, allows NCP to give out as a bonus to all our new clients his famous interview with Tony Robbins! Same reason why Michael Gerber is doing a teleseminar with NCP. These top qualify professional only associate with the best of the best. We only earn that reputation by results and that is a key interest with most of our clients, and hopefully that is a great interest for you also! NCP has been a member of the Better Business Bureau for six years, and boasts a complaint-free track record. NCP enjoys associations with professional firms, in areas such as asset protection, CPA and legal services, and will happily refer you to them. We know that incorporating is only the first step. We quickly and efficiently put you in touch with key business support services to jumpstart your new business! NCP provides packages tailored to your needs. Do you only need the basics --- your articles filed, a resident agent, or perhaps an EIN number? Or maybe you need to get a full-blown business structure up and running, but your time is much more valuably spent focusing on your product or service. Everyone’s situation is different, so why should you be “shoe-horned” into a package you don’t need? NCP boasts a highly trained staff to serve you. Each and every new NCP employee spends his or her first 30 days in extensive training with videos and PowerPoint presentations. We cover everything, from answering the phone to filing corporations and LLCs. New employees progress to the next training level only after comprehensive tests. Then, ongoing weekly training sessions ensure that every employee has accurate 41www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 46. information at their fingertips. You’re assured of a consistent, high level experience from every team member! NCP develops tools to keep you on track. You’re going into business to do what you do best, NOT to become a corporate or LLC expert. That’s our job. NCP sends you key reminders via e-mail during the first six weeks of your business to keep you and your new entity on track. Plus, you receive tax e-mails at important times throughout the year to ensure you’re in compliance. You’ll also find our extensive “Members Only” section invaluable for keeping abreast of every step in the corporate protocol process. NCP constantly updates its research. What does the IRS say about S- corporation salaries versus distributions? Is the charging order still powerful? What’s the latest on trusts? How can you best protect your residence? You’ll be on top of the latest information and research about your business and how to protect your financial future. NCP provides business support after formation. Most business owners think the most difficult part of forming their new entity is determining which structure to choose, in which state, and when to get started. The truth is, that’s only the beginning! NCP’s PROACTIVE support is the key to getting your business off to a fast, successful start during those critical first 90 days. You’ll receive follow up calls and e-mails, plus a comprehensive walk-through of your corporate or LLC record book. NCP surprises you with frequent bonuses. We believe that you deserve --- and should get --- more than just what you pay for, and we know that it’s is in our best interest to see you succeed. That’s why we give you many powerful bonuses after you become a client. Just for starters, you’ll learn all about asset protection with the latest book by a top U.S. attorney. Marketing genius Jay Abraham’s transcripts then teach you how to exponentially grow your business (and at $5,000 an hour, Jay knows what he’s talking about!) With gifts like these (and many more) you’ll be fully armed for whatever the business world throws at you. NCP has many happy, successful clients. When all is said and done, it all comes down to results --- consistent, ongoing success. Virtually every website has testimonials, but NCP is one of the few that date our testimonials. Why? We want you to know that our many success stories from satisfied clients continue to come in, week after week. How Does NCP Compare to The Competition? I actually encourage you to compare! I want you to feel comfortable knowing you’re getting the best value for your money, and the best support and commitment to help see you succeed! 42www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 47. The key is to compare “apple to apples.” It’s hard to know the questions to ask until you have a grasp on the big picture of what to expect from truly great professional service. To help you, I have assembled a list of criteria. 43www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 48. New To Selecting A Company To Work With? Not Sure What To Look For? Hard To Trust A Company You Researched Online? Here Are A Few Criteria To Look For When Selecting A Company To Help You Start Your Business: 1. Look for a company that provides more than one service for your business. If they don’t offer additional services, do they offer resources of any kind? Does the online company ONLY provide incorporating services, but no business support services? If so, you can bet that you’ll be cut loose after you incorporate, with no further information, direction or services to help you out. Why do business with them? 2. What do other nationally-known professionals say about them? 3. Click on the “About Us” page on their website. Are there any pictures or information about the principles? If they are not willing to tell you who is behind the company, why not? What are they hiding? 4. Do they have any audio testimonials from clients? Written testimonials are good, but audio is much more telling. 5. Are they affiliated with many local organizations? If not, why not? 6. Have they been in business for more than ten years? As you know, 80-95% of new businesses don’t make it past five years… and of those that do, only 4% make it past ten years. 7. What happens when you call the office for support? Does the staff sound knowledgeable and professional? Are you treated in a professional manner? Do they follow up when you leave a message? Conscientious internal training is a must! Remember, in selecting your entity formation service, you’re not just choosing a service. You’re establishing a relationship that will help you lay a solid, reliable foundation for your success… or, if chosen unwisely, can build your future on precariously shifting sands. You want to give yourself every advantage to ensure that your hard work will not only pay off, but grow exponentially over the years. 44www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 49. Your Entity Formation Support Partner Must Meet These Criteria, Too Nevada Corporate Planners wants you and your company to have the most protection,security and business advantage possible for your new corporation or LLC. Call us at1-877-515-0505, and let us show you how we can help you. But whether you become ourclient or not, consider these points in your choice of strategic partners in this all-importantdecision process: Seven Criteria the Company You Choose Must Meet BEFORE You Let Them Form Your Next Corporation or LLC! 1. Look for a company that will ask you questions to determine the best entity for your situation—before they quote you a price! Imagine seeing your doctor for a physical. He walks in the room, says hello and goodbye as he hands you a prescription — and never gives you an exam! You might as well have diagnosed yourself by the “dartboard method.” 2. Look for a company that understands—and will explain to you—multi- state taxation rules. These rules affect the state(s) in which your entity will have to register so you can do business. Beware of companies that tout tax savings in a tax-free state when you live and operate your day-to-day business in another state. States like Nevada do have powerful benefits, but tax savings are not typically one of them unless you live and work in Nevada. 3. Look for a company that fully discusses your situation with you, so you know you’re making the best decision about which entity will maximize your outcome. Your “exam” should involve many in-depth, tailored questions, rather than a following a "cookie-cutter" approach. What cures someone else is not necessarily what will cure you! Remember, if you’re looking for “easy”… if you’re looking for minimal effort – expect proportional results—or worse. 4. Look for a company that knows the subtleties. Ask them why 71% of all C-corporations, if audited, would pay 35% tax on all profits earned, along with hefty penalties and interest that might cripple their businesses. Does the company you’re considering know why? 45www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 50. 5. Look for a company that weeds out inaccurate information and researches to find what will work best for you. It’s no accident that successful people recognize and take advantage of golden opportunities that others miss. Look for a company willing to take the time to thoroughly analyze your situation, so you can take advantage of your “golden” opportunity. 6. Look for a company that makes sure all your questions are answered before you form your entity. A disturbing trend in the industry is to “get the money now,” and promise answers down the road. If your company won’t answer your questions BEFORE you give them your business, chances are good that they won’t be able to answer them AFTER—no matter how many books, tapes, or seminars they offer. 7. Look for a company with current testimonials. The true measure of a company’s customer service record lies in the success of current and past clients. Ask for current testimonials. Many companies present you with client quotes dating back several years. And check the Better Business Bureau to see if they have a complaint history, assuming they qualify for listing. NCP’s testimonials are written by clients about 30 days AFTER incorporating with us! Have even more questions? You should. There is literally a wealth of information thatwe’d like to share with you. Feel free to give us a call at 1-877-515-0505. We’ll discuss yourindividual situation with you, and give you and your professionals sound, solid information soyou can make a well-reasoned decision for your financial and professional future. 46www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 51. A Summary of the Key Tax Law Changes for 2009! Depreciation and Section 179 Deduction Increased section 179 limits. The maximum section 179 deduction you can elect forqualified section 179 property you placed in service in tax years that begin in 2008, hasincreased to $250,000 ($285,000 for qualified enterprise zone property and qualified renewalcommunity property). This limit is reduced by the amount by which the cost of section 179property placed in service in the tax year exceeds $800,000. For qualified section 179 GulfOpportunity (GO) Zone property placed in service in certain counties and parishes of the GOZone, the maximum deduction is higher than the deduction for most other section 179property. Depreciation limits on business vehicles. The total depreciation deduction(including the section 179 deduction) you can take for a passenger automobile (that is not atruck or a van) you use in your business and first placed in service in 2008 is $2,960 ($10,960for automobiles for which the special depreciation allowances applies). The maximumdeduction you can take for a truck or a van you use in your business and first placed inservice in 2008 is $3,160 ($11,160 for trucks or vans for which the special depreciationallowance applies). CAUTION: These limits are reduced if the business use of the vehicle is less than100%. Meal Expenses When Subject to “Hours of Service” Limits In general, you can deduct only 50% of your business-related meal expenses.However, for 2008 and later years, you can deduct 80% of meal expenses while travelingaway from your tax home for business purposes if the meals take place during or incident toany period subject to the Department of Transportations “hours of service” limits. Businessmeal expenses are covered in chapter 1 of Publication 463. Reimbursements for employeemeal expenses are covered in chapter 11 of Publication 535. Self-Employment Tax The maximum amount of net earnings subject to the social security part of the self-employment tax for tax years beginning in 2009 is $106,800. All net earnings of at least $400are subject to the Medicare part of the tax. 47www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 52. Social Security and Medicare Taxes The maximum amount of wages subject to the social security tax for 2009 is $106,800.There is no limit on the amount of wages subject to the Medicare tax. Federal Unemployment Tax Act (FUTA) Tax Rate The 6.2% FUTA tax rate has been extended through calendar year 2008. It wasscheduled to decrease to 6.0% after 2007. Maximum Automobile Value for Using the Cents-Per-Mile Valuation Rule For 2008, an employer providing a passenger automobile for the first time for thepersonal use by an employee may determine the value of the personal use by using thevehicle cents-per-mile value rule if the vehicles fair market value on the date it is first madeavailable to the employee does not exceed $15,000 for a passenger automobile other than atruck or van, or $15,900 for a truck or van. For more information, see Cents-Per-Mile Rule onpage 20 of Publication 15-B, Employers Tax Guide to Fringe Benefits. Nonqualified Deferred Compensation Plans Generally, all amounts deferred under a nonqualified deferred compensation plan forthe tax year and all preceding tax years are included in your employees wages in the currentyear, unless the plan meets certain requirements. These requirements were stated in Notice2005-1. However, portions of that notice were obsolete and replaced by final regulations thatwere effective for tax years beginning after 2007. For more information, see TreasuryDecision (T.D.) 9321, 2007-19 I.R.B. 1123, available atwww.irs.gov/irb/2007-19_IRB/ar02.html. Penalty for Late Filing of a Partnership Return For returns required to be filed for tax years beginning in 2008, the penalty isincreased to $86 for each month or part of a month (up to 12 months) the return is late ordoes not contain the required information, multiplied by the total number of persons who were 48www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 