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Learn about Nevada
For many years, Delaware has enjoyed hosting
the largest number of incorporations out of 50 U.S. states.
In fact, for a long time, there was a widely held belief that
Delaware was the only first-rate place to incorporate a business
– a perception cultivated as a result of more than half
of U.S. public companies and Fortune 500 companies being based
in that state.
Recently, however, some of the other states have started a
campaign for attracting businessmen to their own region. Some
have even established businesses in Delaware itself, to publicize
to interested parties, the advantages that can be found in
alternative states and what the states can offer in terms
of incorporation there.
One of the major states among these is Nevada – and
it has also established a site in Delaware to attract owners
and shareholders to invest in land there. The state’s
aim is to gain a larger number of incorporations and LLCs
for Nevada.
So what can Nevada offer a business? There are certainly a
number of advantages, as follows:
- Just like Delaware, Nevada does not have income
tax imposed by the state.
- On corporate shares, for a domestic company, Nevada
does not enforce any fees.
- One of the important plus points for Nevada is
that franchise tax is not applicable to corporations
and LLCs based there.
- The owners of the businesses are exempted from
personal income tax.
- The owners of the business can enjoy a certain
level of anonymity, as the state of Nevada is not
bound to share the information with the Internal Revenue
Service (IRS).
- Even if the shareholders, the officers or the directors
of the corporation or LLC are not legal residents
of Nevada, they can have their corporation or LLC
functioning there fully.
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The bigger corporate companies or LLCs often
try to spread their respective businesses to the other states.
This can be done only if the company foreign qualifies for
each other state – and the necessary fees and documents
must be submitted to the state in question before foreign
qualifying can take place for that state. If a company is
conducting its business in Nevada from some other state, it
still needs to foreign qualify. Without this procedure, it
does not have a valid existence in Nevada.
Before establishing a company in Nevada, it’s wise to
enquire about the ongoing cost and fees for doing business
in other states – and this budget must be included in
your final financial plan.
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