Invest. Protect. Preserve.
As you start to invest, or even if you already have multiple turnkey properties, it’s vital to understand how to protect your assets and preserve your wealth.
Learn more in a free consultation with our partner, Nevada Corporate Headquarters, Inc. (NCH). Find out:
- The best entity type and structure for your business
- How to protect your family and personal assets
- How to minimize your exposure to lawsuits
- The best strategies to decrease your tax liability
- How to preserve your hard-earned wealth
We’re Here for You
At Rent to Retirement, it is our priority to find the best investments to meet your goals. However, even with the best investments, the only way to realize long-term success is to establish a solid foundation that reduces your exposure and increases your wealth.
NCH offers over 30 years of experience working with real estate investors and implementing advanced asset protection strategies, tax minimization and estate planning.
- File tax returns knowing you’re structured for maximum benefits
- Unlock your retirement accounts and access checkbook control to increase your investing power
- Gain anonymity utilizing real estate privacy trusts for your investments
- Manage your long-term wealth and enjoy peace of mind with a revocable living trust
Hiring the Right CPA to File Your Taxes When Investing Out of State
Millions of Americans invest and/or work in different states every year. If this happens to be you, we strongly recommend that you hire the right CPA to provide strategic planning and file your taxes to minimize your tax liability. Several challenges await multi-state taxpayers in their tax filings:
Taxpayers often move to a different state during the tax year, creating a potential need to file tax returns in both states since their investments are located in the original state of residence. For example, if you live in Arizona but work in California then you will only have to pay taxes in the state of Arizona on your California earnings. Why? Because several states have “reciprocity agreements” allowing the taxpayer to file in only one state. This is intended to provide simplicity to taxpayers.
Taxpayers with real estate or corporate investments located in another state often incur capital gains taxes that must be paid to the state of residence for this investment. Additionally, any preferential tax treatment such as a tax-free exchange may require the taxpayer to track their deferred state capital gain tax liability in future years until the sale of the exchanged asset.
We know this can be confusing, but don’t be concerned – get help. NCH's CPA’s are here to help you with your specific situation to possibly save you money in taxes, so you can use these extra funds to grow your business or expand your investment portfolio.
Building Business Credit
Build Credit Before Your Company Needs It
Start-ups and first time entrepreneurs might not understand the value of building business credit, or how to build business credit. A Business credit line is important because it enables you to get funding for expanding and developing your business. Throughout the life of a company, the need to establish business credit will most likely arise. You should try to build credit before your company needs it.
A good business credit score will also benefit a business that needs an emergency business loan. If your equipment breaks or if you need the cash quickly to complete a project, having a good business credit score will help you get approved for a small business loan. Generally, if you want to get a loan with a good rate, you must have a fairly decent credit score.
How to improve your business credit score:
- Keep a positive payment history
One of the main things you can do to establish good business credit is to pay your business loans and credit card bills on time. Having a good history of consistent and timely repayment on your existing debt helps you build trust with future creditors. While late payments by a few days likely won’t impact your score negatively, it’s a good habit to get into making all payments before the due date. Plus, it will also help you avoid late fees and growing interest fees.
- Pay off your debts as fast as possible
Paying off your debt fast is key to building good business credit. High debt levels mean your business has less breathing room if revenues and profits decrease. One way to keep your outstanding balances low is to make multiple payments per month, instead of waiting until you’ve reached the end of the month.
- Ask to increase the credit available
Getting your credit limit increased could also help your business’ credit score. Asking your creditor for an increase on your credit limit could give your score a quick boost. The lower the percentage of your credit you use, the better your score will be.
- Ask vendors to report business credit history
Make sure at least some of your suppliers report your transactions to the business credit bureaus. Vendors have no legal obligation to report this information to business credit bureaus. So, if it’s a smaller supplier, they may not report the information at all. If you want to establish credit, it’s up to you to make sure the supplier you work with reports your transaction information to the business credit bureaus.
The Importance of Estate Planning
Estate Planning - What is it and why do you need one?
Many individuals assume they don’t need an estate plan. But if you own assets, then you do. Estate plans are not just about preserving your wealth for your beneficiaries. They also help to plan end of life decisions as well as hospice and long-term care.
Estate Planning, put simply, is the process of arranging one’s affairs for when they pass away. This can usually be accomplished through the use of living trusts and wills. To most, the concept of estate planning sounds relatively straightforward. You probably feel that you should dictate how and to whom your assets are distributed after you pass away, with little concern for any other issues that may arise.
The reality of estate planning, however, is not always so simple. There are a number of factors to consider when preparing an estate plan, including, but by no means limited to, the following:
- The value and types of your assets
- Your current and future income
- Your distribution desires
- Your mental and physical condition
- Other objectives, such as leaving a legacy, providing for a charity, taking care of your children or grandchildren, or proving for someone with special needs
The most common estate planning instruments are wills and living trusts. There is a common misconception about the need to have a living trust. Many assume that they only need a simple will to best take care of their affairs when they pass away, and that only the wealthy need to have a trust. While this may be true in some instances, it often also leads to unexpected results.
For more information on estate planning for business owners and individuals, contact our partners at NCH for your free consultation!