Guys, have you noticed that every large company is incorporate in Nevada, if you have noticed that have you ever wondered why? The short answer is because our federalist system creates competition among states and free flowing commerce through the states. Nevada incorporation can provide a great many advantages and protections to your business. When you form an LLC (limited liability corporation) anywhere in the country, you are literally limiting your liability to that of the business, thus protecting your own private, personal assets. However, having a Nevada LLC has additional benefits, include lower fee structures and the absence of a sales tax.

Nevada has actively changed its corporate laws to target companies incorporated in Delaware. Nevada has acted to reduce corporate taxes and make the laws more manager friendly. It is almost impossible for an officer or director of a Nevada corporation to be held personally liable for their business actions. Only twice in the last 20 years has a Nevada court ‘pierced the corporate veil’ of limited liability.

According to the website of the Nevada Secretary of State, a Nevada LLC is not assessed many of the taxes that those who incorporate online in other states may be assessed. These include franchise taxes as well as unitary and estate taxes, should you choose to transfer the business to heirs.

Another reason for incorporate in Nevada is the low fees. If you form an LLC in Delaware, it will cost you a minimum of $380 per year to maintain your charter, and this figure can go much higher as your business expands and revenues increase. Nevada incorporation means that you’ll pay much less each year for such fees.

Leastly, as we know, a business that has Nevada incorporation status can legally issue stock in order to raise capital as well as for the purchase of personal property or real estate – or for taking out a lease or option on the same. When your company chooses to incorporate in Nevada, it may hold, sell and transfer shares of its own stock as well.