Nevada Incorporating: Factors You Should Consider

2007-03-08 10:33:40

( Business )



Why incorporate in Nevada?

Most often, people decide to incorporate their businesses in the state where they live. Many individuals are not aware of the fact that you do not have to incorporate in the state where you run your business. Individuals who discover this fact would then try to find out which states are the best options to form a corporation. The state of Nevada will typically be one of the options that will be considered, and when this happens, individuals would then ask, “why incorporate in Nevada?”

Nevada incorporating provides a number of advantages. Firstly, Nevada incorporating provides exemption from paying corporate income taxes and taxes on corporate shares. Franchise and personal income taxes are also waived: this provides your corporation tremendous financial savings.

Minimal filing and annual fees to keep your corporate status active in Nevada is required for Nevada corporations, but this is dramatically lower than the fees involved when incorporating in the state of Delaware.

Another reason that can compel you to choose Nevada incorporating is the fact that you are able to maintain corporate privacy, because there is no need to share corporate information with the IRS. Your corporation can also be protected against any lawsuits because of this corporate privacy; provided, you keep your financial records accurate and provide enough capital for your business. By doing so, you protect your company from any lawsuits against fraud.

Recently, Nevada incorporating gave way to the elimination of joint and several liabilities against defendants with Nevada judgments. In the past, when judgment was given to defendants, each person equally shared the liability for the entire judgment, not taking into account the sole person or persons’ responsibility for causing the damages.

Finally, if you operate your business in another state, and have entered into a number of contracts and agreements, your organization will be given a choice of whether to apply your state laws or Nevada laws. Applying Nevada laws would discourage other parties from suing your company, because of the added costs that would have to be spent in traveling all the way to Nevada for the hearing or trial.

If you are convinced that Nevada incorporating is for you, legal assistance and advice should be sought to ensure that all steps for Nevada incorporating have been accomplished, without missing out on any steps and requirements.


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