Best Reasons to Do Business in Nevada - Part 8 - Entity Flexibility

CORPORATE FLEXIBILITY

In last week’s post we outlined some of the privacy benefits afforded to Nevada corporations. Next, we will evaluate the great flexibility Nevada corporations enjoy relating to (1) the ownership and transfer of property, (2) the filing requirements and in (3) the management of the corporation. First, in regards to stock, Nevada corporations may issue stock for capital, services, personal property, or real estate including leases and options. Further, in contrast to Delaware, Nevada allows unlimited stock of any par value. In addition, Nevada corporations may purchase, hold, sell or transfer shares of its own stock. Moreover, Nevada corporations can guarantee, hold, sell, assign, transfer, mortgage, pledge or otherwise dispose of shares or its capital stock, or any bonds, securities, or evidence of indebtedness. Further, Nevada entities can purchase, hold, mortgage and convey personal property and real property anywhere in the world.

Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.

Best Reasons to Do Business in Nevada - Part 7 - Non-Disclosures

INCORPORATING IN NEVADA

Regarding disclosure requirements, a Nevada business license does not require the disclosure of shareholder information. In addition, only the director and the resident agent are disclosed as a matter of public record in Nevada. In addition, Nevada corporations are not required to report the number of shares issued and outstanding. In contrast, this is required in Delaware. Also, in contrast to Delaware, in Nevada a corporation does not have to disclose its principal place of business outside of Nevada.

To find out more information regarding the benefits to incorporating in Nevada visit the Nevada Secretary of State Website at http://www.whynevada.com/ or contact us at globalbusinesslawyers@lovaas-lehtinen.com

Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.

Best Reasons to Do Business in Nevada - Part 6 - Tax Benefits

Tax Benefits to Incorporating in Nevada

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.

Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.

Best Reasons to Do Business in Nevada - Part 5

Tax Benefits of Incorporating in Nevada

Furthermore, Nevada has no (1) inventory tax (2) estate tax (3) inheritance or gift tax or (4) state tax on corporate shares. [1] In addition, to the above tax benefits Nevada enjoys both competitive sales and property tax rates. Further, sales tax is only applicable to transactions within the State of Nevada. Businesses in Nevada also enjoy a minimal payroll tax equal to .7% of gross wages with deductions for employer paid health insurance. [2] Nevada corporations do not have to file state tax returns.[3] However, in order to determine the specific tax incentives and/or ramifications for your business entity it is important to consult with your CPA or accountant.
[1] http://www.whynevada.com/commercialrecordings/taxadvantages.asp

[2] http://www.whynevada.com/lowtaxclimate/.

[3] http://tax.state.nv.us/documents/No%20Nevada%20Income%20Tax%2003%2011%2009.pdf

Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.

Best Reasons to Incorporate in Nevada - Part 4

INCORPORATING IN NEVADA

It is important when deciding what state to incorporate your business to take into consideration the tax benefits and/or ramifications for incorporating in that particular state. Notably, Nevada provides businesses substantial tax benefits. Significantly, Nevada has no business income tax. [1]
In contrast, Delaware has a business income tax at a rate of 8.7%.[2] Additionally, Nevada has no franchise tax. [3] In contrast, Delaware has a significant franchise tax which varies depending on the number of shares issued and can range from a minimum tax of $75.00 with a maximum tax of $165,000.00. [4]
[1] http://www.whynevada.com/commercialrecordings/taxadvantages.asp
[2] http://revenue.delaware.gov/services/Business_Tax/FilingCIT.shtml
[3] Id.
[4] http://corp.delaware.gov/paytaxes.shtml

Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.

Reasons to Incorporate in Nevada - Part 3

INCORPORATING IN NEVADA

According to the U.S. Census Bureau, Nevada is one of the fastest growing states.[1] This growth translates to a greater earning potential from businesses in Nevada. In addition, according to the Small Business Entrepreneurship Council’s Small Business Survival Index 2008, Nevada is ranked number two, which makes Nevada an attractive state for small business owners to not only incorporate in, but to also maintain longevity.[2] For more information on the reasons why you should incorporate in Nevada, visit the Secretary of State’s website at http://www.whynevada.com/.

[1] http://www.census.gov/Press-Release/www/releases/archives/population/013049.html
[2] http://www.sbecouncil.org/news/display.cfm?ID=2957

Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.

Best Reasons to Incorporate in Nevada - Part 2

INCORPORATING IN NEVADA

Company formation can be eased through statutory “organizers” such as an attorney, accountant, or registered agent, which allows a business owner to focus on running the business while a professional takes care of the formation.[1] This blog and following entries will center on some of the general reasons why Nevada is an attractive state to incorporate for all business types. First, Nevada has a long history of maintaining a pro-business attitude. Nevada remains the second most popular commercial filing jurisdiction in the country, which can be attributed to Nevada’s favorable business climate and low tax environment. [2]
[1] http://www.whynevada.com/commercialrecordings/entrepreneurial.asp

[2] http://www.whynevada.com/commercialrecordings/

Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.

First Anniversary

Happy First Anniversary to Lovaas & Lehtinen, P.C.!!!

Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.