Taxation is a set of rules as in when it should be paid, who pays the tax to whom and how much is the tax to be paid. Taxation is a process or means by which the ruler increases income to settle the required expenses of government, through its law-making body. Defined in another way, it is a method of allocating the expenses of government among those who are privileged to have the benefit of its facilities and must, therefore, bear its load (Keen, 2002).
The business we all five friends are planning to start is clothing apparel, which is named 'Nevada Sports clothing'. It is a partnership business organized as Limited Liability Company under the Corporation according to the law. We will be located in 12/B ABC Shopping Center Nevada which is one of the epic centers of all sports enthusiast community belonging to diverse backgrounds. Store operation timings will Monday - Saturday from 9 in the morning till 8 in the evening. There will be special long timings during special shopping seasons including Christmas. The store will specialize in all kinds of sportswear for men. The local community which is most consist of sports enthusiast is undeserved and our store can exploit this opportunity to enter in to the market with favorable conditions and make good profits.
How you will form your corporation and how you will comply with specific regulations in your state
Every business needs to constantly evaluate the potential impact of the economic environment on the performance of its operations and its capital structure according to the prevailing regulations of the state. However, our corporation will be operated in New Jersey but it will be registered as a Nevada Corporation and consequently it will comply with the Nevada regulations.
A successful business manages its assets consistently while reducing the level of tax burden incurred requires conducting a thorough review of the structure and complies with the regulations. However, complying with Nevada policies and working according to its regulation is very easy and simple. Running a business in Nevada is less costly and tax effective as compared to other states.
The name of a limited liability company incorporated in Nevada, shall contain the words «Limited Liability Company» or one of the abbreviations «LLC», «LLC» (6 Nev. C. § 18-102 (2007)). Title companies can be confirmed by the Certificate of successful state, issued by the Secretary of State of Nevada (Schon, W. et.al, 2008).
Usually states require that at least 3 people should be designated as directors or officers, while in Nevada minimum of one person is required to be a Secretary, President and Treasurer. However, to operate in Nevada, it is clear that no such specific regulation is needed to follow.
Most appropriate capital structure for minimal tax exposure
Our strategy should be to design out capital structure in such a way that our firm faces the minimum tax exposure. A disadvantage to taxation is that it can become extreme in certain ways, discouraging investment or ...