When you are setting up a Company one of the most important things you can do is determine if you need to incorporate. If you are new in the business world then you should talk to two professional before you make a decision. First talk to your bookkeeper or CPA (Certified Public Accountant) they will be able to take your business plan and determine which type of corporation will give you the best tax advantages, select the wrong one and you could end up paying unnecessary taxes.
Then you need to find legal counsel to help do the paper work for the type of corporation that you have decided on. This paper work includes the all state required forms to register legally and properly. Most legal counsel will also fill out your Employers Identification Number (EIN) with the federal government. It is very important that you use legal counsel because any error in the paper work could delay your being open for business because you cannot ever open a bank account without this paper work.
Here is the important information that you should know about each type corporations and pros and cons for each:
C Corps: This is for a large company that is going to have a lot of shareholders involved in the corporation. C corps are more expensive to start up and require lots of additional legal advice because of the increased regulation generated by both federal and state government.
The main difference with a C Corp versus other corporation is that the profits of the company are taxed at a corporate level, which is substantially lower than the personal tax codes. The biggest disadvantage to a C Corp is that if you distribute the profits to shareholders through dividends, those are also taxed and you are in essence paying taxes twice on the same money.
Sub S Corp: This is a classification for a company that either wants no shareholders or wants no more than 100 shareholders. Taxes are also done differently, they are done on what is called a "pass-though" tax. This means that profits the company makes are not taxed on a corporate level, it is "passed-thorough to the owners of the S Corp. So the profit is equal divided between the officers or shareholders and added to their personal tax return. This is great unless you get to the point where your tax returns are pushing you towards the Alternative Minimum Tax (AMT) bracket; make sure you that you are advised on how this can affect your taxes.
LLC: An LLC (Limited Liability corporations) are a combination of both a C Corp and an S Corp. It has the structure protection of incorporating without the restrictions placed on an S Corp. Many overseas investors find that this type of corporation is the best way to go. The taxes are done on a "pass-through" basis also.
The one thing that all these corporations have in common is you are setting up a separate legal identity for your company, which will protect you and your personal assets from business debts so if your company has financial problems they will not affect your personal finances. No matter which one you choose you should always consult expert help in determining which type of corporation will work best for your needs.
Tuesday, May 4, 2010
Top 10 Gold Producers
The process of gold production with its numerous stages has undergone rapid scientific and technological development since the Klondike Gold Rush in the turn of the nineteenth century. This article offers a brief review of the ten biggest and most influential precious metal processing companies in the world.
With as much as twenty-seven operational mines scattered across the globe, the Barrick Gold corporation, founded in 1983, is arguably the largest producer of gold in the world. Headquartered in Toronto, Canada, the company's chares are traded on the stock exchanges in New York and Toronto under the ticker ABX. Amid heavy gunning from environmentalists over the possible spills of poisonous chemicals in the area of some mines, the executive officials of Barrick managed to top the gold producers' rankings with a total output of 5,525 million ounces at the end of the third quarter of 2009.
As good as the Barrick team is, their major competitors from Newmount Mining corporation are literary in their steps, as they announced a total produce of 4.7 million ounces of gold at the end of Q3 2009. Newmount Mining corporation expects a five or ten percent increase in the output in 2010, mainly as a result of increasing yield from their gold mines in Australia and Indonesia. The company was founded in 1916 and its shares are traded on the NYSE under the ticker NEM.
The number three gold producer on the list is AngloGold Ashanti Ltd which announced a total produce of slightly over three million ounces of gold (for the first nine months of 2009), expecting to reach 4.5 million ounces this year. The company came into being after the merger of AngloGold and the Ashanti Goldfields corporation in 2004. Its shares are currently traded on the stock exchanges in Johannesburg, London, and New York. The corporation is headquartered in South Africa.
The fourth largest gold producer in the world is US-based Freeport-McMoran Copper & Gold Inc (NYSE: FCX), with a total output of slightly over two million ounces of gold end-Q3 2009. Founded in 1912, the company suffered significant losses in 2008, owing, to a great extent, to the stagnant precious metals markets around the world. Freeport-McMoran Copper & Gold Inc operates gold mines in North and South America and Indonesia.
