Knowing the advantage of Nevada corporation can be a great boon to your fledging business. A common assumption is that all states have the same rules and requirements surrounding their incorporation laws, when nothing could be farther from the truth. You can incorporate in any state, and knowing which states are the most advantageous for you to incorporate in can give your business a leg up over competitors.
The first advantage of Nevada corporation is that there is no corporate income tax. It is one of only four states that share this feature. You are facing a large amount of corporate income tax in other states, such as New York – a minimum of 9% tax along with other fees. There are no annual franchise taxes, either.
Another advantage of Nevada corporation is their strict privacy laws, so that you can have complete anonymity and protect your assets. You also get around quite a bit of paperwork in this fashion. Other states require you to keep annual reports, minutes, business locations, and assets values on file and reported. In Nevada, the only thing you need to report are officers and directors. You need only one officer or director as well – corporations don’t have to be huge businesses.
A few more protections to privacy are included in Nevada corporations – they offer bearer shares, which are certifications of stock shares that are credited to the bearer themselves. However, bearer shares can contribute to any number of illegal or problematic actions, so they are best to be avoided. There is also no disclosure to the IRS on your business tax and income, which is a major advantage of Nevada corporation. However, because this attracts people attempting to tax evade, you are more likely to get audited than in other states.
The advantage of Nevada corporation are clear to see, and choosing to incorporate your business in this state can be a great help for your operation. You need not ever step foot in Nevada to incorporate there, and the myriad advantages that this location of incorporation gives cannot be ignored.