The seven criteria for choosing an entity formation company are:
1. Look for a company that will ask you questions to determine the best entity for your situation-before they quote you a price! Imagine seeing your doctor for a physical. He walks in the room, says hello and goodbye as he hands you a prescription – and never gives you an exam! You might as well have diagnosed yourself by the “dartboard method”.
2. Look for a company that understands-and will explain to you-multi-state taxation rules. These rules affect the state(s) in which your entity will have to register so you can do business. Beware of companies that tout tax savings in a tax-free state when you live and operate your day-to-day business in another state. States like Nevada do have powerful benefits, but tax savings are not typically one of them unless you live and work in Nevada.
3. Look for a company that fully discusses your situation with you, so you know you’re making the best decision about which entity will maximize your outcome. Your “exam” should involve many in-depth, tailored questions, rather than a following a “cookie-cutter” approach. What cures someone else is not necessarily what will cure you! Remember, if you’re looking for “easy”… if you’re looking for minimal effort – expect proportional results – or worse.
4. Look for a company that knows the subtleties. Ask them why 71% of all C-corporations, if audited, would pay 35% tax on all profits earned, along with hefty penalties and interest that might cripple their businesses. Does the company you’re considering know why?
5. Look for a company that weeds out inaccurate information and researches to find what will work best for you. It’s no accident that successful people recognize and take advantage of golden opportunities that others miss. Look for a company willing to take the time to thoroughly analyze your situation, so you can take advantage of your “golden” opportunity.
6. Look for a company that makes sure all your questions are answered before you form your entity. A disturbing trend in the industry is to “get the money now”‘ and promise answers down the road. If a company won’t answer your questions BEFORE you give them your business, chances are good that they won’t be able to answer them AFTER – no matter how many books, tapes, or seminars they offer.
7. Look for a company with current testimonials. The true measure of a company’s customer service record lies in the success of current and past clients. Ask for current testimonials. Many companies present you with client quotes dating back several years. And check the Better Business Bureau to see if they have a complaint history, assuming they qualify for listing. NCP’s testimonials are written by clients about 30 days AFTER incorporating with us!
Scott Letourneau is the CEO of NCP,Inc. and an authority in helping people form entities,grow their business,and protect the assets of that business. For more info contact: Scott Letourneau at 702-367-7373 or nvinc.com/aboutNCP.htm