5-19-18

 

‘SPIRAL TO ECONOMIC DISASTER’ – PHOENIX JOURNAL #4 - CHAPTER  5

 

REC  #1    HATONN

 

THU., AUG. 31, 1989    7:00 A.M.    YEAR 3, DAY 015

 

THU.,  AUG. 31,  1989

 

Greetings, Dharma.  May we walk in beauty equal to this won­drous day we have been given.  And may our intent be pure, our wording explicit and received in truth.  Aho!

 

Let us just dive right off into “CORPORATIONS”.  These things must be put forth because your survival is crit­ical to our work being accomplished.  You must handle your barter in the most re­sponsible manner.  Some of that which I tell you will be so ba­sic it will bore you but I find that most on your place never are given ac­cess to knowledge that allows another to be most wealthy.

 

CORPORATION  STRATEGY

 

I will first tell you what is a corporation.  Then I will ex­plain why your state of Nevada is the only state within your United States which I suggest as a home base for your corpora­tion.  If you do a business which requires it, you can license within that state.  This will be lengthy for I want you to un­derstand, not sim­ply toss aside.  I will then give you access to ones through whom you can obtain additional information.  Again, I am not in the publishing business nor the in­corporation busi­ness.  I am ef­forting at saving mine workers’ assets instead of having you sit­ting on them.  YOU NO LONGER HAVE TIME TO DRIFT.  IF YOU HAVE NO AS­SETS TO CONSIDER THEN JOIN WITH A PARTNER AND SPREAD OUT THE ASSETS AMONG CORPORATIONS (KEEP THEM SMALL) AND DO A LITTLE COMMUNITY ASSISTING.  If many of you form numerous corporations you can shift assets and divide your hid­den fund­ings and not be placed under inspection by anyone.  This will also become clear as I move into describing “why Nevada”.

WHAT  IS  A  CORPORATION?

 

A corporation is a legal, artificial person: a person that is sepa­rate, distinct, and TOTALLY APART FROM YOU.  It is NOT you.  You are NOT it.  It is a distinct, dif­ferent, and totally sepa­rate le­gal or artificial per­son.  Pretend you set up a corpora­tion and named it Samuel Gene.  It is the same as if you have birthed a baby boy and named it Samuel Gene.  It will have all its own identifica­tion.  Now as a teaser about Nevada.  Suppose the parent (owner) of Samuel Gene wants to hide from public view his (their) relationship as parent—Nevada is the only state that completely hides owner­ship of that new baby.

 

Further, a corporation is a distinct, legal entity sep­arate and apart from its members, stockholders, direc­tors or officers.  Al­though it is a separate entity, it can act only through its mem­bers, officers or agents and cannot have knowledge or belief of any subject in­dependent of the knowledge or belief of its people.  Woops—your baby has no brains of its own, no wonder you want to hide from the public.  A stockholder (owner or par­tial owner) is a holder of shares of stock in the corporation and is NOT IN LEGAL CONSIDERATION OR DAN­GER.  (In other words you are not, as the owner or par­ent, responsible for the brain damage).  A stockholder is not the employer of those working for the corpora­tion nor is he the owner of corporate property—IF YOU HANDLE EVERYTHING PROPERLY AND WITH DETAILED REGU­LATION AC­CORDING TO THE LAWS OF THE LAND—THE STATE OF BIRTH.  IF A “FRAGMENT” GETS LICENSED WITHIN ANOTHER LAND THEN THAT PORTION HAS TO FUNCTION WHEREIN LI­CENSED, IN ADDI­TION.

 

A corporation is an artificial person.  Its rights, du­ties and lia­bilities do not differ from those of a nat­ural person under similar conditions except, of course, where the exercise of duty would re­quire the ability to comprehend or think.  That’s what the board of direc­tors is for: they do the thinking.  Proof that the di­rectors thought on behalf of the corporation is EVI­DENCED BY THE RECORDED MINUTES AND RESOLUTIONS.  PAPER­WORK—YOUR LIVING RIGHTS ARE THE HEART­PLACE OF YOUR NEW BABE—MESS UP ON THE PA­PERWORK AND YOU WILL KILL THE CHILD BY NE­GLECT.  For example, a corporation may be­come a debtor or trespasser.  A corporation can buy, trade, sell and make loans, literally anything you as a person can do.—Think it through.  The possibilities become fascinating and you can be most cre­ative.

