News by SB Informer

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Advice on Not Paying More Income Tax Than Legally Obligated, Offered by Tax Savings Nevada Corporation

SB Informer
Monday, July 10, 2006; 02:23 AM

A Tax Savings Corporation combined with a self-directed pension plan can save a business owner from paying far more income tax than legally obligated to pay.

Jim Raster had a great year last year with an increase in gross profits of $200,000. He has a small business and operates as a sole proprietorship. His federal tax on the increase averaged 35 percent, plus another 10 percent in state income tax. He lost $90,000--almost half--to taxes. With a Tax Savings Nevada Corporation and an effective tax-planning strategy, he could have eliminated most--if not all--of that tax.

Marshall Fox owns a sign painting business, and he and his family like to travel. Last year Marshall scheduled appointments with several sign painting companies in Hawaii to further his professional knowledge by studying the kind of work being done in another market. He took with him several members of his corporation: his wife (vice president), his son (employee), and his mother (director). The corporation paid all travel and living expenses. With a Tax Savings Nevada Corporation, his company was responsible for the trip to Hawaii.

When Robert Herzog’s mother was diagnosed with cancer, he created a Tax Savings Nevada Corporation, which included the benefit that it would pay 100 percent of all medical expenses for everyone in the company. He and his mother were its only employees, and the corporation paid his mother’s medical bills. Since the payments were made with pre-tax dollars, they (1) went 50 percent further and (2) were a business expense that lowered gross profits subject to federal and state tax.

Do you know anyone who might like to know about a Tax Savings Nevada Corporation?

Who can benefit from the Tax Savings Nevada Corporation?
The obvious answer is anyone whose combined business and personal taxes are cutting deeply into income. If you look at the money that is going to the government and think, “I could do so much more with that than they will,” you need a Tax Savings Nevada Corporation.
Specifically, those who should take advantage of owning a Tax Savings Nevada Corporation include:
Business owners, especially those with a sole proprietorship, partnership, or LLC
Professionals in a private or group practice
Executives paying a fourth to as much as half of their income in taxes
Investors with significant assets and/or income from investment
Individuals and families with accumulated wealth through investment or inheritance
Business people owning a corporation in a state other than Nevada
Workers in a high risk occupation operating as independent contractors
Anyone with substantial taxable income from any source

If you would like more information about a Tax Savings Nevada Corporation, please call our office for a free report at 210-690-3700, visit www.jamesmontgomerylaw.com, or send an email to twnc @ aweber.com.