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There are three primary reasons to use a corporation to own your business today: (1) Liability Protection, (2) Tax Savings and (3)
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
strong> Accelerated Retirement. To make the most of it, you need to understand how a corporation actually works, and how you can take advantage of what it has to offer you in the wa
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in
of tax savings, lawsuit protection and retirement planning opportunities.

LAWSUITS AND THE LIABILITY SHIELD.

The USA is home to over 90% of the world’s lawsuits.
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

One out of every five people in the U.S. will be involved in a lawsuit, and if you’re a business owner, professional or own real estate your chances go up to one out of three. Unin
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
orporated business owners (which are called ‘Sole Proprietorships) are the most at risk. Under the law, the sole proprietor and the business are considered one-and-the-same person.
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro
By contrast, a business run from inside a corporation is considered a separate ‘person’ in the eyes of the law – that is, you are not the corporation and it is not you. Its debts an
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
liabilities are not yours – so long as certain guidelines and formalities are followed. Moreover, if you avoid co-mingling the assets and expenses of the business with your persona
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
l assets and expenses, you can sidestep the ‘alter ego’ theory advanced by many trial attorneys.

TAX SAVINGS ADD UP QUICKLY.

The tax advantages are a key reason t
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
incorporate. In fact, certain deductions are available only to enterprises that do business through a company. In addition to business deductions for normal operating expenses, the
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
re are many that can provide new opportunities – company owned vehicles and aircraft, education and seminars, business-related travel, are among the many deductions available. Expen
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
es such as telephones, health insurance, life insurance, marketing and advertising, bigger retirement benefits and even dining out are deductible to a company if business-related an
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a
properly documented. Moreover, with proper guidance the company can actually build corporate credit that is entirely separate and can provide relief to the burden many business own
dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod
ers have on their personal credit. With the savings that can be enjoyed, you can more rapidly build a retirement nest egg.

ACCELERATED RETIREMENT PLANNING.

One of
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
the best things about having your own corporation is that you alone can control the size and timing of your retirement income by the choices you make. You are not beholden to someon
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
e else who decides when, how or even if you should benefit.

401(k) Plans, Defined Benefit Plans, long-term care coverage and Welfare Benefit Plans are just a few of the ways you ca
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
reduce the tax impact on your company’s stream of revenue. Not all of them require a ‘matching’ deduction for employees. Certain of these can benefit ‘just you’ or your ‘key employ
ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust
ees’. The deduction amounts are generous – and the challenge of course, is the timing. It’s not always easy for every business owner, but by having the discipline to consistently ma
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
e contributions to your own retirement future, you not only save on income taxes today, but you can accumulate significant wealth that is safe from lawsuit creditors.

Work with a C
.

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
PA that is not just a ‘financial historian’. Set up your corporation in a state that puts limits on liability exposure, and register it to do business in the state in
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip
hich you reside. A corporation can provide a liability shield, a way to reduce taxes and to accelerate the amount and the timing of your retirement. Don’t let fear stand in your way

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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