The Rich And Famous Gamble on Nevada
What key financial strategy do Madonna, Donald Trump and other millionaires have in common? They incorporate in Nevada.
According to Sandy Botkin, Tax Attorney and Certified Public Accountant, author of "Lower Your Taxes -- Big Time, "
If you are going to incorporate, you should seriously consider doing so in Nevada."
Although many companies claim that saving taxes is the chief benefit for businesses to incorporate in Nevada, CEO Scott Letourneau of Nevada Corporate Planners says that "70-95% of business owners do NOT save taxes by incorporating in Nevada. Most still have to pay taxes in their state of operation. And what most business owners aren't aware of is that the chief benefit to incorporating in Nevada is liability protection.
"Nevada is still the hardest state in the country in which to pierce your corporate veil. In comparison, California has a history of a very liberal piercing ratio of 50%. In other words, in 1 out of 2 cases, the corporate veil is pierced in California," explains Letourneau.
"Here's an example of how this works. A recent client was injured on the job, received a settlement, is starting a new business and is concerned about protecting her two kids, By incorporating her new business in Nevada, (and operating the company in California), if her company is sued directly, she might lose company assets, but by forming in Nevada first, if the creditor wants to go after her personal assets (home, savings accounts, rental properties and other investment vehicles), Nevada creates a brick wall of protection (assuming fraud is not involved)," Letourneau states "The corporate veil has only been pierced two times in Nevada in the last 24 years and both cases involved outright fraud."
The business of forming Nevada corporations has skyrocketed over the last couple of years. Many companies promote Nevada corporations as a magical asset protection device that will save you from any situation. That is simply not true. There are numerous benefits to incorporating in Nevada, but it is not a cure-all says Letourneau. "It is one of my missions to help dispel the myths surrounding this issue."
"When I get asked what incorporating companies I would recommend, I unhesitatingly recommend Nevada Corporate Planners as being among the best," says Botkin.
"I have a number of reasons for this. First, I have found them to be very honest. It amazes me that they talk a number of people out of incorporating there if it isn't right for the client's situation. This is like Wal-Mart recommending Sears ... Their commitment to being honorable is most laudable in today's "get-rich quick" mentality that I see in many businesses."
Corporate planner Letourneau regularly consults with profitable business owners about capitalizing on and protecting their assets. Whether the topic is saving money, tax issues or incorporation strategies such as choosing the correct entity for a business, Letourneau moves people toward maximum return on their assets.
Over 45,000 new businesses open in Nevada each year, according to Letourneau. "Many experts agree that business ownership is the ticket to financial independence for many Americans. Building your own version of the American Dream and creating a secure financial future are especially important during these uncertain economic times," he explains. "Business ownership is a crucial step along the way if you consider it is the number one financial planning strategy of the rich. For a consultant, independent contractor, or anyone making $40K and up, incorporating your business will help you save taxes and protect your assets."
To find out the other major benefits of incorporating your business, call NCP today at 1-800-351-5111 for a free consultation and a thorough analysis of your situation. You can also link to the website at: http://www.nvinc.com/piercecorp.htm.
Did you know that the Silver State is the number one state to do business in America according to MSN Business and is high on the Forbes-Milken and Cognetics lists of business friendly states.
"Want to know the best place in America to lay down a bet on the future success of your business? Appropriately enough, the hands-down winner is Nevada, a state better known for another kind of gambling. Why? A pro-business regulatory environment, affordable housing and, I suspect, a good year-round climate have combined to make the Silver State a mecca for fast-growing startups," according to Philipp Harper, MSN Business article, Best and worst states to run a small biz (http://www.bcentral.com/articles/harper/141.asp).
Listen to Scott Letourneau, CEO of NCP, a regular monthly guest on BizSoup, hosted by John DeBevoise and Chris Jaynes on Business Talk Radio (http://www.businesstalkradio.net/) (http://www.bizsoup.com/stations_saturday.htm 8-10 pm every Saturday).
NCP is a member of the Better Business Bureau in Nevada and a key referral source for the Nevada Development Authority.
BIO: Scott Letourneau is the founder and CEO of Nevada Corporate Planners, Inc., and author of WHAT IS THE CORRECT ENTITY TO PROTECT YOUR BUSINESS AND YOUR ASSETS? He is considered an expert on Nevada corporations and taxation by prominent professionals including tax attorney/CPA Sandy Botkin, author of LOWER YOUR TAXES-BIG TIME, and Dr. Arnold Goldstein, J.D., LL.M., Ph.D., author of 100 books on finance and law.