53. partners in the partnership during any part of the partnerships tax year for which the return isdue. Standard Mileage RateFor 2009, the standard mileage rate for the cost of operating your car for business use is 55cents per mile.Car expenses and use of the standard mileage rate are explained in chapter 4 of Publication463, Travel, Entertainment, Gift, and Car Expenses.Medical- and move-related mileage. For 2009, the standard mileage rate for the cost ofoperating your car for medical reasons or as part of a deductible move is 24 cents per mile.See Transportation under What Medical Expenses Are Includable in Publication 502 orTravel by car under Deductible Moving Expenses in Publication 521, Moving Expenses.Charitable-related mileage. For 2009, the standard mileage rate for the cost of operatingyour car for charitable purposes remains 14 cents per mile. Business ExpensesBusiness expenses are the cost of carrying on a trade or business. These expenses areusually deductible if the business is operated to make a profit.What Can I Deduct?To be deductible, a business expense must be both ordinary and necessary. An ordinaryexpense is one that is common and accepted in your trade or business. A necessaryexpense is one that is helpful and appropriate for your trade or business. An expense doesnot have to be indispensable to be considered necessary.It is important to separate business expenses from the following expenses: • The expenses used to figure the cost of goods sold, • Capital Expenses, and • Personal Expenses.Cost of Goods SoldIf your business manufactures products or purchases them for resale, you generally mustvalue inventory at the beginning and end of each tax year to determine your cost of goods 49www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 54. sold. Some of your expenses may be included in figuring the cost of goods sold. Cost ofgoods sold is deducted from your gross receipts to figure your gross profit for the year. If youinclude an expense in the cost of goods sold, you cannot deduct it again as a businessexpense.The following are types of expenses that go into figuring the cost of goods sold. • The cost of products or raw materials, including freight • Storage • Direct labor costs (including contributions to pensions or annuity plans) for workers who produce the products • Factory overheadUnder the uniform capitalization rules, you must capitalize the direct costs and part of theindirect costs for certain production or resale activities. Indirect costs include rent, interest,taxes, storage, purchasing, processing, repackaging, handling, and administrative costs.This rule does not apply to personal property you acquire for resale if your average annualgross receipts (or those of your predecessor) for the preceding 3 tax years are not more than$10 million.For additional information, refer to the chapter on Cost of goods sold, Publication 334, TaxGuide for Small Businesses and the chapter on Inventories, Publication 538, AccountingPeriods and Methods.Capital ExpensesYou must capitalize, rather than deduct, some costs. These costs are a part of yourinvestment in your business and are called capital expenses. Capital expenses areconsidered assets in your business.There are, in general, three types of costs you capitalize. • Business start-up cost (See the note below) • Business assets • ImprovementsNote: You can elect to deduct or amortize certain business start-up costs. Refer to chapters7 and 8 of Publication 535, Business Expenses.Personal versus Business ExpensesGenerally, you cannot deduct personal, living, or family expenses. However, if you have anexpense for something that is used partly for business and partly for personal purposes,divide the total cost between the business and personal parts. You can deduct the businesspart. 50www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 55. For example, if you borrow money and use 70% of it for business and the other 30% for afamily vacation, you can deduct 70% of the interest as a business expense. The remaining30% is personal interest and is not deductible. Refer to chapter 4 of Publication 535,Business Expenses, for information on deducting interest and the allocation rules.Business Use of Your HomeIf you use part of your home for business, you may be able to deduct expenses for thebusiness use of your home. These expenses may include mortgage interest, insurance,utilities, repairs, and depreciation. Refer to Publication 587, Business Use of Your Home, formore information.Business Use of Your CarIf you use your car in your business, you can deduct car expenses. If you use your car forboth business and personal purposes, you must divide your expenses based on actualmileage. Refer to Publication 463, Travel, Entertainment, Gift, and Car Expenses. For a list ofcurrent and prior year mileage rates see the Standard Mileage Rates.Other Types of Business Expenses • Employees Pay - You can generally deduct the pay you give your employees for the services they perform for your business. • Retirement Plans - Retirement plans are savings plans that offer you tax advantages to set aside money for your own, and your employees retirement. • Rent Expense - Rent is any amount you pay for the use of property you do not own. In general, you can deduct rent as an expense only if the rent is for property you use in your trade or business. If you have or will receive equity in or title to the property, the rent is not deductible. • Interest - Business interest expense is an amount charged for the use of money you borrowed for business activities. • Taxes - You can deduct various federal, state, local, and foreign taxes directly attributable to your trade or business as business expenses. • Insurance - Generally, you can deduct the ordinary and necessary cost of insurance as a business expense, if it is for your trade, business, or profession.This list is not all inclusive of the types of business expenses that you can deduct. Foradditional information, refer to Publication 535, Business Expenses. CAUTION: At the time this publication went to print, Congress was expected toconsider legislation that would reinstate many of these benefits. To find out if legislation is 51www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 56. enacted, go to www.irs.gov , click on More Forms and Publications , and then on Whats Hotin forms and publications . What Must You Consider When Selecting the Best Entity for Your Business? Here’s a great example of a business that would typically benefit as an LLC taxed as apartnership. (Keep in mind, changing only a few of the answers here could dramatically change thetype of entity we’d recommend. Hence, online research and “guessing” at what entity is bestcan turn out to be very costly. After all, you can’t afford to guess when it comes to creatingthe foundation of your business.) LLC Partnership Illustration Question: My partner and I own rights to computer software, and we’re going tomarket it across the US as a new security program for computer systems. 1. What are you expecting in the way of Gross Sales during your first 12 months? • 900k 2. What will your business expenses and net profit be? • 300k expenses • 600k net profit, before paying myself and partner. 3. Do you have a partner for your business? • Yes 4. What is your personal income level (aside from this new business)? • We each earn over 150k from a computer-consulting contract. Let me ask you a few other questions to help determine which entity will be best for you: 1. You mentioned you’re selling a product. Will you be providing services as well? • 100 percent product, computer software. 2. Will your business develop a net worth? Meaning, will it develop systems and have a net value over time? Or is it based upon your efforts so that the day you stop working is the day your company stops generating revenue? • Yes, this product already has net worth and as it becomes known in the market place, the value will skyrocket! Yes, this will be a very 52www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 57. profitable business where we only need a couple of employees, and we won’t have a lot of overhead. 3. Will your company hold large inventories or receivables? • No, only some computer equipment. The software is replicated as orders come in. 4. Will your business be purchasing a lot of equipment with debt? (Important if you’re expecting to break even or lose money during the first year.) • No 5. Is your goal to sell the business soon? (Important for C-corporation consideration.) • Yes, it might be possible to sell it for several million dollars in a few years to a big software company. 6. Will the entity keep profits as retained earnings for future growth and expansion? (Another important C-corporation consideration.) • No, we make too much profit as it is. We don’t need a lot of money for growth and expansion. Because of our background, we already have distribution channels and contacts interested in our product! 7. Are you looking for Investors for your company? • Perhaps in the future. 8. Do you have other C-corporations? (We only ask if we think a C-corporation might be the best choice at this time; important for controlled group rules.) • No 9. Are you a US citizen or a Resident Alien? (An important S-corporation question, as nonresident aliens cannot own S-corporations.) • Yes, I am a citizen, but my partner is from Europe. 10. What states will you be operating in? (Important for state tax consequence consideration.) • I live in Nevada, but my partner is in Europe. 11. Will you be buying dealer or investor property? • No, we will not be buying and selling real estate. 12. (Only asked if you’re buying property): Are you planning on exchanging the property? (If your answer is yes, a single member LLC is your only answer.) • NA, this owner is not buying and selling real estate. Conclusion: Consider Two Aspects; Tax and Liability Point of View: Result: You will NOT be a C-corporation because: 53www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 58. • Your 600k in expected net profit is too much to reinvest in a C-corporation. You’d have a retained earnings tax problem, as C-corporations may have only 250k in retained earnings—unless they have a good reason. Excessive retained earnings cause double taxation when you want to take some of the profit from the C-corporation in the future. • You are not looking to reinvest the money into the company, nor will you be adding a lot of employees. • Since you might sell the company in a few years, a C-corporation would give you double taxation problems. When you sell the business, what happens is that the buyer purchases the assets from the existing entity; they’re not buying the corporate stock. When the existing C-corporation sells its assets, it receives a large check payable to the C-corporation, which would then have to pay taxes on all that profit. It would also have to file a final tax return when you dissolve the corporation, and you would pay taxes again, personally. You can avoid this double taxation problem with a flow through entity. You will NOT be an S corporation because: • You have a partner from Europe. Europeans cannot hold stock in an S- corporation. • If you bring in an investor down the road, the S-corp limits the options that investor has to make the investment. They can not be a foreigner. You will be an LLC because: • You have a partner. • Your company has a net worth, and the LLC taxed as a partnership is equipped with the “Charging Order” protection. • You have too much profit for a C-corporation, so you need a flow through entity. The number one mistake we see is people forming C corporations in hopes of lowering their overall tax burden. It may save some money in year one, but in years two, three and four this may be a devastating mistake! • A single member LLC is not an option either, because you have a partner. Look at the Liability Point of View: Illustration on Liability: The LLC taxed as a partnership gives you built in protection by way of the “Charging Order” that applies to all LLCs, but more so to LLCs taxed as partnerships. The main concern when you come together with a partner is to find out if your partner has any “baggage” in the closet that will come forth when your new business starts 54www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 59. to make money. For example, does your partner have existing creditors in other states that you don’t know about? Do you know that judgments in other states can be carried into a new state? An LLC makes it more difficult for any of this baggage to have direct implications for your company. If you or your partner get sued personally, it’s more difficult for a creditor to get control of the ownership interest of the LLC. If you own a C- or S- corporation, the creditor will just take over the stock, and will be the new owner. Charging Order: When a creditor goes after you personally, and the only major asset to collect against is your membership interest, the court will limit the creditor by what is called a “charging order.” If you’re sued personally, and if you own the stock of an S- or C-corporation, a creditor would just take over the stock, or enough of the stock, to satisfy the judgment. A charging order, on the other hand, gives your creditor the right to an “economic interest” of the membership interest. All that means is that they get access to profit distributions represented by that membership interest (same as ownership interest). For example, if both you and your partner owned the LLC 50/50, you’d share the $600k profits and get $300k each. If you had a judgment against you for $400k, the creditor would have access to your $300k in distributions to pay off the $400k in judgments, IF, AND ONLY IF, the LLC ACTUALLY DISTRIBUTES THE PROFITS! If the LLC does not distribute the profits, the tax liability still flows through to you, and you still have to pay the taxes out of your pocket. So far, the creditor has not received any money with which to pay down the judgment he has against you. Note that the creditor does NOT get a MANAGEMENT INTEREST, which would allow him VOTING RIGHTS, and therefore CONTROL of 50 percent of your company. If a creditor has CONTROL, they may sell tangible assets to settle the judgment. This does not happen with a charging order. Your creditor gets an ECONOMIC interest only, and must wait patiently for financial distributions. This concept is so powerful that many states are changing their legislation to say that if an UNREASONABLE AMOUNT OF TIME goes by, and if it APPEARS that the CREDITOR will NOT RECEIVE ANY DISTRIBUTIONS with which to PAY OFF THE JUDGEMENT, the CREDITOR will have the RIGHT to GO BACK to the Court, and ASK FOR FORECLOSURE ON THE MEMBERSHIP INTEREST …which gives the creditor CONTROL of MANAGEMENT INTERESTS AS WELL!!! And if your creditor has management interests, they have assets that they can sell to satisfy their judgment. Yes, it means more legal fees and more work, but in the creditors eyes, it’s at least an option to get something! This is not the case in Nevada but is in California and Delaware! Creditors (in some states, not Nevada) must follow a TWO STEP APPROACH to get CONTROL of a MEMBERSHIP INTEREST of your LLC, versus the procedure to collect if you own an S- or C-corporation: Step 1: Obtain a charging order and hope for distributions. 