You may have noticed that our company is registered in Delaware.
There is a very good reason for this and recently our decision to protect our assets, even though there was no specific threat at the time, has proved a wise one.
It’s the truck you don’t see coming that runs you over!
As you grow your online business, you’ll come under attack from places you didn’t even know existed – FACT! So you need to be set up in such a way that everything you work so hard for remains bullet proof, and more importantly, yours!
One of the sites is a fantastic seller. It’s a great product and we’ve received more testimonials from satisfied customers than any other system we sell. However, we do make claims that that seem rather outrageous:
This HAS TO BE The Most PROLIFIC, PROFITABLE, Yet SIMPLE Futures Trading System Ever … (I made over $2,000 in less than One hour trading futures…)
They are true claims!
We publish the system on behalf of Chris Kobewka and the guy is great. He makes good money from trading his own system and has written a course that anyone can follow to replicate his success in futures – customers love it.
In the U.S. you have something called the Commodity Futures Trading Commission, this is the truck I talked about earlier!
Now, we are all aware of ‘The World of Scum’ as I call it; those filthy little parasites who spoil life for the rest of us. Well the scum have been busy scamming people with bogus commodity and futures trading sites with unachievable and unsubstantiated claims, and the commission, quite rightly, decided to have a crack down.
Unfortunately, we’d been tarred with the same brush. We recently received a subpoena to attend a hearing and substantiate our ‘wild promotions’. Obviously, we can but only because, as a matter of course, we keep everything. We had to supply a plethora of information – e-mails, support stuff, communications between Chris and ourselves, trading copies…
Now, if we hadn’t been so diligent in keeping all our communications we may have not been able to produce all of the substantiating evidence and ended up in all sorts of trouble. We could have received a hefty fine and been blacklisted, not because we were selling a bogus product, but just because we hadn’t kept the supporting evidence!
Under normal circumstances we would have deleted e-mails and support documents which would have caused us no end of headaches.
The problem is that many of the people who work for these organisations are wage slaves – they are doing a job they mostly don’t like and care nothing about.
If we hadn’t been able to supply the supporting evidence for our claims that would probably have been a violation – a simple technicality could have closed the site. The CFTC also has the power to levy large fines. Should they have dished one out without the protection of the Delaware company they may well have come after me personally. (In my case they’d have had trouble as I’m not a US citizen). Nevertheless, I was protected by the buffer of the LLC. (Limited Liability Company).
The company is set up to ensure there is a line of defense between you and your personal assets. Put everything in the company name and they can’t touch you.
I highly recommend you consider protecting your assets through a company.
A close friend opened a gym a few years ago, against my recommendations! I told him to go into property and instead of sitting on a handsome portfolio now he’s just had to close the business.
I had told him to set up through a company as it becomes the entity which is responsible for the business. You are not personally liable should anything go wrong, it’s the company. He decided against it due to the advice from his accountant who didn’t like the extra paperwork and additional complexities involved.
It’s nothing compared to the extra paperwork and additional complexities involved in sorting out the creditors who are now after his personal assets!
Not only have I set up the Delaware company to run the organisation, I traveled out to Panama and Incorporated there also: Internet Unlimited Corp. The Panama company now owns all assets such as domains etc. It was a big step traveling out there and an experience I wouldn’t repeat lightly, but if it prevents the truck from running me down then you’ve ‘gotta do what you gotta do’.
I’d read all about Panama before traveling out there and it sounded fantastic, all the beauty of the Caribbean with the infrastructure of the USA – I even considered buying property as it was cheap (I soon learned why!). So I dragged the family and my pregnant wife on a twenty four hour journey to a place we’d been recommended at the far end of the canal.
We arrived at night and I started to get a little uncomfortable when we pulled into the petrol station and there was a guy sitting there with a pump action shot gun. I then noticed all the houses in the area were covered in razor wire!
We arrived at the hotel which was beautiful, right in the middle of the rain forest on the edge of a lake but venture outside the gates and you’d immediately sense the danger. We later found out we were at the wrong end of the canal and that the local town of Colon was full of the descendants of pirates. Imagine a white European family wandering around streets where it appeared that almost everyone would rob you and worse, as soon as look at you. Desperate people with nothing to lose!
I thought I’d take the kids to the beach on one occasion and got lost so stopped at a local police station. They wouldn’t let us go alone and gave us a police escort! They took us to a rustic bar with its own cock fighting ring on the Pacific side run by the most eccentric girl I’ve met in a long time. Turns out that a couple of years earlier assassins had shot her and her husband in an attempt to take over the bar!
During my travels I used to go to dangerous places for the buzz but nothing prepared me for Panama – people running around with AK47s (big machine guns!), corrupt police, maniac drivers…
But actually if you get over to Panama city it is safe and many fortune 500 companies do business there… and we did have a fantastic time once we got out of Colon.
