Nevada is one of the best places to incorporate your business. Different kinds of businesses flourish well in Nevada and it is time you find out all you need to know about incorporating there.
Choosing a Nevada Corporation
It is important that you know the benefits that come along with when you incorporate in Nevada. The state has various laws and tax policies that are conducive for businesses. Other business benefits that you will enjoy in Nevada include tax advantages, asset protection and strong privacy laws. The laws in Nevada do not require companies to incorporate in their home states.
Benefits of Incorporating in Nevada
If you are considering operating your business in Nevada, it is important that you incorporate here too. Similarly, if you have a warehouse or office forth purpose of having a shipping headquarters, the conducive laws in the state may also apply to you. Corporations in Nevada do not pay state tax or annual franchise tax. This is so much better compared to California where any business operating there has to pay $800 franchise tax at the least.
To incorporate in Nevada provides security to your assets I the case of unpaid debts because it is impossible for a creditor to collect your assets if you cannot pay on time. There is ultimate protection of the privacy of Nevada shareholders and directors. The privacy extends to those incorporations, which do not adhere to basic formalities too. Most states inclusive of California require corporate shareholders to disclose personal information but this is not a requirement for Nevada. This provision allows shareholders to remain anonymous as log s they want and provided that the corporation does not start business in another state.
The Loss of Benefits When a Nevada Does Business in California
If you incorporate in Nevada, any business engagements in other states like California may be the cause of loss of certain advantages. Once you start business activities in California, you will have to register in the state as per the laws stipulated. If you form a business venture in California, it will have to conform to California Business Practices.
If your business does not qualify under these business practices, there are penalties that you will face and this is bad for business. You can register your Nevada Corporation in California by first paying a Franchise tax, disclose the directors and officers and apply for a business license. Disclosing offices and directors is the kind of privacy Nevada offers which you will not find in California. Apart from these, your corporation in Nevada is required to file two tax returns in both states. The implication of this is that if your corporation stops doing business at any point, you will need to file two income tax returns in order to stop business running in both states. Clearly, California is restrictive and limiting in business laws and terms and it is even more restrictive for foreign corporations.
Why You Should Incorporate In Nevada
You will enjoy various advantages if you incorporate in Nevada
- Asset Protection
Asset protection is an important part of business. If you have many assets, for example with $50,000 and above you cannot put these assets at any risk since the loss will be difficult to recover.
- Incorporating in Nevada offers your assets protection because a lawsuit ca destroy all your assets
Incorporating in Nevada limits exposure of your assets to losses. Incorporating also helps to set apart corporate activities from your personal assets. In Nevada, you receive extra protection on your assets because litigants and creditors have no access to your assets. Your assets receive protection because they are separate from your incorporation expect if you are involved in fraud.
- No Minimum Capital Requirements
You will realize that you can incorporate in Nevada very cheaply because unlike other states that require the business to have a minimum of $1000 capital, Nevada does not.
- One Person Requirement
In Nevada, a single individual can operate as the President, secretary, treasurer and director of the corporation. Other state usually require a minimum of three officers and directors. Nevada gives you the option of operating the business by yourself.
- No Need to Travel to Nevada
For you to operate a business in Nevada, you do not need to travel to Nevada. You can form a business entity using mail, phone, fax and you do not have to visit Nevada even if you are incorporating here. You can hold your meetings anywhere in the world so having a business in Nevada is very convenient.
The above will help you to understand better what it means to incorporate in Nevada. It will assist you to have a clear outlook on the benefits you will get by incorporating there. Consult an attorney for further advice and instructions on incorporating. They will give you the pros and cons of incorporating in your home state and of incorporating in Nevada, and from there you can choose where you prefer. The attorney should also help you understand the laws that will affect your incorporation and this will assist you to make the right choice.