Monday
May232011
Is Nevada LLC Formation Right For You?
Monday, May 23, 2011 at 12:11PM
Is Nevada LLC Formation Right For You?
Is Nevada LLC Formation Right For You?
Forming a limited liability company, especially in Nevada, is probably the best way that you as a small business owner can go about operating your business. While you do have other alternatives, Nevada LLC formation has too many advantages to just ignore. A limited liability company offers you and your business partners or investors (if you have any) protection of your personal assets from seizure if the company becomes unstable of if it is unable to pay its debts. Your liability extends only to what you initially have invested in the company no matter what the company’s debt amount might be.
Nevada LLC formation also gives you the benefit of being able to take advantage of Nevada’s loose tax laws. You aren’t required to pay personal income tax to the state (you’ll still owe Uncle Sam his federal income tax, though) and there isn’t a corporate tax in Nevada, either. They levy what is called a ‘Franchise Tax’ or a ‘receipts tax’ which is a small percentage of the total sales that your company does minus the cost of the stock (supplies) that the company bought and used for the year. The amount that you end up paying for the franchise tax is decidedly less than the corporate income tax you would be required to pay in almost any other state in the country.
If you are interested in doing business in a way that will offer you protection of your assets as well as allow you to take advantage of a number of fine tax benefits, then Nevada LLC formation is absolutely perfect for you. You don’t even need to live in Nevada to start a limited liability company and enjoy all of the benefits. As long as you have a registered agent with a legal mailing address then you can form a limited liability company in Nevada
Is Nevada LLC Formation Right For You?
Forming a limited liability company, especially in Nevada, is probably the best way that you as a small business owner can go about operating your business. While you do have other alternatives, Nevada LLC formation has too many advantages to just ignore. A limited liability company offers you and your business partners or investors (if you have any) protection of your personal assets from seizure if the company becomes unstable of if it is unable to pay its debts. Your liability extends only to what you initially have invested in the company no matter what the company’s debt amount might be.
Nevada LLC formation also gives you the benefit of being able to take advantage of Nevada’s loose tax laws. You aren’t required to pay personal income tax to the state (you’ll still owe Uncle Sam his federal income tax, though) and there isn’t a corporate tax in Nevada, either. They levy what is called a ‘Franchise Tax’ or a ‘receipts tax’ which is a small percentage of the total sales that your company does minus the cost of the stock (supplies) that the company bought and used for the year. The amount that you end up paying for the franchise tax is decidedly less than the corporate income tax you would be required to pay in almost any other state in the country.
If you are interested in doing business in a way that will offer you protection of your assets as well as allow you to take advantage of a number of fine tax benefits, then Nevada LLC formation is absolutely perfect for you. You don’t even need to live in Nevada to start a limited liability company and enjoy all of the benefits. As long as you have a registered agent with a legal mailing address then you can form a limited liability company in Nevada
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