55www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 60. Step 2: If no distributions, go back to the Court and ask to FORECLOSE on the MEMBERSHIP INTEREST—a trend in many states. Bottom line? The LLC taxed as a partnership gives you more protection than just owning stock of a C- or S-corporation personally. If you form a C-corporation, you can form a second entity to own the stock—an LLC taxed as a partnership, ideally. By the way, the charging order protection came from limited partnerships, and carried over to LLCs. BONUS Strategy: Prevent a Creditor From Disrupting the Operations of Your LLC If a creditor obtains a charging order against one member, the LLC, based on the manager’s decision, probably WILL NOT distribute any profits that year to frustrate the member’s creditor. Both members then receive a K-1, but no money to pay the taxes, so both must borrow from the LLC to pay their respective taxes. This may cause the other partner to feel very uncomfortable. SOLUTION: Require that each member (partner) form their own PERSONAL LLC to hold their membership interest in the main operating company. • The LLC holding company will only own safe assets. • A charging order will only affect the member’s personal LLC, not the main operating company! Planning tip: Ninety percent of the people who say, “This is a great idea, can I do that down the road?” Then they never do. Why? They are too busy with their business and they don’t take time to plan to protect their investment. It is important to start with a solid foundation before you start business! 56www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 61. Here’s what it looks like: C-corporation 50% owned by 50% owned by Personal LLC Personal LLC (by (by one partner) one partner) Partner Wife is 50% Partner Wife is 50% (husband) is owner of this (husband) is owner of this 50% owner of personal LLC 50% owner of personal LLC this personal this personal LLC LLC The LLC Being Sued LLC Vs. You as a Partner of an LLC Being Sued Personally Your Partner You are one Creditor is limited to a “Charging of the owners Order” against you personally. of the LLC Look at the Tax Point of View: You Must Consider These Key Factors: 1. 900k in gross sales 2. 600k in net profits 3. 150k in other earned income 4. Too much profit for a C-corporation; needs a flow-through entity. If you’re 50/50 owners, each of you will split the 600k in net profits. 57www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 62. SE TaxesThe KEY QUESTION: “ARE THESE PROFITS SUBJECT TO SELF EMPLOYMENT TAXES?” According to an IRS official and a national issue specialist in its ExaminationSpecialization Program, until the Service issues further guidance, it will not challenge limitedliability company (LLC) members on self-employment (SE) tax if the member and the LLCconform to the most recent (1997) proposed regulations (REG-209824-96). These regulations,however, need clarification now on the definition of limited partner (LP). General Rules Under Prop. Regs. Sec. 1.1402(a. 2(h)(5), if substantially all of a partnerships trade orbusiness activities involving the performance of services (i.e., consulting), any individual whoprovide such services as part of that trade C business will be a general partner (gross income forself employment tax purposes). In a "non-service" partnership, Prop Regs. Sec. 1.1402(a)-2(h)(2) treats partner as aLimited Partner for self employment tax purposes unless he or she: 1. Has personal liability for the partnerships debts by reason of being a partner; 2. Has the authority to contract on the partnerships behalf-, or 3. Participates in the partnerships business for more than 500 hours during the entitys taxyear. Even if a member does not meet the hours test or is not personally liable for apartnerships debts, an individual serving as a manager in a member-managed LLC would besubject to self employment (SE) tax. If the LLC agreement does not precisely give the managingrights to a specific individual, all members would be subject to SE tax. Exceptions and Clarifications In general, under Sec. 1402(a),"net earnings from" self employment include the grossincome derived from any trade or business carried on by an individual, less any allowabledeductions attributable to such trade or business, plus his or her distributive share of income orloss from any trade or business carried on by a partnership of which he or she is a member. Under Regs. Sec. 1.1402(a)-2(f), a "partnership" includes a syndicate, group, pool, jointventure or other unincorporated organization that carries on a trade or business, but is not a trust,estate or corporation. For this purpose, gross income includes payments received by a partner from thepartnership for services rendered to the partnership or for the use of capital by the partnership 58www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 63. (guaranteed payments). However, Sec. 1402(a) provides a number of specific exceptions fromself employment earnings, such as (1) rental income or loss from real and personal property, (2)interest and dividend income, (3) gains or losses from sales or exchanges of capital assets and(4) payments received from a partnership not engaged in a trade or business within the meaningof Sec. 1402(c) and Regs.Sec.1.1402(c)-1. Sec. 1402(a)(13) excludes a Limited Partner’s distributive share of any item of income orloss received is remuneration (other than guaranteed payments described in Sec. 707(c) forservices rendered to the partnership or oil its behalf). However, further clarification is needed inapplying this exception to LLC members. Legislative History In December 1994, proposed regulations were issued, specifically addressing which LLCmembers were to be included in the definition of Limited Partner (LP). Under those rules, anindividual owning an LLC interest was treated as an LP if (1) he or she lacked the authority tomake management decisions needed to conduct the LLCs business and (2) the LLC could havebeen formed as a limited partnership rather than an LLC in the same jurisdiction, and the membercould have qualified as a LP in that partnership under applicable law. Because such anassessment would have been difficult to make with certainty, and because this rule could haveled to inconsistent LLC-member treatment, the Service withdrew the proposed regulations. Revised proposed regulations were issued in 1997, defining which partners were to beconsidered LPs for Sec. 1402(a)(13) purposes. These regulations intended to exclude from selfemployment (SE) tax an individuals net earnings that were demonstrably returns on a capitalinvestment in the partnership. However, if these rules are applied literally, numerous partnerswould be reclassified as General Partners (even though they might not function as such),subjecting their investment income to SE taxes. Because of criticism on this matter, Congress added Section 935 to the Taxpayer ReliefAct of 1997, preventing the IRS from finalizing these regulations before July 1, 1995. However, todate, the Service has not finalized, withdrawn or modified them. Although the proposedregulations do not have the same judicial weight as final regulations, they represent Treasurysposition on this matter. Possible Alternatives A taxpayer has other options in dealing with the self employment tax, rather than followingthe proposed regulations, but these have various risks. One alternative is to adopt the positionthat all the LLC members are Limited Partners (LP). This would eliminate the self employmenttax for all of them. Unfortunately, this position has limited legal support. Letter Ruling 9452024held that even though members were not classified as LPs per se, they could be treated as suchfor some Code purposes. However, for a member who participates in the daily operations of anLLCs business, this argument would be fairly weak. Further, under- the Revised Uniform LimitedPartnership Act, a LP who participates in a partnerships activities of the partnership risks losing 59www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 64. his or her limited liability protection and effectively reverting to General Partner status if he or she"participates in the control" of the partnership. An LLC member could take the position that his or her portion of earnings is a return oncapital invested in the LLC, which arguably matches the 1997 proposed regulations intent. Apercentage could be determined by paralleling a similar investment (such as a return on smallpublicly traded stocks), with an adjustment for the increased risk of a non-publicly held company.However, there is neither Code nor IRS guidance on this position; thus, if taken, it should bedisclosed on the members return to avoid a penalty. A variation would be for the LLC member to adopt a position that only "reasonablecompensation" is subject to the self employment tax. However, this would most likely be evenriskier, resulting in an ever-larger exclusion. Again, this position lacks Code and IRS guidanceand, so, should be properly disclosed. Proper planning can minimize self employment tax on LLC members. An LLC managercan be a one percent member, which could eliminate the tax on the remaining 99 percent ofincome. An S corporation can be the manager, which could potentially remove all members fromthe tax. Possible Solution: How about an LLC taxed as an S corporation? Why not the best of both worlds? This may sound simple but you would be amazed at how many people have no idea what the operating agreement should look like. Call NCP at 1-877-515-0505 for more details! Conclusion The proposed regulation’s represent the Treasurys position on this matter. Taxpayerscan rely on them until further notice. SE Issue from SHARON L. COOK., CPA, SOUTH BEND, IN, The Tax Adviser,September 2003. A Few Other Points: Tax Return Filed: 1065 for LLC taxed as partnership Due Date: April 15 Year-End: Calendar year end, December 31. Some States do have a state-level tax on LLCs. Now let me share with you specifically how we will help your company not only getstarted, but to prosper! 60www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 65. Four Vital Areas To Support You And Help Your Business Grow: 1. NCP provides valuable information, tailored to your unique situation, to help guide you and your professionals to your optimal business strategy. Perhaps you need to know your best options when forming a new business entity, so you and your professionals can choose the type and domicile that will most benefit you. You’ve come to the right place! NCP offers customized alternatives and fees so you can find the perfect match for your needs. We strive to answer any and every question you may have, every step of the way. (Remember, inaccurate information at the start leads to costly mistakes down the road.) 2. NCP provides professional assistance in helping form your new business entity. Choosing the best incorporating company to help form your new entity is a vitally important step, and we pride ourselves on being the best at what we do. But we don’t stop there. You may need other business support services after your entity is formed so you can focus on growing your new business. NCP has developed many beneficial relationships with topnotch service providers over the years, and we pass those valuable benefits along to you. 3. NCP helps you separate your business and personal credit. Plus, we reveal the “Bank’s Insider Secrets” of Business Lines of Credit! What does this mean, and why is this so important? Consider these factors: A. 95% of businesses fail within the first five years. (With NCP’s support, you need not be included in that sobering statistic.) The number one reason for those fallen businesses? Lack of cash flow... which leads us to our next point… B. Many businesses spend money, energy and time on forming a separate legal entity… only to finance their ventures with personal guarantees. Think about it. Should your business run into financial problems, if you’ve financed with personal guarantees you have exposed --- and can potentially lose --- all of your personal assets! That’s no way to survive the business minefield of today’s world. NCP will help your new business separate its business and personal credit over the next six months. Improved cash flow, avoidance of personal guarantees… Your benefits and results will be tremendous with our business credit program. 61www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 66. 