Nevada Incorporation - Make Sure You Do It Right!

So you want to have Nevada incorporation? Well, itDelaware and then went even further, establishing a
may be just what you want and need, or it could be acorporate entity that allows investors and owners of
nightmare. It may very well be that NevadaNevada corporations to remain off the public record -
incorporation is the right step for one company, and aan advantage that is unique throughout the world.
misstep for the next. Besides the low cost for aSince these statutes took effect in 1991, the number of
Nevada incorporation, it provides owners withnew incorporations in Nevada has exploded. The
beneficial and unparalleled asset privacy. The filing feebullet-proof protection inherent in Nevada corporations,
for Nevada incorporation is $125, and is morehowever, takes it to a new level, making it virtually
affordable than most states. Another advantage ofimpossible for creditors and litigants to get at your
Nevada incorporation is privacy of ownership and thehard-earned assets. That just might be the main
absence of a state income tax.reason there were over 40,000 incorporations in
Most companies do NOT qualify to take advantage ofNevada last year alone. It looks like more and more
Nevada incorporation's benefits, so be sure that youbusiness-savvy people are discovering the
check out the various requirements. Your residenttremendous advantages that complete protection
corporation can maximize profits by taking advantageoffers! Unlike most other states, there has never been
of the tax laws, and members of an LLC (owners)a case in which the corporate veil was pierced in
pay taxes on the income, yet have the advantage ofNevada, except in the instance of fraudulent activity.
limited liability as the shareholders of a corporation do.This means your personal assets receive maximum
You can get every advantage used by bigprotection when separated from business activities by
corporations at low cost which is one of the benefitsa Nevada corporation. Nevada's Supreme Court
of tax savings by a Nevada incorporation.consistently stands strong on preserving this protection,
The state of Nevada has issued requirements foreven when a corporation fails to maintain basic
incorporation, primarily a residency test. In order tocorporate formalities (though we strongly recommend
properly form a substantiated Nexus base in Nevadayou do so).
the following requirements should be met: (1) aSome other important benefits are a Nevada
compliant Nevada formed Corporation or LLC; (2) Aincorporation can be organized with very little capital, if
Nevada office* (leased or owned) with physical anddesired. Many states require that a corporation have
mailing address; (3) Nevada staff working in Nevada;at least $1,000 in capital. One person can hold the
(4) Nevada bank account; (5) Nevada phone number;offices of President, Secretary, Treasurer, and be the
(6) Nevada Business Registration; (7) Continuouslysole Director. Many states require at least 3 officers
maintain appropriate records, filings, and accountability.and/or directors. Thus, there is no need to bring other
Anything less is a facade that requires home statepersons into a Nevada corporation if the owner does
registration and may negatively affect protection,not desire it. A corporation can be formed by mail, fax,
privacy and tax advantages. A non-resident can haveor phone and the person incorporating in Nevada
Nevada incorporation as long as he/she registers innever has to visit the state, even to conduct annual
their home state as well. This will generate additionalmeetings. Meetings can be held anywhere in the world
filing fees; however, if you want total privacy, it mightat the option of the director(s).
be worth it.No reciprocity with the IRS. Nevada is the only state in
The benefits of Nevada incorporation are amazing!the union that does not share information with the
Numerous benefits are offered to existing and newInternal Revenue Service. Many tax professionals also
businesses that incorporate in Nevada and they enjoybelieve that this reduces your chances of an audit
many benefits just not available anywhere else. Forbecause less matching of tax return information
one, no taxation upon shares of stock held bymeans fewer chances of something standing out.
non-residents and no inheritance tax upon non-residentWe trust that this information on forming a Nevada
holders. Pro-business Nevada, unlike almost everyincorporation has been helpful. We cannot stress
other state, has taken a stand! No Corporate Incomeenough...get all of the facts and requirements for a
Tax.Nevada incorporation, and contact a professional for
No Taxes on Corporate Sharesadvice in your particular situation. The purpose of this
No Franchise Taxarticle is not to give you legal advice or
No Personal income taxrecommendations, but to point out to you some of the
No IRS Information Sharing Agreementrequirements and caveats.
Nevada's corporate statutes started with those of