Silver Shield Incorporation Services - Nevada Resident Agent - Nominee Officer

Entrepreneurial Spirit

2009-05-11T11:09:00.000-07:00

In these difficult economic times all of us will be required to push harder and work smarter. We may find that the ways we were making money before the financial storm are no longer adequate. This is an opportunity to no longer let our work lives idle. Just as we have learned to make our financial resources stretch further, we can also stretch our repertoire of skills to increase our productivity. In fact, these are times of abundant opportunities. All we have to do is recognize them. Entrepreneurs are too busy to sulk. They do not get trapped in the nets of politics and market fluctuations. Entrepreneurs recognize their surroundings.

Instead of worrying about the future take action in the present to ensure your businesses learn, adapt and survive, no matter what kind of situations are thrown at them. While others are worried about drowning, the entrepreneurial spirit is busy taking action to keep from drowning. Worrying will not keep you from drowning, but the action of kicking and swimming certainly may.

We must strive to remain active in the uncertain times. This will not only keep us acquiring and fine-tuning new skills, but it will also keep us in the frame of mind that indeed can adapt to our surroundings and possibly excel in such hard times. We need to no longer buy into the effortless "get-rich-quick" schemes, but rather prepare ourselves for the hard work necessary to become successful when the economy is recessed.

American Recovery and Reinvestment Act

2009-05-06T15:06:00.000-07:00

According to the National Federation of Independent Business, small businesses generate over 80% of new jobs in the United States annually. To maintain this high rate, the stimulus package provides tax incentives to small business owners for hiring new employees. Among the benefits is a tax credit of $2,400 for business owners who give a job to a new employee who falls in a targeted group of disadvantaged individuals. Also, the so-called Work Opportunity Tax Credit allows a 40 percent tax claim on the first $6,000 in wages paid to these new workers. The category of disadvantaged individuals now includes veterans who have left the military within the last five years as well as "disconnected youth."

These new incentives from the federal level coupled with the favorable tax structure from the State of Nevada are certainly incentives to starting a business in this economic climate.

For more information visit the SBA's website, www.sba.gov, to find a number of useful tools for entrepreneurs, including a tax-benefit fact sheet, an on-line tax benefit seminar and a depreciation calculator.

Entrepreneurs

2009-05-05T12:08:00.000-07:00

It is no secret that many financial experts have a great deal of faith in the ability of entrepreneurs to start a successful small business and, in turn lead us out of this recession. Traditionally, small businesses, if not killed by a recession have shown the ability to rebound quicker than larger conglomerates. However, it takes a great deal of confidence for someone to start a business when the current financial climate lack reasons to build confidence.

Entrepreneurs are typically a confident bunch, and even within the economic stranglehold, many of them are finding reasons to support their decisions to start or grow a small business. For instance, thanks to the American Recovery and Reinvestment Act, small businesses with less than $15 million in gross receipts are now able to claim tax refunds by applying operating losses suffered in 2008 and 2009. Another provision awarded the Small Business Administration (SBA), which is responsible for teaming with banks to lend money to small businesses, enough money to waive the fees associated with lending for possibly the rest of 2009. Stay tuned for more on the provisions of the American Recovery and Reinvestment Act.

Bank Accounts

2009-05-04T08:24:00.000-07:00

In an interesting development Wells Fargo Bank has decided to stop opening Resident Agent Accounts. The Resident Agent type of accounts are those where you did not need to come into the bank to open the account. You would fill out all of the paperwork and send it in along with your tax returns, verification that you are you via ID and utility bills. I do not understand how these can be problem accounts as they are completely verifying everything about you. But I do find it interesting that this occurs after the federal government "bails" them out. Anyone else find this interesting?

It's been awhile

2009-05-01T18:19:00.001-07:00

Sorry it's been awhile since we blogged. We have been running around trying to find a new bank to work with. Surprisingly Wells Fargo called us the other day and said that they will no longer be opening Resident Agent accounts (as they call them). That means that no longer can accounts be opened through the mail. You will need to go to the bank to open the account. This puts a damper on things. It makes me wonder how much of this is due to the government giving funds to Wells Fargo?

