What You Need To Know About Your Business Incorporation?
Most US-based small businesses are getting eaten alive in taxes! That statement has proven itself true over and over again. However, while small business owners want to save money, many are literally afraid of incorporating their companies. The paperwork, the additional reports, having a set payroll amount each month, and other visions swirl around their heads. Those visions could be costing you a ton!
Let me take a few minutes to explain what you need to know about incorporating your business. While it certainly isn't a move every business will want to make, there are definitely some large benefits associated with incorporation.
MYTH Incorporating means I can't take money whenever I want it.
TRUTH Yes you can! This is a MYTH that holds a lot of small business owners back from incorporating. If you set a payroll amount for yourself, then decide you want/need more money, you simply write yourself another check and call it an "owner distribution" or a "draw."
MYTH There's too much paperwork involved once you incorporate. I don't have the time.
TRUTH There are some additional forms you have to complete. There are some additional taxes you have to pay. HOWEVER... read this carefully... for the three or four extra forms and the cost of the additional taxes, most businesses will still save when compared to counting every dollar you make toward personal income.
MYTH The only good reason to incorporate is for personal protection. The difference in taxes isn't that much.
TRUTH While incorporating your business will help protect you from lawsuits and from having your personal property seized, there are more benefits than that. The tax savings can be quite significant.
MYTH With the attorney's fees, the CPA's fees, the additional income tax returns, and the forms I have to file quarterly, it's just not worth it. I won't really save any money.
TRUTH Every case is different; however, most small businesses will more than make up the $1500 - $2000 it costs to incorporate within the first six months to one year. Also, most small businesses will save about 50% on taxes after they incorporate. (A qualified CPA will be able to look at your books and give you a more accurate figure.)
MYTH I'll have to hold meetings and keep lots of records that I don't have time to keep.
TRUTH Not if you register as a "closed" S-Corporation. This means you have waived the requirement to hold all those meetings and keep all those records.
How Do You Get Specific Details?
Contact a qualified CPA in your local area. He or she can give you detailed information on how much it will cost to set everything up, and - most importantly - how much you will save in taxes.
Incorporation is not something to be afraid of. In fact, if you're one of the many who will save 50% off your taxes in the next year, it's something to go after with a vengeance!
COMPANY FORMATION
Without a doubt there are countries that offer interesting advantages for entrepreneurs, self employed and business owners. But most people don't know about them. That is why we have build up this web site. It shall guide you through the different types of companies and jurisdictions. Below we want to describe which advantages and benefits an incorporation can mean for you.
There are many reasons to incorporate your business:
- a corporation has a professional outlook against a sole proprietor
- separate clearly between private and business
- protect different business activities individually
- reduce your personal liability in case of bankruptcy
- achieve tax benefits
- avoid heritage claims
- gain investors by selling company shares
- build up new credit
- expand globally and attract international customers
If you choose Whitherspoon, Seymour & Robinson Corp. you will additionally have low incorporation and maintenenace fees, absoluetely no hidden charges, a reliable partner and at all time free consultation and advice. Also, we will handle everything for you. You won't even have to leave your office at any time for the incorporation. You can ask all your questions by email, fax or phone, place the order online and get the company kit delivered right to your door.
All countries we recommend have favorable company acts and allow an easy going incorporation.
COMPANY FORMATION FAQ
1. Can I register a company without living in the state of registration?
Definitely yes! We provide you with everything that's needed. It doesn't matter where you live nor which nationality you are.
2. Do I have to assign in person for the registration?
No! You can comfortably lean back. We do everything! This means you can regioster your company without leaving your desk.
3. Do I have to pay up authorized capital or deposits?
No. All companies are based on shares, even the UK Limited. Because you only have to sign one share of stock to activate the company, the minimum deposit is usually only 1 €.
4. Am I protected against financial damage?
Yes! For all business done on the company name, only the company is reliable. Making the director personal responsible for actions, as it is common in e.g. Germany, is not possible.
