Building Your Corporate FortressPresented by Aaron Young, CEO

Laughlin Associates

1-800-648-0966

Asset Protection

Tax Reduction

Veil Protection

Exit Planning

What You Really Want Asset Liberation

Cash Expansion

Life and Muscle For Your Company

Receiving The Life You’ve Dreamed Of

• The Blueprint

• Build The Fortress

• Living A Pre-Tax Life

• Risk vs. Reward

Your Corporate Fortress

“Begin With The End In Mind”

-Stephen Covey

The BlueprintYour Roadmap To Success

Business Risks• Copyright Disputes• Your kids• Accidents on the job• Contracts / JVs• Hiring & Firing• Discrimination & harassment

claims

Corporate Structures Provide

• Asset Protection• Tax Savings• Protect Against Creditors• Estate Planning• Prestige and Credibility

Understanding The Foundation

I AM NOT THE CORPORATION:

THE CORPORATION IS NOT ME!

C-Corporation• Liability - Only risk your investment

• Controlled - shareholders• Tax - Taxed at its own rate-ability to

carry losses forward-low audit risk

• Exit - Sell shares of ownership

S-Corporation

• Liability - only risk your investment

• Controlled - shareholders

(restrictions)

• Tax - Pass through to owners

• Exit - Sell shares of ownership

Limited Liability Company• Liability - Only risk your investment

• Controlled - Members• Tax - Option to be taxed at the

corporate rate or at the individual rate.• Exit - Must get approval from all

members before selling interest.

Corporations and LLC’s can provide a life of deductions

A Life of DeductionsAccounting Fees, Advertising, Air Conditioning, Airplanes, Assistants, Automobiles, Baby Sitting, Bad Debts, Sponsorship, Boats, Bonuses, Bookkeeping, Alarm Systems, Business Awards, Business Consultants, Disability Plans, Decorating, Entertainment, Legal Fees, General Business Insurance, Vehicles, School, Health Clubs, Research, Medical Bills, Interest, Travel, Equipment, Seminars, Technology, Insurance, Entertainment, Braces, Education, Property, Loans, Massage, Gardening, Logo’s, Web Design, Professional Services

IRC 74 Achievement Awards

Safety: $1,600 a YearLongevity: $1,600 a Year

$3,200

Hire Your Kids

$6,100 Tax Free

Under 18 Years of Age

Education

EDUCATIONAL ASSISTANCE

$5,250 a year which is not included in your gross income.

SEMINARS100% tax deductible to the corporation and are not included as part of your income.

Rental Income

•You can rent your vacation home to your company for up to 14 days a year without having to report the income.

•*Rent must be reasonable and if you exceed the 14 day limit it is a taxable event.

Section 280A(g)

Medical Plans

Physical Fitness

You can have a physical fitness facility on your premises totally paid for by the corporation.

Retirement Fund your own tax-sheltered pension plan SEP or a 401(k) plan. Not only can you contribute but your company can also contribute up to $40,000.

As Prescribed By Your Dr.If your doctor says your health is in

jeopardy then you may be able to write off the remedy you choose to get healthy.

Big Benefits..Comes Big Responsibility

The Cost Of Non-Compliance•Late Fees / Lawsuits•Tax Penalties•Disregarded Company•Misclassification of Income

Income Classificatio

n

Dividends/Distributio

nsWages

Taxed From 0-20%

Taxed From 10-39.6%

$100,000

Wages-Taxes

$14,000

Dividend-Taxes$7500

$50,000$50,000

Income Classification Must Be Documented

Failure to Document

DISALLOWED

45%

The Biggest Mistakes

Corporate Owners Make!

The Mix and Mingle

Main Business

BusinessInvestme

nt Property

SEPARATION

A Business Entity Must Stay Separate From Its Owner.

ASSET PROTECTION

ABC LLC.

I AM NOT THE CORPORATION:

THE CORPORATION IS NOT ME!

Failure To Document

Business Decisions

Formal documentation proves that you and the company are separate.

Corporate Formalities

Documentation and procedures business entities are required by

law, to maintain the liability protection afforded to corporate

owners.

Amendment StockChanging Directors Equipment

Officers Salaries

Annual Meetings

Fringe Benefits Purchase of

PropertyOwnership

Opening a Bank

Account

Notices of Meetings

Vehicle Use Taking a Corporate

Loan

Resolutions

Loans to and From the Company

S Corporation

Election

Acceptance of

Accountant

Qualifying to do

Business

Issuance of Dividends

Waiver of Notices to Hold

Meetings

Qualified Retirement

Plans

Capitalizing the

Corporation

Contracts with 3rd Parties

Entering Into a Loan

Appointment of Officers

Appointment of Directors

Amendment of Articles

Amendment of By-Laws

256 Formal Documents

“I Have An LLC…I’m Not Required To Keep Corporate Records”

Red Flag Warnings for LLC’s• Members with complete control of finances-policies

• Non-compliance with formalities

• Dominant members receiving loans and removing unsubstantiated funds from the company.

