Upstreaming Advertising

Tuesday/August/19 21:10 Filed in: corporate strategy
Chuck owns and operates a very successful mountain bike tire manufacturing
plant in Illinois that has been in business for the past ten years.
Chuck owns and operates a very successful mountain bike tire manufacturing
plant in Illinois that has been in business for the past ten years. Chuck
advertises his unique tires in many outdoor sports and mountain biking
magazines and sells his products through a national network of locally owned
bike shops. Chuck has seen his profit margins getting thinner every year
because of competition from China that has forced him to cut his prices in half.
Chuck has decided that he is looking for a unique strategy to lower his overall tax
burden back in Illinois and has chosen Nevada as the place to do it.

Chuck forms a Nevada C-Corporation with an office package and Nevada
Management Services for privacy. Chuck now has his new Nevada Corporation
doing all of his national and international advertising. His NV Corp now places
and pays for all of his advertising. His NV Corporation bills his IL, LLC for the
advertising plus a management fee of 20% which draws Illinois revenue into tax
Free Nevada. Chuck estimates he will save over $50,000 in taxes next year
making him much more competitive than he was before.

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