Incorporate in Nevada
For Incorporate in Nevada prices and State Filing Fees, please visit the costs page for Incorporating in Nevada .
Incorporating in Nevada is fast becoming a trend among entrepreneurs and companies that are looking for a management and business friendly environment from which to run their business. Because of the business-friendly, sweeping regulation signed into law in March of 1987, Nevada has transformed into a haven for corporations seeking asset protection, low-taxation, confidentiality, and a business-friendly corporate/business environment. This legislation translates into a number of business-luring incentives, including the lack of state taxation of corporations and decreased regulation. While there are a number of factors that must be considered before deciding that Nevada is the state best suited for your corporation, if these factors are applicable to you and your business, then Nevada can offer a substantial advantage to you and your company.
Lets examine what some of these factors, advantages, and even disadvantages might be.
Factors to Consider
The decision to incorporate yourself or your company in Nevada should be based on the business goals for your company, where you intend to conduct the business, and whether or not you intend to establish certain financial “footholds” in Nevada (bank accounts, lines of credit, etc.). The reason for this is that some states (like California) are now a bit more aggressive about digging into a corporation’s transaction and banking history, especially if all of the business is conducted in that state, yet the company is incorporated in separate, low-taxation and regulation state. These states are becoming more aware of the tax revenue they are relinquishing to “foreign” corporations and are finding it financially feasible to dig deeper. For these and other reasons, it is important that the corporate formalities be observed when incorporating in Nevada, just as it would be when incorporating in any state.
While Nevada may be a haven due to its low regulations, business-friendly legislative history and almost non-existent taxation, it is still important that you observe the general corporate formalities, and the steps briefly outlined above. These measures will help ensure the integrity of your “corporate veil” and provide you and your corporation with the liability, asset, and tax protection and benefits that incorporating in Nevada can offer.
Assuming that you indeed intend to conduct business in other states, establish a financial foothold in Nevada, and maintaining close control of your company is important to you, then incorporating in Nevada makes sense.
Advantages of Incorporating in Nevada
- Asset Protection from Liability. Incorporating in Nevada offers protection for Officers and Directors from personal liability against any lawsuits or business debts arising from the operation of the corporation or by actions committed on behalf of the corporation.
- Stock Flexibility. Nevada corporations may sell, transfer, gift, or purchase shares of it’s own corporate stock. A corporation may issue stock for cash, property and services. Directors can determine the worth or value of the stock, and the stock can be in any quantifiable form: property, capital value, liquid funds, etc.
- Business Flexibility. There are no limitations dictating where the corporation may conduct its business, transact real property, or how many or how few offices or directors a Nevada corporation may have. According to NRS 78.070-4, a Nevada corporation may even own real estate and transact business in a foreign country.
- Management Flexibility. Nevada requires that corporations have at least one Director, but that’s about the only restriction. One person can act as the director and all of the officers.
- Confidentiality. Only the director and the resident agents are disclosed as a matter of public record in Nevada. Stockholders are not required to live in or hold meetings in Nevada, the can meet anywhere in the world, and their names are not a matter of public record. Further, Nevada is the only state in the United States that does not share information with the IRS.
- Tax Advantages. Nevada does not collect personal, corporate, inventory, franchise, gift, business occupation or stock transfer taxes. This can amount to a substantial savings to a business.
- Corporate income TAX FREE
- Franchise TAX FREE
- Capital stock TAX FREE
- Corporate share TAX FREE
- Estate TAX FREE
- Inventory TAX FREE
- Personal income TAX FREE
- Stock transfer fee or TAX FREE
- Inheritance TAX FREE
- Gift TAX FREE
- Tax Privacy. Nevada is one of the only states that do not have a formal information sharing agreements with the Internal Revenue Service. This may protect you from a discrepancy between a state and federal computer.
- Anonymity - Nevada allows “Bearer Stock Certificates.” You have the option of writing your name on the stock certificate or the words “The Bearer.” This may provide relief by handing the stock certificates to a trusted friend or relative when your ownership of the stock is threatened.
- Speed - A Nevada corporation can be formed in 24 hours by phone or internet.
It should be apparent that incorporating in Nevada offers a tremendous amount of flexibility, protection from liability, asset protection, and taxation savings. These benefits would be nearly impossible to obtain in most other states, and incorporating in Nevada will not only help you and your company enjoy the corporate benefits of limited liability, greatly reduced taxation and financial privacy, but with a diligent implementation and business development strategy, you can build your business into a highly competitive, investment-attracting entity.