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Old 09-06-2003, 01:01 AM  
junction
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Join Date: Dec 2002
Location: Midwest
Posts: 2,411
Quote:
Originally posted by Kenneth K
... guess Nevada or perhaps Delaware - but don't know shit about the individual states - anybody wanna share some info?
My parent, sub, and equity corps are all located in Nevada. The reason Nevada is my choice is the fact that they share NO information with the IRS, and have no state tax. Find a good attorney and work out the best corporate strategy for your business.

A single corporation does insulate you personally from the business, however if you have to bankrupt the corp due to a lawsuit you have nothing to fall back on.

My parent corp owns the sub corps. My equity corp controls all the funds, and is the lien holder of all assets. The parent corp "borrows" money from the equity corp to subsidize itself and then "loan" it to the sub corps. Profits earned from the sub corps are used to pay back the loans to the parent corp. The parent corp then repays the loans to the equity corp. On paper your subs have no money and the parent corp is always in debt to the equity corp. Plus the loans and repayment of loans can be used for some tax deductions. If you have to file bankruptcy, you bankrupt the affected sub corp. Since your equity corp is the lien holder of all the assets, you then reposses all of your own shit. If youd like to talk more about this, hit me up.
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