Why choose Nevada to form your new company?

Home FAQs Incorporate in Nevada Why choose Nevada to form your new company?

Why choose Nevada to form your new company?
2009.04.26

Incorporating in the state of Nevada has become an ideal location for small businesses, large companies, real estate investors and consultants nationwide. There are many benefits of incorporating or forming an LLC in the state of Nevada.

The majority of our clients choose Nevada for one of the following reasons:

Protection: They consider the liability protection of a Nevada entity to be worth any added expense of foreign qualification or obtaining nexus. This is particularly true if they operate in an industry that may be susceptible to lawsuits (e.g. children's toys, fireworks, construction, etc.).
Prestige: Nevada has quickly become the state of choice for fast-growing and high-potential companies. The Nevada reputation of being resistant to lawsuits can be intimidating to lawyers who like to file frivolous lawsuits or go after the personal assets of company owners, officers or directors.
Convenience: They have multiple partners in multiple states or they may not know in which state they or their partners will be living in the future. In this case, they choose a Nevada entity for simplicity as sort of a "corporate headquarters" that remains constant instead of moving companies from state to state and having to continually form and dissolve companies in other states (losing your FEIN, credit profiles, complicating taxation and licensing, etc.).
Holding Property or Independent Contractor: A client who simply needs an entity and a bank account to purchase or hold property, accept payments as a contractor or receive investment money will form a Nevada corporation or LLC for this purpose since they are really not "operating a business" in their home state. In fact, many of our clients simply form the company and leave it "on the shelf" until they are ready to engage in business.

Additional things to know about Nevada:

Nevada Corporations and LLC's provide exceptional security, which makes it difficult to pierce the "corporate veil". This makes it difficult for attorneys to go after the company owners, shareholders, officers or directors personal assets in the case of a lawsuit.
Nevada is a business friendly environment with no information sharing agreement with the IRS.
Nevada has no business income tax, personal income tax or franchise taxes.
Officers, Directors and Members are not required to be US citizens or residents of Nevada.
Maintaining a Nevada Registered Agent and filing your Annual List/State Business License are the only requirements for your Nevada entity(Both of which IncorpToday can handle for you).