There we are with the Indians in the middle of the rain forest – the things we do eh!
BUT as I said, you gotta do what you gotta do to achieve total personal and financial freedom, and I can sleep at night because I know grey people can’t take away what I’ve worked so hard for … and whilst I was enjoying fresh fish with plantain served in a banana leaf you guessed it! Bing, bing bong… the business was ticking over nicely.
It’s a shame I’ve had to go to all this trouble because all I’ve ever done is the best I could possible ever do – but as you become more successful you’ll discover there’s a whole world out there just waiting to cut you down!
Why a Delaware company?
Well for us it was the best option. Businesses AROUND THE WORLD (including 58% of the Fortune 500) Incorporate in Delaware…
In October of 1992, Delaware law recognized Limited Liability Companies (LLC’s). The LLC combines the best aspects of the Corporation and the Limited Partnership without many restrictions.
Delaware is well known for the Delaware General Corporation Law which is said to be the friendliest in America. Also the dedicated court called The Chancery Court, which adjudicates on matters of Delaware Company Law, is fast and efficient. The trials are by appointed judges (not a jury), who issue written and well thought-out decisions. All this means is that you know the rules from a stable legal system when you incorporate in Delaware.
Delaware is the home to 50% of corporations listed on the New York Stock Exchange.
Incorporate in Delaware from anywhere in the world for PRIVACY
- Your name and address are not publicly disclosed.
- Your home and business addresses are not made public.
- Ownership is not public information.
- There is no publicly searchable database for company management or ownership.
Incorporate in Delaware from anywhere in the world for TAX SAVINGS
- A Delaware LLC is tax-free, except for a $200 annual franchise tax.
- There is no sales tax in Delaware.
- There is no state corporate income tax for Delaware companies that do not operate within the state.
- There are no Delaware capital shares or stock transfer taxes.
- There is no state inheritance tax on stock held by non-residents of Delaware.
Incorporate in Delaware from anywhere in the world for PROTECTION FROM LAWSUITS
- A Delaware director shield law protects you from personal liability in connection with the actions of your company.
- There is a long-established body of laws that protects Delaware companies and lets them focus on doing business, rather than fighting expensive lawsuits.
- Unlike any other state, Delaware has a separate court system, the Court of Chancery, to resolve legal disputes inexpensively.
- If you are ever sued in Delaware, your registered agent serves as a buffer, accepting service of process on behalf of the company.
- Because company ownership and management is not public information, it is difficult for creditors and litigators to “pierce the corporate veil”.
Incorporate in Delaware from anywhere in the world for CONVENIENCE
- A Delaware corporation or LLC can be headquartered anywhere in the world.
- One individual can be the stockholder, director and hold all the executive offices.
- You need not have a Delaware office address aside from that of your registered agent.
- Company records do not need to be kept in Delaware.
- Stock can be transferred instantly and privately, without filing a public notice.
- You do not have to be a US citizen to form a regular Delaware “C” corporation or LLC.
- You can form your company without coming to Delaware using an online incorporator.
- There is no minimum investment to form a Delaware corporation or LLC.
Incorporate in Delaware from anywhere in the world for FLEXIBILITY
- Different kinds of businesses can be transacted under one corporate roof.
- Your company can own real estate or personal property anywhere in the world.
- Unlike most other states, corporations can easily be converted into LLCs and vice versa.
But, your own personal circumstances may mean the option to incorporate in your home state might be the better suited.
Things to Keep in Mind If Delaware Is Not Your Home State
- EXTRA TAX RETURNS TO FILE – Even if you do not conduct business in Delaware, each year you will still need to file both a franchise tax return and a “zero” income tax return with the State of Delaware. The annual franchise fee for Delaware is $60 for corporations or $200 for LLC’s. The time that you take to file these extra returns also has a value that only you can determine.
- YOU STILL NEED TO REGISTER AND PAY TAXES WITH YOUR HOME STATE – Let’s say you incorporate in Delaware. If Delaware is not your home state where you conduct business, you will also have to register with your home state and submit an annual income tax return to the state. You will be doing all the paperwork twice for two different states. Also, if you ever go out of business, you will have to file final income tax returns in both Delaware and your home state, and you will have to file two sets of paperwork to shut down your business in both states.
‘Great spirits have always found violent opposition from mediocrities. The latter cannot understand it when man does not thoughtlessly submit to hereditary prejudices, but honestly and courageously uses his intelligence.’ Albert Einstein.
No matter whether you choose Delaware or your home state, when you incorporate or form your LLC, you will help protect your family’s personal assets (such as your home, your car and your bank account) from any lawsuits or liabilities that your company may incur!
Jaques at Incplan is great and can advise you on setting up your asset protection.