Â Like Delaware, Nevada has very loose incorporation laws to attract more business.Â Some of the advantages are that it allows bearer stock, offers privacy to corporate participants, has no state income tax, and they do not share information with the Internal Revenue Service.Â
Â If you’re filing in Nevada or another state in which your business is not located, then you’ll have to have an agent or office in that state so that you can register as a foreign corporation doing business in your state.
Â There are some drawbacks to doing this – such as the expense and complications that come with registering out-of-state.Â If your corporation ever gets sued, they’d be suing you based in the state in which you filed your corporation, which could be costly if you have to fight the lawsuit from out-of-state.
Â The Secretary of State has launched a campaign to make people aware of the advantages of incorporating in Nevada.Â Here’s what’s on their list:
* No corporate income tax
* No tax on corporate shares
* No franchise tax
* No personal income tax
* No capital stock tax
* No inventory tax
* No I.R.S information sharing agreement
* Nominal annual fees
* Minimal reporting and disclosure requirements
* Stockholders are not public record
* Stockholders, directors, and officers do not need to hold meetings in Nevada
* Stockholders do not need to be U.S. citizens
* Directors do not need to be stockholders
* Officers and directors can be protected from personal liability for lawful acts of the corporation
* Corporations can buy, hold, transfer or sell its own stock
* Corporations can issue stock for capital, services, personal property, or real estate, including leases and options, and directors can determine the value for these transactions.
Not every state will have all of these advantages – some won’t have any of them.Â Others might have a few.Â You need to decide what’s important to your corporate success strategy and then make a final decision on where to incorporate.