One of the most important decisions you will make when you start or grow your business is the legal structure you give it. If you want to protect your personal assets and maximize your profits, forming some sort of legal entity (rather than a sole proprietorship or a general partnership) will be necessary.
As an entrepreneur who has founded or owns a small, privately held company, you will want to take a good look at how you should incorporate in order to protect you’re assets-legally, effectively, and to pass on wealth you generate from one generation to the next. You will also want to protect your assets so that you can use the capital you accumulate to build your business. Even though a corporation is an artificial person, its actions have real consequences.
The time to make a decision is before you have made money. Some form of incorporation will protect your assets, unlike simply operating as either a sole proprietor or as part of a partnership. The question is which legal structure will work best for you and your growing business. FMS will walk you through your options so that you can make an informed decision.
Concerns about taxes are major issues in our financial planning; however, we should be just as concerned about liability. What good is it to work hard, accumulate capital, and then lose it? It happens. And when it does, it is devastating. To most citizens liability is usually a secondary consideration. Your choice of corporation, “S” or “C”, Sole Proprietorship, Partnership or Limited Liability Company affects your taxation and the liability that flows through to your personal property.
The option of forming or incorporating offers several several benefits but also some disadvantages. Should you choose reduced taxation, you generally increase your liability and should you reduce your liability, your taxation will increase. This is why an Asset Protection Plan needs to be crafted to suit your personal situation. It should consider your business risk, your family estate plans, your personal assets, and the weight of your tax burden.
Take, for example, the difference between an S Corp and a Limited Liability Company for using “write offs.” In an S Corp, a principle is not taxed on health care; in a Limited Liability Company, the membership must declare the health benefits as income. If a stockholder is sued in an S Corp, the suit can flow through to that person’s personal assets, making an S Corp known as a “pass-thorough” entity. In a Limited Liability Company, it is much easier to keep the liability to a “limit” and protect the members.
As an entrepreneur who has founded or owns a small, privately held company, you will want to take a good look at how you should incorporate in order to protect you’re assets-legally, effectively, and to pass on wealth you generate from one generation to the next. You will also want to protect your assets so that you can use the capital you accumulate to build your business. Even though a corporation is an artificial person, its actions have real consequences.
The time to make a decision is before you have made money. Some form of incorporation will protect your assets, unlike simply operating as either a sole proprietor or as part of a partnership. The question is which legal structure will work best for you and your growing business. FMS will walk you through your options so that you can make an informed decision.
Concerns about taxes are major issues in our financial planning; however, we should be just as concerned about liability. What good is it to work hard, accumulate capital, and then lose it? It happens. And when it does, it is devastating. To most citizens liability is usually a secondary consideration. Your choice of corporation, “S” or “C”, Sole Proprietorship, Partnership or Limited Liability Company affects your taxation and the liability that flows through to your personal property.
The option of forming or incorporating offers several several benefits but also some disadvantages. Should you choose reduced taxation, you generally increase your liability and should you reduce your liability, your taxation will increase. This is why an Asset Protection Plan needs to be crafted to suit your personal situation. It should consider your business risk, your family estate plans, your personal assets, and the weight of your tax burden.
Take, for example, the difference between an S Corp and a Limited Liability Company for using “write offs.” In an S Corp, a principle is not taxed on health care; in a Limited Liability Company, the membership must declare the health benefits as income. If a stockholder is sued in an S Corp, the suit can flow through to that person’s personal assets, making an S Corp known as a “pass-thorough” entity. In a Limited Liability Company, it is much easier to keep the liability to a “limit” and protect the members.
Introduction To
The FMS team of experts includes experienced business consultants, attorneys, and accountants who can help you determine the best corporate structure for your specific business and circumstance. They will also provide you with an up-to-date understanding of how Nevada law works and how it differs from the laws of other states.
The big question is “which entity” is the right one for you?
One of your first decisions is to decide how your business should be structured.
It is important to make a detailed analysis of your options.
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LAS VEGAS , NV 89123
702-952-9595
WWW.FMSNEVADA.COM
info@fmsnevada.com
LAS VEGAS , NV 89123
702-952-9595
WWW.FMSNEVADA.COM
info@fmsnevada.com
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