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WHAT IS THE BEST ENTITY?

By Garrett Sutton, Esq. and Kathy Spitzer, Esq.

It’s probably the most frequently-asked question that we hear from entrepreneurs, both experienced and those just getting their feet wet. So, we’ve put together this report to help you make that selection. Hopefully this information will allow you to make a more informed decision about the entity that is right for your business. But don’t despair if you don’t see your business fitting into any of the models set out below – we also offer a service where your business structure is reviewed and you are provided with our opinion as to the best entity in your situation. And, because in many cases, the company structure you choose will be based on how it will pay taxes, our top-level review will have your business plan run past a CPA, to make sure all of your options are reviewed. We can also review your existing business structure and offer our suggestions for maximizing your strategy. A review of entities follows:

Regular, or “C” Corporations (“C Corp”)

A C Corp is a great entity for a beginning business that:

• wants to retain earnings, rather than disbursing them each year;

• may have large start-up costs and expects to have losses in the first few years;

• wants to look for outside investors, and may even plan on going public;

• wants to have multiple classes of stock and sell stock to anyone, anywhere in the world;

• wants the option of providing its owners with tax-free benefits, as well as its employees;

• may have very high-income owners.

The “C” in C Corp is an IRS code section as is the “S” in S Corporations. C Corps came of age in England in the 1500’s, as the Crown’s answer to Fate and Mother Nature. At that time, most business ventures were operated as general partnerships. As general partnerships, these business ventures also featured unlimited liability of each partner, one of the key reasons general partnerships should be avoided. So, that new three-masted schooner you and your partners purchased, outfitted and sent on a trade mission to China for silk and pepper had better not sink, or you and your partners would be personally answering to the bank that loaned your business the money to buy the ship, the creditors that provided you with trade goods to outfit your ship, or to your families, if it came from your own pocket.

Unfortunately, both Fate and Mother Nature intervened frequently, and the losses were staggering. In an attempt to keep business moving, the English government invented the Corporation, which existed as its own entity, distinct and separate from each shareholder who had invested into it. The partners (now called shareholders) were liable only for the money they invested. Creditors now had only the Corporation to sue, and not the shareholders – so if the Corporation had no assets (or it did, but they were resting at the bottom of the ocean) those creditors were out of luck. (And thus the insurance industry was born, but that’s a different story.)

Because C Corps exist as their own entity, a C Corp will file its own tax return. As we explained earlier, a C Corp’s earnings will be taxed at a relatively low rate on the first $50,000 in taxable income. But you must be aware that forming one or more C Corps and putting a portion of your money into each company, with the idea that each C Corp will fit into the lower, 15% tax bracket won’t work. If you wind up owning more than 50% of one or more of those companies you have formed to disburse your wealth, the IRS will tag all of those companies as being part of a control group, and ramp their taxation rates back up towards a 38% rate. Control group status only applies to C Corps though, so be careful to plan a proper mix of entities into your wealth-planning structure.

A C Corp has the widest range of deductions and expenses allowed by the IRS, especially in the area of employee fringe benefits. A C Corp can set up medical reimbursement and other employee benefits, and deduct the costs of running these programs, including all premiums paid. The employees, including you as the owner/shareholder, will also not pay taxes on the value of those benefits. This is not the case in a flow-through entity, such as an S Corp, LLC or LP. In each of those cases the entity may write off the costs of the benefits, but any employee/shareholder who owns more than 2% of the entity will pay taxes on the value of their benefits received. So, if having the maximum deductions and all of the employee fringe benefits on a tax-free basis is important to you, a C Corp may be your entity choice.

C corporations are great for a business that sells products, has a storefront and employees, and may or may not have a warehouse where it keeps its inventory. C Corps don’t work well businesses that want to hold appreciating assets, such as real estate, because of the tax treatment on the sale of these assets.

But the most often-cited disadvantage of using a C Corp is the “double-taxation” issue. Double-taxation happens when a C Corp has a profit left over at the end of the year and wants to distribute it to the shareholders, as a dividend. The C Corp has already paid taxes on that profit, but once it distributes the profit to its shareholders, those shareholders will have to declare the dividends they receive as income on their personal tax returns, and pay taxes again, at their own personal rates.

There are many things you can do to avoid the double-taxation scenario. Structure the C Corp so that there are no profits left over — use all of the write-offs and deductions allowed by the IRS to reduce the C Corp’s net income. Offer great benefit plans! Pay higher salaries to yourself and the other owner/employees than you would if you were using a flow-through entity such as an S Corp. Yes, you will have to pay payroll taxes and personal income taxes on those monies, but you would pay personal taxes on dividends paid to you anyway. And it may be that in the big picture, the savings on one side outweigh the additional taxes paid on the other side.

The decision as to what entity is best for you really does, in so many cases, hinge on taxes, and that is why, with any corporate-related decision, you are wise to seek the advice and assistance of a good CPA.

Some quick things to note on C Corps:

• They can have an unlimited amount of shareholders, from anywhere in the world.

• For Nevada and Wyoming corporations, officers and directors can reside anywhere in the world;

• They can have several different classes of shares.

• They are the most widely recognized business entity in the world, and are the premier entity for going public.

In Nevada and Wyoming, nominee, or stand-in, officers and directors can be utilized and bearer shares can be issued, adding extra levels of privacy.

Sub-Chapter “S” Corporations (“S Corp”)

An S Corp is a great entity for a beginning business that:

• will provide a service;

• does not have significant start-up costs;

• will not need to make major equipment purchases before beginning operations;

• will make a sizable amount of money without a great deal of effort and expense; and

• expected growth of no more than 75 shareholders, who will all be people who living in the United States or who file a U.S. Resident tax return.

