Company formation, Nevada, USA

Nevada business incorporation: What to know

Nevada business incorporation

When you incorporate a business you are not confined to the state in which you live. In fact you can incorporate your business in any state where the company is physically located. If your business is online then you can register in any state and Nevada remains one of the top two states in which to do this. The state where you initially incorporate your company is thereafter referred to as the “home state”. Regardless of what type of company you incorporate you are subject to the filing fees for the state in which you file your documents for incorporation. You will also have to pay ongoing fees as dictated by state laws for Nevada. Some new business owners think they might save money by incorporating their company in a state which has lower fees even if their company does not conduct any business in that state. However this is not necessarily the case. Companies that incorporate in one state but conduct their business in another state will have to register with the other states for transact business in that state. For example: if you want to open and operate a company in your home state of Kansas but you incorporate in Nevada to save money you will end up having to pay more to conduct any business in Kansas. This is true of all business types including C corporations as well as S corporations, limited liability companies, limited partnerships, and non-profit corporations.

Nevada remains one of the most popular states for small business owners looking to incorporate because it offers a myriad of unique advantages compared to other states. If you form an LLC or corporation in the state of Nevada you will receive many benefits. The first benefit is that the state of Nevada has no state corporate income tax. There are also no fees imposed on corporate shares in the state of Nevada. Another benefit to incorporating in Nevada is that there is no franchise tax for any corporation or personal income tax for any LLC. There are initial fees and annual statement fees, as well as business license fees, but that is all. In addition, if you form an LLC in the state of Nevada your members and/or managers do not need to be residents. If you form a corporation your directors, officers, and/or shareholders do not need to be residents. This makes the state of Nevada a very appealing option especially for foreigners looking to incorporate in the United States.

If you decide that you want to create your company in the state of Nevada but conduct your business in another state, be advised that you will need to apply for foreign qualify for the state in which you will conduct your business. This means you pay for a permit that enables you to conduct business across state lines in another state from your “home state”. If any question arise about this process it is best that you speak with a qualified attorney on the matter.

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