4. Help Your Business Get Off to a Fast Start with NCP’s Top 5% Club Membership Program! Whether Forming a Nevada Corporation a Nevada LLC, or an Entity in any of the 50 States, Our Business Services will Help Your Business Get Off to a Fast Start! When you call NCP at 1-877-515-0505, a professional, well-trained and helpfulstaff awaits, ready to: Help you walk through the process to help you determine which entity (and state) is best for you. Your professionals are welcome on the call. Discover the Best Way to Separate Your Business and Personal Credit. Don’t ruin Your Personal Credit. Many times developing trade lines of credit for your business may not be necessary, bank lines are a must! We see far too many new entrepreneurs make this enormous and costly mistake, waiting too long to incorporate their business, and maxing out their revolving credit! Discover what you MUST do to operate your business like a business, not a hobby. The IRS battles a $300 billion tax gap, and may have you on their radar screen to help close it. Call us, and find out how to get off --- fast! Help you Double, or Even Triple your Business in 12 Months and Protect your Assets with Fort Knox-like security. When you become an NCP client, you’ll receive --- for FREE --- more than $585-worth of our Coaching Program’s Best Money-Making Information and Advice. The straightforward guidance normally offered exclusively through our Coaching Program can help you put thousands, maybe tens of thousands of dollars in your pocket. (Youd be silly not to continue after this free, introductory gift, right? Of course!) Learn how you can start saving your business money today! When You Incorporate and Start Your Business with NCP, You’ll See Why We’ve Been Known For 12 Years As… “The Launching Pad for Successful Businesses!” Incorporating & LLC Services: • Nevada LLC and Nevada Corporation Packages – Discover why our turnkey Nevada and LLC and Corporate Packages offer the best quality and overall value, strategically tailored to YOUR needs! • LLC and Corporation Packages in all 50 States – Looking to Incorporate or form an LLC in your home state? Our turnkey process and services take care of everything, letting you focus on making profits for your business! • Registered Agent Services – Every new corporation or LLC requires someone to be the contact point for the company. If you’re ever sued, you don’t want this to be you! 62www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 67. • Foreign Registration – Incorporating or forming an LLC in Nevada, Delaware or Wyoming, and need to register in your state of operations? Perhaps you’re doing business in multiple states. Either way, this service is critical! • Amendments – We can help you amend the name of your company, adjust the amount of stock issued to others… even help you decide whether those moves make sense for your situation. • Dissolution – Should you shut down your current Nevada LLC or Corporation? What are the ramifications? • DBAs – Does your LLC or Corporation require a DBA (“doing business as”, or fictitious firm name)? Should you use this for a second business, or form a second entity? • EIN Numbers – Caution: the IRS has updated their online process, which could make life especially difficult for LLCs. • Nevada State Business License – All Nevada entities must have a Nevada State Business License*. NCP will take care of this for you as part of our LLC and Corporate packages. • Trademark Search and Registration – Protect your intellectual property by making it easy for people to find you. Registering your trademark publicly declares that your trademark is recorded with the USPTO. Business Growth Services: • The Top 5% Club Coaching Program – Our most powerful program ever helps your business stay in the crucial 5% percentile --- the 5% of businesses that remain business beyond five years! • The Ultimate Business Credit Builder – Discover the best, fastest way to properly separate your personal and business credit (while avoiding the costly mistakes advised by copycat services.) • Bank Lines of Credit – NCP has “unlocked the bank’s code” for awarding business lines of credit! • Annual Tax and Bookkeeping Success System – Every business must have an IRS-compliant records system for tracking and analyzing their finances. This turnkey system is designed for the one- or two-person operation, coaching you through the steps to use Quickbooks®, instructional videos, teleseminars and direct support with our CPA firm to help you run your business like a business, not a hobby! • Sandy Botkin Tax Reductions System – Learn how to maximize your business deductions and bullet-proof your business records from an IRS audit!! (You may increase your deductions by as much as 50%!) • Business Plans – You need a top-notch business plan to help boost you to the next level and position your business to secure valuable financing! 63www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 68. • Payroll Services – Experts advise that the number one legal exposure to your business begins on the day you hire your first employee. This turnkey solution is a must! • Merchant Account Services – Every viable business today must accept credit cards, but most end up unknowingly over-paying for this service! • Web Development – 99% of web designers are merely graphic artists. The key to strategic marketing is to apply savvy expertise to website design and online sales and marketing systems. Simply put, we design with your profit in mind (available to NCP clients only). • Business License Applications – Even if you have the time to find the many applications and forms for your business license, it’s easy to miss just one --- and only find out about it when the penalties have accrued. No worries --- NCP has your solution! • Marketing Services – Looking for a marketing coach to take your company to the next level? Our coaches are focused on your results! (Available to NCP clients only) • Nevada Office Package – This turnkey Las Vegas Office Executive Office Program will fit your company’s budget and provide the professional services you require!** • Nevada Bank Account Set Up – Every Nevada-based LLC or Corporation that does NOT foreign register (or qualify) requires a Nevada bank account.*** • Professional Referrals, CPA, Legal and Financial Planning – Any business requires some amount of support from professionals. NCP has networked with only the best of the best to support your business! Remember, in selecting your entity formation service, you’re not just choosing a service. You’re establishing a relationship that will help you lay a solid, reliable foundation for your success… or, if chosen unwisely, can build your future on precariously shifting sands. You want to give yourself every advantage to ensure that your hard work will not only pay off, but grow exponentially over the years. 64www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 69. What’s the Most Common Reason for Business Failure? The Business Owner Runs Out of Cash! Let me Ask You This Question… Could Your Business Use a Business Line of Credit (not trade credit) of up to $100,000? Would That Cash Infusion Provide the Marketing Dollars to Propel Your Business to the Next Level? NCP HAS THE SOLUTION! “The Insider Secrets of Business Credit” When you become an NCP client, you’ll learn how yourbusiness can profit with a business credit card, business line ofcredit or business loan and know Exactly what the criteria are! Finally I can expose the “insider banking secrets” about how your business can getcash --- real lines of credit, NOT vendor credit --- to expand your success! This is a skill thatmust be mastered in order to maximize your company’s ability to survive and thrive throughthe rough times. When You Become a Client of NCP You’ll Learn: • The difference between personal and business credit (Both are very important, but have very different requirements.) 65www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 70. • Personal credit score targets and score factors that you should evaluate Even a high personal score may not necessarily qualify you for credit. • How your business’ gross revenue comes into play (How is that formula affected if you’re still in your first year of business?) • How the LSC score affects your ability to get lines of credit What is the minimum LSC score required by the bank? • How your personal credit score influences the bank’s decision to give you a line of credit • Requirement differences between a business credit card, a business line of credit and a business loan • Which credit agencies the banks use to evaluate your business (It is not what you think!) • The magic dollar amount that you MUST be under when applying for a business line of credit! • The time frame for receiving your line of credit • What are your options if you do not qualify? • Plus, you’ll learn all about NCP’s turnkey services and steps to maximize the money you receive to market your business! • And much, much, more…. Never before has the entire picture been presented in one place, all at one time. Youmay have heard bits and pieces, but this is the inside track to what the bank requires beforeyou get a dime! Imagine, having access to these insider secrets, only through NCP, what this may doto help keep your business off the ground and off to the launching pad to business success! Do we want you to become an NCP client? Absolutely! For all the other reasonsmentioned already, the bottom line is that we know we work harder than any other companyto bring you the best of the best, getting your business off to a fast start! In fact, we are sodedicated to convincing you that you will be in good hands, we are willing to do what ever ittakes…so therefore read our “ethical bribe” to you! 66www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 71. Special Bonus for a Limited Time Only: OR Our Ethical Bribe to You…. We are so confident that you will become a long term NCP client that we’re willing to invest over $585 in you up front to help you get started!!!! Why? Because We Want Your Business to Get Off to a Fast Start! Who Wouldn’t Want to Double, or Even Triple Their Business in 12 Months and Protect Assets with “Fort Knox-Level” Security? As a savvy business person, I know you do. That’s why I’ve decided to FULLYReveal My Proven Strategies, Systems, & Secrets to Building Your Own IncrediblyProfitable Business... Every Month! • Study, eavesdrop, and WATCH! I will share with you all of my secrets for creating, launching, and building your own powerfully profitable business… • Be the first in your industry to learn and use revolutionary, profit- boosting revelations from the leading edge of the business world… • Discover what actually works RIGHT NOW… plus new twists on tried and true Asset Protection strategies that create an impenetrable fortress around your business … • Study interviews with the real movers and shakers of the successful entrepreneur’s world. Discover the secrets they use every single day to fuel their ever-growing businesses … 67www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 72. …And much, much more! Do you know where to find the REAL secrets to maximize your profits and bullet-proof your business? I mean the REAL secrets that WORK NOW… not the tired, old, recycled stuff from the1970’s that infomercials and sales books try to pawn off on you. These aren’t theory, either.They’re valuable strategies drawn from personal experiences with my own company, as wellof some of the best tips from my 5,000 clients. I always have my ear tuned to learn, authenticate, and refine new, cutting-edgesystems and strategies that will get the most out of my business. I consider it my “survival ofthe fittest” method, one that allows me to stay ahead of constantly changing marketconditions. And because your success is my success… what better person is there to passthese priceless strategies on to… than YOU! Let me share a little secret with you. You cant find out what REALLY works just bytuning into every new guru that spouts advice off the top of his head. If you want to settle forthat, just talk to any discount incorporation company. They’ll promise you “customized”advice --- then regurgitate one or two one-size-fits-all, scripted shticks. Or better yet, visit anyof the hundreds of websites promising you million dollar returns on your “low, low $17 e-Bookinvestment”… I’m going to actually coach you every month --- hands on, at your shoulder, watching over you as your success grows. The Advantage That 5,000 Others Just Like You Have Already Discovered With over a decade’s experience as CEO of my own successful company, I’mconstantly asked (if not begged) to start a regular monthly training program. But when I takeon a new project, I want to do it right. After designing and refining my own methods andstrategies, then deciding how to best convey them to you, I’ve finally decided to let the rest ofthe world in on my secrets to success. The Top 5% Club is considered by many professionals to be the best coachingprogram in the world. Why such rave reviews from my fellow business instructors --- andeven my competition? Well, some say I may be the best-rounded, most qualified person inthe country to discuss everything from setting up the proper entity to marketing on theInternet. 68www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 73. The Top 5% Club Gold Level Membership Gives YOU:  The Top 5% Newsletter: Each issue is packed with Strategies, Tips, and Tactics to maximize your company’s bottom line, asset protection, and tax benefits. Value: $99/month  The CD of the Month Club: You will receive a CD interview/training with some of the world’s top strategists such as Sandy Botkin, Scott Letourneau, Jim Chianese, Bret Ridgway, Robert Skrob, Stephen Pierce and more. Value: $149/month  Call-In Days with the Professionals: Members have the opportunity to have a personal consultation with the experts on certain scheduled days of the month. This is the chance to ask consultants that charge as much as $750/hour anything you want regarding accelerating your dreams and goals for your company. You will have access to two call in days during each month. The consulting time is first come first serve and sessions average about 15 minutes in length. Value: Priceless!  