 

A corporation is a citizen of THE STATE WHEREIN IT IS CREATED.  (THAT IS WHY I INSIST ON NEVADA.  SO THAT YOU CAN TAKE ADVANTAGE OF THE BEST CORPORATION AND TAX LAWS IN THE U.S.—LEGALLY AND WITH VERY LITTLE TROUBLE—YOU DON’T EVEN HAVE TO VISIT THE STATE.  YOU ‘DO’ HAVE TO HAVE A RESIDENT AGENT WITHIN THE STATE OF NEVADA BUT THAT IS PAINLESS, ALSO, THE MONEY IS WELL WORTH THE AS­SETS.)  A corpora­tion does not cease to be a citizen of the state in which it is in­corporated by engaging in business or acquiring property in an­other state.

 

Since corporations ARE SOLELY CREATURES OF STATUTE (LAW), the pow­ers of a corporation in another state are derived from the consti­tution and laws of the state in which it is incorporated.

 

A corporation is a legal person which has an existence separate and apart from the stockholders.  As an arti­ficial person, a corpora­tion is considered to have its domicile (home) in the state where it is incorporated and the place where it has its registered or statutory resident agent or home office in that state.  When the corporation is actually in a different place, the site of its resi­dent agent is sometimes said to be its “statutory domicile”.

 

The existence of the corporation is not affected by the death or bankruptcy of a shareholder or by the transfer of its shares.  IT HAS A CONTINUOUS EXISTENCE.  IT IS IMMORTAL (unlike you) for as long as it complies with the annual require­ments of the state in which it is in­corporated (like you when you reach this dimen­sion be­yond Earth).

 

The IMPORTANT POINT to remember is that when you own a Nevada Cor­poration, the corporation exists as a sepa­rate entity or per­son.  You can live anywhere you choose, in any state of the U.S., Canada, France, Eng­land, Germany, Sri Lanka, Be­lize, etc., etc.  IT IS THE CORPORATION WHICH CON­FORMS TO THE REQUIREMENTS OF THE STATE IN WHICH IT “RESIDES”.  NEVADA, YOU WILL FIND, IS THE STATE WITH THE BENEFITS TO PROTECT YOU AND YOUR CORPORATION.  WE HAVE CAREFULLY RESEARCHED IT FOR YOU AND TRAINED ONES ON YOUR PLACE TO HELP YOU THROUGH IT.

 

NOW, IF YOU DON’T UNDERSTAND WHAT I HAVE JUST WRITTEN—GO BACK AND REREAD UNTIL YOU DO.  YOU MUST UNDERSTAND EXACTLY WHAT A CORPORA­TION IS.

 

WHAT  IS  A  NEWLY  FORMED  CORPORATION?

 

A corporate shell is a corporation that is completely formed and ready to proceed.  It is called a “shell” simply because it has NO stockholders, directors or of­ficers, YET.  It is a shell with noth­ing (no life) within it.  It has NO assets or liabilities.

 

It is simply like a brand-new, completed house with nothing and no one inside it.  It is simply waiting for YOU to decide what and who you want to put in it, as well as when and how.

 

Shells are ready to do business immediately.  The pur­chase of an already-formed corporate shell is the fastest, simplest and most efficient method by which you can incorporate, become incorpo­rated, or, liter­ally, instantaneously have an already-formed corpora­tion for immediate use.  Further, if you get one of these new “shells” it comes with its birthing certifi­cates and a resi­dent nanny (agent).

 

Now, Hatonn is not going to give you details about dif­ferent types of corporations; you can do that work and research for yourselves.  There are holding corpora­tions, brother/sister cor­porations, S cor­porations, etc., family estate corporations; you name it and you probably can set it up.  I have neither the time nor inclination to effort at individual lectures.