State Tax Increases

2009-04-23T13:57:00.000-07:00

The supporters of the $787 billion stimulus package , back in February, were armed with arguments that the package would limit the need for states to increase their taxes. Now, those arguments are being smashed with tax-hike proposals, in at least 10 states. While our federal government runs wild with deficit spending, many state constitutions prohibit carrying a deficit into the next fiscal year. Unlike Nevada, where there still are no state income taxes and corporate income taxes, New York, Arizona, California are leading the march to boost taxes. New York, for example, has raised taxes 68% from 6.85 percent to 8.97 percent at the top income level.

States with huge tax hikes are making it more expensive for people and, maybe more importantly, businesses from other areas to relocate to their state. There is also a significant amount of research that shows a link between state tax increases and a rise in the number of people fleeing the state.

This is one reason why we at Silver Shield Services, Inc. feel it is a smart business decision to form and domicile your company in Nevada. Please feel free to call us at (775) 577-4822 to discuss the advantages of incorporating in Nevada.

The New Year

2009-01-21T22:47:00.000-08:00

I don't know if anyone else has noticed the increase of attorney commercials on TV lately. As I sat watching TV the other night I saw 8 attorney commercials in a 30 minute show. Apparently the attorneys realize that now is the time for people to start suing each other and they want to get their names in front of you. Why not? Out of work? Let's find someone to sue. That should carry us over for awhile. As sad as that sounds it is true.

So now is the time to take a look and see if you are protected adequately. (After the lawsuit starts is not the time to try and protect your assets). If you are not sure or you want some help please give us a call and we can help you determine where you stand.

End of Year

2008-12-28T19:08:00.000-08:00

We hope that everyone had an enjoyable Christmas and that Santa brought you what you wanted! Unfortunately after Christmas comes the New Year. That means it is time to wrap up last year and get ready for the new year. We can help you with both aspects. Give us a call and we can consulate with you to ensure that you have the proper setup going into the new year.

We can also assist you with the end of year tax forms and filings. Remember you do not want to wait until March 14 (for Corporations) or April 14 to review and prepare your return.

New Year's Business Resolutions

2008-12-22T11:54:00.000-08:00

As the year draws to an end it is sometimes helpful to review our past actions and set new goals for the upcoming new year. The following information may be helpful with making a business resolution for 2009.

ADVANTAGES OF THE SOLE PROPRIETORSHIP

Ø Control and management is vested in one owner.
Ø Pay taxes at one level – your individual rate.
Ø Requires no effort or expense to form or maintain.
Ø Sole ownership of profits. Easy to take profits out.
Ø Needs no government approval.
Ø Requires less formality and fewer legal restrictions.

DISADVANTAGES

Ø Proprietor has full and unlimited liability for all business activities. This may include debts that exceed the proprietor’s total investment. Potential liability extends to all of the proprietor’s personal assets.
Ø Unstable business life, due to risks associated with death or disability of the owner, which could force the business to close.
Ø No difference between business and personal assets
Ø Business income is taxed at personal tax rates, which is often higher than corporate tax rates at certain income levels.
Ø Additional self-employment taxes.
Ø Certain business expenses are only partially tax deductible.
Ø Limitations on available benefits.
Ø Difficult to raise additional capital, depending upon credit worthiness of the individual

Asset Protection

2008-12-16T15:07:00.000-08:00

The corporation is traditionally the first line of defense in any Asset protection strategy because of the long record of statutory and case law that supports the goal of achieving limited liability. This liability protection is only available because of the way the law separates the corporation from any associated individual. The lawsuit protection features of the corporation will generally be available only if the integrity of the corporation as a separate and distinct entity, apart from the individual, is respected by a court and by the Internal Revenue Service. The “corporate veil” refers to the separation between the individual and the company. It is the most valuable quality that the corporation offers. Care must be taken to preserve the corporate veil, because if it is “pierced,” the corporation may have no asset protection value whatsoever. In matters involving a lawsuit by an injured party, especially if a corporation has no significant assets, the plaintiff will attempt to convince the court that the corporate entity should not be respected and that the principals of the company should be held personally liable. In these cases, the plaintiff is attempting to pierce the corporate veil in order to obtain a judgment against the principals, who may have personal assets sufficient to satisfy a judgment. In these turbulent financial times it is more important than ever to establish an effective asset protection strategy. Silver Shield Services, Inc. can guide you through this important process. Give us a call at (775) 577-4822.