Failure to Document

DISALLOWED

45%

Are You In Compliance?

• Audit• Lawsuit• Divorce• Partnership Break-up

Greatest Exposure

“Nobody’s going to sue me”

"Piercing the corporate veil has become the most litigated issue in

corporate law today. In every case, the plaintiff’s intent is to acquire the

personal and business assets of the company, and at least half of them

win.“

Wake Forest Law Review

57% of lawsuits filed against businesses making

a million or less

Even If You’ve Fallen Behind, You Can Clean Up Your

Corporate Records.

IncorporationTools.us

Take The Corporate Health Checklist

Join us September 5, 2013

“Why Nevada”

Complimentary Webinar

(Registration Link in Chat Box)1-800-648-0966

IRS Approved Deduction

Awards

Medical Reimbursement

Vehicle Deduction

Retirement

Education

Hire Your Kids

TOTAL

$3,200$10,000+

$7,231$40,000$5,250$5,800

$71,481

Deductions = Greater Profit

Keys Of The Kingdom

• A summary of a board meeting showing significant issues discussed.

• Minutes identify decisions made at a specific time and location. • Essential tool in establishing legal separation between owner

and company.• Courts may request corporate minutes as evidence.• All 50 states require, by law, that minutes be prepared and

maintained in a written form. • The memory of the company.

Minutes

Resolutions• A written document that describes an action taken by the board of directors or managers.

• A resolution is a permission slip from the Board to the President.

Exposed

$1,000,000,000Targeted Toward Audits and Collections

Fox News, Feb. 17, 2012

Failure to Document

DISALLOWED

45%

Lawsuits In America

5% OF WORLD’S POPULATION75% OF WORLD’S LAWYERS94% OF WORLD’S LAWSUITS

U.S Legal System is the World’s Most Costly

“America is known as the land of the free, but it is also the land of unnecessary lawsuits,” said Lisa A. Rickard, president of the ILR. 

“As the U.S. experience has shown, excessive litigation creates enormous costs for businesses, workers, consumers, and the overall economy.”

How To Acquire Wealth

1. Win the lottery

2. Win a lawsuit

3. Inherit

There are over 20 reasons the courts will hold business owners personally liable.

Common Mistakes

Co-Mingling Funds

a. Keep Personal and Corporate Funds Separateb. Document All Transactions Between

Stockholders and Officers

Common Mistakes Failure to Sign on Behalf of the Corporation

For: Overhead Lighting Incorporated

By: Aaron Young, President

•Failure to issue stock or membership interests.

Common Mistakes

I AM NOT THE CORPORATION:

THE CORPORATION IS NOT ME!

“If you've failed to keep proper corporate records and if you are ever sued - you have a 50-94% chance of losing your personal assets in order to satisfy a judgment.”

Cornell Law Review

No Matter Where You Are nowIt Is All Fixable

The Benefits of The Corporate Veil Protection Service

• Securing Your Corporate Veil• Asset Protection• No Paperwork Hassles• Answers to Your Paperwork Questions• Keep Your Company Current • Keep You Company In Compliance

C-Corporation• Liability - Only risk your investment• Controlled - shareholders• Tax - Taxed at its own rate-ability to

carry losses forward-low audit risk• Exit - Sell shares of ownership

Ideal for a C-Corporation

•Multiple employees•Angel or venture funds•Visions of going public•Stock incentives•Multiple rounds of funding

S-Corporation

• Liability - only risk your investment• Controlled - shareholders (restrictions) • Tax - Pass through to owners• Exit - Sell shares of ownership

Ideal for an S-Corporation?

•Home office•Few employees•One owner•Freelance work•Zero desire for investor funds

Limited Liability Company

• Liability - Only risk your investment• Controlled - members• Tax - Option to be taxed at the corporate

rate or at the individual rate.• Exit - Must get approval from all members

before selling interest.

Ideal for an LLC?

•Management flexibility•Small Group Of Engaged Owners•Good choice for real estate•Flexibility in distribution•“In kind” investment for membership

Common Mistakes

• Failure to Identify as a Corporation• Not Keeping The Corporation in

Good Standing with the State

Common Mistakes

•Under Capitalization

•Not Filing Proper Licensing Documents

•Failure to Document Employee Benefits

Common Mistakes

• Failure to Operate Autonomously

• Failure to Keep Adequate Records

Asset Protection

Tax Reduction

Veil Protection

Exit Planning

What You Really Want Asset Liberation

Cash Expansion

Life and Muscle For Your Company

Receiving The Life You’ve Dreamed Of