An S-Corp is structurally the same as a C corporation (i.e., it has officers, directors and shareholders), but with one key difference. An S Corp files an election with the IRS, called a Form 2553, that provides it with a flow-through tax structure as found in entities such as partnerships and limited liability companies. That means, the company’s income (and corresponding expenses, write-offs and deductions) will flow through to its shareholders, and be split among them according to each shareholder’s ownership percentage. The S Corp’s taxes will actually be paid by its shareholders, at their individual tax rates, and in proportion to their individual ownership percentages.

From a taxation standpoint, an S Corp is a great fit for a company that offers a service, because in many cases the revenues can be split and paid to the shareholders in two categories: salary and passive earnings. A flow-through tax structure means that the profits and corresponding losses, deductions and expenses are divided up among the shareholders, in proportion to their ownership percentages, and reported on each shareholder’s personal income tax return. Therefore, if your income from an S Corp is split into two streams, salary and passive, each stream will be taxed differently. Your salary stream will be subject to both income tax and payroll taxes such as medicare and social security. However, the passive income stream will be subject only to income tax. So, by taking a reasonable salary from the S Corp your tax bracket would be lower than if you were take your entire share of the earnings as salary, and the remaining share would flow through to you as passive income, and would also be taxed at this lower rate.

An S Corp is also a great entity for businesses with low start-up costs, that do not have to purchase a significant amount of assets to begin operations. For example, buying a working laundromat would be an excellent choice for an S Corp. You are purchasing a turnkey business – it’s already operating, and you aren’t going to be laying out significant cash to get it up and running. So, you will have a pretty good income stream immediately, and that income stream can best be disbursed to you and your partners, if any, through the S Corp structure. Two other great matches for an S Corp are network-marketing and Internet-only businesses. In each case, the business is likely to have no storefront, low operating costs, and probably doesn’t maintain a warehouse. Most network marketing and Internet-only businesses drop-ship from their suppliers directly to the end consumer when they are delivering products at all. Again, as these can be high-income, low cost operations, they work great in the S Corp structure.

Here’s another reason we suggest S Corps for many service-oriented businesses — To avoid being characterized as a Personal Service Corporation, or “PSC” by the IRS. PSCs are C corporations that are classified by the IRS as providing a service, such as consulting, to the general public. Now, as you may know, the United States government, in an effort to boost the economy and keep business working, assesses C corporations with a pretty low initial rate – 15% on earnings up to $50,000. That’s quite a bit lower than you would pay personally, if you were receiving that same $50,000 as salary. And, that 15% rate is also lower than you would pay if your business was an S Corp. So, to head off the anticipated revenue drain, the IRS closed that loophole by designating C corporations that provide services to be PSCs. The additional tax rate for PSC earnings can be a flat 35% or the regular C Corporate plus 15% of the corporation’s undistributed personal holding company income. That maybe higher than you would pay through your S Corp, if you took a reasonable salary and the rest as passive income. And, it’s enough, in many cases, to make the difference between going S Corp and C Corp.

A downside to S Corps is the limitation on who can be a shareholder, and what kind of shares it can issue. There can be no more than 75 shareholders in total, and no-one may take their shares in anything other than their personal names (or in their living trust). So, forget transferring your S Corp shares into an irrevocable trust, limited partnership or children’s trust. And, you can’t have any non-U.S. resident shareholders, either. Everyone who holds shares in an S Corp must file a U.S. resident tax return. And, you can only have one class of shares, which can be confining, especially if your plans include taking your company public or looking for outside investors. If you breach any of these requirements the IRS will strip your company of its S Corp status, and automatically turn it into a C Corporation, which may have a negative tax consequence.

Another downside is asset treatment. Both C and S Corps are not great vehicles if your business will hold appreciating assets, such as land, buildings, stocks, bonds, etc. The tax on them upon sale or upon distribution will be much greater if held in a corporation than if held in a limited liability company or a limited partnership. This is further explained in the book How to Use Limited Liability Companies & Limited Partnerships, written by Garrett Sutton and available at www.successdna.com.

The steps to create a C or S corporation are the same. Articles of Incorporation are prepared and filed, Bylaws are prepared, directors are elected by the shareholders, officers are elected by the directors, and shares are issued to the shareholders. This may sound difficult but we will be there to guide you through it all.

The S Corp Declaration, that Form 2553 we mentioned above, should be filed within 75 days of the incorporation date, so don’t delay if this is how you see your company proceeding. If you don’t file within that 75 day period, the IRS can deny you S Corp status for a full year, meaning that your first year of operations will be conducted at C Corporation tax rates.

The shareholders, directors and officers of the company must remember to follow corporate formalities. They must treat the corporation as a separate and independent legal entity, which includes holding regularly scheduled meetings, conducting banking through a separate corporate bank account, filing a separate corporate tax return, signing all documents related to the business in their official capacity and filing corporate papers with the state on a timely basis. If these steps are not followed, a business creditor may be allowed to “pierce the corporate veil” and seek personal liability against the officers, directors and shareholders. Adhering to corporate formalities is not at all difficult or particularly time consuming. In fact, if you have our affiliate handle the corporate filings and preparation of annual minutes and direct your accountant to prepare the corporate tax return, you should spend no extra time at it with only a very slight increase in cost. The point is that if you spend the extra money to form a corporation in order to gain limited liability it makes sense to spend the extra, and minimal, time and money to insure that protection.

