Publish Date : 11/30/2004 2:24:00 PM   Source : onlypunjab.com Team.

Crucial Questions To Ask Before Setting Up A Nevada Corporation

You’ve seen or heard the ads. Companies spend millions of dollars to convince California and business owners in other states that Nevada incorporation is the panacea for all of their ills, from tax savings to shelter from Armageddon. But the problem with their claims is that some are simply not true according to Bonnie Simon, Corporate Credibility, LLC.

“There's a reason why Nevada corporations advertise in California. It’s because California has the highest state tax in the country, and Sacramento is only a three hour drive from Reno, Nevada,” Simon explains. “If you are a business owner looking to save money, the Silver State can look like a great place to move your money. And it is, for some business owners.”

What are key questions your incorporation company should ask you before they set up your corporation? “If they don't ask you what you do for a living, or how much money you are making, run in the opposite direction because they are not looking out for your best interest,” Simon recommends.

Here are eight questions that your incorporating company should ask you before you incorporate in Nevada:

1. Do you need a license in your industry or profession?

2. Do you have an office or physical location?

3. Any employees?

4. Do you need to warehouse your product?

5. Do you need all the money you are making to live on?

6. Is your business going to make a profit or loss the next few years?

7. Do you have a part or section of your business that is not dependent
on being in a specific geographic location-i.e. internet business,
purchasing, etc.

8. Are you willing to do the extra paperwork and take care of the expenses involved in running a secondary corporation, if necessary?

“The business has to be a legitimate business, with a Nevada office, bank account, and business license. Depending upon the type of business, it may be beneficial to set up a Nevada corporation,” Simon continues.

“For instance, let’s say you have a brick and mortar business such as a retail shop in California or another state,” Simon explains. “You do 30% of your sales over the Internet and 70% through your shop. If your income is not geographically specific, like the part of your income that you receive from the Internet, it could be worthwhile to make that 30% in sales the reason for setting up a Nevada corporation.”

Corporate Credibility, LLC helps business owners incorporate in all 50 states.

For more information, go to the Corporate Credibility, LLC website at: http://www.cc4yourco.com or call Bonnie Simon at 877-821-6117 for a no charge business evaluation and assistance in selecting the correct entity for your corporation.

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 Information taken from an article by: Celia Sue Hecht  on Corporate Credibility,  LLC. 

© 2004 Lonesome Valley Newsletter, LLC. All Rights Reserved.
December,  2004

(9/04)
Savvy Business Owners Beat the Odds with Business Credit

Three out of five businesses fail during the first five years according to the Small Business Administration and Dun & Bradstreet. Whether you've just started a business, or have been in business for some time, experts agree that developing a business credit profile and separating your personal from business credit can help you beat the odds.

One of the biggest advantages of creating a good corporate credit profile is saving money. By obtaining a favorable credit score, business owners can actually lower the interest they pay on loans and leases. As a result of freeing up liquid capital, business owners can also take advantage of prepayment discounts with vendors, add employees, and build up inventory.

According to Bonnie Simon, Director of Sales for Corporate Credibility, "A downside of utilizing personal credit for a business is that your personal credit can become tied up and even negatively affected. For example, a landscaper I spoke with recently received a government contract. Since he had no corporate credit, although he had just incorporated, he had to utilize his personal credit to purchase three new trucks for the business. When he applied for a mortgage for his new home, much to his dismay, he discovered that he could not get the interest rate he had originally qualified for because the three new trucks were now on his personal credit report.

“Another issue to consider is let's say, your business goes out of business. Without corporate credit, you would still be legally and personally responsible for any business expenditures even after the company goes belly up," she explains.

There are companies such as Corporate Credibility that specialize in assisting new corporations in establishing corporate credit and can even short cut the credit building process from the average 3-5 year time span to 6-9 months. Business expenditures can be purchased via this credit building process and lenders and funders report to Dun & Bradstreet (an important step in building a corporate credit profile).

Do you know the answers to these important questions?
• What rights does a business owner have if there is incorrect information on their credit report?
• How do I obtain a business credit score?
• What do business lenders look at in order to extend business credit?
• Where can I find companies that grant credit?
• Which companies report to the business credit bureaus?
• What credit card companies do not require personal guarantees?