Why do many people choose to form their corporation in Nevada?

Although Delaware is by far the most chosen state for business incorporation, Nevada has surged in popularity by introducing corporation-friendly rules.

The top benefits for incorporating are as follows:

  • No state corporation income tax
  • No corporation franchise tax
  • No personal income tax
  • No fees imposed upon corporate shares

Corporate officers and shareholders are not required to be residents; however, be aware that the benefits of registering in another state may be outweighed by the pitfalls. If your corporation will be doing business in your physical state, then you will be considered a “foreign” entity. In order to be able to conduct business in another state, you will need to complete the foreign qualification procedure. Once qualified, the state you are doing business in may require you to pay additional taxes or follow further guidelines.

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