Limited Liability Companies (“LLCs”)

An LLC is a great entity for a beginning business that:

• wants to invest in assets that will appreciate over time;

• is intended to be an estate-planning vehicle to transfer wealth to the next generation;

• wants its owners to hold their interests in the names of other entities or trusts;

• wants to be able to sell ownership interests all over the world;

• wants to provide its owners with flow-through taxation;

• wants to divide up the profits and losses in ratios other than strict ownership percentages;

• wants to protect its assets from creditors;

LLCs are one of our favorite entities to use. They provide both the limited liability protection found with corporations, as well as the flow-through taxation of a partnership. They allow you to divide up profit and loss allocations among the owners in varying ways — and not based strictly on ownership percentages, as is required in C and S Corps. Ownership may be held by individuals, corporations or trusts, and there are no restrictions on where owners live. Annual Meetings are not required but are strongly recommended, both as a good method of communication between the Managers and the Members, as well as establishing that the LLC is a distinct, stand-alone entity. That last point is important, as when corporate formalities are not followed creditors may attempt to pierce the veil of protection of LLCs as well as corporations.

In an LLC, the owners are called “members” and instead of stock, they receive “membership interests” based on the value of assets or services contributed by each member. LLCs can either be governed collectively, by all of its members, or by one or more Managers, who are voted in by the Members and who carry out the day to day functions and business of the LLC. Managers can also be members, or they can have no ownership rights in the LLC at all. Manager may be individuals or entities. An LLC governed by a Manager or Managers is, not surprisingly, known as a “Manager-managed” LLC, while a collectively-governed LLC is called a “Member-managed” LLC. The rules by which the LLC is governed are set out in its Operating Agreement, which is signed by all of the owners.

One of our favorite ways to use LLCs is in connection with real estate investing. Properties held in an LLC are easy to transfer, and incur less tax on a subsequent sale than would be assessed if that same property was held in a C or S Corp. LLCs work well for family asset based entities, where the goal is to increase the family wealth, plan for the future, and maximize tax savings. You can put other things into an LLC, such as day-trading accounts, stock and bonds, insurance policies and annuities.

One of the greatest things about using an LLC is the asset protection aspect, especially in Wyoming and Nevada. Under Wyoming and Nevada law, any creditor who attempts to collect a judgment against someone holding their assets in an LLC is barred by law from seizing the LLC’s assets. That creditor must use a procedure called a “charging order” to recover any monies they are owed. Under a charging order, a creditor receives the right to collect distributions from the LLC when (and if) profits are distributed, but that creditor does not receive the right to vote, or have any impact or control over the daily operations of the LLC. That makes you a much smaller target for litigation-minded individuals.

Limited Partnerships (“LPs”)

Like LLCs, LPs are a great entity for most of the same reasons. They are particularly excellent for use as an estate planning vehicle, because properly structured, they allow parents to transfer wealth to their children tax-free, while maintaining complete control over the assets and the day-to-day operations of the LP. This control continues even after majority ownership has passed, on paper, to your children.

This is because an LP has two types of partners: (1) a general partner who is actively and personally responsible for managing the partnership and (2) limited partners who are passive owners, with no management rights. The general partner can be an individual or another entity, and has broad powers to obligate the LP and manage its daily operations. However, unlike any of the other entities we have discussed, a general partner remains personally liable for the debts incurred by the LP. So, for protection purposes we tend to recommend that you use a C Corp, S Corp or an LLC to serve as the general partner, thus insulating you personally from liability.

A limited partner is ‘limited’ to ownership of his or her limited partnership interests, and has absolutely no control over how the entity operates. Limited partners receive passive profit distributions from the LP. The distributions are taxed at each limited partner’s individual personal income tax rate.

LPs can be a great way for parents to transfer their assets to their children. Using an aggressive gifting strategy, parents can pass along ownership of assets to their children and provide their children with an income stream that will be taxed at their children’s individual tax rate. How to employ a gifting strategy is discussed in detail in Garrett Sutton’s book, How to Use Limited Liability Companies & Limited Partnerships, available through www.successdna.com.

LPs can be an excellent choice for a family with children who may not be mature or capable enough of making good financial decisions. Because limited partners cannot interfere in the daily LP operations, even though they may have majority ownership of the LP assets, the children cannot remove or sell assets from the LP. Even though the general partner may have as little as 2% of the LP interests, it still retains complete control over the LP’s operations. This can be a great way to save your kids from themselves.

Another good reason to use LPs in an estate planning situation has to do with the law. Because LPs have been around much longer than LLCs, the law around how they operate is much more settled. It is very difficult for limited partners to wrest control from the general partner, no matter how high their ownership percentage. Generally speaking, for a general partner to be removed from control takes a finding of fraud or serious misdoings by the general partner.

An LP is governed by a formal Limited Partnership Agreement. Because an LP provides a great deal of flexibility, the written limited partnership agreement can be drafted to tailor the business and family planning requirements of any situation. There are very few statutory requirements that cannot be changed or eliminated through a well drafted limited partnership agreement.

The same great asset protection and charging order procedure we outlined in the LLC section also applies to LPs. If you are sued personally and you own LP interests, a creditor cannot reach into the LP and seize its assets. However, if the LP is sued directly, its assets could be subject to seizure and sale. If you are intending to use an LP to own and operate rental real estate, then make sure you put a comprehensive insurance policy in place to protect you and the LP’s assets from potential claimants.

We hope this overview has been helpful. For further information, or to arrange a consultation with one of our attorneys, please call 1-877-297-5399.

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Taxation: Nevada and Wyoming

A common misperception is that by forming an entity in Nevada or Wyoming you won’t have to pay any income tax on the entity’s profits, no matter where you are located.

First of all, business entities pay federal income tax, regardless of where they are. Secondly, they pay state taxes generated in a state where business is conducted.

