You can implement your own creative solutions. Whether it's Asset Protection, Estate Planning, Business Structuring, Real Estate Planning or all of the above, trust yourself, be in charge of your own destiny. No one cares about you, more than you.
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If you own a business, and you are not incorporated, you are putting your friends and family at risk. For many people, this is not an acceptable alternative. You should structure your affairs in order to protect your family from business liabilities and significantly lower your taxes at the same time. Protection with a profit. There is no one solution for everybody. Everyone has there own needs.
Many people seek out professional help and pay thousands of dollars for an attorney to administer a solution for them. They mystery of it all and the fear of 'doing it wrong" leaves many business owners and investors never quite feeling in control of this new situation they created. The attorney or administrator seems to be in charge of your company. This is costly and frustrating, but very profitable to the people you hired. Business owners receive many benefits from incorporating. But the two biggest reasons are for Tax savings and liability protection.
A "C" Corporation is the most common corporate structure. It is also called a general <BR soft>corporation. A “C” corporation may have an unlimited number of shareholders. It is normally chosen by those businesses that are planning to have more than 30 shareholders or planning a large, public stock offering. These general corporations usually pay taxes at two levels. First, the corporation is required to pay taxes based on the corporation’s profits. Additionally, the owner or shareholder is taxed when the corporation distributes profits, known as dividends, to the individual. This is commonly known as “double taxation
An "S" Corporation is a general corporation (C corporation) that has elected a special tax designation by the Internal Revenue Service. The S designation is chosen after the corporation has been formed and allows it to avoid double taxation. The designation allows the owners or shareholders to be taxed only at the individual level, rather than at the corporate and individual levels. All income for the business is only taxed at the individual shareholder or owner level. This designation is often ideal for small businesses and entrepreneurs since it prevents double taxation while providing limited liability and an enduring structure.
Note: While the S Corporation features similar pass through taxation to an LLC, in the area of self-employment taxes an S Corporation can have an advantage over an LLC. The compensation (salary and bonuses) of S Corporation shareholders is subject to self-employment tax, but not on the profits automatically allocated to them as a shareholder. This can be an advanced and aggressive tax strategy, so be sure to consult with the appropriate tax and legal specialists before pursuing it. The one drawback is that S Corporations must have shareholders who are US Citizens or US Residents
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