Attention: Sole Proprietorships – Discover Why You Have the Wrong Business Structure to Grow.

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Have you updated your goals going into the fall for this year? If the outcomes you’re looking forward to this year include making more money, gaining more clients, boosting your profits, cutting your taxes or attracting lucrative joint venture partnerships…

the FIRST STEP is to STOP operating as a sole proprietorship! This is the time to make the shift, not waiting another 5 months until January. You want to escape the sole proprietorship trap for many important reasons:

1. Highest Audit Rate. Filing a schedule C means you are 300% more likely to be audited by the IRS . Why? The IRS is has a $300 BILLION tax collection gap each year, and a large percentage comes from small business owners who file a schedule C – not large corporations. In the eyes of the IRS, small business owners are more likely to under report income and exaggerate expenses. Now, I’m not saying that you’re making these big mistakes yourself, but the IRS will ASSUME that you are, simply because so many other sole proprietors do. That makes you an easy audit target!

2. Highest Taxes. Sole proprietorships pay the highest business tax rates. Not only will you pay the 15.3% employment taxes up to $118,500 in 2015, plus 2.9% for Medicare, you may also be required to pay a number of other state and federal taxes. Of course, as a business you may be able to offset some of that with business expenses or home office deductions (assuming they’re all properly set up and documented), but referring back to point #1, you’re setting yourself up for a potential audit.

3. Highest Liability. Here’s the bottom line for sole proprietorships – when you do business in or own name or under a DBA, you have UNLIMITED PERSONAL LIABILITY for ANY legal issues that come up . Without the protection of a properly structured separate legal entity you may lose most of your personal assets, including the equity in your home. Maybe you’ve been operating as a sole proprietorship because you don’t have many assets to protect right now. If you hope to change that in the future and accumulate more wealth, it’s worth considering that you could be sued later for something you’re doing now. If someone gets a judgment against you, they could chase you for years waiting until you DO have assets to go after. Sole proprietorships offer no protection – even against frivolous lawsuits which run into hundreds of billions in the U.S. each year. Our research turned up a woman who filed over 700 lawsuits. Her “business” strategy was targeting people with money who were unprotected and a person like that will go after anyone!

4. Fewer Funding Options. Operating as a sole proprietorship means you’re self financing your business – most likely on your personal credit cards! That drives your revolving debt up and your personal credit score down – which can hurt your chances for business credit later on. Even though it’s vital to keep business and personal credit separated, your personal credit history does affect your ability to qualify for certain kinds of cash funding options – including the amount of money you get and the interest rates you’ll pay. The key is to STOP using personal credit to finance your business and form a separate legal entity ASAP. This critical step paves the way for financial credibility – which means more and better opportunities to use other people’s money to grow!

5. A Lousy Marketing Message. If your first year profit projection is under $50,000, a CPA or tax professional might advise you to “keep it simple” and start out as a sole proprietor. In rare individual cases that might be good tax advice, but it doesn’t position you for long term success – there are other essentials to consider if you want a complete business foundation. When potential customers or important suppliers or partners are evaluating your business, what MARKETING MESSAGE does your sole proprietorship send? Sharp business people may take it as a sign that your profit (and longevity) expectations are LOW and take their business elsewhere. Sadly, they may never tell you the real reason why they chose not to do business with you – would you risk your own money, reputation or relationships on a company that might not be around tomorrow? You may have already lost revenue and growth opportunities if you’ve been operating as a sole proprietorship. If so, it’s time to position your company as a winner with the right foundation for success.

Do you get the picture? Operating as a sole proprietorship is NOT the way to go if you’re planning for success. As you set your direction for remaining part of 2015, it’s time to make your BUSINESS OFFICIAL and step up the big leagues with a COMPLETE FORMATION.

Here’s the PROBLEM – the internet is loaded with CHEAP ONLINE incorporating services that promise you everything you need for $99 (or less) to form a separate legal entity. Most are selling you a piece of paper with an EIN number .

This is like buying a car and realizing after you’re zooming down the highway that BRAKES were OPTIONAL and not included in the purchase price. Who in their right mind would sell you a car with NO freakin’ brakes?!

Granted, that piece of paper and EIN may be enough to open a business checking account, but without a COMPLETE FOUNDATION starting with a COMPLETE FORMATION you have absolutely ZERO PROTECTION!

Why is this so important? Here’s what my friend, Attorney Lee Philips, said about businesses that rely on online articles of incorporation as their only form of legal protection:

“We slice through those in 15 minutes in court and go after the individual every time. That piece of paper provides NO protection!”

This is a direct quote from a legal expert who has been a counselor to the Supreme Court and tried many cases representing plaintiffs. His courtroom experience has shown him that most business owners have no clue what complete formation entails.

To solve this problem, I’ve I created a BRAND NEW training http://budurl.com/LaunchWithConfidence that sorts all of the vital formation steps into the 5 Essentials for a Complete Business Foundation. This new training will help you quickly see HOW MANY of these five essentials are complete for your business and where you may be at risk.

This 58 minute training can be valuable for you whether you’re looking to form a new LLC or corporation or formed your entity years ago. Either way, you’ll leave this session knowing how to protect yourself and your business from financial and legal risks (and it is FREE- yet valuable to you).

Over the last 17 years my company, NCP, has helped thousands of entrepreneurs launch with confidence (just like you). Our COMPLETE FORMATION PROCESS ensured that they were starting out with more than just a flimsy piece of paper that provided no protection.

Lee’s comments inspired me to take our training to the next level – we want every entrepreneur to be CLEAR beyond all doubt what it takes to form a complete and secure business foundation. The result is my BRAND NEW training called, the 5 Essential Components for a Complete Business Foundation – and now you get access to it for FREE (for a limited time).

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Click here to register or get more information: http://budurl.com/LaunchWithConfidence

Pick your time and date to be part of this special training (please allow 3-5 minutes for the video to load first).

Length: 58 minutes

Host: Scott Letourneau, The Business Formation Expert

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You may be shocked to discover that your existing LLC or corporation may need more compliance (or other) work to really offer the protection that you invested in when you started the entity with NCP. Here’s a sample of what you’ll learn in this valuable webinar:

· Find out why accountants, lawyers or tax specialists sometimes give the WRONG incorporation advice to small business owners (plus learn the best who we use at NCP).

· Discover the EXACT FORMULA and STEPS for a COMPLETE FORMATION, one that will actually protect you!

· Think forming another entity is too expensive? Many are surprised to learn how affordable it is to form a complete entity that’s certain to protect you and stand up to IRS scrutiny.

· Need funding to grow into 2015? You will learn the best steps that is currently working to get your business more money and profits!

· Are you utilizing the best steps to grow your profits the fasted for your business? If not, learn THE BEST STRATEGY to grow profits at the lowest cost possible.

In less than one hour, I’ll get you up to speed on things that most entrepreneurs take years to learn (if they ever get it at all). I’ll give you the straight story on why the IRS specifically goes after certain types of small businesses and what you can do to hang on to what’s yours. Every strategy is field-proven by entrepreneurs around the world.

Establishing your goals for the new year? Don’t continue entity into the new year with a shaky foundation and attempt to build wealth on top of it. Nothing is worse than achieving success and then losing it all to some hidden – and preventable – threat in the future.

Feel free to forward this invitation and share it with your friends, colleagues and professional advisors – they’re welcome to join us too!