Choose from any of our Library of Success Audio collections. As a Gold Member you’ll choose not one or two, but Ten (10) CDs from NCP’s past Tele-seminars. That’s 10 additional hours of training instantly available to you just for joining The Top 5% Club. Value: $1,000 Plus you’ll get discounts galore, including: • Business Entity Formation discounts up to 10% • Discounts on Information Products of 10% This includes an instant value of up to $2,500 in downloadable courses, discounts,and access to money making strategies the minute you register. Here’s all you get with alow monthly investment of only $97: …………….Total Value: up to $2,500 Now, for those Entrepreneurs and Business Owners searching for thecompetitive edge to dominate their Industry in the shortest time possible, I’ve addedseveral special bonuses. Register now for your Gold Level Membership in The Top 5%Club and receive: 69www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 74. Free Bonus Gift #1: “Strategies to Incorporate Your Business, Build BusinessCredit and Keep the IRS Off Your Back!” Discover why sole proprietorships are targetedby the IRS and how to avoid that, plus how to be viewed as a business, not a hobby. Whatare the options and the best state to incorporate your business?Learn the key components that go into determining what entity may be best for you. If youform an LLC how should that be taxed? Learn how to avoid losing control of your businessthrough the back door. Strategies to help you develop business credit and avoid costlymistakes! What is the number #1 reason business owners overpay their taxes and what to doabout it! All this and more is jammed packed on this insightful CD (transcripts included)that will become the foundation of your asset protection and business career! …………..$97value Free Bonus Gift #2: “Top 20 Costly Mistakes Made Before and AfterIncorporating” You will have an opportunity to test your business and asset protection I.Q.with our 20 question test. You will discover the most costly mistakes and how to avoid thembefore and after you form your corporation or LLC. Nowhere else will you find these powerfulinsights in one CD!..........$97 value Free Bonus Gift #3: “Learn How Ordinary People Create ExtraordinaryCompanies with Michael Gerber!” You can make the transition from working “IN” yourbusiness to working “ON” your business! On this powerful CD (transcripts included) youwill discover strategies from E-myth small business guru, Michael Gerber and his new book,Awakening the Entrepreneur Within, to take your business to the next level. This is atimeless interview conducted by NCP, CEO Scott Letourneau. You will discover your passionand how to LIVE YOUR DREAM! …$147 value No other company in our industry has access to this classic interview, brought to you exclusively by NCP! Michael regularly charges up to $35,000 for a 90-minute presentation similar to this, yet as a New NCP client, it’s yours FREE! “A Business Without a Dream is Like a Life Without A Purpose” -Michael Gerber 70www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 75. CEO, Scott Letourneau & Michael Gerber, founder of the E-Myth! As you can plainly see, The Gold Level of The Top 5% Club is designed and builtaround Your Success. Don’t even consider this program unless you are serious aboutearning a 6-, 7-, or even an 8-figure income. We knew when we created it that it wouldn’t befor everyone. But for the few that are smart and aggressive enough to invest in The GoldLevel membership, rewards await beyond what you thought was even possible to achieve. A 30 Day Free Trial of the Top 5% Club Included! The Top 5% Club is our way of reaching out to business owners to help ensure your company is able to make it into the Top 5% of all companies that are formed. We do this by coaching you with a monthly newsletter that is jam-packed with Business Building training. Also included every month is the CD Of The Month, where we Interview top experts from around the world to discover their best-kept secrets for lead generation, business credit strategies, and asset protection plus a whole lot more. Next, every member of The Top 5% Club also has two call-in days where they can take advantage of personal coaching by our experts. This personalized mastermind session alone could turn a simple newsletter tip into a windfall profit! Answers to Your Frequently Asked Questions Q: I am not just looking to form an LLC or corporation, I am starting a business.How is your company different? In many ways! First, we will guide you through the challenging process of determiningwhich entity makes the most sense for your business and your goals, not only in year one,but for the next several years. (Your professionals are welcome to be involved in thatprocess.) Second, we will help you obtain critical business services to get your business up andrunning quickly, leaving you free to do what you do best --- bring in new clients and revenue!Remember, the #1 reason for business failure is lack of cash flow. We want to make sureyoure not mired in the laborious details of setting up your business, so youll have ample 71www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 76. time, focus and energy to get that cash flowing quickly. It may mean the difference betweensuccess and failure in the first six months! Q: Why should I turn to NCP for business services, and not elsewhere? Over the years thousands have come to us to form their LLC or corporation for theirnew business. Weve realized that its important to provide more business solutions,especially the most common ones. Even if you were to find those services on your ownvaluable time, with all the options available the odds are you might not end up with the bestoverall value. We have taken our time to research, interview and negotiate with the bestbusiness partners that are HIGHLY MOTIVATED to provide you top quality service.The bottom line? We have a vested interest in your success --- not just so we can help youform your initial corporation or LLC, but so that we can remain your trusted partner for yearsto come. Q: I have heard a lot about incorporating in Nevada and there are so manycompanies that offer that service. Why should I use your company? NCPs years of valuable experience and extensive research work to your benefit. Firstand foremost, we didnt get our facts by "Googling" the Internet to find out what ourcompetition says. (You may have noticed that many websites seem to be saying the exactsame things.) Instead, we went straight to the horses mouth, hiring top CPA firms to give usthe most updated, verified, information possible. We dont take the chance of sending you outon a limb, either. Our own advisors strive to provide us with the proper balance ofconservative viewpoint and maximized advantage. More importantly, we know that in order to earn your business, we MUST proveourselves from the start. That starts with telling you the truth about what Nevadaincorporation will --- or wont --- do for your unique situation. We refuse to over-promise onNevada s benefits just to get you in the door. Our goal is to develop a lifetime relationshipwith you. Q: If I do not choose Nevada, will you help me start my business in my homestate? Yes. (If we only formed corporations and LLCs in Nevada, wouldnt you be suspiciousof a one-way agenda?) Instead, you have the option to incorporate in your home state orNevada. Youll get concise, timely information so you have all the facts to make an informeddecision. Either way, were here to support you and your business. NCP really understands the lifetime value of a new client. We know that we need totake care of you, give you the straight story, avoid over promising and deliver on value tokeep you as our client, and to deserve your referrals. Any business worth their salt knowsthat the cost of constantly finding new clients far surpasses that of offering more value andbetter services to existing, loyal clients. It just makes sense to do business this way. 72www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 77. Q: What are some of the business development services you offer? Do you haveany other key items to help me hit the ground running with my new business? A: Here is a list of the powerful business development services we offer, plus the manyways we support you to get your new business off to a fast start. Keep in mind, weveinterviewed dozens of companies in each area in order to uncover the best of the best foryou. We also provide many services in-house where appropriate, to assure you of the bestquality and price. Because of our large volume of clients, were able to negotiate a discountedprice for you in each area! Here is the Process You will Experience when You Work with NCP!Step 1: Fast Start to Incorporate Your Business!When you call our offices at 1-877-515-0505 you will speak with one of our highly trainedsenior business analysts. They will support you with your situation and your questions to helpyou determine the best entity, state and support tools to get your business off to a fast start toprofits!After you select the best package for your business our senior business analysts will take youthrough the process to get you started (only takes a few minutes)!As part of your package, we will help you make the best decision to either incorporate in yourhome state or Nevada and foreign register in your home state. If we formed the corporationor LLC in your home state, the timeframe will vary from state to state, as to when the articleswill be filed. There are exceptions to this general pattern, especially if you live in Nevada.Here is a checklist that you will go through when you work with NCP! 1. You will receive an email with 72 hour in the subject line. This is to verify your initial information and email back confirmation, that all is correct to your senior business analyst. a. Let us know if you want to have your name trademarked in addition to being checked for availability. That is an additional fee and we can provide you with the best resource for Trade-marking. b. You will receive a free 30 day trial to the powerful Top 5% Club Gold Membership (see more details in this guide).. Once your registration is complete, you will receive access to many benefits to grow your business (and your ability to speak with me one-on-one)! 73www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 78. 2. Your senior business analyst will process your order to customer service to file the articles. 3. Articles will be filed (in your home state or Nevada). 4. You will then receive an email with the SS4 application attached. Verify the information is correct, sign and send back to NCP at 1-702-920-8984. This is the application we need to secure the EIN (Employer Identification Number) for your entity. We will apply for the EIN after we receive your filed articles back from the Secretary of State. We will obtain the number and call you with it. A copy will be in your record book or mailed to you shortly after. 5. Member’s Only Section: As an NCP client, youll enjoy unlimited access to our Member’s Only Section, filled with the most explosive, step-by-step strategies available today. The information there is designed to support your new entity on the fast track to success! Far too often, we hear our clients horror stories of how they formed their first entity with another company and were cut loose to struggle with what to do next. NCP has created a step-by-step guide to get you off to a great start. You can access our ‘Member’s Only’ when you become a client. 6. Email reminders to keep you on track the first 90 days! You may have a 100 items on your checklist as you start your business --- and we understand. Youll receive reminders on everything from keeping your entity in compliance, to payroll, buy/sell agreements, tax deadlines, and others to free up your time, so you can focus on what you do best! 7. Your Corporate or LLC record book will be shipped USPS Priority Mail. 8. Audio & video instructions for your record book: Did you ever wish you could have someone to explain each section of your corporate record book to you? Or perhaps youve heard it, but need to review it again --- whenever or wherever its convenient for you. Youll have that information at your fingertips with NCP. Each section of our corporate and LLC record books is broken down and explained in 3-5 minute audio and video files that you can listen and watch over and over again, until everything is crystal clear! a. After you receive your Record Book you will get access to online video and audio support. b. If, after viewing the videos and audios, you would like additional support you can schedule an appointment with our customer service staff to help answer any remaining questions. This will allow you to set up a time that is most convenient for you to review any questions or concerns you may have. If you schedule an appointment, our customer service staff will send you confirmation of your appointment time via e-mail. If you are unable to make an appointment, our customer service staff will contact you soon after your record book arrives. 74www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 79. 9. 30 minute review session to help you complete your record book: As we have mentioned, your record book will be shipped to you and you will have an opportunity to get most of your questions answered online. If you have additional questions, you may schedule on a calendar to reserve your 30-minute appointment with us to review the entire book at your convenience! 10. Time Sensitive Information a. Your record book will have instructions and forms for time sensitive information in the left hand pocket when you open the record book. Make sure to read it completely. If you have any questions call our customer service department at 1-877-515-0505. b. If you formed your LLC or Corporation in Nevada and it needs to foreign register (qualify) in your home state you will receive instructions and forms in your corporate or LLC record book to complete and send to your Secretary of State to foreign register or qualify in your state of operations. The state fee to register into your state is separate from your fees paid to NCP up front. If you formed a home state entity you would not need to foreign register unless you were doing business in another state that required you to do so. i. When you foreign register, the forms will ask for the Registered Agent’s Name in your state. We do NOT recommend you be your own Registered Agent. We do have a referral partner that provides registered agent services in the other 49 states. Let us know and we can ask our referral provider to call you. Or you may check with a local professional who is trained in handling that service. 