However, depending on the type of business, Nevada or Wyoming is an excellent place to form your entity. Both states have minimal tax obligations and reporting requirements, great flexibility in company operations and excellent privacy protection. For example, if you operate a company that provides consumer goods and merchandise, forming your entity and warehousing your products in Nevada can reduce or eliminate state tax obligations.

How much you can reduce or eliminate depends on the type of entity you use and where you live. For example, if you have a flow-through Nevada entity such as an S corporation or an LLC and you live in New York, your profit distributions will have to be reported on your income tax return and will be subject to New York taxes. Operate that same entity as a C corporation however, and it would not pay state income tax on its profits. But, anything being distributed to you either by way of salary or dividend would be subject to New York taxes.

In many cases, from a strictly tax-oriented point of view, you won’t save money by forming a Nevada or Wyoming entity, because you will be required to register that Nevada or Wyoming entity in your state of operation and its earnings will then fall under that state’s taxation laws. Use the “substantial nexus” (or physical presence) constitutional test to determine whether or not your entity will be required to pay state sales, income or other taxes.

“Substantial nexus” is defined as meeting any one of the following criteria, and entities failing this test are generally not required to pay state income taxes:

• Owning or leasing property in the state

• Having an employee in the state (that includes you)

• Engaging an independent contractor within a state to solicit sales in that state

If you meet any of these criteria, then your Nevada or Wyoming entity will be required to register to do business in that other state, and its earnings will be subject to that state’s income tax laws and regulations. However, United States Public Law 86-272 prohibits states from taxing businesses where activity in that state is limited to soliciting sales of tangible personal property, provided that all orders are sent to a separate state for approval and all goods are shipped into the state via common carrier. So, for example, if you have an Internet website selling goods all over the United States and shipped from Nevada, your entity may beat the substantial nexus test. Be careful though – you will be considered an employee (thus failing the test) if your involvement in the entity is not passive (i.e., you do nothing but let the checks come in). And, even though you may beat the substantial nexus test, it applies only to state income taxes, and does not apply to sales/use taxes or any other state taxes.

If your entity fails the substantial nexus test, you have two options. You can either form a Nevada or Wyoming entity and register it to do business in another state, or you can form your entity directly in the state where it will be considered doing business. There are some great benefits to forming an entity in Nevada, as follows:

Privacy. Nevada and Wyoming do not provide shareholder information to the IRS. Nevada also allows the issuance of “bearer” shares, allowing for maximum anonymity and privacy. In addition, nominee officers and directors can be provided to further enhance privacy. Nevada law is very protective of the corporate veil and will rarely breach it and attack the owners personally where companies are in good standing and have maintained minimal corporate formalities, such as the preparation of annual minutes.

Flexibility. Directors, officers, shareholders, managers, members, general and limited partners do not have to live in or hold meetings in Nevada or Wyoming. Foreign nationals may own and operate Nevada or Wyoming corporations from outside the United States (with the exception of S corporations). Telephone meetings for directors and shareholders are permitted. One person may hold all director and officer positions, and directors and officers do not have to be stockholders. Corporate bylaws can be made or expediently changed by Directors. These and other favorable features of Nevada and Wyoming corporate law provide for great corporate flexibility and ease of maintenance.

Favorable Capitalization. Nevada allows you to issue shares for cash or services provided to your entity. Nevada also allows you to issue shares for services yet to be provided, unlike many other states. A Nevada company may purchase, sell, hold or transfer shares of its own stock, another benefit not available in all states.

Low Annual Maintenance Costs. Nevada and Wyoming have minimal reporting and annual maintenance fees. The Secretary of State requires that a $125 List of Officers and Directors be filed once per year along with a $100 business license fee, for an annual fee of $225. Wyoming’s annual fee is $50. As such both states are excellent low cost locations for asset protection

Things You Cannot Do With A Business Entity

There some things that you cannot do with business entities, and which are illegal in most states. The three major illegal uses for business entities are as follows:

1. Fraudulent Conveyance. A fraudulent conveyance is a transfer of assets made intentionally, or found to be intentional, in an attempt to avoid creditors, spouses or judgments. If you have already been served with court documents, or anticipate that you may be sued, or may be the subject of divorce proceedings, you cannot transfer your personal assets into a business entity to avoid having them seized.

For example, you hold a duplex in your own name and a tenant is injured when the roof collapses. The tenant retains an attorney and you receive a letter notifying you that the tenant is claiming damages against you for his injuries. You had been meaning to transfer title of the duplex to your LLC, and decide that now would be a good time. Unfortunately, the matter does not settle and when it goes to trial, the tenant’s attorney makes a claim that you fraudulently conveyed the duplex into the LLC to protect it from a valid claim. In addition to finding you at fault for the tenant’s injuries, the Court also rules that by transferring the duplex into the name of the LLC after you had been notified of the tenant’s claim, you have committed a fraudulent conveyance. The Court rules that the duplex must be transferred back into your name, and the tenant allowed to attach their judgment against it. The Court also fines you for your attempt to avoid the judgment by conducting the transfer in the first place.

2. Medicare Fraud. Medicare fraud occurs when individuals transfer assets into the name of a business entity in order to reduce their personal income or conceal their assets to pass income and net worth tests for Medicare eligibility.

For example, your parents are retired, and living on a small, fixed pension. They also hold several real estate properties, which have a combined value of $1.5 million. Your father’s health is failing, however, and your mother is anticipating that his medical expenses are about to increase dramatically. Although your parents live on a fixed pension and qualify for Medicare on that basis, by adding in the value of their real estate holdings, they become ineligible. Your mother is wondering how she will keep up your father’s medical expenses on their pension, and is anticipating having to sell at least one of the properties to make sure there is enough money to cover them. You feel that if your parents formed a Limited Partnership with a corporate general partner, and transferred all of their real estate holdings into the Limited Partnership, the assets would no longer be in their name. Without having the assets in their name, they could then report their pension income on their Medicare application and qualify for benefits. This type of transaction is considered fraudulent and is prohibited.

