Intellectual property is anything that is a creation of the mind: inventions, literary or artistic works, symbols, names, images, drawings, musical compositions etc. It is intangible property, and is the result of creativity which is protected by patents, trademarks, copyrights or other legal protection devices.

Intellectual property is distinguishable from tangible property because tangible property is attached to the legal ownership of a physical item, wheras intellectual property is attacted to the expression of the idea behind that item. The purchase of a CD buys ownership of the CD, but not the underlying content or copyright in the CD’s content.

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“If you owe the bank thousands, then you have a problem. If you owe the bank millions, then the bank has a problem.”

This picture is a to scale diagram of what the debt would look like in 100$ bills loaded on pallets. It is sourced here. Yes, that's a person in the lower right.

The US has over 13 trillion dollars in national debt.

Stop for just one moment and think about that number. It is such a large number it is almost impossible to fathom. 13x 1,000,000 x 1,000,000

Just one trillion dollar bills laid end-to-end would stretch all the way from the earth to the sun … and then back again. Read the rest of this entry »

After a brief hiatus, the death tax is back. article source

Republicans failed in a last ditch effort to repeal the Estate Tax. The aptly named ”death tax” which has been declining since the year 2001, and is not in effect in the year 2010, is going to be reset to pre 2001 levels. This tax is a double tax. It is a tax on a deceased American citizen’s estate. A tax on assets that the decedent has been paying in state, local, municipal, social security and healthcare (among other) taxes on for their entire life. What happens when they die? For estates worth more than 3 million USD, “Uncle Sam” is entitled to more than half, or 55%. Read the rest of this entry »

8 Steps to forming a corporation.

If you’ve looked through the list of corporate structures and have decided that you want to start a corporation in the US, here are the steps you should take:

1. Choose a business name that complies with your state’s corporation rules.

• The name cannot be the same as the name of another corporation on file with the corporation’s office.
• The name must end with a corporate designator, such as “Corporation,” “Incorporated,” “Limited,” or an abbreviation of one of these words (Corp., Inc., or Ltd.).
• The name cannot contain certain words that suggest an association with the federal government or any restricted type of business, such as: Bank, Cooperative, United States, Federal, National.
• Perform due diligence to ensure the name won’t violate another company’s trademark. Read the rest of this entry »

LLC – Limited Liability Corporation

Quick Overview

• For asset protection purposes: A LLC is a private entity established mostly for the purpose of creating a degree of separation between the debts, obligations and liability of the owners and the debts, obligations and liability of the business LLC.
• LLC’s are very flexible and have a vast array of uses.
• They are quite effective for property ownership.
• Relatively easy and inexpensive to set up.
• Creates a corporate veil between owners and company.
• LLC’s have many tax options.
• Has “outside and inside” protection.
• Several drawbacks to consider regarding single member LLC’s as opposed to multiple party LLC’s.

BENEFITS

Limited Liability

• The biggest benefit of an LLC is that all owners of a LLC are protected by corporate veil from being personally liable for the debts, and lawsuits of the LLC.
• Any LLC is its own separate entity. This means that any LLC is basically a legal person separate and apart from its owners. This is also important to note from a business continuity perspective. If a member, manager or a key employee dies or leaves the business, the business still continues. Read the rest of this entry »

Who might benefit from an offshore investment or asset protection plan?

• Anyone with a moderately substantial net worth can benefit from offshore asset protection. This economic management approach will be of particular interest to individuals working in professions where there is a high risk of litigation, for example doctors, clinics, health care workers, psychiatrists and psychologists, attorneys, business owners, and/or financial planners.
• It is becoming increasingly apparent that many lawsuits are initiated where the defendant is sued not because of culpability or blameworthiness in the case, but because of the defendant’s ability to produce compensation if a judgment is found in a civil court. By this logic, any individual with a high net worth should take time to structure an asset protection plan and strongly consider offshore investment for some or all of their asset protection needs. Read the rest of this entry »

In the news… 8/12/10

China is going to build an 8 billion dollar oil refinery in Nigeria. It is the first of 3 refineries that comprise a $23bn agreement between NNPC and CSCEC. Nigeria’s state oil company, NNPC, will cover 20% of the cost while the state of Lagos will provide the land.  The China State Construction Engineering Corporation, CSCEC, will cover the additional 80% of the cost. Nigeria already has 4 oil refineries but they are run very poorly and are estimated to be operating at only 40% capacity. Due to this inefficiency, Nigeria has to import some refined oil. original article from bbc.com

China’s dependence on energy  (especially in the form of fossil fuels) is increasing dramatically and will continue in a strong upward trend. New power plants will be built, and more energy will be expended. One of the most obvious indicators of the trend for increased fuel demand is the automobile market. Read the rest of this entry »