The #1 Reason Businesses FAIL is Lack of Cash Flow.

Does your Business have the Proper Lines of Trade Credit and Cash Lines Established?

Are You Losing Business Because of a Weak (or no) Business Credit Profile?

Introducing the Newly Improved Ultimate Business Credit Builder System and our
June Special (our Best Offer Ever):

One of the main reasons you incorporated or formed an LLC was to separate your business assets from your personal assets. This will help you limit your liability and have a better marketing advantage when it comes to joint ventures (the fastest way to grow your business-especially host beneciary relationships).

The key is to separate for success. The big mistake we see is that many entrepreneurs invest all their money to separate their personal and business assets but NEVER separate their personal and business credit (at least not properly).

4 Critical Reasons to Separate Business Credit (in your entity)
from Your Personal Credit:

1. It is how your business will be evaluated for business and joint ventures. You may be losing clients, bids, vendors and joint ventures without even knowing about it. Why? The best way to check out a company’s financials is to invest $40-$130 with Dun and Bradstreet® to pull a report. This will tell you everything you need to know about someone’s business. Most of you will NOT like what will be seen on your report. FYI, a 80 Paydex score will not cut it.

How do You Feel Standing Financially Naked in Front of Your Customers? Now it may be time to fix that and put your “financial clothes” on.

2. Whether you like it or not, Corporate Experian® is NOW creating profiles on companies through the SOS’s database on new filings. This means a profile is being created and you do not know what it will say to your potential customers (unless you know how to develop it properly).

3. Develop vendor lines of credit to protect your cash flow AND put your business in a better position to secure CASH LINES of credit to grow your business. As you know the banks have raised the bar dramatically on what is required to secure a bank line of credit (one key component is the amount of vendor credit granted to your business-not just an 80 Paydex score).

4. You will protect your personal credit (whether it is good or bad) from your new business. If your personal credit is strong, you will want to minimize personal guarantees with vendors that may jeopardize your personal credit plus develop cash lines of credit in the name of the entity under the EIN number (yes, it is personally guaranteed but the debt will not show up in your personal credit bureaus-which will help protect your personal credit score.

If you have a bad personal credit score, you MUST develop your business credit profile to put the business in a position to qualify for credit on its own!

The Biggest Mistake? Waiting to develop the business credit profile until you need the vendor or cash lines of credit. If your business is doing well and you feel you do NOT need the credit that is the best time to develop it.

This is what George Ross, the attorney for Donald Trump told me when I asked him the best time to develop relationship with banks. Develop the credit before you need it.

Are you an International Owner of a U.S. Company? What are your options? Will our program help you? Call and find out the options and adjusted fees for your U.S. Cash Machine!

Call NCP today at 1-888-627-7007 to find out the results your business can expect to achieve with our Newly Revised Ultimate Business Credit Builder System (there are many variables involved) and our June Special Offer (our best ever) expires on June 30th at 4 pm PDT, 2010.

Extra Special June Bonus (in addition to our biggest discount ever):

When you invest with our Ultimate Business Credit Builder Program in the month of June you will receive our complete Online Joint Venture Training on how to leverage joint ventures with all the videos from our 2010 Ultimate Joint Venture Boot Camp and training calls. This is your blueprint for success. You will receive this $997 value FREE when you invest with our Ultimate Business Credit Builder Program on or before June 30^th, 2010. Call NCP at 1-888-627-7007 for more details.

Call me today at 1-888-627-7007 to register for the Newly Improved Ultimate Business Credit Builder System or ask additional questions on how this tremendous service will help your business prosper in today’s economy.

Dedicated to Your Success,

Scott Letourneau

CEO

ncp@nvinc.com

Nevada Corporate Planners, Inc.

Fast Business Credit, Inc.
Fast Start to Profits™!
7477 W. Lake Mead Blvd. Ste. 170
Las Vegas, NV 89128
(888)627-7007; (702)367-7373
Fax: 702-220-6444
www.nvinc.com
www.FastBusinessCredit.com

Visit our Blogs at:
www.FastBusinessStartUp.com
www.FastBusinessCreditSecrets.com
www.ScottLetourneau.com

Follow our CEO Scott Letourneau on:
www.Facebook.com/ScottLetourneau
www.twitter.com/SJLetourneau
http://www.youtube.com/ScottJLetourneau

P.S. Extra Special June Bonus:

When you invest with our Ultimate Business Credit Builder Program in the month of June you will receive our complete Online Joint Venture Training on how to leverage joint ventures with all the videos from our 2010 Ultimate Joint Venture Boot Camp and training calls. This is your blueprint for success. You will receive this $997 value FREE when you invest with our Ultimate Business Credit Builder Program on or before June 30^th, 2010. Call NCP at 1-888-627-7007 for more details.

