Corporations have long been the business entity of choice. They have been around for well over one hundred years. Every court in the country, both state and federal, has ruled on corporations. What are they? What protection do they provide for stockholders, officers and directors? What business expenses can they deduct? What property can they own? Every question concerning corporations has been raised and answered by the courts.
Wealth Support Services has formed thousands of corporations since its formation in 1998. We consult with clients to determine if a corporation is the best entity for their goals, and we help determine the most advantageous state in which to file the entity. Wealth Support Services is experienced in filing all types of corporations in all 50 states: C corporations, S corporations, professional corporations, as well as nonprofit corporations.
If a client desires to file a charitable tax exempt corporation, Wealth Support Services has worked closely with clients’ CPAs to assure that the Articles of Incorporation for that corporation will comply with the requirements from the IRS.
After the corporation is filed, Wealth Support Services will obtain its EIN from the IRS. Additionally, Wealth Support Services will also provide clients with a completed Corporate Records Book. In addition to detailed By-laws, the corporate record book will contain the completed organizational meeting and resolutions relating to the issuance of stock, appointment of Board Members and Officers, authorization to open bank and other financial accounts, as well as many other necessary resolutions. When clients receive their book, all they need to do is sign it in 4 or 5 places, and the entity is ready to operate!
Corporations also provide some asset protection. If the corporation is sued, generally the client is not liable for the debts and obligations of the corporation. If the client is sued, generally the assets of the corporation are not at risk.
The State of Nevada provides the greatest asset protection for domestic corporations. Nevada is the only state in the country which provides “charging order” protection for the stockholders of domestically formed privately held corporations. (A domestic corporation is a corporation formed in Nevada.) This means that if a stockholder is sued, the judgment creditor cannot take the stock held in the corporation as satisfaction of the judgment. Every other state permits this to happen. So, in Nevada, your ownership interest in the corporation is safe from the financial vultures.
Additionally, Nevada provides anonymity of ownership of a corporation. The only public information relating to corporations is limited to the names and business addresses of the members of the board of directors and the officers. Stockholders are not listed publicly and, therefore, cannot be revealed to a member of the public who merely wants to know the stockholders of a particular corporation.
Utilizing a corporation will give you asset protection and reduce your taxes. Money earned by a C corporation is taxed at the corporate level. It is not taxed as income on your return. And, the federal tax rate for a corporation is generally lower than the personal tax rate for the same level of income. The splitting of income between yourself and your corporation can result in tremendous tax savings.
Wealth Support Services can form all types of corporations, including C Corporations, S Corporations and Non-Profit corporations in all 50 states of the Union. You will receive a ready to use corporation, with all filings and Federal Tax registration completed.
