Are Your Assets & Business Totally Protected Going into 2013?
Do You Need to Form Another Entity in January to Really Protect Your Assets? Or, Are You Starting Another Business?
As another year comes to an end, we hope yours was successful and you are looking forward to the New Year.
As part of your New Year goals and plans it is really important to determine if there are other areas to protect your business or assets. Let me ask you an important question that comes out often this time of the year.
Are you considering forming another entity in January (or December)?
Here is a list of the Top 10 Areas to Protect Your Current and Future Assets and Form another Entity.
Here are the top reasons our research shows you should consider:
10. An LLC to protect the stock of your C Corporation. Even if your living trust owns the stock of the C corporation that will not provide protection from liability (the exception is a Nevada C corporation because Nevada is the only state in the country with the charging order protection for corporations). Are you a part of a C corporation as a majority owner with other partners? How do they hold their ownership interest? If they own it personally that is an issue. Don’t let happen to you what did to a prospect a few years ago when he lost his $3 million computer company from a personal lawsuit!
9. A Single Member LLC to protect the stock of your S corporation. If you own an S corporation and you are sued personally you can lose control of the entire company. If your S corporation provides consulting services and the day you stop there is no value, that may not be a huge concern. If you have any value or residual income that is a big problem. The single member LLC (the only solution, can’t be taxed as a partnership) will provide the charging order protection (in most states, there are a few exceptions).
8. An LLC to be the member of your successful LLC. Even with an LLC if you or your partner are sued personally that will cause a disruption to the operating company with accounting records being reviewed and other legal issues. If you have a successful operating LLC with partners and you are concerned a lawsuit may show up out of the wood work to one of the members personally (which happens often when money shows up) it would be best to have EACH MEMBER have their own separate LLC. Now, the charging order is against their own personal LLC, not the operating company. Make sense?
7. A single member LLC to own the equipment of your business to separate it without tax problems. If you are looking to invest in equipment for $10K or more why own it by your main operating company? I know you want the depreciation, but what if you could get the depreciation AND have it better protected? You may have equipment that is worth $100K, $250K or $1 million or more. This is a simple yet powerful approach.
6. Another entity for your business if you have survived past two years of business. Consider all the effort you put in over the last two years, would you want to start over? You have heard the old saying, “Don’t put all your eggs in one basket”. This is so true when it comes to protecting your assets. You would never put all your investments in one stock would you? Why would you run your entire business empire under one legal entity? Diversification is key.
5. An LLC to own your safe assets like stocks outside retirement plans. If you have a brokerage account tied to your living trust or your name with investments they are NOT protected from liability. If they are in a retirement account that depends upon state laws. There is NOT a taxable event (in most cases) if you transfer the investments in your brokerage account to a NEW brokerage account in the new LLC name (Sec. 721 of the IRS Code).
4. An LLC to own your domain names. If your website generates a lot of leads for your business, why risk it being owned by your main operating company. Your domain names are virtual real estate that is free and clear. Your domain name may be worth $5K, $25K, $100K or more. If it is owned by your main operating company or you personally that is the wrong approach (but most common).
3. A single member LLC to own your rental properties all owned by an LLC taxed as a partnership. Get the best of both worlds! This is stronger then the series LLC which is untested. If you have five rental properties with a lot of equity in each property and you establish five LLCs taxed as partnerships you have five 1065s to complete each year. That adds up.
2. Another entity to separate out part of your services. If one service brings more risk to your company than others, separate it out! Again, don’t put all your eggs in one basket. Conducting seminars brings its own risk separate from your own day-to-day operations.
1. You just don’t want to be a sitting duck with all your businesses in one entity; that is too easy of a target! Worse, did you establish a separate LLC and you are still operating your sole proprietorship?
As you know NCP incorporates in all 50 states and will help your new entity properly build a business credit profile with the important business credit bureas (Dun & Bradstreet®, Corporate Equifax® and Corporate Experian®). Plus we can show you how to best minimize your taxes and lessen the impact of the looming “fiscal cliff” going into 2013.
Did you find some areas that need more protection so you can sleep better at night knowing if you were hit with a big lawsuit you would not lose everything? Starting over is no fun.
Our goal is for your business to be part of the Top 5% that succeeds and beats the odds five years from now. If you discovered some areas where you need to form an additional entity (you may have a few strategy questions first) I would like to help you make it a very easy decision to form that new entity in the month of December with two special bonuses for you
Our offices are open next week, the day after Christmas and into the New Year. This is a very busy time for us and we are here to serve you.
Here is what happens every year towards the last week of December; we get dozens and dozens of calls from people that want to incorporate or form an LLC the second day of January.
Unfortunately, because of the Secretary of State’s budget cuts around the country the process is much slower with the higher volume at the beginning of January and it make take longer for your new entity to be in place.
Our staff at NCP still has time to file your entity now in December to help you get in a position to be ready to do business going into 2013. Depending upon which state you choose to file will determine the time frame for filing and opening your bank account.
The most common concern that comes up is that if you file an LLC in December and the tax year end is December 31st does that mean you will have to file a short year tax return? Not if we choose January 2013 as the start date! In other words, we are able to file your new LLC in December and choose a January 2013 start date on the SS4 application when we obtain your EIN number. That will mean there is no tax return due for 2012 for the one week the LLC was filed. This just gives you a jump going into 2013.
Take the next step and call NCP today at 1-888-627-7007 and we will help you determine which entity and state is best for you.
Also, if you have any partners or referrals that may plan on starting a new company at that time, please have us call them now.
Two Special December Bonuses When You Form Another Entity on or Before December 31st
Special Bonus #1: The fastest way to grow any business is to leverage joint ventures. Specifically, getting in a position for other organizations to promote you at no cost to you! The last three years we have conducted The Ultimate Joint Venture Boot Camp where we brought in the best trainers in the world on this one subject and all three years have been recorded and are online plus training guides to help you leverage this strategy! When you form an entity in December, you will receive 12 months access to the Ultimate Joint Venture Tool Box which will give you immediate access to all three years of training to help you grow your business in 2013 and beyond ( www.UltimateJointVentureToolBox).
A $997.00 Value
Special Bonus #2: Plus when you form a corporation or LLC in the month of December with NCP you will receive the following extra special bonus:
Estate Planning Survival Package:
-15 point review to ensure your assets are protected from creditors and your kids will never have the State (or unwanted family members) raise them if you are gone.
-½ Hour consult with attorney Joseph Dadich, the creator of Blueprint ($499 Value);
-Autographed Copy of new book ‘Celebrity Estate Plans Gone Bad – Secrets Every Woman Needs’;
–FREE Life-Saving Medical Release document ;($477 Value); (authorize someone to get access to medical records);
–FREE VIP WILL ($677 Value) (will help to distribute to properly, nominate a representative…at least put your intentions in writing (don’t let the state dictate how your assets will be distributed…still need a living trust to avoid probate;
A $1653.00 Value
Ready to get started? Or if you have any questions about whether your situation would benefit from another entity please call us at 1-(888) 627-7007.