5. Will I get disqualified as director in case of bancruptcy?
No. If the worst case happens and your company has to file for bancruptcy, you can register a new company the very next day.
6. How can I best protect my property?
By registering one company that only manages your assets. Your property is owned by this company, which is not trading with any other business. So there can never be a claim against that company. The normal business is undertaken by a second company. On this way the second company can easily be replaced if required because of whatever reason.
7. Where can I open branches of my company?
You can open branches in almost every country of the world. All states that have signed the Agreement of Den Haag have to allow your company to open a branch.
8. Which business is allowed to be undertaken?
Almost everything. The companies are registered with the widest possible range of activities. This means: The company is allowed to do everything that is legally allowed in the state of registration.
9. Which qualification is needed?
There are no special qualifications requested by the countries we offer. All you have to be is over 18 years of age.
10. What means offshore?
Offshore means you only pay a fix amount of tax every year. E.g. a Panama Corporation has to pay an annual renewal fee of 190,- €. No further taxes on your actual income. There is no requirement for reports. You do not have to keep all your receipts for years and years. All our service fees are also included in that sum.
11. How long does the registration take?
Usually the company is registered within 24 hours. After that your kit is prepared and the documents are sent out to you by post or courier. So within 5 days you normally hold the documents in your hands.
12. Do I have to file tax reports?
Not for offshore-companies, for other companyies e.g. UK Limiteds, yes. In this case the annual accounts must be filed e.g. in England. We will be glad to recommend a local tax advisor to you.
13. Where do I pay my taxes?
If you register a branch in your home country it may be necessary to file accounts and pay taxes there. Otherwise you file your aacount in the state of registration and also pay your taxes there. However, you will always only have to pay taxes in one country.
14. What means anonymity?
If you order an anonymous registration, we provide you with nominee directors and shareholders. On this way nobody can see that it is your company. You of course will get an Power of Attorney in this case.
15. What services are included in the price?
All state filing fees, all positions (Registered Agent, Company Secretary, Registered Office etc.) required by the state plus a full company kit with seal are included in the basic price. So the company is fully operational for the basic fee.
16. Will I get assistance after the company is registered?
Of course! We are here to help you before, during and after the registration. We also assist you with business links such as recommendations of accountans and lawyers.
VIRTUAL OFFICE
There are many advantages, depending on how you use it. First of all, it may be a must when registering a foreign company. The registered address that is included in a company registration cannot be used for normal business mail but only for official government mail. So a Virtual Office is normally indispensable although it is not legally required.
Another advantage can be the reduction of taxes. For example: If you order something in your country by using your foreign Virtual Office address you can save the VAT in many cases. On this way one single bill may save you more money than the Virtual Office costs in a whole year. Also if you want to avoid taxes in your country a foreign Virtual Office is necessary. The registration of a foreign company in this case is the first right step, but the local tax office won't accept this without a foreign business and trading address.
To open a bank account in the country where your company was registered it also is often required to have a local mailing address. For example US banks are not allowed to open an account if you cannot show an US mailing address.
Also for legal claims a virtual office can be interesting. If you use your private address on the companies letterhead an business partner won't sue your company at the place of its registration but directly under your address. Simply because this is easier, faster and less expensive for him. But if you only show the virtual office address in a foreign country, your business partner might even ask himself whether it is worth to file a law suit that far away. Your company of course still has all possibilities to sue others. So you don't loose anything but get many advantages.
Beyond that, your company can also win on reputation through our Virtual Offices. By using representative addresses in cities like New York or London your company immediately gets an international style. Your business partners will be amazed!
Because we do not want to force our clients to sign a long time contract your Virtual Office runs from month to month. You may cancel the service whenever you want to the end of the current month.
Services offered
The Professional Virtual Office contains a street address, a phone and a fax number. At the address mail and courier parcels can be delivered and will be forwarded to whatever address you provide us worldwide! The phone number is attended by courteous and professional operators greeting callers with your Corporate name 24 hours a day, 7 days a week. The caller can leave a message which is forwarded to you by phone, by fax or by Email. Of course, the call can also be transferred to you worldwide! Faxes can be automatically forwarded to your fax machine or to your Email. Incoming mail is forwarded once a week.
