The Hub Strategy
When looking at different structures of corporations there are a few different strategies that will work to insulate client from harm.
One of the most popular is the hub theory. When living in the corporate world multiple companies start to make since to people that has multiple
revenue streams. What we suggest is to have one corporation that owns, or is the sole member of the other corporations. This way you have separated
the liability of one venture from another. They would be disregarded entities that pass through to the Hub (the Managing Corporation). This strategy
is particularly helpful when you have multiple properties. Inventors or Writers may find this useful when trying to protect a patent, book or script.
When you find that you are going to be taking income from these income streams it is very nice to only have to do one tax return.
Physician's are at high risk
When thinking about the different ways to use Nevada corporations there are some basic
structures that are commonly used by our clients. Doctors have large risks in their profession. Malpractice
suits are on the rise. Here is a scenario of how a lot of physicians protect themselves from these dangers.
When practicing Medicine in a different state than Nevada. Most physician's will probably want to hold there license
and practice in a Sub Chapter S. A Nevada Sub Chapter S would have to be registered in the state your in, which typically
costs somewhere between $300.00 and $700.00. The other option is to simply set up the Sub Chapter S in your own state
The best way to protect your assets is to hold them in a LLC taxed as C-Corporation. Typically we would suggest that you
hold your office equipment in one LLC, and lease the office equipment to the Sub Chapter S.
This will achieve two things for you. One, your Sub Chapter S may take a deduction on your office equipment lease. If a
judgment did come at the Sub Chapter S and you lost it, or bankrupt it, who ever took over the Sub S would still have to pay
it's bills, so they would still have to pay for the lease, which means the people who sued you would still be paying you
(your LLC C- Corporation). In this way we set you up to protect the value of your equipment with the LLC. You will lose the
Sub S but not everything.
This will also give you a legitimate way to transfer money between companies. If you give your
C- Corporation a different tax year end than December, then you will find that this can be very helpful when tax time
comes around. In all these scenarios the most important part to make these strategies work is the documentation. Remember
if you do not write "IT" down you have not done "IT". This strategy works best when you are not on public record as owner
of the LLC.
Sub Chapter S the Sacrificial Lamb
Here at CorpNevada.com think this is the only tax structure that should be held in a Stock Held Corporation.
The reason for this thinking is that we think this is the best vehicle to be in the public eye. It does not matter that you would
be identified with this corporation. We would want all attacks to come at this company because this company would be the Sacrificial
Lamb.
Let me explain, when you are out there doing business and setting up contracts, acquiring debt, any kind of liability we think that
this should be done through a Sub- Chapter S company. This is the best way to pay your self. You can pay yourself a small but
reasonable salary, this will control how much state personal income you will be paying, then pay all your expense, then take a
distribution at the end of the year, or all through out the year. As long as you keep those distributions should be some where
between 50% and 70% of the salary you paid yourself. You will be paying Federal Income Tax on that money but not state, social security,
or employment etc. When you are looking a tax savings this is a considerable tax savings, depending on your tax bracket.
Because you can pay your self a small but reasonable salary you decide how much you are going to be paying the state you are in on
your own personal state income taxes. Most people pay full employment taxes on all the money they take in so typically you will be
enjoying big savings.
Further we suggest that you make sure that you keep this company broke. If a lawsuit comes at this company for
any reason, if this company it was formed in Nevada then you can simply let it go, bankrupt the company but not the stock
holder,(YOU). This is a much cheaper way of dealing with lawsuits. We consider this to be the sacrificial lamb and can be liquidated
without heavy consequences.
If anything comes at the Sub S which is in the public eye, we suggest that you always have it broke so it can be easily bankrupt.
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cor·po·ra·tion : a body formed and authorized
by law to act as a single person although constituted by one
or more persons and legally endowed with various rights and
duties including the capacity of succession 