 

WHEN AND WHY INCORPORATE IN HOME STATE (IF OTHER THAN NEVADA)

 

I will cover when and why you should incorporate in your home state if it is other than Nevada.  There are pros and cons. 

 

While that might appear to be complex, the solutions are simple when the subject is understood and the facts assembled.

 

Keep in mind that the purpose is to take the mystery out of corpo­rations and their use—to strip them of their unnecessary complexi­ties and to make them simple so all can benefit.  If you fail to understand, then I have undoubtedly failed to make my­self clear and I urge you to research further.

 

I am not selling anything so I do not intend any type of mis­leading information, and there are many instances whereby you are better off to simply incorporate in your own state.

 

NEVADA  vs  HOME  STATE

 

Let us begin, however, with WHEN you should incorporate out­side of your home state (if other than Nevada).

 

I can promise you that nine times out of ten if you ask your attor­ney or accountant about these things you will be misled.  It is not intentional, it is simply that he or she is usually unin­formed and will not risk telling you so.  Oftentimes the at­torney or accoun­tant does not understand the total ramifications himself and is afraid he is going to lose the individual’s busi­ness if he does not lead into forming a corporation in his home state.

 

Of course the attorney or accountant practices in that state and therefore, may keep the individual “locked-in” and, by having that person incorporate in their home state, obviously profit from hav­ing the individual “locked-in” regardless of whether it is in the best in­terest of the individual.

 

Let me point out something here, before we move away from “out of state incorporations”.  Most of your large, successful corpo­rations are incorporated in the state of Delaware!  (Check on it.)  That is because WHEN those corporations were started in business, Delaware HAD the best corporation laws in the U.S.  You will find that the majority of the big corporations with whom you are doing business are NOT incorporated in your home state.  They are most likely li­censed through your Secretary of State to do business within your state.  Delaware passed some state laws that now are detrimental to you—for in­stance, re­ciprocity of records with the IRS.  Nevada never re­ciprocates infor­mation with your federal IRS.  Yes, friends, a lot of crim­inal elements utilize the liberal laws for their benefit—does that mean God cannot utilize the same laws in his behalf?  You are required to abide by the laws of the land—go where the laws of the land serve you best.  These are man-made laws, they are not against the Laws of The Creation nor of the Laws of God.  They are an intelligent manner in which to handle your business in privacy and hold your wealth to bring production in­stead of abuse unto you.

 

A corporation is a citizen of the state wherein it is created or in­corporated.  A corporation does not cease to be a citizen of the state in which it is incorpo­rated by engaging in business or ac­quiring property in another state.  Since corporations are solely creatures of statute, the powers of a corporation of an­other state are derived from the constitution and laws of the state in which it is incorporated.

 

Suppose you decide to go live in Mexico, that does not cause you to lose your U.S. citizenship.  Further, if the police or neigh­bors become nasty you can come right back to the U.S. and gain protec­tion.  No less with a corporation.

 

When you are in the original process of incorporating, you prob­ably cannot ascertain whether or not that haven might ever be of value to you.  All too often unantici­pated problems can arise in your home state, particu­larly if that state is tough on business and taxes.  If your business grows and begins to make a big profit, then it can be nothing short of a godsend or a miracle for the cor­poration to be able to abandon or abort op­erations in your home state and retreat to a home base HAVEN:  the protec­tion of the con­stitution of the state under which it is incorpo­rated.  It is no accident that Nevada, of course, happens to be the best state in which to incorporate.

 

WHO  SHOULD  INCORPORATE?

 

NOW,  I  HEAR  THE  FLOW  OF  QUESTION  #  ONE!!?? 