Services summary:
- Dedicated phone number 24 hours a day / 7 days a week live answered with your company name
- Message taking
- Message notification by phone, fax or Email
- Direct call transfer
- Faxnumber
- Fax-to-Email
- Direct fax forwarding
- Street Address
- Mail forwarding
The monthly service fee is 99,- €. We do not charge set up or closing fees. Minimum contract is just 1 month. The service is available in 12 cities around the world as detailed on the next page.
VIRTUAL OFFICE FAQ
1. Why is a virtual office so important?
You need an address e.g. for making contracts. The most important need of a virtual office is because of taxation reasons. If you make all contracts on your local address, you will have to pay taxes there. You even may be claimed under your local address. You can avoid all that easily by using a virtual office.
2. Am I bound to long time contracts?
No! If you pay by credit card, the service runs from month to month.
3. Is credit card payment secure?
Yes, because we offer a secure site to take your credit card details.
4. What is message forwarding by email?
When you order the Standard Virtual Office, your faxes and voice messages are sent to you as email attachments. This works as follows: When somebody calls your telephone number, he is greeted by an answering machine in your company name and prompted to leave a message. This message is stored as a wave file and sent to you as an email attachment. On this way, you will receive the original message. Faxes are sent on this way in all 3 service levels unless otherwise requested.
5. What is direct call transfer?
When ordering the Premium Virtual Office, your phone and fax numbers are routed to any number you choose. Incoming calls are directly forwarded to your dedicated numbers so that you can answer the call at your desk.
6. What is Re-Mailing?
Re-Mailing is a service available in all Editions. You send us the item you wish to be mailed and we will send it to your customer with a local stamp. You can send such items either by mail and we will put them in a new envelope or you send them by email and we also print them.
BANK ACCOUNT OPENING
We offer assistance in opening private and business checking accounts without screenings of your credit history. All accounts we offer include online-banking and dedit cards.
Foreign bank accounts offer many advantages.
Tax offices for example will tax all funds as soon as they run through a local bank account. The authorities thereby don't mind whether the money is intended for a local or a foreign company nor whether the taxes are already paid in another country. You can avoid all this trouble by simply opening an offshore checking account. We offer checking accounts in the following countries:
- Switzerland
- Isle of Man
- Jersey
- Antigua
- St. Vincent
- St. Lucia
- Dominica
- Panama
- Belize
- Latvia
- Lithuania
You will be able to control the account by online banking. Debit cards will allow you to access the funds on ATM machines all around the world as well as in shops, restaurants, gas stations, etc. The account is set up within 1 to 2 weeks and you don't have to visit the bank's branch. Everything is handled by mail. The bank also doesn't check your credit history. The accounts are fully featured checking accounts with highly reputable banks.
Please understand that in order to protect our sources we cannot hand out names of any of the banks pr ior to receipt of payment.
Confidentiality guaranteed
Of course our assistance ends at a certain point of the registration process. As soon as signatures are required, all aspects of the process will be transferred to you. This ensures that you alone have the authority to draw against the account or issue checks against the account. Please also note that the account contracts are contracts between you and the bank.
BANK ACCOUNT OPENING FAQ
1. Can I open a foreign bank account on my own?
Generally yes. But note that it is pretty complicated to find the right bank. It will also be necessary for you to sign all documents in person at the bank so that the traveling costs will exceed our fees.
2. At what bank will my account be held?
Please understand that in order to protect our sources we cannot hand out names of any of the banks prior to receipt of payment.
3. Will I have to travel to the bank?
No, the application is handled by mail.
4. Who has access to the funds on the account?
Only you or persons you elect as additional signatorees. We will neither get your account balance information nor have any access to your funds. Typically we don't even get your account number.
5. How can I access fund in my account?
You can arrange wire transfers online, issue checks and use the debit card of the account. These three options work worldwide. You can also go to a branch of the bank and withdraw funds in cash.
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