If you are looking for the best location to choose for incorporating your business, there are many reasons to incorporate in Nevada. Nevada corporations are suitable for many different types of businesses, but there are many myths and scams that are spread about the process.
Choosing a Nevada Corporation
There are numerous advertisements extolling the various benefits of incorporating in Nevada. Nevada is known for liberal incorporation laws and tax policies that favor businesses. While Nevada does offer many pro-business benefits, including strong privacy laws, asset protection and tax advantages, there are downsides as well. California law does not require companies to incorporate in their home states, but there are dangers to incorporating outside your home state. California has long established case law that it applies to any corporation doing business in California, which could have numerous disadvantages.
Benefits of Incorporating in Nevada
If you will actually be operating your business out of Nevada, it is generally advantageous to incorporate in the state. If your office is in Nevada, or you have a warehouse in Nevada which you use as your shipping headquarters, Nevada’s favorable laws may apply to your corporation. Nevada corporations do not pay a state tax or an annual franchise tax. In California, any business that does business in the state of California is required to pay a minimum of $800 in franchise taxes. In Nevada, it is extremely difficult for someone to seize your personal assets or that of your shareholders to pursue debt owed by your corporation. The Supreme Court of Nevada has a history of protecting the privacy of Nevada shareholders and directors, even when a corporation does not adhere to basic formalities. Unlike California and most other states, Nevada does not require corporate shareholders to disclose personal information. This means it is possible for shareholders to be nearly anonymous as long as the Nevada corporation does not engage in business in another state.