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

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www.Facebook.com/ScottLetourneau
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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.

The finance world has changed, perhaps more dramatically in the last 1-2 years than any time in our modern history.

This has affected the results to be expected in the area of business credit and what results are likely.

The length of time you had to be in business has grown longer. It used to be from day one you couple apply for a business line of credit, then 3-6 months, then 6-9 months and now many times you may need to be in business for 1-2 years. This of course is in direct relation to the amount of credit you are asking for!

For example, if your company was in business for over 2 years, you’d get $50,000.  If you were at one year, you could get $30,000.  They’d do $15,000 or so for startups under 6 months.

But those all have gone back up 2 years solid, and sometimes 3.  Again, if you make it past that magic 2-year mark and you’re still in business, then they’re saying, “Okay, let’s take a look at what you’ve got.”

The banks have also gotten away from a stated income.  I shouldn’t even call it stated income, because it’s not.  It’s a no documentation application.  And now, most of those applications are “And by the way, let me see your last 2 years of taxes on your personal and business.”

The Role of Profitability in Bank Financing!

If You’re Paying Taxes, You’re Making Money.
If You’re Making Money, You can Borrow Money!

That ties into that profitability piece.  You got to make sure your accountant pays taxes.  But if you’re paying taxes, you’re making money.  If you’re making money, you can borrow money.

Banks do not like to hear about hope; “Hey, if this guy would just give me a chance at this deal, it’d work.”  But you’ve got to understand that the banks are in the business of loaning money to profitable businesses so they can expand and make even more money. Your job is to make your business profitable, or at least appear profitable on your financial statements, to the point that a lender’s going to say, “Okay, you have enough extra income to pay me back when I give you this money.”

Want to know how to form a S Corporation?

Before you start a business, be sure to do your homework. Hire a professional to help you through the process, review the advantages and disadvantages of each type of business, and establish business lines of credit so that you can have sufficient capitalization for your venture.

The first step is to take off your do-it-yourself hat. If you want to be successful in business, it’s important to surround yourself with others who can guide you through the process and avoid costly mistakes. That’s why you’ll want to hire a professional to take care of matters that you’re not familiar with. Before you file the paperwork, hire a professional business advisor who can walk you through the process and will be available to help you in the early stages of your business. Ideally, the company you seek does more than just form the S corporation. As you know, 80-95% of business owners fail within 5 years. The key is for that company to provide you resources to help grow your business to the next level!

There are several advantages to forming an S Corporation. Here are just a few. Check with a professional business consultant for a full list of advantages:

You won’t pay corporate taxes. This means that you won’t have to pay the double taxation penalty that corporations must pay. This means huge tax savings for the owner(s) because it passes through your personal income taxes. However, you’re expected to pay yourself a reasonable salary by industry standards. Your salary is taxed at 15.3%, the same amount as self-employment tax. The IRS keeps an eye on businesses that pay unreasonably low salaries in order to avoid taxes, so be realistic when you determine your salary to avoid the IRS red flag.

You’ll have heightened liability protection. While you won’t be protected for everything, for the most part, you personal property is protected when you’re dealing with creditors, liens, and lawsuits. Become familiar with the liability protection that is available (and not available) by forming an LLC taxed as an S corporation vs. just an S corporation.

Taxable gains are reduced. If you should ever decide to sell the business, you may pay less on taxable gains than you would with a corporation.

Once you’ve hired a consultant and have decided to move forward, you’ll have to file Form 2553 with the IRS to get started (keep in mind you may have to file a similar form at the state level also). Here are some of the requirements:

You cannot have more than 100 shareholders. If a husband and wife jointly form an S Corporation, they are considered as one shareholder. Certain trusts, estates, and individuals qualify as shareholders in the S Corporation structure, as long as they are American citizens. This is a problem if you are looking to have investors and you later realize that an investor may not invest into your S corporation as a Corporation, LLC taxed as a partnership or foreigner.

All shareholders agree to the S Corporation structure. Presumably you’ll all be in agreement but if you’re not, you cannot form an S Corporation entity.

You must form your domestic company within the United States. Please check with individual states because laws vary regarding business requirements.

Once you’ve filed the paperwork, be sure to plan ahead and establish business lines of credit. Credit is awarded according to the cash you have on hand, not your need for it. Stop using your personal credit cards and pay down the balances. The more responsible you are personally, the more likely you’ll be able to establish credit for your business.

Starting an S Corporation does not have to be a headache. Consult with a professional so you’ll avoid the costly mistakes that come with inexperience. Then you can focus on taking your business straight to the top of your market.

If you want to form a Limited Liability Company that will be taxed as an S Corporation, you’ll want to know some basic information before you start a business. Many people choose to form their companies as an LLC but with the S Corporation taxation election. Why?

There are two parts involved, taxes and liability advantages. There is a tax advantage in most cases because having an entity taxed as an S corporation allows the owners to save on self-employment taxes (which are 15.3% up to $106,800 of earned income in 2009) on distributions of profits. It is very important to take a reasonable salary when you have either an S corporation or an LLC taxed as an S corporation.

The IRS does not like an owner of an S corporation to take only distributions that are not subject to SE taxes. A reasonable salary is the key. Second, point is that an LLC taxed as an S corporation has an extra layer of liability protection vs. just an S corporation. That is called the “charging order” protection.

These are the two main reasons it may be to your benefit to start a business and form an LLC, yet tax it as an S Corporation. Key point: make sure you file form 2553 federally with the IRS to make the S election in a timely manor (plus some states require a state form to be filed also).

Because the owner of the LLC is self-employed, 15.3% of all earnings up to $106,800 in 2009 are subject to self-employment taxes. For instance, let’s say that you earned $60,000 last year in your LLC. You would pay $9,180 in self-employment tax. That money will go toward your Social Security and Medicaid payments. However, there is a way to earn a lucrative salary without taking a hit on all of the profits.

Let’s say that you formed an LLC taxed as an S Corporation. You earn the same amount of money but pay yourself a salary of $40,000. You’ll pay only $6,120 in self-employment tax. That’s a tax savings of $3,060. S Corporations can elect to pay the remaining $20,000 in earnings as a distribution from the company. As an LLC, you can also elect to split the profits in this manner, as long as you follow IRS guidelines. That’s where the tax savings comes into play.

If you want to form an LLC but want the tax advantages of an S Corporation, you’ll have to get permission from the IRS by filing Form 2553. Timing is crucial, however. This form is due by the 15th day of the third month of the tax year. If you formed your company in May, you’ll have until August 15 to file. Miss that deadline, and you will not be able to take advantage of S Corporation tax savings.

Keep in mind that an LLC taxed as an S corporation may not be beneficial to everyone. For example, in California a licensed professional cannot form an LLC so their best option may be a corporation. Because you have three months to file for S Corporation tax status, make it a priority to seek professional assistance before making the final decision. For many small business owners, however, the ease of management that a Limited Liability Company offers combined with the lower taxes of an S Corporation make this decision an easy one to make.