At Leaders Without Limits, we can help you achieve the corporate formation of your business in as little as seventy-two hours! It matters very little how big – or small – your business is, or whether you've been operating your company for one week, one month or one year. Now is the time to protect yourself against the loss of business or personal assets and reduce your tax liability.
Corporations are a form of business organization permitted by law in every state. A unique feature of a corporation is that is issues shares of stock. A share of stock entitles a shareholder to vote on the election of the Board of Directors, which is charged with the overall management of the corporation. The Board of Directors elects the officers-the president, vice-president, secretary, and treasurer, who are authorized to conduct the day to day business of the corporation. Many states permit a single individual to serve as sole director and hold the corporate officer positions listed above.
One of the unique features of a corporation is that it is intended to have perpetual existence. The death of an individual director or officer does not terminate the existence of the corporation. Instead, the corporation carries on indefinitely until it is dissolved by vote of the shareholders.
A corporation is legally formed entity upon the filing of Articles of Incorporation with the Secretary of State's office in the state in which it is operating, the corporation is born. You can choose to incorporate in any state you wish. It is not necessary to incorporate in the state where your business is located.
There are attractive features to consider when choosing a state for incorporating. A disproportionately large number of corporations are formed in Delaware. Most large public companies are incorporated there. The State of Delaware has encouraged corporate formations by adopting laws that favor incumbent officers and directors against attack from dissident shareholders, has a long history of decided court cases interpreting its corporate law.
A Wyoming corporation or LLC offers its directors and officers a high degree of protection from lawsuits filed by disgruntled creditors or overzealous plaintiff attorneys. Doing business as a Wyoming corporation can offer you privacy and asset protection. In addition, there are no state income taxes on Wyoming corporations.
Conversely, there are a number of states, Nevada in particular, that extend excellent privacy protection without corporate state income tax, and its laws are also designed to give you a high level of privacy and protection. Nevada does not voluntarily share information with the IRS or with any other state. There is no personal liability, on March 13, 1987 the Nevada Legislature passed legislation that indemnifies officers and directors from personal liability for acts committed on behalf of the corporation or by the corporation.
Attempting to incorporate your business for the purpose of asset protection after the threat of lawsuit puts your assets at risk, as any attempt to do so will be considered – by state law – a fraudulent transfer. This includes any attempt to hinder, delay or defraud a creditor, or guard against a potential lawsuit on the horizon.
If a lawsuit, creditor or tax action is filed against you before you've taken the time to form a corporation; your assets are not protected. You are personally responsible for the damages awarded in court. Without an established corporate entity, your house, your car, and all of your personal possessions can be used to cover the cost of the lawsuit. You must take great care to convey your assets legally, particularly if you are under some type of legal attack.
Despite the risks, the number of people who own and operate small businesses without this protection is astonishing, especially when the time it takes (and the costs involved) are minimal and could protect everything they've built. Remember the adage: “He who fails to plan, plans to fail.” Don’t let that happen to you.
If you're married and in business, being incorporated is especially important for you. Divorce can all too easily put the existence of your business at risk… whether your spouse was involved in the company or not, and regardless of who initiated divorce proceedings. At Leaders Without Limits, our experienced team can easily walk you through the incorporation process and help you understand why this business protection is an essential investment.
The application process is simple. A personal strategy review session will help you determine your assessment of risk and which type of corporation is right for your business; a S-corporation, C-corporation or an ultra-protective LLC.
Discover the wealth locked inside your business structure. Don't wait another day...we're here to help you. Please contact us toll-free at 1 (877) 652-1868.