If you want to start a business, it’s imperative to safeguard it against failure. If you know the mistakes to avoid before you start your company, you’ll increase your odds for success.

Many business owners are so enthusiastic to get started that they fail to understand the risks involved when starting a business. Although a high percentage of new businesses fail within the first three to five years, you can be one of the fortunate ones and beat the odds.

Here are the five costly mistakes to avoid when starting a new business in 2009:

1. Forming a sole proprietorship. It may seem like the easiest and quickest route to take, but you’ll put yourself at risk if you don’t separate your personal finances from your business. Form a separate business entity like a corporation or LLC, even if you work from home. The biggest mistake that entrepreneurs make is leaving their personal assets vulnerable to business liens, lawsuits, and creditors. Keep your business separate from your personal accounts, and you’ll sleep better knowing that in the worst case scenario, all your personal assets are safe. Plus your risk of an IRS audit increases when you file a Schedule C!

2. Using personal credit to finance a business. Never use personal credit cards to finance your business ventures. Starting from day one, keep all personal and business finances separate. It will be easier for bookkeeping purposes, and you’ll keep your personal line of credit safe. The key is to keep your personal revolving debt low and to use a business credit card in the name of the LLC or corporation. Yes, the debt will be personal guaranteed. However, being under the EIN of the LLC or corporation, it will not show up on your personal credit report! This will help your personal credit score also.

3. Maxing out credit cards. Here’s the problem. If you spend like crazy using your personal credit cards, it will negatively affect your revolving debt ratio. This will have a negative impact on your ability to obtain a business line of credit. Even though business and personal lines of credit are separate, the bank will consider your personal credit rating when determining your eligibility for a loan. If you max out your cards, the bank assumes that you have a negative cash flow. The other problem is when you apply for a business credit card in the name of the LLC or corporation. 95% of the formula by the bank to determine if and how much to give credit to your brand new LLC or corporation is based upon your personal credit score and revolving debt ratio. If your revolving debt is above 40% or higher (5-20% is ideal) you may get rejected for any business credit card! Keep balances on credit cards low, and you’ll be more likely to get credit when you need it.

4. Applying for business credit when strapped for cash. The time to establish a business line of credit is before you’re out of money. Lenders want the assurance that you can pay credit card balances and loans. If you’re strapped for cash, you’re living beyond your means. If the company vehicle breaks down or you have an unexpected business expense, you may get behind on payments. Establish your line of credit when the cash flow is positive and you’ll have a soft place to fall when and if you need to use credit.

5. Failing to plan. Before the world becomes your customer, keep in mind that you need more than a wing and a prayer to succeed. The first step is to stop operating your business as a sole proprietorship and incorporate or form an LLC immediately! Next, obtain a business credit card in the name of the LLC or corporation and stop using your personal credit cards for your business. In about six month, your LLC or corporation may be in a position to obtain a business line of credit, a business loan or perhaps a merchant account cash advance (the last one is the hottest form of lending to businesses today, but the least understood). Plan ahead, build that foundation and your business will keep standing when the unexpected expenses arise.

Start with a plan, do your research, and you can avoid the five costly mistakes that sink most new businesses. It’s a new year!

Make 2009 a prosperous and profitable one!

For years, Delaware has been considered to be the prime state to incorporate and still holds the number one position for registered corporations. However, what you may not know is that Nevada has become the choice of many business owners who want to form a corporation and has been closing the gap to number of filings with Delaware in recent years. Before considering your options, you should know the advantages you’ll gain if you start a business and incorporate in Nevada.

You may wonder if incorporation is the right choice for your business. Even if you’re a one-man operation, incorporating (or forming an LLC) may be the best business entity for you. The major reason to incorporate is that it protects your personal assets from business debts, helps keep the IRS off your back (because a sole proprietorship is more likely to be audited), a better marketing advantages (which sounds better as you introduce yourself, the owner operator or the CEO of your company) and helps you get more access to cash and capital!

If you’re looking for a state that allows more protection and levels of “hoops” to jump through for those looking to get access to your money, the small investment to start in Nevada and foreign register (or qualify) to your home state may be very much worth the extra investment. Keep in mind, that many may tell you to keep it simple, which of course is inversely related to asset protection!

Here are the advantages that you can benefit from if you incorporate in Nevada:

It’s Extremely Difficult for Anyone to Pierce Your Corporate Veil!

