The Nevada Advantage: When, Why & How to Incorporate, Regardless of Where You Live and Work

by Neal, Terry L.

• ISBN13: 9781571019479
• ISBN10: 1571019472
• Format: Hardcover
• Copyright: 2002-03-01
• Publisher: Master Media Pub Corp

Summary

This informative guide shows how to use the Silver State to bullet proof assets, increase profits, and gain financial privacy. The book is written by an insider with years of experience.

Table of Contents

Acknowledgements	13	(1)
Preface	14	(4)
SECTION I The Whys
The Personal Sovereignty Paradigm
The Purpose	18	(1)
Preamble	18	(1)
Nation States	18	(2)
Political Change is Inevitable	20	(1)
The Freedom Ideology	21	(2)
Government's Challenge	23	(1)
Freedom Verses Chaos	24	(1)
The Underlying Force	25	(1)
Look Around	26	(1)
Claiming Autonomy	27	(1)
Legal Documents & Video	27	(1)
Why Nevada	27	(2)
The Privacy Factor
Freedom Requires Privacy	29	(1)
Nothing to Hide	30	(1)
Privacy is Paramount	30	(1)
Phone Records Are Not Sacred	31	(1)
Technology's Expanding Effect	31	(2)
Internet Detectives	33	(1)
Legislative Protection	34	(1)
Legislation Ripe for Abuse	35	(1)
Echelon	35	(1)
Carnivore	36	(1)
Computer Scanning	36	(2)
The Clipper Chip	38	(1)
Privacy and Government Needs	39	(1)
The Crux of the Privacy Problem	40	(1)
Violence and Privacy	41	(1)
Progress	42	(1)
In Summary	43	(3)
The Litigation Explosion
The Problem	46	(1)
The Threat To Business	46	(1)
Funding Government Through Litigation	46	(2)
America The Litigators	48	(1)
A Legal Joint Venture	48	(2)
Countersuits	50	(1)
City Governments Join the Fray	51	(2)
Can This Be True?	53	(1)
The Future	54	(1)
Facing The Legal Reality	55	(2)
Conclusion	57	(1)
Concerns Over Government
Government Expansion	58	(1)
Equal Rights	58	(1)
Justice for All	59	(1)
Non-Violent Crime	60	(1)
Forfeitures and Seizures	61	(1)
Regulation Through Litigation	62	(1)
National ID verses National Security	62	(3)
Speaking of Social Security	65	(1)
Tax Shelter America	66	(2)
Money Laundering	68	(1)
The Real Issue	68	(1)
Tax Competition	69	(1)
Predictions	69	(2)
Offshore Tax Havens	71	(1)
Corporate Structuring	72	(4)
SECTION II Business Structures
Forms of Doing Business
Preamble	76	(1)
Sole Proprietorship	76	(1)
General Partnership	77	(1)
Limited Partnership	78	(1)
The Limited Liability Company	78	(1)
Corporations	79	(1)
Corporate Structure	80	(1)
Articles of Incorporation	81	(1)
Corporate Name	81	(1)
Period of Existence	81	(1)
The Corporate Purpose	82	(1)
Authorized Shares	82	(1)
Classes of Stock	83	(1)
General Provisions	83	(1)
Bylaws	83	(1)
The Players in the Corporation	84	(1)
Corporate Formalities	85	(3)
Piercing the Corporate Veil	88	(1)
Failure to Keep the Corporation in Good Standing	89	(1)
Failure to Sign Documents in the Corporate Fashion	89	(1)
Failure to Identify the Business as a Corporation	90	(1)
Operate Related Corporations Autonomously	90	(1)
Rowland v. Lapire	91	(1)
Trident Construction v.West Electric, Inc.	92	(1)
Wyatt v. Bowers	93	(1)
Polaris Industrial Corporation v.Kaplan	94	(2)
Acts of the Corporation
Acts of the Corporation	96	(1)
Documenting With Resolutions	96	(1)
When to Use Resolutions	97	(1)
How to Draft Resolutions	98	(1)
The Core of the Resolution	99	(1)
Where Resolutions are Appropriate	100	(1)
Organization	101	(1)
Ratification of Pre-Incorporation Actions	102	(1)
Reimbursement of Costs of Incorporating	103	(1)
Ratification of Resident Agent	103	(1)
Adoption of the Bylaws	103	(1)
Adoption of a Corporate Seal	103	(1)
Adoption of Stock Certificates	103	(1)
Authorization of Required Filings	104	(1)
Election of Officers	104	(1)
Who Should Serve	104	(1)
Adopt a Fiscal Year	105	(1)
Issuance of Stock	106	(1)
Types of Consideration	106	(1)
Issuance of the Stock	107	(1)
Changes of the Guard	107	(1)
Officers	108	(2)
Directors	110	(1)
Salaries	111	(1)
Purchasing	111	(1)
Establishing a Principal Place of Business	112	(1)
Financing	113	(1)
A Classic U.S. Strategy
The Private Corporation	114	(1)
Overview	114	(1)
Rearranging Your Finances	115	(1)
Asset Protection Characteristics	116	(1)
Filing Liens	117	(1)
More About Nevada	117	(1)
A Simple Example	118	(1)
The Privacy Application	119	(1)
Corporate Headquarters Providers	119	(1)
Other Advantages	120	(1)
