[Editor’s Note: This week, our work commitments have brought us to southern Indiana. We’ve taken this opportunity to delve into the stories of those who have forged their paths in the world of business and innovation. Enjoy this reflection on a pioneer who championed empowerment and entrepreneurship for the everyman.]
A Man of Confections
Ted Nicholas Peterson, affectionately known as “Nick” among friends, was a master in the world of sweets, specifically fudge.
At just 21 years old, burdened with $96,000 in debt, he launched his own confectionery venture, “Peterson’s House of Fudge,” in Wilmington, Delaware. Throughout the 1960s, Nick combined ingenious marketing strategies with a profound appreciation for the power of language, ultimately expanding his business from a single location to 30 franchises.
However, Nick’s passion for fudge was merely the starting point of his journey. His true love lay in the realms of words, marketing, and entrepreneurship, driven by a desire to empower small entrepreneurs to thrive.
One particularly innovative approach he employed was to arm the little guy with the resources typically accessible only through costly legal help—without the hefty fees attached. This initiative, unsurprisingly, didn’t endear him to many attorneys.
Nonetheless, Nick wasn’t particularly fond of lawyers, which inspired him in 1973 to publish his first book under the pen name Ted Nicholas. Titled “How To Form Your Own Corporation Without a Lawyer for Under $50,” this book was groundbreaking.
Before its release, establishing a corporation could cost hundreds of dollars in legal fees. Nick delivered on his promise, providing readers with easy-to-follow instructions and necessary tear-out forms for incorporation.
Remarkably, he self-published this work and employed effective direct response marketing, turning it into one of the best-selling business books ever. However, this was just one of many initiatives Nick undertook to support the little guy. One of his noteworthy ventures was called “The Company Corporation,” which we’ll explore shortly.
Library Cards
President Joe Biden is the archetype of a seasoned politician. Once he grasped power, he never let go. He served as Delaware’s Senator for 36 years, later rising to the role of Vice President and now President.
However, his most lucrative years may surprise you; between 2017 and 2021, Biden reportedly earned $15 million through a combination of book deals and speaking engagements. And why not? If Janet Yellen can earn $7.2 million from speeches, why shouldn’t “Middle-Class Joe” do the same?
Left to his own devices, President Biden often appears disoriented, having recently asked his wife, Jill, “Where the hell are we?”
In contrast, Delaware, his home state, has a clear purpose: to offer a legal and administrative environment where businesses can flourish with minimal restrictions.
Delaware’s status as a corporate hub dates back to 1899, when state lawmakers enacted the General Corporation Law, enabling anyone wishing to form a company to do so in Delaware.
Today, Delaware boasts nearly twice as many incorporated companies as actual voters. Corporations can place profits in Delaware-based holding companies to avoid taxes in their operating states, and Delaware LLCs can be set up anonymously via third-party agents.
The Institute on Taxation and Economic Policy states that “Setting up a company in Delaware requires less information than signing up for a library card.”
It’s so straightforward that several years ago, Joe and Jill Biden established two Delaware corporations. Details from sources like The Intercept reveal:
“The Bidens have utilized their home state’s financial privacy laws to conceal income from public scrutiny, establishing two tax-advantaged vehicles known as S corporations. These were labeled CelticCapri Corp. and Giacoppa Corp., respectively, reporting over $13 million in profits over two years, which weren’t subject to specific disclosure or payroll taxes.
“As CNBC noted, income from book deals and speeches was funneled into the S corporations and then disbursed to the Bidens as ‘distributions,’ avoiding Social Security or Medicare taxes and making revenue sources untraceable.”
While we don’t criticize President Biden for capitalizing on the tax benefits of Delaware’s General Corporation Law, we do acknowledge the irony in his administration’s advocacy for a global minimum tax on corporations—a topic for another time.
Why Grubby Politicians like Joe Biden No Longer Get All the Breaks
Whether Joe Biden and Ted Nicholas ever crossed paths is uncertain. Perhaps, in the 1960s, Biden indulged in some fudge from “Peterson’s House of Fudge,” in Wilmington. Who knows?
Yet, it’s likely that Nick didn’t hold Biden in high regard. Rather than speculate, let’s turn to Nick’s own words for insight. Here’s a dedication from his 1975 publication, “How To Publish a Book and Sell a Million Copies”:
“Perhaps the most precious and important right for all free people is freedom of speech. In America, this right is guaranteed under the First Amendment of the Constitution.
“In dictatorships, it is no coincidence that one of the first acts of leaders assuming power is to suppress citizens’ freedom of expression. Censorship and control of the media are goals pursued by all tyrants.
“This book is dedicated to the unsung heroes within all societies—the writers and publishers who, through their endeavors, maintain our freedom.”
Nick expanded “The Company Corporation” into the largest incorporating firm globally, assisting over 300,000 clients in bypassing lawyers when forming corporations, primarily in Delaware.
His perspective was clear: grubby politicians like Joe Biden and other elites shouldn’t monopolize advantages. Everyone deserves these opportunities, including you!
Consider the tax benefits and deductions available, limited liability, and maximum privacy—these are not just privileges for the wealthy.
Here’s a brief snippet of Nick’s advertising copy:
“Average taxpayers, you and I, are getting screwed.
“New laws hardly affect the wealthy. They still have myriad loopholes available. Let’s face it; they always will.
“Recently, I discovered a viable strategy. It’s affordable and legal, originally designed for the affluent, yet perfect for us ordinary folks. You don’t need any funds, and we can access the benefits the wealthy enjoy.
“I formed a corporation. On my own. For a fraction of the cost.”
“That’s how I’m fighting back.”
Ted Nicholas passed away on February 10, 2020, at 85 years old. However, his legacy continues to empower the entrepreneurial spirit of the little guy.
“The world does not reward average people,” Nick once said, “so I will be extraordinary.”
Sincerely,
MN Gordon
for Economic Prism
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