"Why is Wyoming the most business friendly state in America?" A quote from the Wyoming Department of Revenue.

The state of Wyoming does not levy a personal or corporate income tax. Wyoming does not impose a tax on intangible assets such as bank accounts, stocks, or bonds, either. In addition, Wyoming does not assess any tax on retirement income earned and received from another state. Further, there is no legislative plan to implement any of these types of taxes.

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Primary Advantages of S Corporations

The primary advantages S corporations have over regular corporations are tax-related. Owners of S corporations are not subjected to the double taxation all C corporations face. Profits can be passed through the owners' individual income tax, while the corporation itself is not taxed.

The main advantages corporations have over sole propriety businesses are their limited personal liability. S corporations can have this same protection but not subject themselves to corporate taxation.

Being able to easily raise funds is also another advantage corporations have over sole proprietorships. However, since a corporation is considered its own entity, the profits of a corporation are taxed, and the shareholders are taxed again for the same income. In an S corporation, shareholders directly file the income as individual income, while the corporation itself is not taxed.

Another advantage S corporations have is they can declare interest paid for S corporation stocks as an investment interest expense. S corporations are subject to similar rules as those with a sole proprietorship or partnership type of business. Since money obtained from S corporations are not considered wages, they are not subject to self-employment tax.

When starting a business, it may be undesirable to offer fringe benefits to employees, because it may not be affordable. S corporations are given favorable treatment over non-corporations due to their ability to deduct expenses such as this from their taxes. While sole proprietorships can only deduct 30% of benefits, such as medical insurance, S corporations are allowed to deduct 100% of the cost.

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Why Executive Suites and Virtual Suites Help Your Business!

As a web developer and designer, I often come across many different requests from my clients to provide slide shows, information via the web that will help showcase the main points a business has to offer. I created this virtual tour to show how an executive suite or virtual suite may benefit you in either getting started with your LLC or Corporation or in venturing out from your home office to develop a more sophisticated office presence. I hope you find this tour of Pinnacle Executive Suites useful! Here is the link: http://www.sitenoticed.com/Pinnacle-opening.html

by Site Noticed, Inc. June 25, 2010


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Significant Presence Rules - What Are They?

“Significant Presence Rules” are as follows:

The corporation must maintain a corporate business address in the state. In reference to this subject, the American Bar Association in its revision of THE MODEL BUSINESS CORPORATION ACT, Annotated, Section 202(a)(3) stated: A mailing address consisting of only a post office box is not sufficient.

The corporation must also maintain both an active telephone number and fax line in the state where it is domiciled and not in your home state. The telephone number should be listed with directory assistance and in the Wyoming phone book. An answering machine, voice mailbox, or answering service is not sufficient.

The corporation must have an EIN number as issued by the IRS identifying it as a Wyoming Corporation. If it has an identifying code from another state, the IRS will notify that state each year so that the state can collect those taxes.

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Corporation or LLC?

Corporation

The most common type of entity formed for raising capital and limiting individual liability. A Corporation may live forever, sue or be sued, borrow money and go bankrupt.
Transfer of ownership is easy and shareholders are protected from economic harm. It is taxed at the entity level at the corporate rate usually much lower the personal tax rate.

Limited Liability Company

Not a taxable entity at all, this relatively new business entity (new compared to corporations that is) has generated a substantial amount of interest due to the fact that it provides both the limited liability of a Corporation and the single level pass through taxation of a Limited Partnership. (LLC’s may have other implications and subject to self-employment tax.)

For More Information Please Email Us At: info@aaacorpservices.com



For more information, visit our website at http://www.aaacorpservices.com/Toll Free: (800) 891-5987Outside the US: (307) 635-8700Fax number:(307) 635-1300

Wyoming Corporation or LLC

A Wyoming corporation or LLC offers its officers and directors a higher degree of protection from lawsuits filed by disgruntled creditors or over zealous plaintiff attorneys. Doing business as a Wyoming Corporation or LLC can give you greater asset protection and business privacy. The first LLC statutes in the United States were instituted in Wyoming in 1977.

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Explanation of LLC - What Does LLC Mean?

Even though LLC's have been around a while, some people thinking about starting a business may still be wanting an explanation of LLC laws and the answer to the question: What does LLC mean, anyway?