Canada's GoldCorp Inc is the fifth largest gold producer in the world. At the end of September 2009, the miner announced a total output of 1.8 million ounces of gold from their sixteen mines across the globe. The company's shares are traded on the stock exchanges in Toronto and New York.
With a total output of 1.6 million ounces of gold for the first nine months of 2009, GoldCorp's country fellowmen from Kinross Gold corporation have earned the sixth place on the list of world's top gold producers.
Number seven is a gold producer from South Africa which, according to some market analysts, is actually the fifth largest gold producer in the world. The miner from South Africa's Harmony Gold Mining announced 1.45 million ounces of gold at the end of Q3 2009.
The last three of the top ten gold producers in the world are Australia's Newcrest Mining Ltd, South Africa's Gold Fields Inc, and Lihir Gold Ltd which is headquartered in Papua New Guinea.
Disclaimer: This article is provided for educational and informational purposes only and should not be considered a substitute for professional and/or financial advice. The information found in this article is provided "AS IS", and all warranties, express or implied, are disclaimed by the author.
With as much as twenty-seven operational mines scattered across the globe, the Barrick Gold corporation, founded in 1983, is arguably the largest producer of gold in the world. Headquartered in Toronto, Canada, the company's chares are traded on the stock exchanges in New York and Toronto under the ticker ABX. Amid heavy gunning from environmentalists over the possible spills of poisonous chemicals in the area of some mines, the executive officials of Barrick managed to top the gold producers' rankings with a total output of 5,525 million ounces at the end of the third quarter of 2009.
As good as the Barrick team is, their major competitors from Newmount Mining corporation are literary in their steps, as they announced a total produce of 4.7 million ounces of gold at the end of Q3 2009. Newmount Mining corporation expects a five or ten percent increase in the output in 2010, mainly as a result of increasing yield from their gold mines in Australia and Indonesia. The company was founded in 1916 and its shares are traded on the NYSE under the ticker NEM.
The number three gold producer on the list is AngloGold Ashanti Ltd which announced a total produce of slightly over three million ounces of gold (for the first nine months of 2009), expecting to reach 4.5 million ounces this year. The company came into being after the merger of AngloGold and the Ashanti Goldfields corporation in 2004. Its shares are currently traded on the stock exchanges in Johannesburg, London, and New York. The corporation is headquartered in South Africa.
The fourth largest gold producer in the world is US-based Freeport-McMoran Copper & Gold Inc (NYSE: FCX), with a total output of slightly over two million ounces of gold end-Q3 2009. Founded in 1912, the company suffered significant losses in 2008, owing, to a great extent, to the stagnant precious metals markets around the world. Freeport-McMoran Copper & Gold Inc operates gold mines in North and South America and Indonesia.
Canada's GoldCorp Inc is the fifth largest gold producer in the world. At the end of September 2009, the miner announced a total output of 1.8 million ounces of gold from their sixteen mines across the globe. The company's shares are traded on the stock exchanges in Toronto and New York.
With a total output of 1.6 million ounces of gold for the first nine months of 2009, GoldCorp's country fellowmen from Kinross Gold corporation have earned the sixth place on the list of world's top gold producers.
Number seven is a gold producer from South Africa which, according to some market analysts, is actually the fifth largest gold producer in the world. The miner from South Africa's Harmony Gold Mining announced 1.45 million ounces of gold at the end of Q3 2009.
The last three of the top ten gold producers in the world are Australia's Newcrest Mining Ltd, South Africa's Gold Fields Inc, and Lihir Gold Ltd which is headquartered in Papua New Guinea.
Disclaimer: This article is provided for educational and informational purposes only and should not be considered a substitute for professional and/or financial advice. The information found in this article is provided "AS IS", and all warranties, express or implied, are disclaimed by the author.
British Columbia Lottery Corporation (BCLC) - What Are the Best Games to Bet On?
British Columbia Lottery corporation (BCLC) offers many games for residents of the Canadian province to bet on. But with so many games to choose from, which are the best ones? There are two different types of lottery players and the answer depends on which type you are.
The first type of lottery player wants to win as much money as possible and bets on games with the biggest jackpots, no matter what the odds are. For this type of player, the best game that British Columbia Lottery corporation offers to bet on is Lotto 6/49. Lotto 6/49 has huge jackpots and can sometimes even reach $50 million. Of course, that's tax-free because Canada doesn't tax lottery winnings. It is quite difficult to win the jackpot in Lotto 6/49, though, because the odds of winning it are approximately 1-in-14-million.