1. NCP is the registered agent for all Nevada entities formed by NCP. ii. If you formed a Nevada entity with NCP the registered agent fee was included in the first year. c. You will receive a client response form. It gives us important information about the contacts for your company, how you heard about us, other support you may need and your input for improvements that we look forward to every month. d. The initial list of officers/managers for a Nevada LLC or Corporation has a separate fee of $125.00. If you have a home state entity, this may not be the case. There are exceptions. e. Other important documents may be part of your package including, Nevada State Business License, Stock Ledger Statement (Corporations only), and the 2553 form for making the S Election with the IRS… You will receive attentive service from the well trained staff at NCP: Each and every new NCP employee spends their first 30 days in extensive training with internal videos and PowerPoint presentations. We cover everything, from answering the phone, to filing corporations and LLC’S. Our employees progress to the next training level only after comprehensive tests are completed satisfactorily. Then, ongoing weekly training sessions 75www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 80. ensure that every employee has the accurate information you rely on at their fingertips. Youre assured of a consistent, high-level experience from every NCP team member! Additional Steps You Will Need to Accomplish with Your Local Professionals 1. Open a Bank Account for Your New Entity. a. The bank account will be opened in the state where you are doing business. If you form a Nevada LLC that registers in your state to do business that means, you will open a bank account where the corporation or LLC is registered to do business. It does not need a Nevada bank account if the entity is registered to do business in your home state. b. The bank account will be under the EIN of the new entity. i. Even if you had a bank account before in the name of your DBA (doing business as) as a sole proprietorship, you will need a NEW bank account in the name of the NEW corporation or LLC. 1. Open a business credit card in the name of the LLC or corporation under the EIN (in addition to the debit card). 2. Make sure you find out from the bank which credit bureau they pull your personal credit score from and what the minimum limit must be to get accepted. Then check your personal credit score first from that credit bureau to see if you qualify before you complete the bank’s application. Find out what ratio your revolving debt can be at before you apply also. Many banks want your revolving debt ratio to be at 40% or lower. c. You will receive a call from our bank contact if you are setting up a bank account with a Nevada entity and have paid NCP for that service. i. Keep in mind 95% of you will be opening your bank account in your home state and there is no need for a Nevada based account. If you are local and live in Nevada you will probably open your own bank account. 2. Apply for a local business license. a. You’ll want to check with your local city or county to determine if you need a local business license for your business. i. We will send great resources where you can get forms and paperwork: 3. State compliance check: a. We recommend you check with your local CPA or tax professional to determine any other local or state requirements with your department of taxation or other departments. i. That may include sales tax, unemployment, workman’s comp, state forms to complete or others. 4. Payroll Service: 76www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 81. a. When you are ready to start paying employees (if you have them and keep in mind with an LLC taxed as a partnership, the members are not employees) let us know and we will refer you to our contact, ADP. We have a national contract with them and can get you the most discounted prices. 5. Merchant Account Services: a. Accepting credit cards is a must for any business today. The key is that rates and services are all over the board. Especially, if you are operating an online business where refunds may be higher and sales spike more often. Nothing is worse then having your merchant account frozen. NCP has a great referral that understands these issues and has great service! 6. Additional DBA or Fictitious Firm Name: a. You may want to file a DBA (doing business as) or Fictitious Firm Name linked to your corporation or LLC. It is important that your ENTITY is the applicant and not you (otherwise you create a sole proprietorship). Example: Nevada Corporate Planners, Inc., dba: NCP 7. Insurances. Check with your local insurance provider to find out if your business should have business liability, E & O or any other types of insurances that may be required. 8. HR Rules. Make sure if you are hiring employees that you comply with state and federal HR laws! It is recommended to have an HR manual and a system for everything from interviewing, hiring, training, first 90 days, first year, drug test, back ground check…Step 2: Fast Start Support Tools to Help Your Business Get Off to a FastStart to Profits and Stay Ahead of Your Competition! We Recommend You Bookmark or Save as a Favorite our Marketing Calendar, to Check on a Monthly Basis for Teleseminars and Webinars to Help Your Business Get Off to a Fast Start! You will also receive an email invitation to the teleseminars and 77www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 82. webinars that apply to you as well! http://www.nvinc.com/marketingcalendarFast Start to Incorporate Your Business Webinar! As part of your package fromNCP you will receive access to our Fast Start Incorporate Your Business Webinar! This isimportant even if you have already incorporated! I will walk you through the process, fromstarting your business and the transition to operating as a separate legal entity!You will discover the steps to get your new LLC/Corp off to a fast start to profits! You willlearn the following: • Tips on Capitalizing your new LLC/Corp! • How to transition from a sole proprietorship to an LLC/Corp! • How to issue the membership interest of the LLC/Corp! • How and when to pay yourself! • End of the year tax planning tips! • How to run your business separate from your personal life! • Tips on maximizing your business expenses! • These are live webinars (you must be on live to gain access). • Plus other strategies!Fast Start Teleseminar Invitations throughout the Year!Here are a few samples of recent teleseminars (as a Top 5% Member, you will receiveaccess to ALL of these previous teleseminars): • Michael Gerber-Awaken the Entrepreneur Within! • Alexander Van Buren-Make a Quantum Leap! • Spike Humer-Strategies to Grow! • A River of Traffic-The A9 Process! • Business Credit Strategies! • Stephen Wilkinghoff-Triple Overlap of Profits, ROI and Cash Flow! • Stephen Pierce-Massive Internet Traffic! • Breaking the Pattern of Overwhelm and Confusion (one of our most popular teleseminars ever!)Fast Start E-Mail Reminders throughout the Year!You will receive important time sensitive reminders as you start your business andthroughout the year including: • To file your list of managers or officers. 78www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 83. • To send back your 2553 for the S election. • For a buy sell agreement when you have partners. • The tax year end for your entity. • To file your federal and state tax returns. • To renew your corporation or LLC with the Secretary of State. • Go to www.nvinc.com/RegisteredAgentBenefits for full details and benefits of having NCP act as your Registered Agent. • See all the bonuses when you renew each year! http://www.nvinc.com/renewalbonus15/ • You will receive at least over $388 of bonuses (maybe more) when you renew with NCP! • Plus many others to keep you on track to profits!Fast Start Resources!When you become a client you will see all the resources we recommend and use to grow ourbusiness and bring massive traffic to our websites. Here are samples of the powerfulresources you will find at this link: • Which company to use for teleseminar and webinars! • Where to get free public domain content for bonuses! • Where to get promoted as a speaker! • How to make your own videos! • What are the best sites for article marketing, press releases and video marketing! • Other tips on driving massive traffic to your website! • Plus much, much more!Fast Start Online Bonuses!When you become a client you will receive valuable bonuses to help your business get off toa fast start! Some of the bonuses you will receive are: • Jay Abraham Marketing Genius - 60 Minutes from the Best Marketer in the World - Learn how Jay Abraham successfully grows companies and makes them more profitable! These Jay Abraham CDs will be mailed to you within 30 days! • Dominate your Competition - This Market Domination Report to Grow Your Business is by two of the Best, Chet Holmes and Jay Abraham! • Sample Buy Sell Agreement - You need to protect yourself and your partners, a buy sell is a must! We recommend you review this with your local attorney. • Outline to Transfer Assets - After forming a new entity you will need to know the proper way to move assets into your new entity. 79www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 84. • Outline of What to Do Next - Dont make mistakes and make sure your corporation or LLC is on track after formation with our Corporate or LLC Supplemental Guide! This PDF outline is included as a link when you receive your record book. • How to Break the Pattern of Overwhelm and Confusion! Any time you start a business it can feel overwhelming. In this MP3 you will learn the strategies on how to get out of overwhelm quickly and into productivity plus discover the pattern of motivation. This is an advanced interview that for many has changed their lives and made them 10x more productive!Step 3: Fast Start Business Foundational Services to Invest inand Help Your Business Get Off to a Fast Start to Profits! What is the Key to Get Your Business Off to a Fast Start? A Strong Foundation!As you know 80-95% of business owners fail within five years and only 50% make it pastyear one. The number one reason for business failure is lack of cash flow. There are manyreasons for this including, marketing, sales and capitalization….One big reason is the lack ofthe proper financial system to keep track of your business.Next, You Must Have a Source of Cash and Capital to Grow Your Business. Why? 80www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 85. First, Let’s Review the Two Main Steps for Your Business:Step 1: Incorporate (you have done that): You operate your business as aseparate legal entity, thereby protecting your personal assets from your business liabilities(this assumes you operate your entity property); additional recommendation-Incorporate inNevada first.Step 2: Separate your BUSINESS and PERSONAL CREDIT: Why this is aproblem: 95% of businesses fail due to lack of capital (cash flow), the end result is they goout of business. If the business owner personally guaranteed many of their vendor contractsthe individual is PERSONALLY FINANCIALLY LIABLE! Result: You potentially will lose mostof your personal assets (the very problem you were looking to avoid by incorporating)! Yes,you avoid legal liability but you are still financially liable! Benefit: By separating your businessand personal credit you obtain the following benefits: • Improve cash flow by obtaining terms with vendors (even with a brand new business) • Increase your trade credit lines faster thereby conserving your cash. • Avoid many personal guarantees. • Protecting your personal credit score. • Develop a separate credit profile for your business so it will stand on its own! • Helping your business to secure access to cash and capital! Introducing the Best Program to Separate Your Business and Personal Credit and Give Your Business the Cash “Life” it Needs…The Ultimate Business Credit Builder System™! This system is a MUST toseparate your personal and business credit, and to provide the additional cash flow togrow your business in the future! Plus many before they decide to do business with yourcompany will check you out at D & B or Corporate Experian®!Building business credit properly is a step-by-step process. It requires specific informationand correctly-implemented procedures to establish a sound business credit profile which willseparate your personal and business credit. Business Credit Builder is designed to provideyou with the ability to obtain trade or business credit without the use of a personal creditcheck or guarantee.Each step of this process is done legally, ethically and with a high degree of integrity. TheBusiness Credit Builder™ Program has been used by thousands of business owners fromevery state in the nation.Here is a sample of a few of the powerful tools that are part of the Ultimate Business CreditBuilder System. Call NCP at 1-877-515-0505 for current fees and more details. 81www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 86. Avoid the #1 Mistake Entrepreneurs Make in Running Their Business….…The Worst Approach is Using Your Online Banking Account Balance as Your Primary Measuring and Decision Making Tool for Your Business. You Must have a GPS System to Give You Feedback on the Success of Your Business from Month One! Introducing the Best Program to Help Keep the IRS Off Your Back and Give You the Financial Feedback to Operate Your Business…5. Annual Tax and Bookkeeping System™! “The system designed toskyrocket your success!” What is the Number #1 Reason the IRS Goes After Distributors (or home based business, networking or MLM)….?? The Lack of Financial Analytical Records (Like QuickBooks®) Worse yet….Is Your Business a Hobby (if it is, NO Business Write- Offs for You), or a Business? Most people enjoy a hobby --- golf, tennis, cooking --- and while they’ll spend moneyon those activities, they’re not a business. Yet when most people join a business opportunityor start a business, though they don’t consider it a hobby, that’s often actually what theycreate because they don’t know the rules of the game. But they have a problem: The IRS is getting much tougher on this subject. Thenumber one reason the IRS goes after business owners is the failure to use proper analyticalrecords. You’d be well advised to use software like QuickBooks® to determine how yourbusiness is really operating --- to update your gross revenue, cost of goods sold, and income. The biggest mistake we see new business owners make is using their online bankbalance as their only business financial barometer. First, that’s the wrong way to make 82www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 87. financial decisions. Second, it sends the IRS a very clear message: you are NOT seriousabout your business. This single mistake may cause the IRS to consider your business as ahobby. If they do, you cannot write off your hobby’s losses against your earned income ---and that kills one of the biggest reasons to start a business in the first place.Heres a sample of whats included in the Annual Tax and Bookkeeping System™: Here is a screen shot of the 16 Videos, each 5-8 minutes long to support you step by step, even after your training with our CPA firm! These Teleseminars are Online and are Easy to Listen to Plus You May Download Transcripts! 