NEVADA VS. DELAWARE: 2011 STATE BUSINESS TAX CLIMATE INDEX

The 2011 State Business Tax Climate Index, published by the Tax Foundation, ranks Nevada as the state having the fourth best business tax climate in the United States. The 2011 Business Tax Climate Index provides additional evidence as to why Nevada is preferable to Delaware (plus the states that ranked 1-3) as your state of incorporation.

While Delaware was ranked a very respectable eighth in the nation by the Business Tax Climate Index, its Corporate Tax Index Ranking (a component of the overall ranking) of 49 - the second worst in the United States - should give business owners pause. In Delaware, corporations pay corporate income taxes to the state at the rate of 8.7% of their net income. Nevada, on the other hand, imposes no corporate income tax at all, allowing business owners to use their companies' income for reinvestment and other opportunities rather than paying the state.

Which states ranked 1-3 above Nevada? South Dakota, Alaska and Wyoming, respectively. Consider the population base, weather and remote locations of these top ranking states. Consider further those attributes of Nevada: Extraordinary weather; urban centers of Las Vegas and Reno offering world class dining, shopping, accommodations and convention space; Las Vegas as home to the seventh busiest airport in the nation; Reno serving as an industrial transport and warehousing hub to the California Bay Area and Pacific Northwest; Las Vegas as the hub of spokes to Southern California, Phoenix and Salt Lake City. While the Business Tax Climate Index ranks Nevada as fourth in the nation, a consideration of the higher ranked states and the attributes the index did not measure, proves that the clear choice is Nevada as the home for business.

Global Business Lawyers takes pride in its representation of businesses and business owners from across the country and around the world in their efforts to incorporate in and establish their U.S. headquarters in Nevada.

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