Structuring Your Company

Structuring Your Company
By William Cate
Published October 1998
[http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]

In Canada, you'll pay 60% taxes on your pretax profit. In the United
States you'll pay Federal and States taxes on your pretax profit. This
means that a California business pays 41% in taxes. You make money when you save on taxes.

I'm not an attorney nor an accountant. I'd advise that you discuss tax
strategies with your tax advisers. I'm offering the following from my
business experience. I work on the premise that you must pay taxes in the
jurisdiction in which you earned the money.

If you have a local business, don't incorporate in a tax haven state, like
Nevada. The taxing state will still want their taxes on the money you
earned.

Too many local businesses incorporate in such a way that the corporation
pays taxes on the business income and the owners pay taxes on the proceeds
from the corporation. If your corporate pretax profit was $100 in
California, after taxes your company has $59.00. If you pay the $59.00 to
the owners, they must pay taxes and the after tax profit is $34.81. To
avoid paying 65% taxes, the owners should never have incorporated. They
should have asked their tax adviser about forming a LLC.

If you have a national business, incorporation in a tax haven State may
make sense. Compared to California, you'll save 8% on your company's income taxes. If the State tax savings justify tax haven incorporation, do it.

If you have an international company, incorporation in a tax haven makes
sense. It won't save your company taxes on your U. S. or Canadian business
income. It will save you 40%-60% on your non-North American business
income. This strategy is being used by almost every multinational
corporation in the World. It's an inexpensive tactic that will save your
company hundreds of thousands of dollars. If you need help creating a tax
haven corporation, please contact me.

Whether you are a business owner or investor, you should consider a global
approach to money and investment. The International Money School offers an excellent primer in sound global money management. If you would like to
attend the next one-day course, please contact me.

To contact the author: Visit the Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visit the Global Village Investment Club Website:
[http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]


About the Author

He has been the Managing Director of Beowulf Investments [http://home.earthlink.net/~beowulfinvestments/] since 1981 and is the Executive Director of the Global Village Investment Club [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]

More Business and Finance and other resouces to help you locate great articles just like Structuring Your Company :

Here are other categories to find more must know information on anything and everything.
Auto and Trucks
Business and Finance
Computers and Internet
Education
Environment
Family
Food and Drink
Gadgets and Gizmos
Gardening
Government
Health
Hobbies
Home Improvement
Kids and Teens
Legal Matters
Marketing
Music and Entertainment
Online Business
Parenting
Pets and Animals
Recreation and Sports
Self Improvemen
Site Promotion
Travel and Leisure
Web Development
Women
Writing
 Here are more Business and Finance articles to give you more must know information just like in Structuring Your Company article.

Hey! That was my idea!... Corporate Games for a Rainy Day
People occasionally come to me and ask about situations with their jobs or
within their companies. The primary question I hear is "What do I do
if...?" Usually, they got caught up in a turf war or game and have no idea
what to do next. Most of ...
Read more

How To Avoid Work-at-Home Scams and What To Do When You're A Victim
© 2004 Vishal P. Rao

As more and more people opt-out of conventional jobs and
instead choose to work from their homes, the number of
work-at-home scams has also increased. Each year thousands
of people find out the hard way that opportunit...
Read more

Rebuild & Keep Good Credit Ratings by Understanding Your Credit Cards
SECURED CREDIT CARDS Secured Credit Card is similar to a prepaid credit card since the funds you are using are actually yours and not the issuer of the credit card. Generally people who apply for se...
Read more

Computer In The Shop? What Do You Do Now?
Have you ever had one of those days when you just feel like something is missing? … something just doesn’t feel right… like you should be doing something but you can’t remember what?

Well, I had one of those days recently… my computer was in the s...
Read more

Outsourcing - Is it for my business?
There are definitely advantages, but make sure you make an informed decision!

There are a lot of advantages to outsourcing, however, there are also some disadvantages. Since this is such a huge issue, and such a large decision for you to make regar...
Read more

 

Thank you very much for viewing this must know article: Structuring Your Company . Hopefully you have found all the information you were looking for in " Structuring Your Company ". If you feel like you need more information feel free to check out Info Pom HOMEPAGE to look for more articles in our humangous database

Site Partners:
Background Check