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Advantages of Incorporating a Business in Nevada

Think business, think Nevada! Yes, the state of Nevada is being considered as a state that provides optimum business environment thanks to its flexible business and tax laws. Today there are in excess of 229,570 small businesses operating out of the state with the registering of 5,932 new establishments in 2013-14.

Talk about startup company Nevada and a rise in registration has been witnessed in different areas including Accommodation & food services, Transportation & warehousing, Real estate & rental & leasing, wholesale trade, construction, Management of comp. & enterprises, retail trade, manufacturing, and education services among others.

There are several other reasons why startup company prefer Nevada to other states. This is mostly due to the fact that the state not only offers a strong emphasis on innovation but also ensures you can derive maximum profitability in your business ventures and this is considered key to boosting the state’s economy.

Incorporation in Nevada comes with Several Benefits

People from across the country find it beneficial to register a new business in Nevada. Let us take a look into the various benefits you can derive in the state.

Benefit #1: Freedom from Taxes

Whether you are planning to form an LLC or invest in an LLC, or incorporate a business in Nevada, the biggest benefit you can drive is the tax benefit. Taxes can lower your profits and also slow down overall business growth but when you register a new business in Nevada, you don’t have to pay any state level taxes. These include:

  • State Personal income tax: The constitution of Nevada has prohibited state personal income tax
  • Corporate income tax: Nevada has liberal tax policies and does not tax any foreign or domestic corporations or LLC. Basically, State tax is not levied on corporate profits.
  • State inventory tax: A startup company in Nevada is not required to pay tax on goods that they hold for interstate transit or sale. In fact, the state of Nevada has declared 12 Foreign Trade Zones located across the state that enables corporations to store their goods and ship them tax-free.
  • Gift tax: Nevada tax policies ensure you are able to transfer your assets to anyone without incurring a state tax penalty. In addition to this, the recipient of your assets or gifts is not liable to pay inheritance tax in the state.
  • Franchise tax on income: It may be applicable in other states but not in Nevada.
  • Estate tax: A startup company in Nevada may be required to pay federal estate taxes but state estate taxes will not be imposed on them. This simply denotes you will be able to pass on your assets to your heir as it is.
  • Corporate shares: Corporate stock or shares of members in a limited liability company (LLC) in the state of Nevada is non-taxable.

If you require more information on how to register a new business in Nevada? Get in touch with us today! Our Nevada tax expert will provide in-depth information and guide you through the entire process.

Benefit #2: Privacy standards are very high

If you register a new business in Nevada then you can be rest assured that the privacy levels in the state are extremely high. A Nevada LLC or corporation is not required to list their members or owner/s with the state. This also means that any investor in your business will be able to remain anonymous. In a way, it does take care of the “headache” that state agencies may be snooping into your business.

Benefit #3: Strong Asset Protection

If you are forming an LLC in Nevada then liability will be limited to your company. It doesn’t matter whether you are an officer, manager, or even a director; you will not be held responsible in any way for the liabilities of the company. This protection will only not be applicable if there is an involvement in activities that are unlawful in nature.

At the same time, it is not mandatory for a startup company Nevada or LLC Nevada to file a list of assets of the company or business, with the state. In a way, this assures that there is no record whatsoever of any assets being linked to you except for what you file with the IRS at the Federal level.

These are the foremost benefits that you can enjoy when incorporating your business in the state although there are many more. Here are a few::

  • The corporate veil cannot be pierced in Nevada
  • Bearer shares is prohibited in the state of Nevada
  • You don’t have to reside in Nevada to register a new Company in Nevada

The most common question asked frequently is, what are the disadvantages?

Are there any Disadvantages of Incorporating in Nevada?

Incorporating your business in Nevada does not have disadvantages as such although there is always the possibility of increased administrative costs especially for small businesses. Wondering what problems you may encounter if you want to register a new company in Nevada especially if you are residing in another state? There will be no problem at all! This is where WE come in. We have a team of experts specializing in registering start-up or SMEs and we will ensure you are able to register your business in compliance with Nevada state business laws.

Except for increased administrative costs, there are no visible disadvantages for businesses or LLC in the state of Nevada. The good news is that if you are planning to incorporate in Nevada, we at are always there to not only guide you through the process but also help you save on filing fees and other administrative costs.
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