1. Building Your
Corporate Fortress
Presented by Aaron Young, CEO
Laughlin Associates
1-800-648-0966

2.  Asset Protection
 Tax Reduction
 Veil Protection
 Exit Planning
What You Really Want
 Asset Liberation
 Cash Expansion
 Life and Muscle For Your
Company
 Receiving The Life You’ve
Dreamed Of

3. • The Blueprint
• Build The Fortress
• Living A Pre-Tax Life
• Risk vs. Reward
Your Corporate Fortress

4. “Begin With The
End In Mind”
-Stephen Covey
The Blueprint
Your Roadmap To Success

5. Business Risks
• Copyright Disputes
• Your kids
• Accidents on the job
• Contracts / JVs
• Hiring & Firing
• Discrimination & harassment claims

6. Corporate Structures Provide
• Asset Protection
• Tax Savings
• Protect Against Creditors
• Estate Planning
• Prestige and Credibility

7. Understanding
The Foundation

8. I AM NOT THE
CORPORATION:
THE CORPORATION IS NOT
ME!

9. C-Corporation
• Liability - Only risk your investment
• Controlled - shareholders
• Tax - Taxed at its own rate-ability to carry
losses forward-low audit risk
• Exit - Sell shares of ownership

10. S-Corporation
• Liability - only risk your investment
• Controlled - shareholders (restrictions)
• Tax - Pass through to owners
• Exit - Sell shares of ownership

11. Limited Liability Company
• Liability - Only risk your investment
• Controlled - Members
• Tax - Option to be taxed at the corporate rate
or at the individual rate.
• Exit - Must get approval from all members
before selling interest.

12. Corporations and
LLC’s can provide a
life of deductions

13. A Life of Deductions
Accounting Fees, Advertising, Air Conditioning, Airplanes,
Assistants, Automobiles, Baby Sitting, Bad Debts,
Sponsorship, Boats, Bonuses, Bookkeeping, Alarm
Systems, Business Awards, Business Consultants,
Disability Plans, Decorating, Entertainment, Legal Fees,
General Business Insurance, Vehicles, School, Health
Clubs, Research, Medical Bills, Interest, Travel,
Equipment, Seminars, Technology, Insurance,
Entertainment, Braces, Education, Property, Loans,
Massage, Gardening, Logo’s, Web Design, Professional
Services

14. IRC 74 Achievement Awards
Safety: $1,600 a Year
Longevity: $1,600 a Year
$3,200

15. Hire Your Kids
$6,100 Tax Free
Under 18 Years of Age

16. Education
EDUCATIONAL ASSISTANCE
$5,250 a year which is not included in your
gross income.
SEMINARS
100% tax deductible to the corporation and are
not included as part of your income.

17. Rental Income
•You can rent your vacation home to your
company for up to 14 days a year without
having to report the income.
•*Rent must be reasonable and if you
exceed the 14 day limit it is a taxable event.
Section 280A(g)

18. Medical Plans
Physical Fitness
You can have a physical
fitness facility on your
premises totally paid for by
the corporation.

19. Retirement
Fund your own tax-sheltered pension plan SEP or a
401(k) plan. Not only can you contribute but your
company can also contribute up to $40,000.

20. As Prescribed By Your Dr.
If your doctor says your health is in
jeopardy then you may be able to write
off the remedy you choose to get
healthy.

21. Big Benefits..Comes Big
Responsibility

22. The Cost Of Non-Compliance
•Late Fees / Lawsuits
•Tax Penalties
•Disregarded Company
•Misclassification of Income

23. Income
Classification
Dividends/
Distribution
s
Wages
Taxed From 0-20%Taxed From 10-39.6%

24. $100,000
Wages-
Taxes
$14,000
Dividend-
Taxes
$7500
$50,000$50,000
Income Classification Must Be Documented

25. Failure to Document
45%

26. The Biggest Mistakes
Corporate Owners
Make!

27. The Mix and Mingle
Main
Business
BusinessInvestment
Property

28. SEPARATION
A Business Entity Must Stay
Separate From Its Owner.
ASSET PROTECTION
ABC LLC.

29. I AM NOT THE
CORPORATION:
THE CORPORATION IS NOT
ME!

30. Failure To
Document
Business Decisions

31. Formal documentation
proves that you and the
company are separate.

32. Corporate Formalities
Documentation and procedures
business entities are required by law,
to maintain the liability protection
afforded to corporate owners.

33. Amendment Stock
Changing
Directors Equipment
Officers
Salaries
Annual
Meetings
Fringe
Benefits
Purchase of
Property
Ownership
Opening a
Bank
Account
Notices of
Meetings
Vehicle Use Taking a
Corporate
Loan
Resolutions
Loans to and
From the
Company
S
Corporation
Election
Acceptance
of
Accountant
Qualifying
to do
Business
Issuance of
Dividends
Waiver of
Notices
to Hold
Meetings
Qualified
Retirement
Plans
Capitalizing
the
Corporation
Contracts
with 3rd
Parties
Entering Into
a Loan
Appointment
of Officers
Appointment
of Directors
Amendment
of Articles
Amendment
of By-Laws

34. 256 Formal
Documents

35. “I Have An LLC…I’m
Not Required To Keep
Corporate Records”

36. Red Flag Warnings for LLC’s
• Members with complete control of finances-
policies
• Non-compliance with formalities
• Dominant members receiving loans and
removing unsubstantiated funds from the
company.