An LLC is a limited liability company, which means that it provides protections to business owners and managers against personal liability. In the United States, it is one of the newest business forms that a business startup may choose (much newer than, say, corporations, partnerships, sole propietorships, etc.).

The laws surrounding LLCs were designed to provide the maximum flexibility, tax advantages, and liability protection for business owners and managers there is.

It is important to understand that, while the term LLC is an acronym that has a generic definition (limited liability company), the laws that govern LLCs vary from state to state. Therefore, what is true regarding LLCs in Michigan may not be the same in Hawaii or Missouri. In fact, there is no real uniformity among the states with respect to the organization and operation of LLCs. Therefore, if you plan on starting a business and using the LLC business form in any state, you should do research and seek an explanation of LLC laws particular to your state.

History of the LLC in the United States
The first state to adopt a limited liability company act was Wyoming, in 1977. Although the law was designed to provide special benefits to the oil and gas industry in that state, its broad language allowed other business types to take advantage of this special business format, as well. The only two industries prohibited from using the LLC format at that time were the banking and insurance industries.

Florida was the next state to follow, adopting a LLC law in 1982. It wasn't until the federal government got involved, however, and gave Wyoming one of the most important benefits of the LLC, pass through taxation, that this business entity became widespread. Now, all fifty US States have laws allowing for some type of LLC formation.

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LLC Tips - Converting a General Partnership to a Limited Liability Company

David K. Staub

You and your business partner have been running your business as general partnership for the past several years. You have been reading about limited liability companies (LLCs) and have decided that your business should really be operated as an LLC. Is it too late? Can you still convert your business from a general partnership to an LLC? Yes, you can!

Why would a business want convert to a limited liability company from a partnership? The reason that a business would want to convert from a general partnership to an LLC is to allow the partners to shield themselves personal liability for obligations of the business. Every partner in a general partnership is liability for all of the debts of the business. A member of an LLC, on the other hand is can generally only lose his contribution to the LLC, nothing more. He is not responsible for the debts of the LLC.

The limitation typically only applies to liabilities arising after the conversion. It is unlikely that a general partner will be released from personal liability to the partnership's creditors for the business's debts existing before the conversion. A member will avoid personal liability for debts incurred by the LLC but will remain personally liable for debts of the general partnership which are transferred to and assumed by the LLC in the conversion.

The procedures for converting a general partnership into an LLC differs from state to state. Originally, most state laws contained no provision allowing one type of business entity to change into an LLC. At that time, if you had a partnership, you had to first dissolve the partnership and distribute its properties and liabilities to all of the partners. At that point, the partners would contribute those assets and liabilities to a newly-formed LLC and become members in the new LLC.

Today, most states have statutory provisions that allow a partnership to be converted into an LLC in one simple step. For example, in Illinois, once the partners approve the conversion, a Statement of Conversion is filed along with Articles of Organization for the new LLC. It is as simple as that.

The conversion is also simple from a tax standpoint. In several private letter rulings the IRS has addressed the conversion of a general partnership into an LLC. The rulings have clarified that neither the partners nor the partnership recognize any gain or loss on the conversion. Also, the partnership continues to exist uninterrupted for tax purposes and, for computing capital gain if he later disposes of his LLC membership interest, the length of time that the partner owned his partnership interest carries over to his LLC interest.

An LLC is by far the most popular choice for new businesses being formed today. If you chose to start your business as a general partnership, the good news is that it is not too late to make the change!



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Tips: Incorporation Basics

Keep Personal and Corporate Matters SeparateAfter you have incorporated your business, it must remain financially and legally separate from any of its shareholders in order to preserve the benefits and protections of corporate legal status. Maintain healthy business procedures like keeping specific records and accounts, filing necessary government documents, and holding regular shareholder meetings or getting written consents or waivers from directors and shareholders.

Get Your Company Name Right the First Time
Choose your company name carefully. If you change it later, you will need to amend your Articles of Incorporation, change your domain name, obtain new listings in telephone and other directories, and purchase new stationery and business documents. Do your homework and get the name right the first time.

