The tax advantages of incorporating a business is one of the main reasons that owners choose to incorporate their businesses, no matter what market they work in. Other types of businesses, such as sole proprietorships, are not afforded nearly as many tax advantages as an incorporation.
A move called income shifting is one that helps the business, and its owners, immensely. This is a method in which the total income of your corporation is divided among its members. How does this help, you might wonder? By shifting the income to a number of individuals, the overall tax that is required to be paid on it can be significantly lower, which is a great tax advantages of incorporating a business.
Being able to offer a greater amount of fringe benefits also factors into the tax advantages of incorporating a business. This is from the fact that other types of businesses don’t get as much of a tax deduction on such things as medical and retirement plans. In some cases, you can get a full exemption as long as you choose the proper plans.
Another tax advantages of incorporating a business is that of making your business a completely separate entity. This saves you from liability with your personal assets in case your business gets in trouble, as well as allowing you to structure your business to take advantage of your business income and lower tax rate. There are also many deductibles that you simply don’t get when you have a sole proprietorship or partnership.
While you don’t want it to happen, business losses can occur. With an incorporation, you are entitled to an unlimited about of business losses, as opposed to the very stringent requirements for other structures of business. These are the main tax advantages of incorporating a business, and ones that you will want to keep in mind when deciding whether or not you want to incorporate your business.
Income delegation is another great aspect of incorporation. You can state when you receive income yourself, as opposed to income towards your business. This is a great way of keeping your income tax for both your personal and business selves down low, and is a huge reason to incorporating for small business.
You can also receive a small business tax deduction. This comes from incorporating for small business, and is 16% on your first $200,000 in profit, which may or may not be lower than what you are paying from your personal income taxes. It is definitely something that should be looked into, however.
Pharmaceutical lawsuits are among the most complex and difficult to deal with, not just for the people who have to fight them, but also among the legal profession itself. Lawyers and judges are highly trained people, but they are trained in law and not in medicine. It can be very hard to offer a judgment on a subject you do not fully understand, and that has to be borne in mind when assessing the situation with medical lawsuits. The pharmaceutical industry is worth billions of dollars, and one judgment can carry a huge amount of financial weight.
The civil law system varies from country to country, and within the USA from state to state. There is, however, a reasonably consistent thread running through the world’s legal system. In order to bring an action successfully in a civil court, you need to be able to demonstrate that the individual or organization you are suing owes you a duty of care. In the case of the medical profession, this is not usually difficult to do. If you are registered with a physician, or are admitted to a hospital, they obviously owe you the best medical care possible. For example a medicine called Xarelto which was approved by FDA in 2011 for blood thinning has various side effects ex: blood thinnig. Xarelto lawyer are still fighting the case but very unlikely they will win.
Having proven that a duty of care exists, the onus is then on the plaintiff to prove that the duty has somehow been breached. In the case of a pharmaceutical product, you will need to prove that it was prescribed for the wrong condition, and therefore ended up making your health even worse, or you need to prove that the drug is inherently harmful no matter how it is prescribed. If the medical treatments have been wrongly prescribed, there is clearly fault on the part of the practitioner.
The final part of successfully bringing a case to court is proving how the negligence on the part of a medical practitioner has affected you. Even if the practitioner was severely negligent, the courts would not award you money unless there was something you needed to be compensated for. There has to be enough of a change for your life to be severely affected, and in the case of pharmaceutical cases, this is very common.
Whenever you are the plaintiff in pharmaceutical lawsuits you need to be aware that you are going to be competing against people who have far more knowledge of the medical profession than you do. This need not necessarily be a problem, as you will only need to prove the effect of the medical mistake on your own life. Make sure, though, that the opposing lawyer does not have the opportunity to blind the judge with misplaced science. It is so easy for a defending lawyer to try to attribute your medical condition to something other than the treatment you have received. Watch out for this in pharmaceutical lawsuits.
If you are looking for registered agent services in California, you’ve found them. As an attorney, I provide the service via my office in Del Mar to businesses throughout California. You can check my website http://secstates.net for details.
What is a registered agent? It is the physical person that receives the service of legal documents on behalf of a business entity, typically a corporation or limited liability company.
How It Works
When a party wishes to serve official legal documents on a business entity, they will serve them upon the resident agent. At that point, I would then contact you and forward the documentation. You would then need to respond to the legal notice.
The advantage of using an independent registered agent is really two fold. First, the name of the agent is a matter of public record. Most people prefer to keep their names off of such lists. Second, lawsuits are often served by obnoxious individuals who revel in making a scene or sheriffs in uniform. Many businesses prefer to avoid having either of these individuals showing up at their office and causing a scene.
Can you use my office address as your business address? No. A primary business office is entirely different than registered agent services. If you are in need of an office address, you should take a look at the executive office packages that are readily available throughout the state.
I charge an annual fee of $250 to act as a registered agent. The fee is due upfront. If you would like to learn more, please contact me to discuss your particular situation.
When it comes to investing, real estate is a popular choice with many people. The real estate investment LLC often represents the best business entity through which to make said investment.
Real Estate Investment LLC
There is more than a bit of confusion regarding the real estate investment LLC. People seem to think it is unique in some way when compared to a run of the mill limited liability company. It is not. It is a simple LLC irrespective of the business undertaken within it.
If this is the case, then what makes it the business entity of choice for most real estate investors? There are a number of factors, but flexibility is one of the bigger ones. The real estate investment can be moved in and out of the LLC with little or no tax consequence.
For example, assume you want to move a house in a 1031 exchange. You can take the house out of the LLC [converting it to personal property] and then make the 1031 exchange. If you tried to do this with an “S” corporation, in contrast, the removal of the house from the corporation would be a taxable event. This would eliminate the possibility of the 1031 exchange and defeat the deal.
The real estate investment LLC also offers the advantages you would traditionally expect to find with any limited liability company. The shareholders, known as “members” for an LLC, are provided with liability protection if the real estate investment goes bad. Of course, they risk losing their investment in the LLC, but no business entity can eliminate that risk.
Are there any downsides to a California real estate investment LLC? Of course! It is California, after all. In truth, the downsides are fairly nominal. You can expect to pay a fee related to your revenues, which is really a gross revenue tax. Given the high prices associated with California real estate, it can be a shock to many investors. Other than that, however, the downsides are minimal.
If you are interested in starting a real estate investment LLC, please contact me today for more information. All initial consultations are without cost or obligation.