This article will help you understand why you should consider
incorporating your company in Nevada.
Nevada Incorporation: The Advantages of Incorporating in
Incorporation in Nevada has become an attractive option for
savvy business entrepreneurs, and for good reason. Nevada corporations enjoy
many benefits just not available anywhere else. We will not only investigate why
this is so, but you will also know what to be aware of when incorporating in
Nevada, and how to avoid the most common first-time mistakes.
Advantages of Nevada Corporations
A Nevada corporation has many benefits above its cousins in
other states. Namely, business owners enjoy the following benefits from having
their businesses incorporate in Nevada:
- Very favorable taxation environment. There are no taxes on corporate or
even private income, capital, corporate shares or even equity transfers.
Nevada also doesn't have a franchise tax.
- Corporate meetings can be conducted anywhere. They don't have to be held
in the state.
- Officers and directors of the corporation do not have to be residents of
the state or U.S. citizens
- Minimal reporting and disclosure requirements. No annual report of
stockholder meeting dates is required; only the current list of officers and
directors is necessary.
- Directors don't have to be shareholders, and can be nominees
- Bearer shares are permitted
- Shareholders aren't public record. Nevada statutes even have sanctions
against the use of corporate records by those outside of the corporation in a
manner detrimental to shareholder interests
- No IRS information sharing agreement
- Nevada corporations can buy, sell, hold or even transfer shares of their
- Piercing the corporate veil is very demanding in Nevada. In greater than
two decades of case law, there has only been 1 incident where piercing the
veil has happened, making it the toughest state in the union.
- Corporations can be formed for the sole purpose of asset protection
- Nevada corporations can issue stock for capital, services, individual
property or even real estate including leases and options. The directors can
as well set the value of any such transactions, and the decision is considered
- No minimum requirements on the amount of capital necessary to form a
- Strongest indemnification for private liability, which includes any act by
officers, directors, employees, stockholders or even offices of a corporation
for acts executed in their corporate roles for which they believed to have
- No joint and several liability. This form of liability states that if even
more than 1 defendant is responsible for injury provoked per plaintiff, then
every defendant is equally liable for the entire amount of the judgement. So
if you happen to be included in a personal injury incident while conducting
company business, a smart plaintiff’s attorney can sue both you and your
corporation for the whole amount. Nevada law has abolished this form of
liability. Instead, every defendant is assigned a “percentage of fault” with
the aggregate being 100%. Only defendants then discovered liable are expected
to pay any judgement—and only in proportion to the fault percentage.
State Requirements for Nevada Corporations
In order for owners of a Nevada corporation to maximize its financial
benefits, it must follow certain requirements to prove that the corporation is
truly operating out of Nevada. Just having a P.O. box will not suffice for proof
of operations in the silver state. This proof can be demonstrated if the company
- An actual Nevada business address
- Pays for its own location expenses. Corporate credit card statements or
even cancelled checks meet this requirement.
- Its own phone number
- A current business license, if applicable for the corporation’s line of
- A bank or brokerage account in Nevada
There are many Nevada incorporation services that will help in the setup and
maintenance of these items. If you’re new to incorporation in Nevada, it's a
very good idea to utilise one of these services to avoid costly first-time
Jim Hood is a senior contributing editor at
Station, which provides tips and strategies to
business for maximum advantage. He also writes guides on evaluating and
Nevada incorporation services.
Article Source: http://EzineArticles.com/