Corporation Opportunities

2008-12-10T10:05:00.000-08:00

State legislatures have unlimited power to create corporations that must function according to their laws. There have been many attempts to standardize the corporate laws of the various states. At different times committees of attorneys have drafted sample provisions of corporate laws and introduced them to the world as models for all to follow. Two of the most notable models are the Uniform Business Corporation Act and the Model Business Corporation Act. In the case of the Model Business Corporation Act the American Bar Association in the 1980’s encouraged uniformity within the corporation laws of each US state. The Act is not a law, but is only a guide for state governments. Since its creation, most states have adopted significant portions of the Act for their corporate laws. However, these acts have never been adopted by any state without significant changes. Therefore, the world of corporate law finds great variety as states adopt only the portion of the uniform law in which they are interested. Most, if not all, states engage in a series of partial revisions of corporation law over time without undergoing a total statutory transplant. Naturally, this creates differences between the various states’ laws. Where some see differences, others see opportunities. Silver Shield Services, Inc. would be happy to explain the many opportunities available our telephone number is (775) 577-4822.

Separation of Individual from Company

2008-12-08T14:36:00.000-08:00

To create a corporation the formation must comply with the laws of a specific state or country. The corporation then is a form of business that individuals cannot create simply by agreement as they can a partnership. They can do so only with the authority of the government. The corporation can be composed of human and artificial entities, but is recognized separately from the entities that comprise it. Under the law, the corporation is primarily treated as if it were a human even though a corporation is an artificial being, invisible, intangible and existing only in contemplation of law. It possesses only those properties which the charter of its creation confers upon it. Among the most important properties are immortality and individuality, by which a perpetual succession of many persons are considered as the same, and may act as a single individual.

An example of a corporation’s individual treatment is shown when a corporation enjoys the Constitutional protection against unreasonable search and seizures. The corporation may also invoke the attorney-client privilege of confidentiality or may sue for defamation of its good name. But it can also be punished if it violates the law.

2008-12-05T11:53:00.000-08:00

HAPPY HOLIDAYS

FROM ALL OF US AT
SILVER SHIELD SERVICES, INC

WE HAVE ENJOYED HELPING
YOU SAVE ON TAXES AND
PROTECT YOU ASSETS FOR
16 WONDERFUL YEARS.

BEST WISHES FOR A GREAT YEAR!

Corporate Viel

2008-12-04T13:34:00.000-08:00

Because of the presence of the corporate veil, the corporation is often recommended as the entity of choice whenever a business has employees or sells products or services. This is because these activities bring with them certain risks that demand liability protection for the ownership of the company. But to maintain the corporate veil, certain formalities must be followed. And when followed the corporation is usually much more effective in protecting the owners and managers from liability than using a general partnership or proprietorship.

Asset Protection

2008-11-12T22:05:00.000-08:00

The economy sure has done a 180 in the last year. People are not only losing their investment homes but they are losing the homes they live in. Retirement accounts are being wiped out faster then you can sell the stock and pull the money out. Our personal belief is that before this gets better it is going to get much worse. So what should you be doing? You should be at work enacting (or setting up) your plans to protect the assets that you have and that you may get in the future. Give us a call at 775-577-4822 so that we can help you before it is to late!

Corporate Havens

2008-11-10T14:19:00.000-08:00

CORPORATE HAVENS

What is a corporate haven? A corporate haven is a jurisdiction that provides a favorable climate for forming corporations. It is a pro-business state that provides flexibility in the management and structure of the company, and usually provides a measure of tax-favored treatment. A corporate haven is attractive to individuals located outside that specific jurisdiction, who live in places that don’t provide the same advantages.

It is pretty easy to spot a corporate haven. A corporate haven will form an unusually large number of corporations in comparison to the population of that state. That is a sure sign that the jurisdiction is attracting corporations from a much wider base.

Most people who incorporate do so for one or more of the following reasons:

Ø Protection from personal liability,
Ø Tax advantages,
Ø Financial privacy, and
Ø Flexibility in management and control.