Medicare fraud is a federal offense, which can result in severe monetary penalties.

Please bear in mind however, that there is a difference between Medicare fraud and proper estate planning. Estate planning is a strategy to minimize the tax burden on your estate, and to ensure that you are able to transfer a maximum amount of wealth to your heirs with a minimum tax payment to the federal and state governments. The best way to avoid a possible claim of Medicare fraud is to make sure that estate planning begins early, and while everyone is in good health.

3. Money Laundering. Money laundering happens when the proceeds of crime are funneled through a business entity in order to create the appearance of legitimate income. For example, a drug ring forms an LLC to purchase real estate properties. The members use a regular corporation as the Manager of the LLC, and use the proceeds from sales of drugs to purchase their membership interests in the LLC. The LLC then takes the money received from its members and purchases luxury real estate on Martha’s Vineyard.

This is money laundering, which is a criminal offense at both state and federal levels. Parties convicted of money laundering can face jail, monetary penalties and the seizure and sale of assets bought with the proceeds of crime.

Garrett Sutton
http://www.articlesbase.com/corporate-articles/what-is-the-best-entity-90039.html

If you live in Florida and wish to own a Florida credit card, then there are several companies out there that can give you excellent credit cards with the best rates. Technically, there is no such thing as a Florida credit card that is made exclusively for people in Florida. But assuming that we are talking about credit cards that are available in Florida, let us look at some of the popular cards that are available in Florida.

American Express Credit Cards

When it comes to credit cards, can anyone beat Amex? American express has a horde of credit cards for all kinds of people, businesses and services. There are certain popular types of cards like the Amex card for small businesses which have its own range of benefits and incentives. There are specialized cards like travelers cards, cashback cards, fuel cards etc as well. The business platinum card with an unlimited spending is one of the most popular Florida credit cards. It also has no annual fees or charges. The APR on it is 0% for the first 12 months. With each purchase of yours using the cards, you can earn points. The points have no expiry and can be redeemed for great offers from the best names in travel, Shopping etc. All in all, an American Express Florida credit card is a great way to shop.

Chase Bank Florida Credit Cards

Chase bank also has its own range of different credit cards. It includes multi purpose credit cards, specialized credit cards, general cards etc. The flexible rewards card is the most popular one in chase credit cards. It has no annual fees and charges a 0% APR for the first year. For every dollar that you spend with the card, you get one point. The points can be redeemed later on for great offers in travel, cinemas etc. You also get 1000 bonus points after your first purchase. If you are a frequent buyer on amazon.com, then chase Florida credit cards has a great card in the Amazon business card. You can get the best discounts on things that you buy off amazon.com using this card. It also has a separate category of entertainment cards which are great for anyone looking at steal deals in movie tickets etc.

Citibank Florida Credit Cards

There is a reason why Citibank has always been the leader in credit card and banking services. Some of the services that Citibank offers on its cards are unmatched. You cannot beat Citibank when it comes to credit cards. The citigold advantage world MasterCard is one of the best Florida credit cards that you can ever get. It has a 0$ liability service. That means that you have nothing to worry about even if your card falls into wrong hands. It is the best card for a frequent flier with some of the best frequent miles give out programs. However, this card has a $50 annual fee and an APR of 15.49%. But yet, it is worth the charges.

The Citibank driver’s edge Florida credit card is also very popular amongst the vehicle owners in Florida. It has an introductory 0% rate for the first year. Any purchase that you make using the card on lease or purchase of a vehicle will offer a 5% rebate. Even after the first introductory year, the card only has a variable rate of 11.49%.

These are some of the best Florida credit cards that you can get. There are many other cards that you will get, but none will offer you services as good as these cards do. So, happy card shopping in Florida!

anonymous
http://www.articlesbase.com/destinations-articles/getting-a-florida-credit-card-89918.html

Salsbury Industries 1030 Mailbox Bank About Salsbury Industries Established in 1936, Salsbury Industries is the industry leader in manufacturing and distributing quality mailboxes, lockers and signage. Salsbury sells the same products at full retail price at mailboxes.com. Their organization prides itself in providing quality products and exceptional service. Mailboxes include cluster box units, 4B+ and 4C standard and custom horizontal mailboxes, vertical mailboxes, aluminum and brass mailboxes, free-standing mail centers, parcel lockers, courier boxes, drop boxes, letter boxes and a full line of residential mailboxes. Lockers include standard lockers, extra wide lockers, vented lockers, open access lockers, designer lockers, solid oak executive lockers, modular lockers, plastic lockers, storage lockers and storage cabinets. Signage includes large commercial signage, signature series plaques, cast aluminum plaques, custom plaques, directories, and numbers / letters. learn more about the Salsbury Industries OUR SKU is 1030 Salsbury Industries 1030 Mailbox Bank is also sometimes referenced as:

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Citibank operated by Citigroup is well-esteemed throughout the world for its multitude of personal and banking services for the customers. Citibank’s credit cards are favorite with many as it offers a package of quality services, low charges, handsome rewards and a lot of other facilities.

One of the most preferred Citi card is the Citi Diamond Preferred Rewards card. It is a credit card that thanks you for using it, showering you with excellent rewards.

If you have a good credit history, Citi Diamond Preferred Rewards Card issued by Citibank is your perfect option for taking advantage of the rewards program offered. The card is structured simply and you can achieve rewards for spending money on almost all the everyday necessities.