 

I AM JUST A FAMILY, OR A SINGLE PERSON, WHAT DOES THIS HAVE TO DO WITH ME?—FURTHER, YOU CAN’T WAIT TO FIND OUT AS HATONN MOVES ALONG—BECAUSE IT ONLY RE­QUIRES ONE (1) PERSON TO FORM THE CORPORATION, BE THE BOARD OF DIRECTORS, OFFICERS, THE WHOLE KIT AND KABOO­DLE (I THINK YOU SAY).  AND YOU HAVE ALL THE BENEFITS OF A CORPORATION, BUSINESS WISE, TAX WISE—ALL WISE.  WHY DO YOU THINK THE GOVERNMENT SEEMS TO GIVE BREAKS TO CORPORA­TIONS?  BECAUSE MOST OF THE GOVERNMENT “SERVANTS” ARE INCORPO­RATED (IN THE STATE OF NEVADA) AND DO BUSINESS THROUGH THE COR­PORATIONS AND THEIR PRI­VATE LIVES ARE NEVER MADE PUBLIC.  THOSE WHO BLUNDER AND GET CAUGHT DID NOT.  YES, IT IS THE BEST KEPT SE­CRET IN THE UNITED STATES OF AMER­ICA AND ABROAD—FOR ALIENS OF FOREIGN COUNTRIES CAN ALSO INCORPO­RATE IN NEVADA.  THIS IS A BENEFIT THE BIG BROTHERS HAVE MADE EVERY EFFORT TO HIDE FROM YOU SO THAT THERE IS NOT A CHANCE OF REMOVING THOSE BENEFITS.

 

I will refer to “foreign” corporations later; also, that term does not mean alien or foreign countries (although it can), it simply means any other “state”.

 

Back to the subject.  If, for example, you are starting a small re­tail business in your home state and you never intend it to be­come involved in interstate opera­tions or sales, then you are probably well-advised to simply incorporate in your home state.  Another ex­ample may be a small business where it is reasonably certain that the business is never going to flourish or expand into a much larger enterprise.  If taxes become a prob­lem for you in your home state, you may then develop a corporate strat­egy that will elimi­nate those taxes.  There is a blueprint for that very strategy which I would have made available to you.  It RE­QUIRES a corpora­tion authorized within your dwelling state to be effective.  If, however, you form a consulting opera­tion whereby you are not in­volved tax-wise within a state except that you err in living there—you do not need even register the busi­ness corporation in your state.  RESEARCH, GAIN KNOWL­EDGE AND KNOW WHAT YOU ARE DOING—CHOOSE THE BEST APPROACH.

 

DOING  IT  RIGHT

 

Many folks do misunderstand.  They often think that they can form a corporation in Nevada, Delaware, or anywhere, and then simply pro­ceed to do business wher­ever they are.  That is USU­ALLY NOT TRUE!  However, each state has exceptions to its legal definition of “doing business within that state”.  You should find out what the legal definition and exceptions are in your state and act accord­ingly.

 

If the law in your home state legally defines your business as do­ing business within that state, then you must either incorpo­rate in your home state or qualify your Nevada corporation, or any other out-of-state cor­poration, to do business in your home state.  In other words, simply because you have formed a corpo­ration somewhere does not necessarily permit you to do busi­ness ev­erywhere (without qualifying to do business in each additional state or else being legally exempt from qualifying or register­ing).  You must determine what the regulations are in your state.

 

However, as example, a Nevada corporation can own prop­erty in ANY state without having to qualify or be in­corporated in that state.  Therefore, in this instance (owning or buying real prop­erty), you are exempt from incorporating or qualifying to do business in your home state.  When that circumstance also ex­ists, then you would certainly want to incorporate in a pre­ferred state and let that corporation in the preferred state own the property, that means any real property.  Then if you sell the property—simply sell the whole corpo­ration.  Many benefits in that kind of transaction, my friends.  Have a little genuine fun—find out about these things that are hidden from you behind the hypno­sis of mundane T.V. and your “death” exist ence.  Simply determine what activities are ex­empt from qualifying to do busi­ness in your home state and those which are not.

