A Certified Public Accountant will file your corporation as a sub-chapter “S” filing with the tax department. As a sub-chapter “S” company there are no taxes inside the corporation therefore “no double taxation”. You and your investors will receive a K-1 from the accounting department for your proportional share at the end of each tax year to be filed on your personal 1040 tax return.
Please keep in mind that some offshore investments are tax deferred and will not be declared until a future date when the investment is cashed out or exercised.You are not limited by the amount of the investment funds only by the authorized availability of the shares of your corporation and a maximum of 35 shareholders per corporation. Now let’s do the math on 100 million shares capitalization.
Assume you have 20% of the outstanding stock and your investors hold 80% and remembering that you and they have a “restrictive shareholders agreement” so that you cannot be removed as an officer or from the board of directors. You are left with 80 million shares to be issued at .01 (one) cent and at $50,000 per investor you can have sixteen investors. That’s eight hundred thousand dollars invested and let’s assume that the offshore investment earned $600,000 in our example. This means that of the 20% outstanding stock your share is $120,000 dollars and your investors 80% outstanding stock their share is $480,000.
Another Example;
Let’s assume you want to raise 1 million in investment dollars but first you may want to issue to yourself 20 million shares at the fully paid up price of $100 dollars…not much. You would first have to do a “board meeting” as yourself a director and then issue to yourself a 20 million share certificate. Therefore, 20 million shares is 20% of the 100 million that is authorized by your corporation to give away.
You’ve heard the old saying, “image is everything” well it’s true. Making your Nevada
Corporation look and feel like a successful and big business is all up to you but know this…we
are here to help. As one of our “Wall Street” clients you will learn every week how to calculate your
earnings, how to present your corporation to others, how to understand penny and stock options and much,
much more.
But you must have a Nevada Corporation to do this. It cannot be done any other way.
A Nevada corporation is required to list only the name and address of its president, secretary, treasurer
and director(s) with the Secretary of the State of Nevada. All of these positions may be held by one
person. In fact, Nevada law does not require stockholders to register with the state. Therefore, you can
own 20% of the shares in your Nevada Corporation while maintaining control of all corporate management
decisions and investments through our exclusive “Shareholder Restrictive Agreement” and designate John Ewing's team of experts as your CFO Officer and SEC control board and yourself as the President of a
multi-million dollar stock option corporation.
Let’s say your first investor has $100,000 dollars in their IRA and wishes to invest with your corporation in order to get out of the banking system in the United States. So you are willing to offer a stock option of .01 (one) cent per share on the hopes that if the investments in Grand Cayman, London, Swiss or Singapore trading accounts doubles within a one or two year period. Therefore, you will give your investor 1,000,000 million shares at a bargain price of .01 (one) cent per share. If the offshore investment doubles the share value doubles to .02 (two) cents per share meaning your investor has double on their investment return to $200,000. This is the way it works on the American Stock Exchange ASE in Chicago and on the Wall Street Stock Exchange in New York.
Many times when companies are perceived to have value in a public environment they will go up many times their original amount of stock issue…and many private companies before going public started out issuing “penny stocks”…they all started somewhere.
Can you imagine if your corporate stock went up to $1.50 (one dollar fifty cents) a share or $10.00 (ten) dollars. How big can you dream…well, how big is big. Many have done it. Could you list your corporation with the ASE on their ‘pink slips” or trading board or perhaps Wall Street itself? The possibilities are endless.
But what does that mean for you? Your 20,000,000 million shares if valued at .50 (fifty) cents would be worth $10,000,000 million.
Under the law, a Nevada company is an “artificial person,” completely separate from the people who own
and operate it. This is different from an individual or sole proprietorship where the owner bears the
full and complete financial responsibility for his or her actions.
Because it is an independent entity, a Nevada company's debts and taxes are separate from those of its
owners.
Therefore, Nevada provides an individual in business, whether salaried or on commission, with the
greatest personal liability protection and the greatest investment making money opportunity ever
developed.
Nevada doesn't share confidential
information about its corporations with the IRS. In 1992 and again in 2001, the IRS formally requested
such an exchange program and the Nevada Governor turned the IRS down flat!
A single member Nevada Corporation, can now have ownership and full charging order protection. A judge
cannot take away your assets, during a frivolous lawsuit.
Your corporation can maximize profits by taking advantage of the tax and financial laws and Nevada offers the best laws in asset protection and investment banking to the entrepreneurial Investment Banker.
Through the use of penny stock investing, private placement memorandum’s, offshore high yield investments and a professional team of experts to handle all stock issues, directors and officers minutes, accounting, tax filings and general correspondence with the investment brokers you can almost be assured positive results.
In addition, John's Team of experts will provide you with quarterly financial statements for you and your investors, escrow accounts, make available a custom Private Placement Memorandum known as a PPM for raising capital legally and a Restrictive Shareholders Agreement protecting you and your investors from each other. Your team of “experts” will consist of a SEC attorney, Certified Public Accountant, Securities Investments advisor, and a whole team of professional advisors.
A Wall Street Corporation is designed for the purposes of raising capital for investment needs through the sale of penny stock. This corporation may be capitalized up to one billion shares. As officer and CEO, you are entitled to earn 10% to 20% for your duties per year plus your share of ownership in stock. These corporations are not publically traded on any exchange but are allowed to have up to 35 shareholders.
Now again remember that this is only sixteen investors and you are allowed 35…so what do you do now? RAISE THE PRICE OF YOUR STOCK!
Let’s see what happens. You want to issue twenty million in shares but your limited to 35 shareholders including yourself and the new value of your shares have rocketed up to .05 (five) cents per share value. So at this value you could accommodate a total of 20 shareholders for a combined investment of $1,000,000 million at $50,000 each. If the investment goes up on our example by 85% per annum rate of return (ROI) your share of the profits at 20% is now $170,000 per year plus stock dividend!!!
This is how the rich get richer.
In addition, as your stock value climbs…so will the value of your outstanding shares. At $.35 your 4,000,000 million shares are now worth $1,400,000…not bad for a year’s work as an Investment Banker. But imagine one day, selling out your holdings at $1.50 (one dollar fifty cents) a share, your 4,000,000 million shares would be worth $6,000,000 and if held for one year or more the taxable capital gains rate would be only 15% tax…not bad! Or you may want to use a tax shelter to reduce that amount owing to the IRS.
Under the law Nevada allows you to now issue up to 75,000,000 million shares and more if you are willing to pay the fee. It is not uncommon for “big thinkers” to request from the Secretary of the State of Nevada 1 billion total authorized shares. These shares can then be issued to you for $.001 cent per share making you an instant stockholder owning of millions of shares and controlling a very powerful company.
First, it needs to be understood in business that there is always the customary “introduction fee” which ranges from 2% to 5% for the investment opportunity. We recommend that you get paid 5% so in the case of your investor above, your fee is $5,000 payable to you as an officer of the corporation. We recommend that you allow the investment to go in at 100% and take your intro fee later when you have made a profit. This allows the investment to grow at a faster rate and makes for a cleaner reporting to your investors.