Information regarding Consolidated structures is provided in the following subsections:
Consolidated structures, also known as, Multiple Business Structuring, is a structure using one company as a master with multiple subsidiaries that remain as individual companies. The isolation of the companies and/or their assets ensures that one structure’s legal issues do not affect the other Consolidated Structures. This type of entity structuring can also utilize Trusts to hold equipment or real property to further isolate and protect assets.
Using known structure types and innovative techniques to link the structures, constellations from simple to complex can be created to match and support your unique business enterprise.
These types of structures should be arranged very specifically for your needs. Legally reducing tax liability and sheltering the assets requires the experience and knowledge that Nevada Corporate Associates can provide.
You have a delivery service company that uses trucks to deliver products. You can use equipment trusts to hold the trucks and they are leased to your company. In this way any truck getting into an accident is the only asset that can be legally attacked.
You have a number of rental properties. Again in this case, you can place each property into a separate trust thereby isolating each property from the effects created by situations at the other properties.
- You can issue qualified small business stock and potentially qualify for the qualified small business stock benefit under Section 1202 of the Internal Revenue Code and the rollover benefit under Section 1045 of the Internal Revenue Code [For investments in C corporations that are qualified small businesses under Section 1202 of the IRC before the end of 2011, the tax rate after holding the stock for 5 years is Zero--including a complete AMT exemption (subject to a cap (but a substantial one)).]
- You avoid the issuance of Forms K-1 to owners, subjecting them to federal income tax on the corporation's income (regardless of whether that income is distributed to them), and potentially subjecting them to state income taxes in the various states where the corporation operates.
- You avoid having to agree to a cash distribution scheme to cover the taxes of the owners on the entity’s income taxed to them.
- Charitable Deductions - Deduct charitable contributions up to a value of 10% of corporate taxable income.
- Medical, Dental and Drug Expense Reimbursement Plan - Deduct the cost of medical, dental and drug (prescription and non-prescription) expenses not covered by health insurance up to the MERP stipulated limit without the employee having to include the benefit in their income.
- Health Insurance - Deduct all premiums paid on health and dental insurance.
- Disability Insurance - can purchase disability insurance for its executives or other employees and deduct the premium without the cost being taxable to the executive or employee.
- Business Automobile - Can reimburse an executive or employee the mileage rate permitted for the business use of an automobile owned by the employee or can purchase or lease a business automobile and deduct all costs associated with business usage.
- Business Insurance - The premiums for insurance [Policies for the corporation are deductible
- Tangible Property (Section 179) - deduction of up to $100,000 (in the year of purchase) of the cost of tangible personal property to be used in the business. Computers, off-the-shelf computer software, and office furnishings all qualify as Section 179 property.
- Retirement Plans - deduction of contributions to qualified retirement plans.
- Business Entertainment and Meals - deduct up to 50% of the cost of meals consumed during business entertainment or professional development. The cost of meals with employees is 100% deductible.
- Education Expense - deduct education expenses (limited to $5,250) of its employees for them to maintain or improve their skills.
- Dues and Subscriptions - can deduct the cost of dues for business or professional organizations, business-related newspapers and subscriptions.
- Conventions and Continuing Education - deduct the cost of travel, lodging, meals and program fees for employees attending conventions and continuing education.
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