Magic 2 USA

Wondering why you should consider European Incorporation for a new or existing business? Let’s take a look at the Top 5 advantages of opening a company in Europe.

Personal asset protection

By filing your business as a European LLC (Limited Liability Corporation), your personal liability is severely limited. Knowing how to file correctly, and in which country to file to best accentuate your company’s profile and goals, should only be handled by a respected, seasoned European Company Formation specialist with years of experience forming businesses for non-resident business owners.

Overseas name credibility

One of the most desirable advantages of opening a company in Europe is business name cache. For instance, Luxembourg Asset Capitalization Incorporated (just made it up) sounds a whole lot more reputable and respectable than Topeka Asset Capitalization Incorporated, no offense to the fine folks in Topeka, Kansas. The instant admirability factor of a European business name lends even the rookie business owner immediate respectability.

Tax flexibility

Many overseas countries offer remarkably tax-friendly advantages to business owners in return for them incorporating in their country. One of the most-desired advantages of opening a company in Europe is this tax flexibility. Some countries offer zero tax on revenue generated by non-resident businesses, and some offer even more attractive tax perks to overseas owners. Check with an experienced European Company Formation specialist for details and country-to-country specifics.

Deductible expenses

Filing as an LLC, Partnership, Sole Proprietorship or other business entity in Europe provides distinct deductible expenses not always found when filing in the country of your residence. By maxing out your possible deductions, you immediately and positively impact your bottom line without any increase in revenue, something any business owner would love.

Name protection and perpetual existence

There’s a saying in purchasing that when the inventory in the warehouse is lean, sales is doing a great job. When the warehouse is overstocked, there must be a problem with purchasing. That’s the world we live in.

Running a profitable company in this economy is as much about keeping inventory lean as it is about boosting sales. But as everyone knows, that’s easier said than done. With demand fluctuations, supplier issues and tightening wallets, keeping the right balance of inventory is tricky to say the least.

Unfortunately, there is no magic bullet that will keep your inventory perfect all the time. However, the first step in fixing any problem is identifying its causes. In this article, we will talk about 5 of the most common mistakes buyers make when placing orders. Once identified, we can put a few simple practices in place that will help us become more accurate in our orders, increase our fill rates, and reduce our inventory.

Blinded by Averages

Someone once told me that if you have your head in a freezer and your feet in a fire, on average, your body temperature is about right…but you definitely will not be comfortable. Most buyers have some kind of system that tells them the average movement for their products by the day, week or month. Nearly every order is based off of these averages, and they should be. However, there are a couple reasons why this can be dangerous.

First, we all know that products can experience large unexplained drops or spikes in demand for one period. If your calculations do not have a way to filter those periods, they can cause a large swing in the overall average. A large change in your average would lead to a dramatic change in the future order quantity. If this spike or dip in demand does not continue in the future, you will either have way too much stock or worse…not enough.