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PDF - Order Form

Please click on this link to order: http://www.aaacorpservices.com/po.pdf


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Business Strategies - Wyoming

IT DOESN'T MATTER IF YOU ARE OPERATING UNDER A LARGE CORPORATION OR SMALL CORPORATION, a partnership or a sole proprietorship, These strategies are not new and have been used by giant Corporations, such as DuPont, Kodak and others. They will help you to build a stronger, more prosperous future no matter what the economic conditions. With a Wyoming Corporation one person may fill all Officers' positions.

Asset Protection

No one can predict how the courts will rule when someone’s lawyer decides to go after everything you have, for whatever reason.

Judgment proof yourself, through a Wyoming Corporation. One way is to have your Wyoming Corporation make a loan to your current business with a promissory note that is due upon demand. In other words, your current business would have to pay this note upon the demand of your Wyoming Corporation.

Your Wyoming Corporation will ask for a reasonable interest rate agreed to by you (or technically, the Wyoming Corporation). It can then be compounded quarterly, monthly and the interest should and be due every month or even annually.

The promissory note should be signed and executed by your home state business, reflecting the address of the office of your Wyoming Corporation. It should be worded correctly so that the note is under the laws of Wyoming. UCC-1 filings and Deeds of Trust should be in place long before any future or unforeseen lawsuit is brought against you or the corporation.

How does this make you judgment proof? Because of the debt owed by your current business, and the foresight you had to make an UCC-1 filing in the applicable counties, the Wyoming Corporation has the first lien on all of your current business' assets. Now when a legal adversary wins a judgment that closes down shop, your Wyoming Corporation takes possession of the assets it has legal right to.

Tax Reduction- The state of Wyoming does not levy a personal or corporate income tax

The Wyoming Corporation supplies services to the Home State Business, charging a fee. By charging a fee for services to your home state business you will be reducing your profits and minimizing your tax liability in your home state.

This service can be any function you may wish your Wyoming Corporation to offer, such as marketing, business consulting, funding company, purchasing, etc.

Make sure that the Wyoming Corporation is supplying a legitimate service for your Home State Business. That the Wyoming Corporation is billing for this service and that the Home State Business is paying for the service. It is the paper trail that will provide you with the proof that a service was indeed rendered and the Wyoming Corporation is compensated for its services.

The Wyoming Corporation should have a business license in Wyoming and have a Wyoming bank account, to handle the funds it is being paid for the services rendered. It should also maintain a Wyoming Address and Telephone (that's where our Wyoming Office Package comes into the picture). The person performing the work does not have to be in Wyoming, but they must be performing the task for and paid by the Wyoming Corporation for those services.

Privacy Protection

Stockholders are the owners of any corporation and their names are not public. Directors and Officers can be one person and can be you or someone other than yourself. Rather than operating all of your businesses out of your home state where all of the information may be public, you may consider setting up a separate business in Wyoming so that you don't have "all of your eggs in one basket". Or simply use a Wyoming entity as your primary business location.

The key to these strategies is not to wait until you are in court to handle the situation.

It may be years before you are sued. The further off that it is the more solid your protection will be. If you have waited and the suit is upon you, give us a call and we may be able to help, but the time to do something to protect yourself is now, not in the courtroom.

CORPORATION OR LLC?

Corporation

The most common type of entity formed for raising capital and limiting individual liability. A Corporation may live forever, sue or be sued, borrow money and go bankrupt.
Transfer of ownership is easy and shareholders are protected from economic harm. It is taxed at the entity level at the corporate rate usually much lower the personal tax rate.

Limited Liability Company

Not a taxable entity at all, this relatively new business entity (new compared to corporations that is) has generated a substantial amount of interest due to the fact that it provides both the limited liability of a Corporation and the single level pass through taxation of a Limited Partnership. (LLC’s may have other implications and subject to self-employment tax.)

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For more information, visit our website at http://www.aaacorpservices.com/Toll Free: (800) 891-5987Outside the US: (307) 635-8700Fax number:(307) 635-1300

Wyoming Secretary of State

There is an abundant amount of information waiting for you. We find the FAQs section of the Wyoming Secretary of State office very useful.


For more information, visit our website at http://www.aaacorpservices.com/

Toll Free: (800) 891-5987
Outside the US: (307) 635-8700
Fax number:(307) 635-1300