Nevada is a very small business friendly state for incorporation.
Are you familiar with the real estate adage, “location, location, location?” Well, the same holds true when forming your corporate entity. WHERE you incorporate should be the initial question you answer before determining even which type of entity to form.
For those that reside in Nevada, this should be easy, it is your home state and the most convenient locale. However, there are numerous reasons why you should incorporate in Nevada (regardless if it is a Corporation, an LLC or another entity) besides convenience for residents. Even if you reside outside of Nevada, you should consider making Nevada the origin state for your entity. It is not too difficult to then register your Nevada corporation in another state as a foreign corporation, if that is where you would like to conduct business.
And without further ado, courtesy of the Nevada Secretary of State’s website, the top ten (or so) reasons for incorporating in Nevada:
• No Corporate Income Tax
• No Taxes on Corporate Shares
• No Franchise Tax
• No Personal Income Tax
• Nominal Annual Fees
• Nevada corporations may purchase, hold, sell or transfer shares of its own stock.
• Nevada corporations may issue stock for capital, services, personal property, or real estate, including leases and options. The directors may determine the value of any of these transactions, and their decision is final.
• No Franchise Tax on Income
• No Inheritance or Gift Tax
• No Unitary Tax
• No Estate Tax
• Competitive Sales and Property Tax Rates
• Minimal Employer Payroll Tax – 0.7% of gross wages with deductions for employer paid health insurance
Nevada’s Business Court
• Developed on the Delaware model, the Business Court in Nevada minimizes the time, cost and risks of commercial litigation by:
o Early, comprehensive case management
o Active judicial participation in settlement
o Priority for hearing settings to avoid business disruption
o Predictability of legal decisions in commercial matters
As you can see, there are many great reasons to form your business entity in Nevada. Start your business on the right foot and incorporate in Nevada.