| There are three primary reasons to use a corporation | | | | marketing and advertising, bigger retirement benefits |
| to own your business today: (1) Liability Protection, (2) | | | | and even dining out are deductible to a company if |
| Tax Savings and (3) Accelerated Retirement. To | | | | business-related and properly documented. Moreover, |
| make the most of it, you need to understand how a | | | | with proper guidance the company can actually build |
| corporation actually works, and how you can take | | | | corporate credit that is entirely separate and can |
| advantage of what it has to offer you in the way of | | | | provide relief to the burden many business owners |
| tax savings, lawsuit protection and retirement planning | | | | have on their personal credit. With the savings that can |
| opportunities. | | | | be enjoyed, you can more rapidly build a retirement |
| LAWSUITS AND THE LIABILITY SHIELD. | | | | nest egg. |
| The USA is home to over 90% of the world's lawsuits. | | | | ACCELERATED RETIREMENT PLANNING. |
| One out of every five people in the U.S. will be | | | | One of the best things about having your own |
| involved in a lawsuit, and if you're a business owner, | | | | corporation is that you alone can control the size and |
| professional or own real estate your chances go up to | | | | timing of your retirement income by the choices you |
| one out of three. Unincorporated business owners | | | | make. You are not beholden to someone else who |
| (which are called 'Sole Proprietorships) are the most at | | | | decides when, how or even if you should benefit. |
| risk. Under the law, the sole proprietor and the business | | | | 401(k) Plans, Defined Benefit Plans, long-term care |
| are considered one-and-the-same person. By contrast, | | | | coverage and Welfare Benefit Plans are just a few of |
| a business run from inside a corporation is considered | | | | the ways you can reduce the tax impact on your |
| a separate 'person' in the eyes of the law - that is, you | | | | company's stream of revenue. Not all of them require |
| are not the corporation and it is not you. Its debts and | | | | a 'matching' deduction for employees. Certain of these |
| liabilities are not yours - so long as certain guidelines | | | | can benefit 'just you' or your 'key employees'. The |
| and formalities are followed. Moreover, if you avoid | | | | deduction amounts are generous - and the challenge |
| co-mingling the assets and expenses of the business | | | | of course, is the timing. It's not always easy for every |
| with your personal assets and expenses, you can | | | | business owner, but by having the discipline to |
| sidestep the 'alter ego' theory advanced by many trial | | | | consistently make contributions to your own retirement |
| attorneys. | | | | future, you not only save on income taxes today, but |
| TAX SAVINGS ADD UP QUICKLY. | | | | you can accumulate significant wealth that is safe |
| The tax advantages are a key reason to incorporate. | | | | from lawsuit creditors. |
| In fact, certain deductions are available only to | | | | Work with a CPA that is not just a 'financial historian'. |
| enterprises that do business through a company. In | | | | Set up your corporation in a state that puts limits on |
| addition to business deductions for normal operating | | | | liability exposure, and register it to do business in the |
| expenses, there are many that can provide new | | | | state in which you reside. A corporation can provide a |
| opportunities - company owned vehicles and aircraft, | | | | liability shield, a way to reduce taxes and to accelerate |
| education and seminars, business-related travel, are | | | | the amount and the timing of your retirement. Don't let |
| among the many deductions available. Expenses such | | | | fear stand in your way. |
| as telephones, health insurance, life insurance, | | | | |