In last week’s post we outlined some of the tax benefits afforded to businesses that incorporate in Nevada. Next, we will evaluate the some of the privacy advantages protections afforded to officers, directors and stockholders of Nevada corporations. In general, Nevada has minimal reporting and disclosure requirements which translates to greater privacy. Moreover, the Supreme Court of Nevada has consistently taken a strong stand in the protection of corporate privacy, even when a corporation fails to adhere to basic corporate formalities. Nevada does not have a formal information sharing agreement with the IRS. This may protect you from a discrepancy between information contained in a state and federal computer. However, it should be noted that a foreign corporation’s home state may exchange information with the IRS such as Delaware who reports tax information obtained from the business entity to the IRS.
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