Incorporate in Nevada
Incorporate in Nevada
Business owners incorporate in Nevada to take advantage of flexible business laws. The state of Nevada is often viewed as a haven for corporations’ due to its advanced and flexible business formation statute, and the fact that there is no state corporate income tax or franchise taxes. Nevada is one of the least-taxed states when it comes to business taxes.
Nevada has been the premier state for incorporating businesses and, to date, millions of businesses have formed corporations or LLCs in the state. The state of Nevada’s legislature and the people of Nevada recognize the importance of keeping the state’s business laws and corporate statutes current, ensuring it will continue to be an attractive home for corporations, LLCs, and all other types of corporate entitles in the future.
Why Should I Use an Attorney to Incorporate in Nevada?
Although Nevada has a fast and streamlined online incorporation process, if you don’t know what you are doing, you could lose a lot of the protections available for you.
There are two main reasons to use an attorney to incorporate in Nevada.
- Knowledge of Nevada Corporate Law: A Nevada attorney such as David Winterton will help ensure that you pick the right corporate entity that best suits the needs of the business and the business owner. He will listen and advise on the different aspects and benefits of each entity type. In many instances when business owners file incorporation in Nevada without advisement from an attorney. However, a skilled business attorney will first go through a detailed series of questions which are used to determine which entity is most beneficial. Once all the questions are answered, if an LLC is the best option, we also will help determine whether to make it a member-managed or manager-managed limited liability company. Still in many other cases, we find that LLC’s are not the best choice for incorporation and we will explain the reasoning for forming a corporation instead.
- Proper Document Creation: David J. Winterton & Associates will create and explain all the documents necessary to get your company up and running including paperwork through the state, federal, and possibly city level. We help all clients understand their by-laws and operating agreements. There are also many complex Nevada laws regarding specific provisions that will be discussed and can be implemented into these agreements.
Hiring an experience attorney like David Winterton gives you the peace of mind knowing that someone who knows the ins and outs of forming a business will ensure that you know what you are doing and why.
Benefits of Incorporating in Nevada include:
- No State Corporate Income Tax, and No Fees on Corporate Shares: The state of Nevada is one of the few states that has no corporate income tax. This saves corporations in our state considerable money which allows them to reinvest profits or distribute them how they wish. In addition to no corporate income tax, there are also, no franchise taxes, and no taxes on corporate shares.
- No Personal Income Tax or Franchise Tax for Corporations or LLCs: If you incorporate in Nevada, you can retain and shelter more of your income. This is because Nevada corporations pays its income taxes at generally lower rates than do individuals. Individual shareholders report and pay personal income taxes only on income from dividends paid by the corporation. In short your Nevada corporation can facilitate the accumulation of personal earnings.
- Legally Protected Liability: Nevada statutes allow for the greatest level of liability protection. There are only two ways that business owners can be held personally liable: fraud or manifest injustice. In addition, corporations with more than two shareholders are protected from creditors. Nevada was the first state to impose this strict limitation and the only method that creditors may collect is if there is a charging order. Once again, it is very important to use an attorney who has experience to help you incorporate in Nevada.
- Shareholders, Directors, or Officers of a Corporation, or Members or Managers of an LLC are Protected (including non-residents): While states such as Delaware allow for protection of directors, Nevada allows for protection to officers as well. Both officers and directors of a Nevada company who operate in an informed basis and act in good faith are fully protected from liability. The only exception to this protection is when there is a case of fraud knowing violation of the law or if there is proven misconduct that is intentional. Unlike Delaware, Nevada directors are also protected from the corporation’s creditors.
- Nevada Business & Commercial Litigation: Nevada Business Courts is its own unique court system. They employ specialized judicial participation and will consider alternative settings for hearings which allow for Nevada businesses to avoid disruption. In addition, decisions made by the Nevada Business Courts create statewide precedent which help businesses understand exactly what to expect if litigation comes before the court.
The law firm of David J. Winterton & Associates covers all aspects of business and transactional matters, business start-ups, corporate formations, corporate governances, reorganizations, mergers and acquisitions, sales of assets, leases, franchising, leverage buy-outs, spinoffs, company formations, partnership agreements, limited liability companies, bylaws, operating agreements, and asset protection. In addition, the firm’s business entity practice covers all aspects of formation and governance of general partnerships, limited partnerships, and limited liability companies.