Options For Moving A Small Business To Nevada
Nevada is a very pro-business environment. Taxes are limited and the courts seek to protect small business entities. It is no wonder why many out-of-state small businesses decide to relocate to Nevada. While it is obvious that there are numerous advantages for small businesses in Nevada, the actual procedure for moving an existing small business to Nevada can be difficult to determine.
There are three different ways to bring an out-of-state small business to Nevada:
1. Register as a “Foreign” Corporation:
A small business based in another state can do business in Nevada, but it must first register as a “foreign” corporation. The advantage of this is that the small business can now do business in Nevada. However, the disadvantage is that the small business is still subject to the laws of the state of its incorporation.
2. Dissolve Current Small Business and Form a New Nevada Entity:
Another option is to dissolve an out-of-state entity and then form a new entity in Nevada. This provides the new entity with all the advantages a Nevada business can enjoy. However, there can be tax consequences with dissolution, so it is recommended that you consult with a CPA (in addition to an attorney) before moving forward with this option (or any option).
3. Form a Nevada Entity and Merge/Reorganize with Out-of-State Entity:
This final option is similar to #2, but instead of dissolution, a merger occurs. A merger (or reorganization) allows the full advantages of having a Nevada business entity, but may help significantly with tax consequences. The IRS provides several options for reorganization that have favorable tax implications. If you own an out-of-state small business and want to relocate to Nevada, a merger/reorganization may be the best option.
When looking to relocate an out-of-state small business to Nevada, there are three main options. Depending on your specific situation, a merger/reorganization may be the best option.
Unpaid Interns For Your Small Business: Know The Pitfalls
Unpaid Internships Gaining In Popularity For Small Businesses
Internships, for many, are a right of passage during and after school. Unpaid Internships are also fast becoming a common way for small businesses to evaluate prospective employees before making the commitment of full employment. However, some small businesses are also using unpaid interns in lieu of paid employees, triggering greater scrutiny from state and federal employment agencies. If your small business utilizes unpaid interns, know the rules and stick to them, otherwise, you can face a complaint from state or federal employment agencies.
Requirements For Unpaid Interns
The United States Department of Labor has established its criteria for determining whether an unpaid internship legally exists:
1. The internship is similar in nature to actual training provided to an employee;
2. The internship experience is for the benefit of the intern;
3. The intern does not displace regular employees, but works under the supervision of existing staff;
4. The employer that provides the training derives no immediate advantage from the activities of the inter; and on occasion its activities may be impeded;
5. The intern is not necessarily entitled to a job at the conclusion of the internship; and
6. The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.
Pursuant to the U.S. Dept. of Labor, if all six of the above factors are met, then an employment relationship does not exist, and minimum wage and overtime provisions do not apply to the intern.
Unpaid Intern or Employee?
Unless the above requirements are met, your small business’ unpaid intern is actually an employee and must be treated as such. Thus, he or she must be paid minimum wage and considered an employee for other purposes, including overtime. There is no middle ground with unpaid interns. Either all the criteria are met for an unpaid internship or else you have an employee who must be paid and treated accordingly.