All corporations provide advantages in these areas to a degree, but certain states do it better than others. There is an economic incentive for states to establish themselves as a corporate haven. The more corporations a state files, the more revenue it brings in through initial filing fees and the annual renewal fees necessary to maintain corporate status. In addition, a state with favorable corporate laws attracts economic development and growth, in other words, it brings in new jobs. Some states raise better cattle, some states grow superior potatoes, some are proud of apples, but the following states specialize in corporations.

At the top of the list is Nevada for closely held companies, while Delaware heads the list for publicly traded corporations.

Nevada's Pro Business Attitude

2008-11-03T10:22:00.000-08:00

In 1996, Nevada made its first appearance in the Top Ten List of states with the highest number of incorporations. That’s not bad considering there are 36 states with larger populations than Nevada, and testimony of the filing efficiency of the State. Over 2,400 corporations are formed every month in Nevada, which is a 500% increase over 1985 filings. By 2004 over 200,000 entities were domiciled in Nevada and by 2008 well over 300,000 entities are domiciled in the State.

Because of Nevada’s pro-business attitude, Nevada has ranked highly in a number of studies comparing the business climate of various states. The 2004 Small Business Survival Index, published by the Small Business Survival Committee, (and includes such factors as taxation, health care costs, unemployment, crime rate, bureaucracies, etc.) has rated Nevada # 2 among all States for having a favorable policy environment for entrepreneurship. Nevada ranked in the top 10 in the Site Selection Magazine survey of business executives ranking business climate. The Tax Foundation ranked Nevada # 6 in their 2004 State Business Tax Climate Index. While other factors are used in each of these studies, they all consider the management features of each state’s business law as heavily weighted components.

In the last decade, Nevada has clearly established itself as the “Corporation Capital of the West,” and has shown significant annual growth in the number of new businesses that incorporate there each year. In addition, Nevada’s legal system has naturally grown to accommodate the need for establishing legal precedents that support the state law.

Nevada Corporation Statistics

2008-10-30T10:38:00.000-07:00

In 1996, Nevada made its first appearance in the Top Ten List of states with the highest number of incorporations. That’s not bad considering there are 36 states with larger populations than Nevada, and testimony of the filing efficiency of the State. Over 2,400 corporations are formed every month in Nevada, which is a 500% increase over 1985 filings. By 2004 over 200,000 entities were domiciled in Nevada and by 2008 well over 300,000 entities are domiciled in the State.

Because of Nevada’s pro-business attitude, Nevada has ranked highly in a number of studies comparing the business climate of various states. The 2004 Small Business Survival Index, published by the Small Business Survival Committee, (and includes such factors as taxation, health care costs, unemployment, crime rate, bureaucracies, etc.) has rated Nevada # 2 among all States for having a favorable policy environment for entrepreneurship. Nevada ranked in the top 10 in the Site Selection Magazine survey of business executives ranking business climate. The Tax Foundation ranked Nevada # 6 in their 2004 State Business Tax Climate Index. While other factors are used in each of these studies, they all consider the management features of each state’s business law as heavily weighted components.

In the last two decades, Nevada has clearly established itself as the “Corporation Capital of the West,” and has shown significant annual growth in the number of new businesses that incorporate there each year. In addition, Nevada’s legal system has naturally grown to accommodate the need for establishing legal precedents that support the state law.

Bailout, Recession and Taxes

2008-09-24T11:05:00.000-07:00

State governments are currently dealing with a strong recession which translates into lower revenues from sales and other taxes. In addition, they have to deal with federal mandates to provide services with a dramatic reduction in federal aid. The resulting budget deficits have forced the lay off of state employees, reduced spending and increased the need to find new or additional sources of tax revenue. Because the corporation is viewed by state politicians as a nonvoting resident of the state, they are often the first to be targeted.

Recent, and in most likelyhood future tax reform has and will have a tremendous impact on the significance of state corporate taxation. Currently, 41 of the 46 states that have state corporate income tax use federal corporate taxable income as the starting point in computing the state tax. So, when the federal tax laws disallows lobbying expenses, or a greater portion of meal and entertainment expense, it effects the amount of income tax the corporation will have to pay at both the state and federal levels.

