Doing Business In The USA
Lawsuit Protection

Tax Savings


Tax Reduction Strategy
If you are only in the 28% tax bracket and you move $50,000 of your corporate income to a family member in the lower tax brackets you can save $6500 per year in taxes based on current tax tables. This is just on federal income tax alone. Not to mention Social Insurance taxes, provincial taxes, etc. If you are in the 39.6% tax bracket if you decide to let your corporation earn $100,000, you can save $17,350 every year in federal income taxes.

Lower Taxes on Profits and Increased Deductions
Federal taxes (including income tax, social insurance tax, etc.) typically take 35% to 50% or more of your personal income. In addition, your province may also take a chunk of your personal income. What is your provincial tax rate? How much of your income did the province take from your earnings on your tax returns last year? If it was any, how would you like to reduce that to zero on certain portions of your income?

Privacy, Anonymity and Lawsuit Protection
You may already know about the privacy benefits available in the US State of Nevada. The State of Nevada has not signed an information sharing agreement with the US or Canadian taxing authorities. So, Nevada does not share tax information that might raise a red flag in an Revenue Canada (CCRA) computer. Shareholders of a Nevada corporation are not a matter of public record. Therefore, you can own a a Nevada corporation and you may be the only one who knows that you own it. However, your corporation must be established from the beginning in the proper manner in order to achieve this privacy. When Companies Incorporated establishes your company, you can have a solid foundation for privacy and anonymity. Your name is not associated with the corporation. With our unique strategies, Companies Incorporated can give you the option of never having your name associated with the corporation in the public records.

It is reported that the average person in Canada suffers five lawsuits in his or her lifetime. One of which is a killer lawsuit, taking all or most of one's possessions. With more and more lawsuits being filed, there are legal ways to disassociate yourself from the corporation so that hard-earned money is protected from litigation.

More Money
By taking action today, you can have more money, a larger investment portfolio, much lower taxes on profits, outstanding tax-savings on dividends, no capital gains taxes, increased security, less risk and enhanced privacy. But you ask, "I have saved a lot of money and my investment have grown much faster but how can I spend the money on myself?"

How to Spend the Money
Vacations
Let's say you want to take a vacation that costs you $5000. That vacation actually costs you MUCH more. The $5000 would have been money left over after taxes. You would have to had earned $8000 to $10,000 or more to take that vacation.
But what if your vacation was tax-deductible through your own properly structured corporation? That would mean that your $5000 trip would only cost you $5000! If you travel at all, a corporation can pay for itself many times over. It gets even more exciting. In addition to the tax breaks, did you know that you could actually be paid to travel....tax free? When properly established, your corporation can actually pay you a per diem. Each day you are away from home the corporation can pay you for your living expenses for which the corporation can take a tax deduction and you have to pay no taxes personally. Beware that your corporation must be properly established in order to take advantage of this tremendous benefit.

Retirement Security
You can set aside $3000 to $40,000 tax-free in a retirement plan associated with your corporation. The money can grow in the plan tax-free until retirement. In addition, your corporation can match the funds for employees (or one employee if you are operating a one-person corporation). With a corporation, you can actually DOUBLE the tax-deferred income contributed to your retirement plan. There's more. You can also take advantage of a Defined Benefit Plan were you do not have to a set dollar limit. The corporation may be able to make a tax deferred contribution of $100,000 or more every year into your retirement account.

Insurance
In addition to private medical insurance, how would you also like to be able to deduct automobile insurance? Life insurance? These, when properly structured, are available to corporations.

Tax-Deductible Education for Yourself, Your Children, Your Grandchildren
Do you or any family members plan on going to college? Would you like to buy books, acquire audiocassette programs, travel or attend seminars that can enhance your business skills? Would you like to be able to be able to legally deduct these expenses? How much would it save to to be able to deduct just one child's college education? $20,000? $30,000? $50,000?

What about double taxation?
Do you want to enjoy the money you have made and saved through you corporation? If you take the money as a dividend that money will be double-taxed. So the answer is simple: don't pay dividends ... ever ... and you won't have to worry about double-taxation. To date Microsoft has never paid a dividend. Top investor Warren Buffett's invests through his corporation. His corporation does not pay dividends.

Then how can you get the money? It's simple. Pay yourself a salary or a bonus. Your salary or bonus is a tax-deductible expense to the corporation, so no income taxes are due from the corporation on this money. You simply pay at your personal tax rates.

Keeping the Money Invested
Keep in mind that a corporation is a person; a legal person created by legal statute. That legal person you have created can be operated so it can invest for you and pay less taxes than you. Let's say that you want to change directions and start a new business. You can use the same corporation you use for investing purposes or, more preferably from a liability standpoint, start another corporation. Your first corporation can buy stock in your second corporation to provide it with seed capital to get the business started. What if you want to use some of the money your first corporation has earned to use as venture capital to invest in someone else's business? You have this option as well.

Real Estate
A corporation can also invest in real estate. It can buy single family homes, apartment buildings, commercial property and so on. Say you found a real bargain...a property that you can buy for 60 cents on the dollar. Can you have your corporation buy it. Yes, you sure can. Let's say the real estate market has a big upturn. Can your corporation sell it for a profit? Absolutely, yes. Can the corporation buy a condo in Toronto, Vancouver and Hawaii, hire a management company, and lease them out by the day or week as a business? Yes. Could the officers of the corporation go to Toronto, Vancouver and Hawaii and check on and stay for a while in one of the condos with tax-deductible dollars? Yes.

Buy Toys
What if you decide it's time to relax and enjoy the money that you've made. You have your mind set on an item outside of the investing realm. Say you have your heart set on a new forty-foot yacht? Can a corporation buy such a luxury item? Yes, it can. Can it write off such an enjoyable craft? Well, perhaps, but you would more likely justify it as an investment. We are simply investing with after-corporate-tax dollars. We think that this yacht will go up in value by 35% over the next few years. Many companies make money by buying and selling luxury items such as boats and classic cars. If you think it's something you can make money at, why not enjoy it along the way? We also have a right in this country to lose money on investments. Have you ever lost money on any trades in the stock market or other investment vehicle? Does the CCRA allow us do deduct these losses from investment gains? Yes, again.

What else might you want to do? Do you want to pay off your home? Do you want more money to spend? Do you want to be able to pay less money in taxes? Click on the FORM A CANADIAN CORPORATION link and get started today.

What Do I Have to Do?
In order to lower your taxes as much as legally possible your corporation must be established according the legal statutes. Click on the the FORM A CANADIAN CORPORATION link begin taking advantage of corporate tax deductions today.

All that Companies Incorporated and associated persons, natural or otherwise does is done with the understanding that it is not engaged in rendering tax, legal or other professional advice. If such advice is needed, the services of an appropriately licensed practicing professional should be sought.