83www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 88. • An e-mail from our CPA firm will outline the process youll use to set up your Chart of Accounts on QuickBooks®. This will include tips and terms to help you understand everything our experts will discuss with you in your scheduled personal consultation time. • Our CPA firm will contact you to make an appointment for a personal consultation to set up your Chart of Accounts on QuickBooks®. You will receive QuickBooks Pro® in the mail to install onto your own computer before you speak to our CPA firm. • TWO POWERFUL Fast Start Teleseminars will explain the significance of accounting, plus how to stay on track with budget/cash flow. These recorded calls will help explain the precise steps to take, and importance of one of the most powerful tools to keep your business on track! • A Budget and Cash Flow Statement in the form of an Excel spreadsheet allows you to auto-fill your sales and expenses numbers for the year. This will help you manage your money and stay on target as your sales fluctuate, keeping you in a better position to make important business decisions --- a must for all new businesses. • Four Hours of Tax Consulting will be available to you, which you may use at any time during the program. You may need help with payroll, taxes, depreciation, capitalization, or perhaps interpretation of your profit and loss, or support with your cash flow forecast. Other common areas of support include: • New- Your Federal Business Tax Return Filed! Our CPA firm will file your Federal business tax return for one year. If a state tax return is required that is separate. • New- Free Bonus Gift: Five CD set designed to help your businesss records to get off to a fast start! Discover the best way to use QuickBooks®, set up your budget, a cash flow statement, FAQ, how payroll interacts with your business and how to maximize your business expenses by top CPA/Attorney Sandy Botkin!................... $379 Value!Call NCP at 1-877-515-0505 for current fees and more details on the complete program! Even with Our Powerful Tax and Bookkeeping System, it is Your Responsibility to Document the Business Expenses Properly and Bullet 84www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 89. Proof Your Records from an IRS Audit! Now the Solution…Sandy Botkins Tax System! This powerful tax program is designed to help youmaximize your meals, travel and entertainment expenses (even if you have a CPA) and HelpKeep the IRS Off Your Back!Did you know that recently the IRS discovered a $300 Billion Tax Gap each year! Thatmeans $300 Billion is not being paid in taxes and 70% of that comes from small businessowners just like you! The IRS is increasing audits and a company just like yours could be atarget! The good news is we have a solution that will help protect you that typically yourCPA is not doing for you!Do you know the #1 belief by most tax payers that makes the IRS more money each year?“my accountant takes care of my taxes”! This would be equivalent to “My doctor takescare of my health”.Can you imagine being able to eat all the junk food you wanted, drink all the booze, smokecigs all day and go to a doctor annually and get some router rooter job and it puts you backinto perfect health?That does not happen, and in the same way the doctor does not take care of your health, theaccountant typically does not take care of your taxes because they are reacting to informationyou provide them AFTER your tax year is over!• This was quoted by a famous tax attorney/CPA-Sandy Botkin!• Why? The challenge is that most CPAs, not all, do not support you throughout the year with input on how to maximize your business expenses. Typically, you only hear from them when you go to see them at tax time and they make a few suggestions and you pay the taxes!• What makes Sandy Botkin different from almost every other CPA/tax attorney is that, he was 1 of 8 appointed to the chief audit council of IRS 16 yrs ago.  In that position he trained IRS agents to maximize $ from audits against sole props, S corps, C corps and LLCs!  The main way he accomplished this for the IRS was that he developed the diary for the IRS that is used in audits. Now all Sandy does is lectures to CPAs, attorneys, and business owners on how to maximize travel, entertainment, meal expenses and how to make their records bullet proof from IRS audit!!He does NOT do tax returns! He only does research on this subject and helps clientsthroughout the U.S. maximize their expenses. In fact, the average participant in his training 85www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 90. course increased their deductions by over $18,500 AFTER going to their CPA! All backed bythe IRS code!Call NCP at 1-877-515-0505 for current fees and more details on the complete program!Step 4: Fast Start Professional Referrals-Taxes and Legal,Merchant Account, Payroll, Cash Advance, Credit Repair andRetirement Planning! Experience Our Golden Rolodex of Vendors!Payroll Services: Experts advise that the number one legal exposure to your businessbegins on the day you hire your first employee. NCP now offers complete payroll services -including HR - through our affiliation with a top payroll service provider. Be confident that yourbusiness is in complete, up-to-date compliance with all payroll and HR laws.Merchant Account Services: You may be overpaying your merchant account rates everymonth without even knowing it! NCP compares your contracted merchant rates withnationally-available rates through our affiliation with a top rate-assessment company.Professional Referrals: You may need a referral to a law or CPA firm, or financial planner tohelp you with your legal, tax and financial concerns. NCP works with professionals that wehave personally used and recommend!Credit Repair: A hot topic these days! We know the best in the country and will refer you toour resource when you become a client to help you clean up your credit so you can get yourentity in a position to maximize more business credit!Merchant Account Cash Advance: This is the hottest form of lending for business ownerstoday. Actually, it is not even a loan, but an advance on your future VISA/MasterCard sales!Caution in this area, you must work with a reputable company to help you determine how tobest use this money to grow your business!Registered Agent Services in all 50 States: If your company is registering to do business inanother state and you need a registered agent service let us know. We have a partner thatwill help in your home state!Step 5: Fast Start Profits for Your Business-Make NCP anotherProfit Center for Your Business!Want to Add Another $500 to YOUR Bank Account Each Month? $1,500?$2,500? Without Breaking a Sweat?Ask us how you can earn cash by referring your clients to NCP! 86www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 91. Get Paid Monthly! Get paid on your very first referral! Ask us how you can receive our FREE GUIDE in a PDF format that you can pass on to your clients! Refer a friend to NCP and earn 5 percent of the gross sale when they form their entity! At NCP your needs and your client’s needs always come first. If this material would beappropriate for your clients please contact us regarding our affiliate/referral program.Step 6: Fast Start to Joint Ventures!Rest assured, when you choose NCP for your entity formation, you’re putting yourself in thehands of a full service company that cares about the entire you—personally and business-wise!All of us at Nevada Corporate Planners are looking forward to the opportunity to help addeven more value to your business, your clients, and your associates!I’m sure we all agree that we operate in an extremely competitive marketplace. As a businessowner, I know that like us, you’re constantly searching for the edge that will separate youfrom your competition. 87www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 92. That doesn’t mean that you must endlessly recreate the wheel. It does mean that you need avalue-enhanced strategy that optimizes and preserves your past efforts, while moving youforward to the next level.*******************************************************************************Go to www.nvinc.com/StrategicAlliance and hear an audio overview by our CEO, ScottLetourneau, on two programs (teleseminars/webinars) that can be used to help your businessgrow!!!*******************************************************************************That means that the lifetime value of your client is a paramount consideration in yourbusiness’ strategy. Properly guided, your investment in obtaining that client can and shouldcompound over the time they remain with you --- the longer they continue as your client, themore valuable the relationship.But how do you constantly come up with new, innovative ways to secure their loyalty withoutstraining your time, effort and resources --- and at the same time, continuously secure newclients? What Are The Best, Lowest Cost Ways To Grow Your Business Today?Here’s the good news: You need not “go it alone.”One of the best ways to strengthen your competitive advantage with as little cost, effort,downside or risk as possible is through strategic alliances with other companies.By leveraging the power of their assets… their experience… their resources… you addenormous value to your own offering. You’ll not only maximize your existing clients’lifetime value, but you’ll multiply your new clients as well.We’d like to join you in a compounding strategy that makes you virtually invincible. How NCP Will Help You Attract Clients By The Boat Load, Leaving Your Competition in The Dust!Here’s how NCP can help you, your clients, and the businesses you work with: 88www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 93. You will benefit from our turnkey method focused on building strategic alliances,strengthening the positions of each associated company.You will receive e-mails, sales letters, strategy, free reports… We’ll also show you the BESTideas to maximize your results… and resources!Our tactics and strategies are not only focused on helping you (and in turn, adding morevalue for your clients), but as you introduce more businesses to NCP’s business-building,turnkey method, you’ll create your own “member network” and receive a referral fee.That’s 100% all profit for you --- No COGS with referral or affiliate fees. PURE PROFIT! Marketing Ideas on How to Add More Value to Your Business:We could do a teleseminar or webinar where you interview me, Scott Letourneau (go tohttp://www.nvinc.com/aboutncp.htm to read more about our company and CEO) and weextend a special offer.I’ll present valuable information on these provocative subjects:How to help your members incorporate their business and keep the IRS off their backs! How to develop business credit and get more cash for your business (this is one of thehottest subjects in the country). The number one reason business owners fail is lack of cashflow. It is harder than ever for business owners to obtain cash. The good news is we can do apowerful teleseminar or webinar for your group to help solve this problem! Imagine yourmembers having access to more capital to be in a better position to purchase more ofyour products and services! I have a free 78-page report, "The Insiders Guide to Incorporating Your Businessand Protecting Your Assets," that could be sent as a bonus to any of your members, or tothose that log onto the teleseminar or webinar. I have another free report on “The 20 Costly Mistakes Made Before And AfterForming A Corporation Or LLC”. 89www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 94.  We could add a Teleseminar or Webinar to your clients as a bonus to one of yourcurrent programs which could be recorded, archived and replayed in the future, perhaps inyour office for future members to view. And, we are open to any of your ideas.* For example, NCP has a new program for both personal and business credit thataccelerates both. This concise program helps business owners get access to moremoney for their business, allowing them to invest more in products or services that canjump-start a whole new level of success. There Is NO COST To Your Company!Remember, we’ve done all the heavy lifting for you. We’ve designed provocative, result-grabbing e-mails, sales letters, strategies and free reports... we’ve orchestrated success-proven webinars and teleseminars. And it’s all set to go, waiting for YOU to reap thebenefits. This Is A TURN-KEY Program That Will Take Less Than 30 Minutes To Implement!Best of all, when you introduce another company to us that becomes part of our business-boosting program, you receive: • Referral fee back to your organization!• 10% referral fee on any service sold to your membership.• 25% affiliate free on our new business credit program!Let me know what the next step will be in your process. I am looking forward to working withyou on this project!Step 8: Visit our Fast Start Blogs and Leave Your Comments:www.FastBusinessStartUp.com and www.FastBusinessCreditSecrets.com plus receiveaccess to many powerful, FREE strategies to protect and grow your business! 