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

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

I am not an attorney nor an accountant. Id advise that you discuss tax
strategies with your taxation advisers. I am offering the following from my
business knowledge. 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, dont add in a tax 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 tax haven State might
generate sense. Compared to California, youll save 8% on your companys income taxes. If the State tax savings justify taxation haven incorporation, do it.

If you have an international business , incorporation in a taxation haven makes
sense. It will not save your business 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 creating 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 internet page : [http://home.earthlink.net/~beowulfinvestments/] Or, visit the Global Village Investment Club Website:
[http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]