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Structuring Your Company
By William Cate
Published October 1998
[http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]
In Canada, you'll pay 60% taxes on your pretax profit. In the United
States you'll pay Federal and States taxes on your pretax profit. This
means that a California business pays 41% in taxes. You make money when you save on taxes.
I'm not an attorney nor an accountant. I'd advise that you discuss tax
strategies with your tax advisers. I'm offering the following from my
business experience. 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, don't incorporate in a tax haven state, like
Nevada. The taxing state will still want their taxes on the money you
earned.
Too many local businesses incorporate in such a 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 tax haven State may
make sense. Compared to California, you'll save 8% on your company's income taxes. If the State tax savings justify tax haven incorporation, do it.
If you have an international company, incorporation in a tax haven makes
sense. It won't 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. It's an inexpensive tactic that will save your
company hundreds of thousands of dollars. If you need help creating a tax
haven corporation, please contact me.
Whether you are a business owner or investor, you should consider a global
approach to money and investment. The International Money School offers an excellent primer in sound global money 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/]
Five Myths About Inflation
A classic definition of inflation is any increase in the money supply. Understanding inflation is vital to anyone seeking investment profits or attempting to build a successful company. As with most basic issues of the global economy, inflation is surrounded by myths and misinformation.
Recession Planning
The clouds of a 2006 Recession are starting to form on America's horizon.Politicians know that Recessions or Depressions are bad for their reelectionchanges. Bad economic times tend to create unemployment among the nice folksholding office at the time of economic stress. You can expect the Governmentto do everything possible to delay a Recession until after the November 2006election. However, the American economy is currently caught in an upwardmoving inflation and a Recession would still the fires of a runawaycurrency. The Real Estate Bubble may be about to burst. And, America'sfinancial institutions appear to be in increasing trouble over failedderivative bets.
African Aid
Africa, like everywhere else in the world, has its fair share of honest, intelligent; hardworking people who want to see their families have a better standard of living. Unfortunately, most of these people are living below the poverty line. The reasons that Africa, with all of its natural resources, is an economic basket case are complex. They start with the 16th Century Africans' failure to adopt an effective immigration policy. The result was the European immigrants divided up the continent without regard to historic tribal boundaries. The modern result has been tribal wars waged with modern weapons from the Sudan to Rwanda.