90www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 95. Step 9: See Scott Letourneau Present Live at an Event ComingSoon!You will receive an e-mail with dates and time! Scott Letourneau, with Tom Hua President of the World Internet Summit. Scott Spoke at the World Internet Summit in Australia, March of 2009 and New Zealand in July. Next stop, London in November 2009!Search in Google, “Scott Letourneau Video” for more tips to improve yourbusiness!Step 10: Upcoming Fast Start Events for Your Business! The Ultimate Joint Venture Boot Camp! January 29th, 30th and 31st of 2010 in Las Vegas Nevada! Go to www.TheUltimateJointVentureBootCamp.com for Event and Registration Details! “Master True Leverage for Maximize Profits™”Master the Ultimate Form of Leverage! Joint Ventures - The One Skill You MUST haveto Recession Proof and Grow Your Business 91www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 96. Join me and my team of trainers and coaches for three business life-changing days in LasVegas as we mentor you in the most powerful marketing strategy to put massive profits inyour business…yet one that 99% of stressed, struggling entrepreneurs do not use effectively,if at all.Daunting economic challenges… businesses struggling to stay afloat… This is the idealbusiness climate to leverage joint ventures to grow your business!Why master joint ventures? Joint ventures are the ultimate form of leverage. You have allheard that one key to success is to leverage “OPM” (other people’s money). That, combinedwith the two other “O’s” --- OPR (other people’s resources) and OPC (other people’scustomers) --- propels the awesome financial power of joint ventures.Look at is this way: In launching a new advertising campaign to a cold market, you can spend$5,000, $10,000, and often much more in sales letter copy, crafting the offer, working thefollow up sequence, split testing… and realize (perhaps) a 1-3% conversion rate… that is,assuming you do everything properly.OR, you can model a powerfully effective strategy by learning the short cut, a workablesystem to leverage joint ventures to grow your business. Your host Scott Letourneau and Special Guest Alexander Van Buren, a World Class Trainer, Speaker, NLP Master Trainer, Stage Hypnotist and expert on Behavioral Modeling! Discover How to solicit someone’s JV Criteria! Discover how world class communicators make JVs happen faster with more profits for your company! Can’t make it? No problem, you will get the DVDs!Are you ready to begin right away? When you call, please tell our receptionist you’d like toget started today. We take lots of calls and respond to each one individually, but placepriority on those who need help right away. If you’re facing a contract deadline, or you’vebeen presented with a time-sensitive business opportunity, let me know so I can get to workwith you quickly. 92www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 97. On behalf of NCP, I look forward to having the opportunity to work with you. Our mission isnot just to help you form your corporation or LLC. It’s also to help keep your business ontrack throughout the years!If you have any questions about our services, just give me a call at 1-877-515-0505. If youhave a business partner, I recommend that you have them on the phone with you when youcall. 93www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 98. Want to Add Another $500 to YOUR Bank Account Each Month? $1,500? $2,500? Without Breaking a Sweat? Ask us how you can earn cash by referring your clients toNCP! Get Paid Monthly! Get Paid on your very first referral! Ask us how you can receive our FREE GUIDE in a PDF format that you can pass on to your clients! Refer a friend to NCP and earn 5 percent of the gross sale when they form their entity! At NCP your needs and your client’s needs always come first. If thismaterial would be appropriate for your clients please contact us regardingour affiliate/referral program. Rest assured, when you choose NCP for your entity formation, you’re putting yourselfin the hands of a full service company that cares about the entire you—personally andbusiness-wise! 94www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 99. What Do Others Say About Doing Business with NCP?"… As I note in my best selling book,"Lower Your Taxes:BIG TIME," if you are going toincorporate, you should seriously consider doing so in Nevada. When I get asked whatincorporating companies I would recommend doing this, I unhesitatingly recommend NevadaCorporate Planners as being among the best.I have a number of reasons for this. First, I have found them to be very honest. It actuallyamazes me that they talk a number of people out of incorporating there if it isnt right for theclients situation. This is like Wal-Mart recommending Sears for certain things. Theircommitment to being honorable is most laudable in todays "fast, get-rich quick" mentality thatI see in many businesses.Secondly, if incorporating or being a limited liability company is right for the client, they arevery professional in the way that they handle the job. Everything is done with thoroughnessand precision.Accordingly, I highly recommend this company for any incorporating services or agencyservices."Sandy Botkin, Tax Attorney and Certified Public Accountant. Author of"Lower Your Taxes -- Big Time." He is listed in "Whos Who in Business.""… Asset protection strategies must be done properly to be effective. Many companies touchupon the highlights of asset protection, Nevada Corporate Planners, Inc. is different. They willspend extra time to make sure your situation is handled the right way, before and after youbecome a valued client of theirs, that is the reason I use NCP’s services for all my clients!"Attorney Dr. Arnold S. Goldstein J.D., LL.M., Ph.D.Author of more than100 books on finance and law, including Asset Protection Secrets"I would like to Thank you all for the individuals for extending such a kind level of service. Thisis the single more important deciding factor for me with consideration to businesstransactions." Rosannah Eaglehead, New York"You have helped me protect my assets though the formation of a Nevada based LLC. You havehelped me to begin organizing my tax records with Quickbooks© software." 95www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 100. Verna DAlto, New York What Do Others Say About Doing Business with NCP?"NCP helped me to incorporate my business, register it for me in my resident state and evenprovided me with a new corporate seal. They made the entire process seamless and completedand explained every item in detail forme to understand the process. Thank The Tekk Group, LLCyou NCP!""I had no knowledge of what to do and NCP was very helpful and supportive. Also, calling NCP,the contact was so friendly and helpful it reinforced my confidence in my initial decision to useNCP. I am glad I found you!" Mary Pierce, Missouri"We like that your company PERSONALLY takes us step by step & form by form though theincorporating procedure. Revelation Investments, LLC, Texas"NCP made the process so easy to understand. The people are excellent and really helpedmake the task as easy as possible. Iwould recommend their services Will Roush, Louisianahighly!""Thanks to NCP I now have the protection I was seeking. Having very little knowledge onincorporating, NCP has made it a step-by-step, easy to understand process. I can now sleepwell knowing my assets are bullet-proof protected. Thanks NCP!" 96www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 101. Brian Fanale, Virginia"Everything in the process was straight forward and systematic. I was walked througheverything and felt confident it wasbeing done right. " Bert McClure, Texas What Do Others Say About Doing Business with NCP?"I appreciate the way NCP helped me decide on the right corporate structure for my business.This saved me from a huge amount of problems I would have encountered with another formof incorporation." Dave Blackmon, California"The people at Nevada Corporate Planners, Inc. were very professional and knowledgeable. Ifnot readily available, they were quickto get back to me ASAP." Timothy Hurlbut, Vermont"I am glad that I took the next step to incorporate. Now that I have, I can breathe and sleepeasier knowing that I have someone on my side. Thank you for being there for my company." 97www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 102. Dorothy West, Florida"Thank you, your system in setting up my LLC has been stress free - thank you for all of theinformation provided to me through your web site. The Audios are fabulous! I wouldrecommend your services to anyonethat is starting a new business." Susan Lovelady, Oregon"Without taking a "cookie-cutter" approach to my entity selection, NCP was able to provide mewith the best advise to go, in terms of my entity selection, after carefully listening andreviewing my details. They are also there every step of the way to guide you in your formationand entity existence." Dipo Lashore, Kansas"Overall process is well planed, easy to follow, and completely through out. I wish it was thiseasy to incorporate my previousbusiness. I wish I had found NCP Wesley Walker, North Carolinayears ago.""This is my third corporation NCP has set up for me. I am 100% satisfied with the first classservice and support that I have been Lehman Hailey, Tennessee -given. Thanks so much Scott." Take the Next Step to Get Your Company off to a FAST START! No doubt the previous pages have stimulated your thinking and made you aware ofaspects of your own company in new ways. As well you should be – the decision toincorporate is an important step for you to take, and one that will establish the basis for thesecurity, prosperity and resilience of your company and your future. 98www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 103. As such, we invite you to call us if you have any questions. Our consultationsare free, comprehensive, and essential to ensure that you have a firm grasp on all theadvantages available with your ultimate choice. We are a valuable resource for you inyour incorporating decisions, but of course, you are ultimately the one who will decide whatpath to take. We would be very happy to count you among our clients, but that decision isyours as well. We understand very clearly that when we take good care of you, you are likely to domore business with us. Jay Abraham calls this the “life time value of a new client” and wetake that very seriously! Plus we really appreciate your referrals! Ready to Begin Right Away? When you call, please tell our receptionist you’d like to get started today. We take lots of calls and respond to each one individually, but place priority on those who need help right away. If you’re facing a contract deadline, or you’ve been presented with a time-sensitive business opportunity, let me know so I can get to work with you quickly. On behalf of NCP, I look forward to having the opportunity to work with you. Our mission is not just to help you form your corporation or LLC. It’s also to help keep your business on track through the years! Protecting your most valuable asset --- your business --- can begin today with NCP’s expert help and comprehensive services. If you have a business partner, I recommend that you have them on the phone with you when you call Take just a moment to call us now at 1-877-515-0505! A One-Time Only Special Thank You Offer “The Insiders Guide to Incorporating Your Business and Protecting Your Assets” 99www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call!
  • 104. To Gain Access to This Special Offer You Must Call NCP at 1-877-515-0505 with 72 Hours of Requesting this Guide! Here is what you will receive when you call…  Free Bonus Gift #1: A free 30 minute consultation with one of our senior business analysts who are the best trained in our industry. You will have the opportunity to speak to the best, avoid costly mistakes and gain insights from years of experience to help your business start off on the correct foundation and get off to a fast start! ……$200 value!  Free Bonus Gift #2: “Top 20 Costly Mistakes Made Before and After Incorporating” You will have an opportunity to test your business and asset protection I.Q. with our 20 question test. You will discover the most costly mistakes and how to avoid them before and after you form your corporation or LLC. Nowhere else will you find these powerful insights in one report!..........$47 value!  You will have the opportunity to purchase our top selling, Nevada Incorporating Secrets 2 CD set, loaded with the insider facts to incorporating in Nevada at a 50% discount! In this cd you will Discover Huge Benefits of having your entity in Nevada! This CD will clear up a lot of confusion for you if you’ve ever considered incorporating in Nevada . Plus, learn the key questions you need to ask to help determine what entity is best and other valuable strategy insights! You will only pay $97… $48 for this powerful 2 CD set! This is a one-time offer on the day you call (must be within 72 hours of requesting this guide). Ready to Get Your Business off to a Fast Start? Call NCP today at 1-877-515-0505 for a business evaluation at no cost or obligation to you. Find out why our services offer more value then any other company in Nevada! Please feel free to call us at 1-877-515-0505 from 8 am to 5 pm, PST, Monday through Friday. We at Nevada Corporate Planners look forward to hearing from you. 10www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call! 0
  • 105. Become an Affiliate Partner with NCP: NCP gets offers every week from companies that want to affiliate with us to help theirclients get off to a fast start. Unfortunately, we don’t align with just anyone --- your companymust be the right fit for us. Please understand that not everyone is accepted to this vibrant, valuable program.NCP’s focus and concern is that each and every client receives top-notch, accurate, ethicalassistance to help them succeed. Follow through is essential to preserve our reputation,which is as important to us as yours is to you. Therefore, we’re looking for top-notch partnersto join us in expanding the scope and reach of our services. Here is a list of how we may help your clients. Could Your Clients Benefit From:  Webinars  Teleseminars  Speaking at Live Events  Affiliate Program  Information Products  Free Guide as a Bonus to Your Products and Services If you think you may be interested --- or that your own clients would thank you for agreat new partnering opportunity --- contact NCP at 1-877-515-0505 for an appointment toapply as an NCP Affiliate/Alliance Partner. 10www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call! 1
  • 106. Revised 10-15-09 10www.nvinc.com Call within 72 hours of downloading this free guide at 1-877-515-0505 andreceive a Bonus GUIDE, a $47 value, The Top 20 Costly Mistakes BEFORE And AFTERIncorporating! and a 30 minute free consultation, a $200 value plus a special one time offer afteryou call! 2