First, what exactly does “piercing the corporate veil” mean? When you form a corporation you must follow certain corporate formalities. If your corporation does not comply with all relevant corporate rules and regulations, keep accurate records of meetings by minutes, or if the corporation commingles funds, your board of directors, officers and shareholders could be held personally liable in the event of a lawsuit. “Piercing the corporate veil” refers to having personal assets exposed in a corporate lawsuit.

How does Nevada feel about this? Nevada has a tough attitude about piercing the corporate veil, which is why major corporations domicile in Nevada. Essentially, Nevada says that unless they can prove fraud, your corporate veil will not be pierced! That provides an awesome degree of protection for your personal assets.
Your Officers and Directors Can Be Indemnified.

In 1987, the Nevada Legislature passed a revolutionary law that permits corporations to place provisions in their articles of incorporation that eliminate the personal liability of officers and directors to the stockholders of Nevada Corporations.

Nevada Corporation Code allows for the indemnification of all officers, directors, employees, stockholders, or agents of a corporation for all actions that they take on behalf of the corporation that they had reasonable cause to believe was legal. This indemnification can include any and all civil, criminal and administrative action. These two laws can provide you with complete protection for the officers and directors of your Nevada Corporation, as long as they act prudently in their roles.

Delaware and a few other states soon adopted lesser versions of this law, but Nevada’s law remains among the most thorough and comprehensive in the country.

Always do your research to determine your best course of action. For many people, however, Nevada offers a great mix of protection and flexibility when it comes to protecting your assets in today’s difficult economic environment.

If the video above doesn’t show, you can still find out the best state to incorporation your business by clicking this link:

“Which State to Incorporate In?” Video

A mistake that people often make before forming their business entity is assuming that they must incorporate in their own state. There’s nothing further from the truth. Many people choose to incorporate their businesses in other states to gain more benefits, more protection, vs. “keeping it simple” by incorporating in their home state.

So, why incorporate in Nevada? Here’s the main advantage:

It’s extremely difficult for anyone to pierce the “Corporate Veil.”

Your personal assets would experience less exposure in a corporate lawsuit. This is especially important in our litigious society that is only going to get worse in today’s tight credit markets.

What exactly does “piercing the corporate veil” mean?

When you form a corporation you must follow certain corporate formalities. If your corporation does not comply with relevant corporate rules and regulations, keep accurate records of meetings by minutes, or if the corporation commingles funds, your board of directors, officers and shareholders could be held personally liable in the event of a lawsuit. “Piercing the corporate veil” refers to having personal assets exposed in a corporate lawsuit.

How does Nevada feel about this? Nevada has the toughest attitude about piercing the corporate veil, which is why major corporations domicile in Nevada. Essentially, Nevada says unless they (the poeple suing you) can prove fraud, your corporate veil will not be pierced! That provides an awesome degree of protection for your personal assets.

Hire a planner with experience. Don’t rely on word-of-mouth advice to get you through the process. Because many people make mistakes with the paperwork and fees, hire someone with experience who will not only walk you through the process but also walk with you. Find a company that has been in business for over 10 years, has nationally-known professionals that endorse the company on their web site, that have date testimonials, ideally video and audio also plus under the “about us” section on their web site, there is information about the “face” behind the company.

Once you’ve hired someone to help you form your corporation, you’ll need to have the following information:

1. The type of entity. There are at least 6 choices and your problem is you have an 83% chance of picking the wrong entity!

2. Your Company Name. Do a little research ahead of time to ensure that your company name is not used by another corporation. Otherwise, your company name will have to be modified to distinguish itself from other businesses, causing delays.

3. The name of the manager of the LLC or director of the corporation. This is typically required to file the article of organization or incorporation. Keep in mind, an LLC may be managed by managers or by members. Make sure who you work with understands the difference and what is best for you. Most do this improperly.

4. The address of the manager or director. This may seem simple but there are nexus (business presence) issues with this decision that should not be taken lightly.

5. Obtaining the EIN number. Who will sign the SS4 application and provide their SSN.

6. Type of Business. Are you going to operate a retail establishment, a service company, or another type of business? You’ll have to list the business type when you file your papers.

7. List of Officers and Their Addresses: President, Vice President (optional), Secretary, and Treasurer. (Note: One person may assume all of these offices within the corporation.) The good news about Nevada corporations is that officers don’t have to live in Nevada or be U.S. citizens. This provides greater flexibility when forming a corporation.

8. The steps to foreign register (qualify) to do business in your state of operations. That means more than likely the bank account, business license and office location will be the state where you conduct business even if you incorporate in Nevada.

Knowing how to incorporate in Nevada will prevent speed bumps that cause delays. Don’t gamble with your livelihood. If you want to get your business off to a running start, avoid the common filing mistakes so you can focus on building a lucrative, profit-making company.