The second type of lottery player also wants to win as much money as possible, but bets on games with a better probability of winning. For the type of player, the best game that BCLC offers is BC/49. The jackpot in the game is $2 million and the odds of winning it are the same as Lotto 6/49. Smaller jackpot and same odds? Now, why would anybody bet on BC/49? Because a ticket costs half as much as a Lotto 6/49 ticket. That means you could buy twice the number of tickets for the same price, essentially doubling your chances to win. A Lotto 6/49 ticket costs $2 and a BC/49 ticket costs $1.
Of course, British Columbia Lottery corporation also offers many other games, including instant scratch-off games like Banco, Amazing Race, Set For Life, and Vegas Strip. It is best to compare the odds of winning to the jackpot amount prior to purchasing instant games.
The first type of lottery player wants to win as much money as possible and bets on games with the biggest jackpots, no matter what the odds are. For this type of player, the best game that British Columbia Lottery corporation offers to bet on is Lotto 6/49. Lotto 6/49 has huge jackpots and can sometimes even reach $50 million. Of course, that's tax-free because Canada doesn't tax lottery winnings. It is quite difficult to win the jackpot in Lotto 6/49, though, because the odds of winning it are approximately 1-in-14-million.
The second type of lottery player also wants to win as much money as possible, but bets on games with a better probability of winning. For the type of player, the best game that BCLC offers is BC/49. The jackpot in the game is $2 million and the odds of winning it are the same as Lotto 6/49. Smaller jackpot and same odds? Now, why would anybody bet on BC/49? Because a ticket costs half as much as a Lotto 6/49 ticket. That means you could buy twice the number of tickets for the same price, essentially doubling your chances to win. A Lotto 6/49 ticket costs $2 and a BC/49 ticket costs $1.
Of course, British Columbia Lottery corporation also offers many other games, including instant scratch-off games like Banco, Amazing Race, Set For Life, and Vegas Strip. It is best to compare the odds of winning to the jackpot amount prior to purchasing instant games.
LLC v. Corporation - MANAGEMENT STRUCTURE
In addition, a limited liability company can have a very simple single layer of management (known as member-managed) or the management structure can be structured with a central governing body (manager managed).
When it comes to operations, the LLC is not required to meet the same level of formalities and paperwork as a corporation.
The corporation laws generally impose a set management structure for a corporation which requires a Board of Directors as a central body of management. In addition, in most states, there are required meetings and certain governance documents that must be entered into each year.
While it is still recommended that an LLC have some simple governance paperwork to document major business decisions, it is comforting to know that the laws do not require it for the legal entity to qualify as an LLC and get LLC benefits.
In deciding LLC or corporation, the LLC offers the same management structure imposed upon for a standard corporation but also allows for a much simpler one or a more complex one if needed to protect investors or the business.
SUMMARY
Given the simplicity and flexibility of the limited liability company, the LLC was designed to offer all the benefits of a corporation but without the disadvantages. As a result, the number of LLC formations each year greatly surpass incorporations when it comes to small businesses.
However, there are some situations where the corporation may be the better entity choice. If you plan on taking your business public with an initial public offering, you should use a corporation. Also, if your business requires professional company investors such as venture capitalists, the venture capitalists will generally require that your business be a corporation.
As noted above, the decision of LLC or corporation depends on your specific situation and the best person to advise you is a competent attorney after having met with you to discuss your particular circumstances.
When it comes to operations, the LLC is not required to meet the same level of formalities and paperwork as a corporation.
The corporation laws generally impose a set management structure for a corporation which requires a Board of Directors as a central body of management. In addition, in most states, there are required meetings and certain governance documents that must be entered into each year.
While it is still recommended that an LLC have some simple governance paperwork to document major business decisions, it is comforting to know that the laws do not require it for the legal entity to qualify as an LLC and get LLC benefits.
In deciding LLC or corporation, the LLC offers the same management structure imposed upon for a standard corporation but also allows for a much simpler one or a more complex one if needed to protect investors or the business.
