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Corporate Opportunities

Corporate Opportunities

Does the Rule Apply to Real Estate? If you invest in and/or syndicate real estate what are the duties to your investors? You owe them a duty of loyalty. But how far does that go? The issue of corporate opportunities is important. I wrote a whole chapter on it (from...

Checkbook IRA

Checkbook IRA

A recent case has shed light on one of the riskiest retirement plan strategies put forth by promoters. In McNulty v. Commissioner (157 T.C. 10) a U.S. Tax Court brought clarity to the scheme of using self-directed IRAs for personal investments.

Piercing the Corporate Veil – How to Avoid It

Piercing the Corporate Veil – How to Avoid It

50% of piercing the veil court cases nationwide succeed because owners are failing to properly follow corporate formalities. This exposes business owners to personal liability - meaning they can lose their possessions. What is the Corporate Veil? What is the corporate...

When States Raise Their Fees…

When states raise their fees, people vote with their feet. We described Nevada’s new corporate fees in our last issue (a jump from $325 a year to $650.) We also described how you could ‘continue’ your Nevada entity (or any state entity for that matter) into Wyoming, where the annual fee is just $50.

Continuance is an easy process — unless the state of California is involved.

If your current company is a Nevada company qualified in California you may want to file a continuance out of Nevada and into Wyoming. If so, you will need to notify the state of California that your domestic laws have changed (meaning you are a Wyoming, not a Nevada, company).

The only way the state of California will accept the change of your domestic laws is via requalification after the dissolution in California. So you dissolve in California and then come back as a Wyoming entity (no other state requires this step).

The cost for all the California fees and work is $626. The cost of the continuance from Nevada to Wyoming is $995. The total is $1,621. But you are saving $600 a year (the $650 Nevada fee less the $50 Wyoming fee.) That $1,621 pays for itself in 2.7 years.

Some clients are sticking with their Nevada corporations because Nevada is the only state in the Union to provide charging order protection for corporate shares. This is worthwhile asset protection, and is worth the extra cost for some clients.

Others are continuing into Wyoming to save $600 a year. Our role is to inform you of your options. Whether to continue out of Nevada to Wyoming or not is a judgement call on your part.

Enjoy your summer.

Corporate Opportunities

Corporate Opportunities

Does the Rule Apply to Real Estate? If you invest in and/or syndicate real estate what are the duties to your investors? You owe them a duty of loyalty. But how far does that go? The issue of corporate opportunities is important. I wrote a whole chapter on it (from...

Checkbook IRA

Checkbook IRA

A recent case has shed light on one of the riskiest retirement plan strategies put forth by promoters. In McNulty v. Commissioner (157 T.C. 10) a U.S. Tax Court brought clarity to the scheme of using self-directed IRAs for personal investments.