"Nexus" describes the degree of business activity that must be present before a taxing jurisdiction has the right to impose a tax on the corporation's income. Although most planning techniques are used to separate a corporations activities from an undesirable state, they can also be used to create a nexus in a corporate haven such as Nevada. Such activities could include maintaining bank accounts in Nevada, maintaining an office address, a corporate Yellow Pages listed telephone, obtaining appropriate business licenses, etc.

For details on tax saving strategies please contact Silver Shield Services, Inc. at staff@shieldcorp.net or call (775) 577-4822.

Controling Your Corporation

2008-08-11T16:01:00.000-07:00

Through broad empowerment allowances, Nevada law specifically provides for a corporation's principals to be given control over such things as the establishment of stock privileges, voting rights, the issuance of shares, etc. These powers infuse the directors with tremendous flexibility and control over the affairs of the corporation, since major changes in policy and procedure can be accomplished through an amendment to the articles rather than relying solely on statutes.

In addition, Nevada has also taken the lead in the area of liability protection with regard to being among the first states to adopt the Limited Liability Limited Partnership, as well as limiting the remedy of a judgment creditor of an LLC member or limited partner to a charging order.

Limited Liability

2008-08-06T13:40:00.000-07:00

A Nevada Corporation may be formed for the express purpose of limiting a person's liability in a lawful business venture. Unlike many states, and as an added dimension to the indemnification of corporate principles, Nevada law allows for the establishment of alternate financial arrangements to protect corporate officers and directors. Nevada law requires no minimum initial capitalization at the time of start-up, thereby removing this as a means of piercing a corporation's protective shield.

Nevada Corporation Privacy

2008-08-05T12:02:00.000-07:00

Nevada requires only minimal disclosure of personal information at the time of start-up and at the time of annual filings. Nevada is the only state that does not share information with the Internal Revenue Service by means of a formal agreement. And Nevada does not require the filing of an amended list of officers or directors if new officers or directors are elected or appointed after filing and during the year. This ensures the privacy of individuals. Please contact us at Silver Shield Services, Inc. (775) 577-4822 for a free initial consultation to make the most out of your business entity.

Nevada Corporation Limited Liability

2008-07-29T10:41:00.000-07:00

Nevada requires that only a corporation's president, secretary, treasurer and one director be listed on the Initial List of Officers, as well as the Annual List to renew the corporation's filings with the State.

Nevada's indemnification laws vary from those of other states in that they can limit the personal liability of corporate principles by not requiring an officer or director to prevail in a lawsuit as a defendant before the corporation is allowed to indemnify him or her. Most states follow the Delaware standard in requiring an officer or director to prevail in a lawsuit before the corporation is allowed to indemnify that person.

Put the power of Nevada's Corporate law on your side by calling us here at Silver Shield Services, Inc. (775) 577-4822, for a free consultation on the many advantages of Nevada Business Entities.

Facts About Nevada Corporate Law

2008-07-28T10:41:00.000-07:00

A Nevada Corporation's Asset protection is ultra-strong when you consider the following statistics. There has never been a case in which a Nevada corporation's veil has been pierced when the corporation has been run properly.

Nevada courts have pierced a corporate veil only twice in the last 25 years, and that was because of possible fraud resulting in harm to another party.

Nevada courts have developed a strong record of case law that protects the corporate veil, making it one of the most difficult in the country to pierce.

Nevada is the only state that can indemnify corporate principals and protect their privacy. Officers and directors are required to list only their names in public records.

Liability Protection

2008-07-10T14:32:00.000-07:00

The corporation is often described as having a juristic or legal personality. This means it is viewed in the eyes of the law as a separate person from its owners, directors or officers. This is the element that provides the liability protections that people often look for when incorporating. The courts genrally uphold the legal separateness of the corporation.

The corporation, as its own legal person, survives all changes in ownership and management. It can live on indefinitely. Because it is recognized as a completely separate "legal person," distinctively different from any other individual, the corporation's assets are kept separate from the assets of any of the stockholders, officers or directors. That means the corporation is not responsible for the debts of the individual, and vise versa.