Why Use a Corporation?
Three reasons:
1. Asset Protection
Thousands of lawsuits are filed daily, many without any merit, filed by people looking for easy money. In our lawsuit-plagued world, using a corporation to separate you personally from all of the potential liability in your business is almost a legal necessity. When you do business with the public or have employees, you open yourself up to the potential of lawsuits. A properly run corporation can save your assets and give you peace of mind.
2. More Deductions and Tax savings
There are more tax deductions available to "C" corporations than to businesses that are not incorporated. See our Medical Strategy section for a taste of the savings you can expect. Business trips and entertainment can be expensed by a corporate structure much easier than by other types of entities. See our section on other Tax Strategies to see how you can benefit.
Moreover, there can be significant tax savings by using the "income splitting" techniques available to "C" corporations. We have an 71-page e-book that we would be happy to send you, detailing certain tax strategies that may work for you. Just ask us for your free emailed copy.
3. Estate planning
The late Sam Walton, of Wal-Mart store fame, placed his business assets in a closely held family corporation giving each one of his four children 20% of the stock. He and his wife together owned the remaining 20%. The family’s corporation became worth billions of dollars but, upon Mr. Walton’s death, there was no estate tax due!
Why? Because the company was owned by his children and his wife. And, a surviving spouse does not pay taxes on the estate, so Mrs. Walton was also able to avoid paying estate taxes on her portion of the assets.
This saved the Walton's billions of dollars in taxes, all by using simple corporate tax strategies. The Walton's net worth today is over 100 billion dollars, but without the advance estate planning that Sam Walton did, their net worth could very well be worth just a fraction of that.
It is very important to plan in advance, so that your loved ones can avoid having to sell most of the estate's assets to pay the taxes on it.
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News & Updates
NEWS FLASH: Nevada now requires the Social Security number, date of birth, resident addresses, and telephone numbers of all shareholders, partners, officers, managers and members of all companies formed in Nevada on the state's business license. We bet they did not tell you that.
Wyoming state fees are 87% less than Nevada's. That includes the Nevada "hidden" officer filing fees of $125 that you learn about only after you start your company there, a fee Nevada will hit you within 30 days after you start your company! Oh, and the state business license fee of $200 per year, which was just doubled on July 1st, 2009! We bet they did not tell you about that "after-the-fact" fee either.
Wyoming has no business license fees or officer filing fees. This means we can deliver a quality company package for much less than you would pay in Nevada. And, your Wyoming state renewal fee is $50, in most cases, 84% less than what you will pay in Nevada. And, the nice thing about Wyoming is that is not the only reason to incorporate here.
NEW 2009 study shows Wyoming to be the most business-friendly, lowest tax state, of all 50 states...again.
