Nevada has always been one of the most popular states for forming your company. Even though it doesn’t have the lowest incorporation fees and annual fees, it has plenty of advantages for businesses. Among these advantages, the most important ones are taxes, privacy of business owners and corporate law in Nevada.
Taxes for corporations in Nevada
Nevada takes it really seriously with attracting new businesses because of taxes. There are plenty of taxes which you have to pay in other states, but not in Nevada. Here are the main tax advantages of this state:
- No Corporate Income Tax
- No Taxes on Corporate Shares
- No Franchise Tax
- No Personal Income Tax
- No Franchise Tax on Income
- No Inheritance or Gift Tax
- No Unitary Tax
- No Estate Tax
- Competitive Sales and Property Tax Rates
Privacy and assets protection in Nevada
Similar to Wyoming, Nevada offers great advantage of protecting business owner’s assets, and keeping them pretty anonymous. If you incorporate in Nevada, you won’t be listed in public records. Also your personal assets are protected and creditors can’t go after your house, bank accounts, etc.
Corporate law in Nevada
The state of Nevada saw enormous success of Delaware and their business law system. That’s why Nevada’s business law model is inspired by Delaware, and there is Nevada’s business court which is focused on business cases. This gives business owners the confidence that in case someone decides to sue their company, the case will be decided by experienced judges in a judicial system which is in favor of businesses.
Additional Advantages of Incorporating in Nevada
- Stockholders, directors and officers need not live or even hold meetings in Nevada, nor be U.S. citizens.
Directors need not be stockholders.
- Officers and directors of a Nevada corporation can be protected from personal liability for lawful acts of the corporation.
- A Nevada corporation may purchase, hold, sell or transfer shares of its own stock.
- A Nevada corporation 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.
- Your company must be located and doing business in Nevada to get the full advantages of Nevada’s business-friendly environment.
- No IRS information sharing agreement
- Minimal reporting and disclosure requirements