 

LET ME GIVE YOU A LITTLE PROOF AS REGARDS FEES IN CALI­FORNIA.  IT COSTS SO MUCH TO INCORPO­RATE DIRECTLY IN CALIFORNIA.  IT COSTS ABOUT HALF AGAIN AS MUCH TO QUAL­IFY TO DO BUSINESS IN CAL­IFORNIA FOR A “FOREIGN” CORPO­RATION (LET US SAY, NEVADA).  THAT IS BECAUSE CALIFOR­NIA KNOWS THE VALUE OF THE INCORPORATION IN A SEPARATE STATE AND USES THE FEE TO DISCOUR­AGE YOU.  I SEE A GREAT ADVANTAGE TO IN­CORPORATING IN NEVADA AND PAYING THE DIF­FERENCE IN YOUR HOME STATE TO QUALIFY—PRI­VACY—IN NEVADA NO-ONE KNOWS WHO THE OWN­ERS (STOCKHOLDERS) ARE.  EVEN IF YOU MUST QUALIFY IN AN­OTHER STATE THAT INFORMATION CAN USUALLY BE KEPT PRI­VATE EXCEPT FOR THE PORTION OF YOUR CORPORATION ACTU­ALLY DO­ING BUSINESS WITHIN THE QUALIFYING STATE.

 

It is wise to incorporate in the state with the best corporation and tax laws regardless of where you are going to do business.  Then, if for ANY reason you ever wish to, you do have a safe HAVEN, as it were, to re­turn to or retreat to or withdraw to.  YOU WILL HAVE TO HAVE DONE YOUR BOOKWORK IN PERFECTION TO KEEP THE COR­PORATE VEIL FROM BEING PIERCED—HOWEVER, FRIENDS, YOU ARE GO­ING THROUGH THE GREAT TRIBULATIONS OF AR­MAGEDDON; CAN YOU NOT DO A BIT OF WORK IN YOUR OWN BEHALF TO MAKE IT THROUGH IN WHOLENESS?

 

I do say that incorporation is a very tidy way to orga­nize and get the best breaks around, wherever you choose to utilize the tool.  Nevada is the most overall efficient state for personal incorpora­tions for dozens of reasons.  I shall not bore you with all of them, for information is available in detail.  I will prevail upon one of my workers who can receive mail and phone calls and di­rect you to these resources, at the end of this man­ual.

 

HOME  STATE  BUSINESS

 

As a last definition on this subject: A corporation is only autho­rized (licensed) or allowed to do business in the state that it is incorporated in (obviously for tax purposes); unless and until it is qualified (or exempt from qualifying) to do business in an­other state.  Re­member, the corporation is a “foreign” corpora­tion in ev­ery other state except the state in which it is in­corporated.

 

To qualify a “foreign” corporation in a state is many times re­ferred to as registering or licensing the cor­poration to do busi­ness in the single respective state in question.  The terms all mean the same thing and are usually referred to as “to qual­ify” or “to register”.

 

To qualify or to register in a particular state usually requires that the particular state be paid a one-time qualification or reg­istration fee.  When the fee is paid, that foreign corpora­tion is then recorded in that particular state and is therefore qualified or regis­tered to do business in that particular state.

 

Also, a requirement in practically every one of your states—AND VERY IMPORTANT—is that before the corpora­tion can be registered or qualified, it must have a resident or statutory agent ap­pointed (which is for service of process) and, of course, that resident or statutory agent has to be duly appointed and ac­cept that appoint­ment on or with the papers filed in that particu­lar state.

 

The other requirement for qualification or registration in any state (in addition to paying the required fees and having a resi­dent agent) is that the name of the corporation desiring to be reg­istered may not already be in use in that state by some other cor­poration.  If the name is already ‘taken’ or in use in that state, then the corporation cannot qualify with the real name as­signed to it by a ‘foreign’ state.  However, not to worry, the corporation in question is still allowed to qualify by registering as DBA (doing business as) a name NOT already taken or in use in that particular state.

 

Let us take a break, Dharma.  I realize this is most tedious for you but it is most important that mine co-workers and associates clearly understand.  I do not function as so many of the touted ones from “outer di­mensions”.  You ones ask for, and need help—not more words of doom and disaster.  You will have enough of those, even from me.  I am telling you what to do NOW to gain as much pro­tection as you possibly can.  Whether or not you choose to utilize the information is not for my decid­ing—mine is to give you alter­natives to losing it all.  No more and no less.  So Be It!  I move to standby and await your sum­mons to proceed.  SALU.  Hatonn to standby.  Out.

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