Federal Taxes and Your Personal Strategy	121	(2)
Asset Transfer Complications
Overview	123	(1)
Intent May Not Be Necessary	124	(1)
Statute of Elizabeth Jurisdictions	124	(2)
Uniform Fraudulent Conveyance	126	(1)
Intent	127	(1)
Badges of Fraud	128	(1)
Constructive Fraud	128	(2)
An Example	130	(1)
Fair Consideration	130	(1)
Affirmative Defenses	131	(1)
Good Faith Buyer	131	(1)
Inadequate Consideration	132	(1)
Issues Checklist	132	(6)
SECTION III The How's
Asset Protection: Analysis of a Strategy
A Sad Tale	138	(1)
The Legal Reality	139	(2)
A Lawsuit's Merit	141	(1)
What Asset Protection Is Not	142	(1)
The Morality Issue	142	(1)
A Quick Sketch	143	(1)
Don't Be a Target	143	(1)
Incorporating for Asset Protection	144	(1)
Poverty, The Road to Asset Protection	145	(1)
Being Judgment Proof	146	(1)
The UCC-1 Concept	147	(1)
The Strategy Summary	148	(1)
Demand Promissory Note	149	(1)
Case Studies & Tax Reduction
Case Study #1	150	(1)
Case Study #2	151	(1)
Case Study #3	152	(1)
Case Study #4	153	(1)
Case Study #5	154	(1)
Tax Savings Through Incorporation	155	(1)
Medical Reimbursement Plans	155	(2)
Section 1244 Stock	157	(1)
Stock Dividends in a Corporation	158	(1)
Start-Up Expenses	159	(2)
Avoiding Double Taxation	161	(3)
Taking Money Out of Your Corporation
Get The Money	164	(1)
Tax Savings Through Family Employment	165	(2)
Expense Reimbursements	167	(1)
Travel Expenses	168	(1)
Auto Loan Interest Deductible	169	(1)
Deducting the Cost of Living	170	(1)
Three Tests for Deductibility of Living Expenses	170	(1)
Four Tests of Deductibility of Meals	171	(1)
Commuting to Temporary Work Sites	171	(1)
Here's to Your Good Health!	171	(1)
Research and Experimentation	172	(1)
Taxation and Multiple Corporations
Tax Advantages of Multiple Corporation	173	(2)
Tax Planning with Multiple Corporations	175	(1)
Parent-Subsidiary Controlled Group	175	(1)
Brother-Sister Controlled Group	176	(1)
Stock Attribution Rules for a Brother-Sister Controlled Group	176	(1)
Disadvantages of a Controlled Group	176	(1)
Examples of a Brother-Sister Controlled Group	177	(1)
Doing Business At Arms Length	178	(1)
Section 482 verses Warbucks/Red, Inc.	179	(1)
S-Corporations	179	(5)
No Profit Benefits	184	(2)
Social Security (FICA) Taxes and the S-Corporation	186	(1)
Retirement, Social Security and Your Nevada Corporation	187	(1)
Personal Service Corporations	188	(1)
Tips About PSC Status	189	(1)
Personal Holding Company	190	(1)
Personal Holding Income	190	(1)
Disadvantages of Personal Holding Company Status	191	(1)
Is There a Way Out of PHC Status	191	(1)
Tips to Avoid PHC Status	192	(1)
Foreign National's	193	(1)
Non-U.S. Citizens Welcome in Nevada	193	(1)
Additional Benefits of a Nevada Corporation	194	(1)
Visa Enhancement	194	(2)
Alternative Considerations
Business Verses Personal Protection	196	(1)
Protecting Mental Property	197	(1)
Is Warbucks a Real Corporation	198	(1)
Validations	199	(1)
Initial Officers and Directors	199	(2)
Using Assets as Capital Contributions Without Owning Stock	201	(1)
Asset Protection for Licensed Professionals	202	(1)
Using Lines of Credit	202	(1)
Re-domiciling the Corporation	203	(3)
SECTION IV Corporate Formalities & Forms
Forms, Minutes, Resolutions, Notes Agreements and Contracts
Why Forms	206	(1)
Working with Forms	207	(1)
Corporate Formalities	207	(1)
Alter Ego	207	(2)
Pre-Incorporation	209	(6)
Acceptance and Resignations	215	(3)
Notice of Meetings and Waivers	218	(1)
Notices Can Be Waived	218	(8)
Minutes of Meetings	226	(1)
Stockholders' Meeting	226	(1)
Directors' Meeting	227	(12)
Stock Restrictions and Resolutions	239	(1)
Restrictions and Options	239	(1)
Right of First Refusal by Corporation	240	(1)
Corporation Option, Conditions on Sale or Transfer of Stock	240	(1)
Right of First Refusal	241	(1)
Resolutions	241	(37)
Proxy	278	(3)
Certified Copy of Corporate Resolution	281	(5)
Promissory Notes	286	(6)
Security Agreements and Deeds of Trust	292	(15)
Contracts with Independent Contractors	307	(3)
Corporate Changes of the Guard	310	(24)
SECTION V - Appendices
Introduction	334	(1)
Why Nevada Corporations	335	(2)
Advantages of the LLC	337	(7)
State Income Tax Review	344	(2)
The Birth of a Nation	346	(14)
Facts About Nevada	360