Regular Entities vs. Blockchain Trusts
"Explore the advantages and disadvantages of traditional business structures like LLC's, corporations, and partnerships versus the innovative, tax-exempt Blockchain Trust. Discover how the right business entity can impact your organization's success, efficiency, and tax obligations. Make an informed decision for your business's future with our comprehensive guide."
Benefits and Drawbacks of Different Types of Business Entities vs. the decentralized and tax-exempt Blockchain Trust
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When you start your business, you will have to decide on which type of business entity you will be:
A sole proprietorship, partnership, limited liability company (LLC), corporation, nonprofit or a tax-exempt Blockchain Trust or a decentralized Investment Bank & Trust?
The type of business structure you choose will depend on several factors, including the nature of the workforce within your organization, the goal of the company, and so on.
Each legal structure for business entities has its advantages and disadvantages, so it's best to eliminate the ones that simply wouldn't fit with your organization before choosing.
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Time and Cost of Incorporation
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The incorporation process can be bureaucratic, expensive and time-consuming.
A number of documents must be prepared (including the new corporation's articles of incorporation and bylaws), and filing fees must be paid to your state's Secretary of State office (or similar business filing agency in your country).
Additionally, there are Lawyer Fees and Notary Fees to be paid, which ads up quickly and requires additional layers of bureaucracy and time delays.
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Following Corporate Formalities
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All corporations are required by law to observe a number of corporate formalities to ensure that the corporation is operating as a separate entity, independent of the business's owners.
These steps include holding regular meetings of directors, keeping records of corporate activity, and maintaining the corporation's ongoing financial independence.
Potential Tax Liability
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The profits from traditional corporations may be "double taxed." That is, the corporation itself is taxed for any profits earned, and any individual stockholder who earned profits from the corporation (in the form of paid "dividends") are also taxed.
This occurs most often in larger corporations, and may not be an issue for stockholders and owners of smaller corporations, who often work for the business itself and are paid salaries (which are tax-deductible for the corporation) rather than dividends.
One solution to the double-taxation problem is electing "S" corporation tax status.
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Further Disadvantages
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Forming a corporation requires more time and money than forming other business structures such as a decentralized and tax-exempt Blockchain Trust.
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Governmental agencies monitor corporations, which may result in added paperwork.
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Corporate profits may be subject to higher overall taxes since the government taxes profits at the corporate level and again at the individual level, if such profits are distributed to the shareholders.
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Furthermore, a corporation may not deduce from its business income any dividends it pays to its shareholders.
Bureaucratic Government Formalities and Expenses
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Incorporation of a company is a very complex legal process and it involves a considerable amount of time and money. These elaborate procedures have been established so as to discourage people from doing business who not serious and passionate about it.
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Even after the incorporation of the company, it has to be run and managed very strictly. In accordance with the legal provisions provided by the Companies Act. The returns and other documents have to be registered at the Registrar of Companies or Secretary of State depending on your jurisdiction.
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Certain particular events or activities such as accounts, corporate audits, meetings, borrowing, lending, investment and issue of capital, dividends etc, are necessarily required to be conducted and carried out by the provisions of the Companies Act.
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Other businesses do not have to follow as many provisions and rules as an incorporated company.
Corporate Disclosure and Lack of Privacy and Anonymity
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In spite of the extensive legal framework designed to ensure maximum transparency and disclosure of corporate information, the employees and low-level members of the company have full access to the company information and higher management.
Corporate owners have no anonymity due to government exposure of all Ultimate Beneficial Owners (UBO's).
Separation of Control from Ownership
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Members of small shareholders of a company do not have any effective form of control over the functions and decisions of the company.
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This happens because the number of people in the company is so large that an individual or even a small group of people cannot have a big effect on the working of the organization.
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Thus, the position termed as ‘ownership’ of the company is just a term that has no real significance. They do not have any active or complete control over the companies workings.
Greater Social Responsibility
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Many incorporated companies have a net worth of billions of dollars and thus employ hundreds of thousands of employees.
They have a very huge impact on society and these companies often take part in social activities that are part of it’s CSR(corporate social responsibility) campaigns.
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Because of the colossal impact these huge incorporated companies have, they have to follow certain social norms and contribute to the development of society.
Greater Tax Burden in Most Cases
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As compared to other types of companies, incorporated companies have to pay a higher tax. An incorporated company does not get any discounts and any minimum taxable limits.
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An incorporated company also has to pay income tax on the whole of its income at a fixed rate whereas other companies are charged at a gradual or slab rate.
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Thus, many companies often start out as private companies or partnership companies. And so, when their scale of grows larger, they become an incorporated company.
Detailed Winding Up Procedures
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The Companies Act provides for a detailed and lengthy process to explain the winding up of a company.
This process is a lot more time consuming and expensive as compared to the same process for other types of companies.
Unbeatable and Legal Tax Benefits of Owning Your Own Decentralized Blockchain Trust
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Global Tax Market Advantages
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No Taxation in Your Home Country
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Lower Incorporation Costs
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Undemanding Transfer Of Assets
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No Government Intrusion
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No Government License Requirements
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100% Autonomous
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100% Tax Exempt
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No Income Tax
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No Inheritance Tax
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No Taxes on Dividends, Royalties, Interest
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No Capital Gains Tax
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Protection against Lawsuits
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Ease of Operation
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100% Freedom
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100% Privacy for Ultimate Beneficial Owners
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100% Anonymity
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100% Legal
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100% Confidentiality
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100% Asset Protection
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100% Wealth Preservation
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100% Secure, To Buy, Register, Protect and Control Your Digital & Physical Corporate Assets
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100% Secure Transfer of IP Assets Directly Possible via the Blockchain Trust
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100% Secure Cryptocurrency Payments from and to Your Blockchain Trust
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With Your Blockchain Trust You Retain The Right To Keep Your Ultimate Beneficial Owners (UBOs) and Shareholders Non-Public
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Not Tied To Any Government Jurisdiction Due To Its Decentralized Nature and Registration on the Blockchain
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No Double Taxation Treaty with Any Government
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Not Controlled By Any Government or Central Authority
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The Blockchain International Corporate Registry Authority remains the most popular "tax haven" in the world offering high-level financial confidentiality and the strongest legal protection of the entrepreneurs’ interests
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Available Worldwide To Any Entrepreneur regardless of Citizenship
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The Power of Asset Registration in Blockchain Trust
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The Blockchain Trust is a revolutionary platform that is simpler to use, more secure than existing systems and designed to take advantage of the inevitable changes in both law and blockchain technology. There is simply nothing like it in existence today and the Blockchain Trust represents the future of estate, tax and asset protection planning.
The real power of the Blockchain Trust comes with the asset registration feature. Users have the power to record every asset transfer to the trust within the blockchain itself. This means at death, a successor trustee will not only have immediate access to the trust itself but will have a full and current accounting of all the assets of the Trust.
Call to Action: Register Your Blockchain Trust
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We must start with an incorruptible foundation, which cannot be owned, issued or controlled by any man-made political authority; it must emerge organically as a transparent, voluntary ‘constitution in code’ decentralized from any Government authority or any Central Bank.
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Will you be our next success story?
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