Excellent Reward Points

The impressive rewards program of Citi Diamond Preferred Rewards Card offers you great “thank you” points and much more. To find it out, go through the details below:

§ Through this card, you will be able to earn points for all kinds of rewards including dining, home, sports, travel, electronics, it is, in fact, a never-ending list.

§ Your very first purchase earns you 6000 bonus points which is redeemable for a $50 gift card

§ The first year spending is greatly rewarding which earns you 5 thank-you points for every dollar spent at gas station, supermarket or drugstore. Beyond the first year, your purchases will earn you 1 thank you point per dollar.

§ You can also redeem points for various items or services such as AT&T phone cards, an APR point decrease for the Citi Diamond Preferred Rewards Card account and

rebate credits on your account.

Key Features

Before coming to any sort of conclusion, verify whether the essential features of Citi Diamond Preferred Rewards Card suit your plans. The vital aspects of the card are:

§ Firstly, above anything else you would need very good credit for approval of the card

§ The card offers an extremely competitive and reasonable interest rate for purchases and balance transfers

§ You will be able to save a lot with a 0% balance transfer rate for the first twelve months. Now if you have higher interest credit cards with balances, just transfer them to your new Citi Diamond card.

§ You need to pay no annual fee for this card

Additional Facilities

The platinum card ensures you a hassle free shopping and spending with the security arrangements that include:

§ The option of attaching your photograph and your signature right on the front of your card.

§ With this card, you are well protected against any unauthorized charges made to your account by the 0% liability protection feature of the card.

§ You are also covered by upto $1000000 in travel accident insurance, car rental discounts, auto rental insurance, and various emergency and travel assistance services.

One of the special facilities of Diamond Preferred card is the Citibank Price Protection Program apart from the purchase-protection formulas. Owing to this program, if you make a purchase and find out later on that the store is offering the same item for a lower price within 60 days of your date of purchase, Citibank will refund you upto $250 per item.

Richard Gilliland
http://www.articlesbase.com/credit-articles/enjoy-rewards-citi-diamond-preferred-rewards-card-136801.html

Citibank is a trusted name in the world-banking scenario and Citibank credit cards are accepted everywhere. Supposing your business requires you to travel frequently, the CitiBusiness PremierPass Card can be a rewarding experience for you because the card awards you valuable points for making use of it. You can make use of all the points you gather for a free air travel.

Reward Program

A great rewarding card, CitiBusiness PremierPass Card adds points to your kitty for making purchases with the card. The purchases you can make are literally anything and everything – right from everyday use products and items to business equipments and even air-tickets.

After making the first purchase, you can earn 15000 bonus ‘Thank-You’ points that are redeemable for a $150 gift certificate. The points you gather thereafter can be redeemed for airline tickets.

The card gets you three points for spending one dollar on business equipment with the card. For spending a dollar on all the other purchases, you will earn one point. You earn points on purchase of air-tickets as well and you earn one point for every mile you fly on a trip.

The bonus points you earn are redeemable for free air-tickets, gift certificates, hotel stays, merchandise, etc. What is most remarkable is that the reward-points can be utilized for buying tickets on any airline and there are no blackout dates even. As such, you can travel wherever and whenever you like.

Card Features

The reward-program of the CitiBusiness PremierPass Card is certainly its highlight, however, the card has some extraordinary features:

· There is no annual fee for the first year and then you move on to paying $75 annually. (The initial bonus, which is redeemable for a $150 gift certificate pays for the first two years beyond your first ‘no-annual’ fee year).

· A reasonable annual percentage rate (APR) is applicable for all purchases. For balance transfers, you have an interest-free introductory period (9 months) and thereafter the APR becomes the same.

The personal business assistant feature enables you to look for information, find out referrals for administrative and marketing purposes and make travel arrangements. This is similar to having an employee on payroll round the clock at no extra charges.

Other Benefits

The benefits provided by the CitiBusiness PremierPass Card include travel insurance, online banking options, damage protection and theft protection. When you log into your account, you can avail of advices provided in the business articles.

The card enables you to save money on your travel and also supports you to buy the equipment for beginning a profitable business.

Like the other credit cards, the CitiBusiness PremierPass Card also offers different account related services, free and unlimited companion travel, identity theft solutions and many travel and emergency assistant services.

The card also provides auto rental insurance, emergency card and cash replacement, discounts on products and services at the participating retailers and merchants and financial statements at the end of the year or quarterly.

Other benefits include legal as well as medical referral services, lost and stolen card reporting, personal business assistant, free companion travel without any limit and many more benefits.

Richard Gilliland
http://www.articlesbase.com/credit-articles/for-business-travels-trust-citibusiness-premierpass-card-136829.html

Using a highly defined and comprehensive process developed over years of solution implementations, Carlo Scevola & Partners systematically builds the e-business model through strategic approaches, mapping methodologies and specific tools to guide the organization through the transition to an improved business.

Dedicated to the analysis, research and long-run implementation of strategic real estate solutions, our Strategic business consulting team helps clients reduce risk, maximize returns and make quality decisions.

The organization focuses on the core of any business, providing necessary strategic insights that help organizations clearly define their company’s strategic vision, leverage their unique differentiators, and ultimately implement a roadmap to their success.

Carlo Scevola & Partners is a premier Commodity Trading Advisor who enhances your capital with low risk, Advanced Technical Analysis and Money Management Techniques.

Our Corporate team provides Comprehensive Financial and Risk Management solutions. Our knowledge-driven sectoral approach provides industry specific financial solutions catering to your business. We provide you with easy access to multiple technology-enabled channels, to help you manage your business better. Our partnerships with reputed technology service providers enable us to offer you customized, multi-product solutions. We believe we can make a significant difference to our clients’ business by improving their financial and operational efficiency.