SUMMARY
Given the simplicity and flexibility of the limited liability company, the LLC was designed to offer all the benefits of a corporation but without the disadvantages. As a result, the number of LLC formations each year greatly surpass incorporations when it comes to small businesses.
However, there are some situations where the corporation may be the better entity choice. If you plan on taking your business public with an initial public offering, you should use a corporation. Also, if your business requires professional company investors such as venture capitalists, the venture capitalists will generally require that your business be a corporation.
As noted above, the decision of LLC or corporation depends on your specific situation and the best person to advise you is a competent attorney after having met with you to discuss your particular circumstances.
LLC Or Corporation - Which is Best For My Business?
Both the LLC and corporation are legal entities that provide liability protection for their owners. While the corporation has been around longer, the limited liability company was created to offer the same level of protection. However, an LLC is designed specifically to cater toward the small business owner. It offers the same liability protection as a corporation but allows a much more simple operational structure with a lesser number of formalities.
LLC v. corporation - TAX MATTERS
The limited liability company offers more tax choices than a corporation. Owners of an LLC can elect for profits to be taxed pursuant to a pass through structure (single layer of taxation) or pursuant to a C corporation (double taxation) or S corporation structure (single taxation but with many requirements and ongoing compliance requirements).
The corporation only has the choice of C corporation or S corporation taxation. Small business owners many times prefer the LLC pass through taxation because it allows them to avoid double taxation of profits and in many cases be able to take business losses to reduce taxes from other income WITHOUT having to worry about meeting a laundry list of S corporation requirements.
While the S corporation structure is available to both types of entities, it only allows a certain # of owners, all owners must be persons (so no entities) and US or permanent residents of the United States. There are other requirements as well so check with your accountant for the specific details.
As a business evolves, things change and with an S corporation tax status, you always need to be on top of the latest S corporation requirements. The failure to meet a requirement, even if accidental, can result in disastrous tax liability and penalties.
The S corporation can have some tax benefits over the standard pass through when it comes to self employment. In these cases, you have the option of S corporation taxation with either the LLC or corporation.
LLC v. corporation - OWNERSHIP STRUCTURE COMPARISON
An LLC also gives an LLC business much more flexibility when it comes to ownership structure. The LLC laws allow for the company to tailor what each owner gets in terms of voting control and distributions.
The corporation has a set ownership structure. Ownership is defined by a share of stock and each share of stock provides a set right when it comes to voting and profits rights. The LLC can choose this standard structure but does have the flexibility to customize it if needed without having to create multiple classes of ownership.
Accordingly, an LLC is more attractive when it comes to bringing in investment capital or services partners because it offers more options to address specific business situations.
LLC v. corporation - TAX MATTERS
The limited liability company offers more tax choices than a corporation. Owners of an LLC can elect for profits to be taxed pursuant to a pass through structure (single layer of taxation) or pursuant to a C corporation (double taxation) or S corporation structure (single taxation but with many requirements and ongoing compliance requirements).
The corporation only has the choice of C corporation or S corporation taxation. Small business owners many times prefer the LLC pass through taxation because it allows them to avoid double taxation of profits and in many cases be able to take business losses to reduce taxes from other income WITHOUT having to worry about meeting a laundry list of S corporation requirements.
While the S corporation structure is available to both types of entities, it only allows a certain # of owners, all owners must be persons (so no entities) and US or permanent residents of the United States. There are other requirements as well so check with your accountant for the specific details.
As a business evolves, things change and with an S corporation tax status, you always need to be on top of the latest S corporation requirements. The failure to meet a requirement, even if accidental, can result in disastrous tax liability and penalties.
The S corporation can have some tax benefits over the standard pass through when it comes to self employment. In these cases, you have the option of S corporation taxation with either the LLC or corporation.
LLC v. corporation - OWNERSHIP STRUCTURE COMPARISON
An LLC also gives an LLC business much more flexibility when it comes to ownership structure. The LLC laws allow for the company to tailor what each owner gets in terms of voting control and distributions.
The corporation has a set ownership structure. Ownership is defined by a share of stock and each share of stock provides a set right when it comes to voting and profits rights. The LLC can choose this standard structure but does have the flexibility to customize it if needed without having to create multiple classes of ownership.
Accordingly, an LLC is more attractive when it comes to bringing in investment capital or services partners because it offers more options to address specific business situations.
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