Advice You - Business

Many businessmen are attracted to set up their businesses in Nevada for the benefit it offers that may at a glance be definite advantages. Business in Nevada can enjoy the foll

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

owing:

- Corporations in Nevada may sell, transfer, hold or purchase shares of its own stock

- Directors do not have to be Stockholders

- Directors of Corporations in Nevada

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

has the final decision in determining transactions involving issuance stocks for capital, real estate, personal property and services

- Minimal Reporting and Disclosure Requir

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

ments

- No Franchise Tax

- No Information Sharing Agreement with the IRS

- No Personal Income Tax

- No Taxes on Corporate Shares

- Stockholders are not Public Record

- St

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

ckholders, directors and officers do not have to be U.S. citizens or are they required holding meetings or living in Nevada

- There are Nominal Annual Fees in Nevada

- There

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

s No State Corporation Income tax

- When the acts of the Corporation are lawful its officers and directors can be protected from personal liability.

These factors are some of

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

the reasons why in the last few years, doing business in Nevada has attracted many businesses. The main reason is the savings of taxes when forming a Nevada corporation, whethe

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

r it is a limited partnership or limited liability company. Many states do not like this especially when their citizens, still living in their states create a Nevada corporatio

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

because Nevada corporations, as we know, will file their tax through a Nevada bank and not the states where they reside.

But creating a Nevada Corporation, for the purpose of

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

saving on taxes may eventually cause legal implications resulting to being taxed by their mother states just the same. It is in the interest of other states to review procedure

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

to make sure that taxes due to them are being collected. This will result in having most of Nevada corporations not being able to take advantage of the tax benefits that attra

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

ted the businesses in the first place. Business people who thought that they are earning by the taxes saved in a Nevada corporation could be audited for improper procedures tha

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

have been done over the years. Note that it is very seldom that audits happen during the first year. Usually it will take two to three years before an audit is initiated. The

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

nterest accumulated during those years can mean large in terms of back taxes and penalties. It does not mean therefore that because no audit has happened, the Nevada Corporatio

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

n that was put up had been properly structured. The increase of companies that flocked to Nevada, especially when done through the profit motive alone in terms of taxes saved c

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

n suffer legal consequences.

It is always critical to do good homework when setting up businesses because of the consequences that could result. Policies that do not already w

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

rk for a government is being changed or amended from time to time and that include its revenue-collecting effort.

Some strategies adopted by Nevada Corporations that could be

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

enalized include

- Operating a Nevada corporation without a business license

- Fringe benefits that are entitled to employees go to independent contractors.

- Nevada Corpora

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

ions that do not have an employee.

- Not being able to substantiate the establishing of business based in Nevada.

- Nevada Corporations that do not issue stocks

- Nevada Cor

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

orations that relies on bearer shares

- Nevada Corporations that relies on privacy as its asset protection strategy.

- Corporation that uses Nevada as an asset protection too

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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When you are totally cash strapped yourself, it is pretty darn difficult to maintain sound judgment when someone tells you that they know how to make extra money.

Many new entrepreneurs quickly discover that raising capital may not be easy and can be a complex and frustrating process. However, if you are informed and have planned effectively, raising money for your business will not be a painful experience.

Before any document is finalized, you need to let someone else take a look at it. I cannot stress enough the significance of this step! Letters, memos, reports, brochures, even important e-mails—any writing that will see the light of day—should be read by others before you send it off. Here's why.

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