Companies today have realized that Offshore Sourcing is an effective tool in improving business efficiencies. Organizations can gain competitive edge by effectively outsourcing business functions.

Carlo Scevola & Partners provides strategic Offshore Advisory Services. Our approach overcomes organizational challenges, identifies high potential areas and enhances the migration through business process and project management. Carlo Scevola & Partners provide solutions in Offshore Banking Licensing, Yacht Registration, Company Creation and many more.

With consistent focus on customer satisfaction, we deliver independent Financial Consulting Services to our customer spread across the world.

The strategic services and solutions are a resultant of extensive research and analysis, which enables Carlo Scevola & Partners to foresee and enable the growth.

Carlo Scevola & Partners along with its Certified Global Associates can provide wide range of services for business development, cost reduction and brand building for your success.

We would satisfy our clients by continual improvement of our resources and would provide best solution.

By:-

Mr. Carlo Scevola

Chairman ,President, CEO

Carlo Scevola & Partners

Carloscevola
http://www.articlesbase.com/business-opportunities-articles/carlo-scevola-partnersbrilliant-innovative-and-global-solutions-provider-99941.html

Until midnight of Saturday 30th October 2004 the regulation of mortgage sales was done so on a voluntary basis which was overseen by the Mortgage Code Compliance Board (MCCB) – Lenders and brokers alike had pledged to adhere to this code which has now closed down.

This changed on the 31st October 2004 when a large section of the mortgage market came under statutory regulation. At this time, control of regulation was passed on to the Financial Services Authority (FSA).

The role of the FSA is to oversee the regulation of the financial services industry in the UK. The FSA is not a government department but is in fact a limited company – It has statutory powers, given to it under the Banking Act 1987. The FSAs board which makes its policy decisions is appointed by the treasury.

All mortgage brokers must be authorised by the FSA, either directly or through an authorised network/packager. You can check whether a firm is authorised via the register on fsa.gov.uk

What Are The Main Statutory Objectives Of The Financial Services Authority In Relation To Mortgages?

The FSA has been given a number of statutory objectives including:
# Maintaining confidence in the UK mortgage system.
# Promoting public understanding of the mortgage system.
# Securing an appropriate level of protection for consumers.
# Reducing the scope for financial crime.

What Are The Main Features Of Mortgage Regulation Under The Financial Services Authority?

Regulation as laid down by the FSA is statutory and any person or any organisation found breaking the rules could be subject to discipline – fines, bans and ultimately, jail time.

# The rules cover mortgage advice and sales, advertising and promotions.
# All mortgage advisors, whether you are a broker or a lender, must be authorised and regulated by the FSA.
# Any mortgage advisors must be suitably trained and professionally qualified.

In respect to mortgage sales and promotions, the FSA is very keen to bring about clarity to the mortgage market – in order that borrowers can effectively shop around and make informed decisions. Any mortgage advice, whether this is provided by a lender or a mortgage broker, must be accompanied with an Initial Disclosure document (IDD), and a Key Facts Illustration (KFI) before the borrower actually applies for the mortgage. These two documents have been standardised across the board in order to compare between different mortgage products.

What Is An IDD?

The initial disclosure document (IDD) must be provided to the borrower at the initial meeting, or if contact is via telephone, the key points must be summarised and explained with written documentation provided in writing within five working days. The IDD must cover the following points:

# Whether advice is offered or simply product information only.
# Whether the lender or broker has access to the whole of the mortgage market, or a limited panel – or even just one.
# Details of fees to be charged.
# Details of the complaints procedure – including a postal address for which to send in writing.

What Is A KFI?

A mortgage lender or broker must supply an accurate Key Facts illustration before a mortgage application is made. The KFI is a standardised document and must contain the following points:

# The total cost of the loan to be repaid.
# Any associated fees including the amount of commission that the broker earns subject to mortgage completion.
# The full details of the mortgage product including the interest rate, monthly payments and all fees.
# The risk of rate changes and the impact of payments.

DoesThe FSA Regulate All Types Of Mortgage Contract?

Buy-to-Let and commercial mortgages are not currently regulated by the FSA under the new regime.

What You Should Do In The Event Of A complaint?

Firstly you must try and iron out the complaint with the mortgage broker or lender. If a satisfactory response is not made then the complaint may be taken further to the Financial Ombudsman Service.

James Copper
http://www.articlesbase.com/non-fiction-articles/everything-you-need-to-know-about-mortgage-regulation-113675.html

What happens when banks are afraid or reluctant to give out money?
Sunday, February 01, 2009
By dodjit.com

The last couple of months have been hectic, as the indices have bounced back and forth trying to find a market bottom. When analyzing the broader market via the S&P 500, one can see that despite deteriorating economic data, the markets continue to hold above their prior lows. The U.S continues to lead other economies, sending them into a downward spiral due to their lack of consumption. Economies that rely on the U.S’s consumption have found their selves battling against an economic collapse, while other economies that have profited in the past from financial services have dropped, due to the extensive losses. For example the U.K economy has flourished in the past on services, particularly banking, insurance and business services, which accounted by far for the largest proportion of their GDP.

Official are doing their utmost to try to control the situation, but analysts are still weary as to whether current efforts are going to be enough. To date, officials in the U.S have a remaining $350 billion out of the original $700 billion bail-out plan, to try to put the economy back on track. Despite the large amount of remaining funds, analysts are now believing are now estimating that it is not going to be enough to heal the economy. Headlines showed this weekend that U.S officials are already preparing their next steps to help the battered economy. Over the weekend regulators in the U.S closed an additional 3 banks bringing the number of banks closed since the beginning of this economic crisis, to a horrifying number of 31 banks.

