When it comes to protecting your hard earned assets you want every advantage possible. When incorporating in Nevada it is often promised that there is a level of privacy for the owners of a corporation or LLC that will help them in case of a lawsuit. Some individuals looking to form a Nevada corporation or LLC are hoping that if they get sued no one will find out who the owner of the corporation or LLC may be.

Especially if you are a sole proprietorship! The IRS would love for you to continue as a sole proprietorship in your business, because that makes you an easy target! They know that sole proprietorships are most likely to under-report their income and over-report their business expenses. Definitely, low hanging fruit!

The IRS believes there to be a $300 BILLION tax gap ---$300 BILLION in uncollected taxes --- each year! The biggest culprit? Not large corporations, but small business owners.

When you look into getting items and services for your business, the goal is to minimize your personal guarantee and avoid touching your personal credit. A personal guarantee makes you and your partners liable if the loan ever defaults. In bad cases, your personal assets could be sold off to pay for a loan. You don't want to do that.

Let's look into Trade Credit and Business Financing as options for your business.

You're a new business owner and decide you need items and services for your business. You take out a loan and your business is off to a great start. A few months pass by, so you take out another loan or open more lines of credit for necessities. You repeat this process a few times during the year. You're trying to be a good business owner by growing your business but you're making a critical mistake.

A Personal Guarantee is a promise by you and your business partners that you will repay the loan. If your business goes under or you can't send in your payment, this has no bearing on the repayment of the loan to the bank. You and your business personally guaranteed the loan would be prepaid. If you have to sell off your business and your personal assets due to a judgment then so be it.

Business credit is similar to your own personal credit. The key difference is that this is for your business. Smart business people separate their credit histories so problems don't overlap and negatively affect two lines of credit instead of just one if tragedy strikes.

Good business credit gives you the ability to get favorable loans free of high interest rates or personal guarantee requirements.

Whether you are a brand new business, have been operating for a short time, or you have been in business for a while now, establishing and maintaining business credit is a means to keep your business growing and is a natural outgrowth of the reason you chose to incorporate or form the LLC, that is protection of your personal assets including the family home.

Some individuals looking to form a Nevada corporation or LLC are hoping that if they get sued no one will find out who the owner of the corporation or LLC is, thus, preventing them from being the target of frivolous lawsuits. In the context of litigation, the best scenario is presenting a properly structured business model and having the court rule in your favor with the end result being your assets are protected!

Now, if it takes longer for someone to get to first base in your situation to figure out who the owners are, wonderful, that just means the plaintiff will have to spend more money! After all, aren't most lawsuits a simple gain of economics? And if you can make it very expensive for the plaintiff to find your assets the better!

So, what is the challenge?

The challenge is the creation of rock solid asset protection plan that does not rely solely on the illusory promise of privacy through the use of Bearer shares (which don't work) and nominees (which work to a certain degree).

The Easter Bunny has received horrible news just days before he is scheduled to make his egg-hiding rounds this year.

The IRS is cracking down on Sole Proprietors, such as The Easter Bunny, The Tooth Fairy, and Possibly even Santa Claus regarding excessive tax write offs, especially in the mileage claimed for business use.

These characters apparently never set up the right corporate structures to protect themselves and decided to operate as the most simple business form, the sole proprietorship.

There are a multitude of reasons to consider direct selling. Listed below are just 3 of the many you may want to think about to make your dreams a reality. Put a little concentrated effort into a direct sales company and then live the life you always wanted to... on your terms!

1. Time Flexibility
You can set your own hours and even take vacation when you want to.