37. Failure to Document
45%

38. Are You In
Compliance?

39. • Audit
• Lawsuit
• Divorce
• Partnership Break-up
Greatest Exposure

40. “Nobody’s going to sue me”

41. "Piercing the corporate veil has become the
most litigated issue in corporate law today.
In every case, the plaintiff’s intent is to
acquire the personal and business assets of
the company, and at least half of them win.“
Wake Forest Law Review

42. 57% of lawsuits filed against
businesses making a million or
less

43. Even If You’ve Fallen Behind, You
Can Clean Up Your Corporate
Records.

44. IncorporationTools.us
Take The Corporate Health Checklist

45. Join us September 5, 2013
“Why Nevada”
Complimentary Webinar
(Registration Link in Chat Box)
1-800-648-0966

46. IRS Approved Deduction
Awards
Medical Reimbursement
Vehicle Deduction
Retirement
Education
Hire Your Kids
TOTAL
$3,200
$10,000+
$7,231
$40,000
$5,250
$5,800
$71,481
Deductions = Greater Profit

47. Keys Of The Kingdom

48. • A summary of a board meeting showing significant issues
discussed.
• Minutes identify decisions made at a specific time and location.
• Essential tool in establishing legal separation between owner
and company.
• Courts may request corporate minutes as evidence.
• All 50 states require, by law, that minutes be prepared and
maintained in a written form.
• The memory of the company.
Minutes

49. Resolutions
• A written document that describes an action taken by the
board of directors or managers.
• A resolution is a permission slip from the Board to the
President.

50. Exposed

51. $1,000,000,000
Targeted Toward Audits and Collections
Fox News, Feb. 17, 2012

52. Failure to Document
45%

53. Lawsuits In America
5% OF WORLD’S POPULATION
75% OF WORLD’S LAWYERS
94% OF WORLD’S LAWSUITS

54. U.S Legal System is the World’s Most Costly
“America is known as the land of the free, but it is also the land of
unnecessary lawsuits,” said Lisa A. Rickard, president of the ILR.
“As the U.S. experience has shown, excessive litigation creates
enormous costs for businesses, workers, consumers, and the overall
economy.”

55. How To Acquire Wealth
1. Win the lottery
2. Win a lawsuit
3. Inherit

57. There are over 20
reasons the courts will
hold business owners
personally liable.

58. Common Mistakes
Co-Mingling Funds
a. Keep Personal and Corporate Funds Separate
b. Document All Transactions Between
Stockholders and Officers

59. Common Mistakes
Failure to Sign on Behalf of the Corporation
For: Overhead Lighting Incorporated
By: Aaron Young, President

60. •Failure to issue stock or
membership interests.
Common Mistakes

61. I AM NOT THE
CORPORATION:
THE CORPORATION IS NOT
ME!

62. “If you've failed to keep proper corporate records and if
you are ever sued - you have a 50-94% chance of losing
your personal assets in order to satisfy a judgment.”
Cornell Law Review

63. No Matter Where You Are now
It Is All Fixable

64. The Benefits of The Corporate Veil
Protection Service
• Securing Your Corporate Veil
• Asset Protection
• No Paperwork Hassles
• Answers to Your Paperwork Questions
• Keep Your Company Current
• Keep You Company In Compliance

65. C-Corporation
• Liability - Only risk your investment
• Controlled - shareholders
• Tax - Taxed at its own rate-ability to
carry losses forward-low audit risk
• Exit - Sell shares of ownership

66. Ideal for a
C-Corporation
•Multiple employees
•Angel or venture funds
•Visions of going public
•Stock incentives
•Multiple rounds of funding

67. S-Corporation
• Liability - only risk your investment
• Controlled - shareholders (restrictions)
• Tax - Pass through to owners
• Exit - Sell shares of ownership

68. Ideal for an
S-Corporation?
• Home office
• Few employees
• One owner
• Freelance work
• Zero desire for investor funds

69. Limited Liability
Company
• Liability - Only risk your investment
• Controlled - members
• Tax - Option to be taxed at the corporate
rate or at the individual rate.
• Exit - Must get approval from all members
before selling interest.

70. Ideal for an LLC?
•Management flexibility
•Small Group Of Engaged Owners
•Good choice for real estate
•Flexibility in distribution
•“In kind” investment for membership

71. Common Mistakes
• Failure to Identify as a Corporation
• Not Keeping The Corporation in
Good Standing with the State

72. Common Mistakes
•Under Capitalization
•Not Filing Proper Licensing Documents
•Failure to Document Employee Benefits

73. Common Mistakes
• Failure to Operate Autonomously
• Failure to Keep Adequate Records

74.  Asset Protection
 Tax Reduction
 Veil Protection
 Exit Planning
What You Really Want
 Asset Liberation
 Cash Expansion
 Life and Muscle For Your Company
 Receiving The Life You’ve Dreamed Of