I’ve been talking about the benefits of owning a corporation for some time. I’ve described you you can open a corporate checking account to avoid a personal Chex System problem, how you can “own nothing and control everything.”
For a good long while, there were primarily two states that received the lion’s share of new corporation filings –Delaware and Nevada. And for good reason, they both had a long history of favorable laws protecting shareholders, officers and it was nearly impossible to pierce the corporate veil. And they were relatively inexpensive.
After recently forming a new Nevada corporation, and getting hit by the extra business tax the State of Nevada drops on you, I wondered if there is a cheaper alternative. See Nevada was at one time, the cheapest game in town. You could make money with a Nevada corporation by doing nothing more than waiting 6 months to sell the empty shell.
The new game in town is still in the Wild West. Wyoming corporations are the new Nevada corporations. Cheap to form, cheap to maintain and of course, anyone with an internet connection and just a little patience can do it themselves. It’s not rocket science.
Just think, you too could enjoy the secret that corporations have been exploiting over the public for so long. With a corporation, you can appear to earn nothing! I think I’ll go out and start another one, just to hold my intellectual property that I can lease to my other corporation. Or maybe a loan! The possibilities are endless when it comes to corporate debt and debt repayment is not income. There’s income somewhere down the line but hey, it’s a company- it has expenses, it has debt, it can likely be bankrupt and did I mention that a corporate bankruptcy doesn’t mess with your personal credit?? Think on that.