For many years, Delaware has enjoyed hosting the largest number of corporations 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.

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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