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May232011
Reasons to Incorporate Nevada
Monday, May 23, 2011 at 12:33PM
Reasons to Incorporate Nevada
Starting a business is a serious business (no pun intended). There are a lot of important decisions that you have to make to ensure that your business is started properly so that it will function correctly from its inception. One of the most important decisions that you’ll have to make is whether or not you want to incorporate or operate as a sole proprietorship or partnership. If you live in Nevada, there are numerous reasons why you should form a corporation for your business. You will find that there are some very significant advantages to be had when you incorporate Nevada.
Perhaps the most valuable advantage to be had when you incorporate Nevada is that you won’t have to pay any income tax. Nevada does not require its citizens to pay personal income taxes on income that they earn in the state. The same is true of corporate taxes. Corporations that operate in Nevada don’t have to pay income tax, however there is a ‘franchise tax’ that is paid on the amount of income a corporation generates in a year. This tax is considerably less than what the corporate income tax would be in most other states so you will still be saving money.
Also, when you incorporate Nevada you are in essence creating a new entity (your business) that is separate from yourself. What this means is that you have a good amount of protection for your personal assets in case the business doesn’t do so well. If your corporation is involved in a lawsuit, your personal assets are safe from seizure and any debts or judgments against the company are the company’s sole responsibility. You as the owner and any officers or shareholders will not be legally held responsible for the debts of the corporation, in most instances.
Starting a business is a serious business (no pun intended). There are a lot of important decisions that you have to make to ensure that your business is started properly so that it will function correctly from its inception. One of the most important decisions that you’ll have to make is whether or not you want to incorporate or operate as a sole proprietorship or partnership. If you live in Nevada, there are numerous reasons why you should form a corporation for your business. You will find that there are some very significant advantages to be had when you incorporate Nevada.
Perhaps the most valuable advantage to be had when you incorporate Nevada is that you won’t have to pay any income tax. Nevada does not require its citizens to pay personal income taxes on income that they earn in the state. The same is true of corporate taxes. Corporations that operate in Nevada don’t have to pay income tax, however there is a ‘franchise tax’ that is paid on the amount of income a corporation generates in a year. This tax is considerably less than what the corporate income tax would be in most other states so you will still be saving money.
Also, when you incorporate Nevada you are in essence creating a new entity (your business) that is separate from yourself. What this means is that you have a good amount of protection for your personal assets in case the business doesn’t do so well. If your corporation is involved in a lawsuit, your personal assets are safe from seizure and any debts or judgments against the company are the company’s sole responsibility. You as the owner and any officers or shareholders will not be legally held responsible for the debts of the corporation, in most instances.
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