Monetary easing is one method to revive a battered economy, but what happens when the money that is being pumped into the financial system isn’t released to the public?
Government officials have been quick to draw their guns, flooding the financial markets with excessive cash, while engaging in fiscal stimulus plans. Some banks have been nationalized while others have liquidated their assets stocking up on cash.  Even though funds have been added to the markets, banks are reluctant to ease on their credit conditions, forcing consumption lower. Even though Libor rates are decreasing, they are not falling fast enough to ease the economic situation. Lack of consumption has put pressure on growth and inflation, forcing them both into a downward spiral.

From what was meant to be a simple monetary easing process, has turned out to be a much more complicated situation as consumer consumption continues to fall effecting inflation and growth, forcing the Fed to use all its tools and option. They have already reduced their fund rate to a 0-0.25% level, and it is still not helping the economy.
When taking a glance at the following chart one can see that a similar situation is occurring in all the economies. Central banks are battling decreasing inflation trying to prevent deflation.

Deflation- A general decline in prices, often caused by a reduction in the supply of money or credit. The same situation happened in Japan and led to a lost decade.

Despite all the negativity in the markets, as mentioned above the indices are still holding above their prior highs. One must take into consideration that interest rate changes do not have an immediate effect on the economy and normally take 6-9 months to leak through the financial system.

When analyzing the bond market one can see that money has been leaking out of long term bonds, but stocks have failed to rally. In addition volatility has decreased from its prior highs now trading around 45 points. Gold has continued to show strength, while currencies are showing mixed directions.

Facts
•    The Dollar continues to hold high due to market skepticism
•    Gold is pacing forward
•    Deflation concerns are now arising
•    Currency pairs are showing mixed signals
•    Economic growth continues to drop

Conclusion
•    Previous monetary action should start to affect the economy.
•    The major indices must hold above their prior lows to maintain relative strength
•    A drop below their prior lows will lead to mass selling.
•    If inflation continues to drop, Gold could continue to increase
•    Market uncertainty along with decreasing inflation could lead to consolidation on all the markets, including currency pairs.

S&P500 Daily Chart

Gold Daily Chart

*
Both charts are courtesy of stockcharts.com

Information reliability and liability: The contents are solely aimed for the use of “Experienced” investors in the financial markets who are fully aware of the inherent risk of trading. dodjit does not accept any liability for any loss or damage whatsoever that may directly or indirectly result from any advice, opinion, information, representation or omission, whether negligent or otherwise, contained in our trading recommendations. I make no warranties or representations in relation to the Information (including, without limitation, in relation to its accuracy or otherwise) and do not warrant or represent that the services will be error free or uninterrupted. Copyright: This article is subject to and protected by the international copyright laws. Use of the information brought in this article is subject to making fair use only in accordance with these laws. It is not permitted to copy, change, distribute, or make commercial use of the information except with permission of the holders of the copyright. Risk Disclosure: The risk of losses involved in the transaction or speculations in the financial markets can be considerable. Please think carefully whether such trading suits you, taking into consideration all the relevant circumstances as well as your personal resources. Speculate only with funds that you can afford to lose.

Dodjit Author
http://www.articlesbase.com/international-business-articles/what-happens-when-banks-are-afraid-or-reluctant-to-give-out-money-749749.html

Checking Accounts are operated mainly for making purchases and for paying bills. Savings accounts on the other hand, help you save money for your future. Though many banks lure you with attractive offers and freebies, you have to be careful not to choose the account merely on the basis of the benefits offered on the joining of the account.

There are different types of checking accounts. Basic, Free, Express, Lifeline, Interest-bearing, etc., are some of them. Different accounts offer different services. Therefore it is very essential that you first understand the service you require through your checking account and then opt for the right one.

For example, a Basic checking account does not offer any interest for your deposit. In other words, by choosing this account, you will avail only the services such as the payment of the bills and some debit card transactions. You may issue a certain number of checks and if you cross the limit, you will be charged an extra fee per check. Also some banks insist that you keep a minimum balance in order to supplant the monthly maintenance charges.

A Free checking account offers the service almost free of cost. There are no criteria such as the minimum balance or the restricted issues of checks. There are no service charges regardless of the number and nature of your transactions. However, you will be charged a reasonable penalty if your check gets bounced.

Interest-bearing accounts offer a very low interest, which is paid monthly. Mostly the banks require a minimum balance to operate the account; the failure of it will result in $10 service fee per month.

Express check accounts are for those who wish to avoid stepping into the banks. The service includes ATM, telephone, PC banking facilities, and unlimited check facilities. Though there is no monthly fee, the customer may often end up paying a huge service charge owing to the extra transactions made through these facilities.

Lifeline account is an economy account offered to low-income groups. The facilities include a certain number of transactions with a monthly fee ranging from zero to $6. The fees, minimum amount, and other terms of this account are normally set by the law, not by the individual banks.

Saving accounts are known for their interest rates, offered in various forms. Saving account is a ‘risk-free’ investment option for those who do not want to get into the adventurous game of mutual funds or shares.

There are different saving options- short term and long term. Certificate of Deposit will be a good option for those who intend for long-term deposits. They offer higher interest rates, but charge penalties for early withdrawals. Compound-interest saving accounts offer more advantages than simple-interest savings accounts. In compound interest savings, the interest accrued in each financial term is added to the previous principal, and the sum of the two will be counted as the principal for the next year. So every year, the amount will accrue exponentially.

Whatever the type of the account is, it is essential that you understand the basics of the services. While choosing a checking account, you may focus on the services that you require whereas for opening a savings account, you may think of the benefits, especially the interest.

Bill Riley
http://www.articlesbase.com/finance-articles/checking-and-savings-accounts-102065.html