Structuring Your Company
By William Cate
Published October 1998
[http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]

In Canada, youll pay 60% taxes on your pretax profit. In the United
States youll pay Federal and States taxes on your pretax profit. This
means that a California business pays 41% in taxes. You earn alot of money when you save on taxes.

Im not an attorney nor an accountant. Id advise that you discuss taxation
strategies with your tax advisers. Im offering the following from my
business acquired skill . I work on the premise that you must pay taxes in the
jurisdiction in which you earned the money.

If you have a local business, do not incorporate in a taxation haven state, like
Nevada. The taxing state will still want their taxes on the money you
earned.

Too many local businesses add in such a certain way that the corporation
pays taxes on the business income and the owners pay taxes on the proceeds
from the corporation. If your corporate pretax profit was $100 in
California, after taxes your company has $59.00. If you pay the $59.00 to
the owners, they must pay taxes and the after tax profit is $34.81. To
avoid paying 65% taxes, the owners should never have incorporated. They
should have asked their tax adviser about forming a LLC.

If you have a national business, incorporation in a taxation haven State might
make sense. Compared to California, you will save 8% on your companys income taxes. If the State taxation savings justify tax haven incorporation, do it.

If you have an international company, incorporation in a tax haven makes
sense. It wont save your company taxes on your U. S. or Canadian business
income. It will save you 40%-60% on your non-North American business
income. This strategy is being used by almost every multinational
corporation in the World. Its an inexpensive tactic that will save your
company hundreds of thousands of dollars. If you positive need help building a tax
haven corporation, please contact me.

Whether you are a business owner or investor, you should consider a global
approach to funds and investment. The International Money School offers an excellent primer in sound global funds management. If you would like to
attend the next one-day course, please contact me.

To contact the author: Visit the Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visit the Global Village Investment Club Website:
[http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]