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Tuesday, April 28, 2009

Entity Structuring!

Entity structuring is the use of limited partnerships, limited
liabilities, and corporations. These can help you accomplish
three things:

1. Bullet-proofing your assets so that the bad guys are worse
off if they try and take them away from you.

2. Slashing your taxes so that they are within single digits.

3. Protecting your privacy and building lasting wealth.

Let me explain how this works with the following example:

A case study: My friend Patrick grew up with the family
business. His family sold expensive boats. His business grew. He
was a financially intelligent man so he wanted to add a stream
of income. Therefore, he decided to start a Marina, a land
storage facility, a parts shop and a show room. I wanted to make
sure he was properly protected and that he had bullet-proofed
his assets. However, he was too busy making money to focus on it
at that time. This was his fatal flaw. One day, I got that
dreaded call from Patrick. The sheriff deputy was there to shut
down his businesses: the Marina, the parts shop, the storage
facility, and the show room. His business was locked down with
pad locks in a matter of hours. Within six months, he lost all
of his personal assets and filed both personal and corporate
bankruptcy. The tragedy here is beyond his loses but the fact
that this situation was completely avoidable. You can prevent
this from happening to your business by using two power tools:

1. Limited Partnerships: separate legal entities. They separate
your personal assets from business investments.

2. Limited Liability: similar to Limited Partnerships as they
form a wall between you and the creditors and predators.

These two power tools include a built-in charging order that
does not apply to your typical "S" or "C" corporations. A
charging order basically states that the "bad guys" cannot go
after your assets. They will be able to go after income but not
after you employ the following strategy. We can set up a
separate management company for you. Then, you can shift your
money from your LLC or LP into your separate management company.
The last step in your protection is called imputing income, and
it finalizes the prevention of lawsuits. The IRS can step in and
tax these bad guys for the money they are suing for (even when
they are unable to collect this money.) This ensures the fact
that suing you will not be worth the effort.

In summary: They cannot touch your assets because you have
protected them. They cannot receive the income because you have
shifted it out. They are left with heavy taxes imposed by the
IRS. Therefore, the likelihood of you being sued is next to
nothing.

My name is Drew Miles and I would like to offer you a free tax
savings special report & Free Tax Saving Webinar, and all you
have to do is visit my website! For more information about these
tools and more please visit me at my site!


About The Author: I have spent years studying the tax code
looking for ways to help people lower their tax bill and keep
more of what they earn. -Drew Miles Find Out More:
http://www.save10kintaxes.com

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