A corporation in Nevada is a corporation contracted under the U.S. state of Nevada laws.
Nevada, similar to the state of Delaware, is acknowledged as a corporate sanctuary. Several major corporations are Nevada chartered, specifically corporations whose headquarters are situated in California and other States in the Western hemisphere.
Many company owners want to learn about the steps on how to incorporate in Nevada. The chief reason for this is that, generally, in the U.S., a corporation which runs in more than one country or state has a specific state where is it incorporated and where it is considered as a domestic corporation. In other places where it opens its business and has filed necessary documents to be permitted to operate, it is known as a foreign corporation, and the prerequisites for corporate governance in case a lawsuit arises do not employ the law where the corporation is prosecuted, but rather, the policy where the corporation is deemed as a domestic corporation. Nevada furnishes certain benefits to U.S. citizens over Delaware.
So why should you incorporate in Nevada?
Nevada’s flexible statute provides companies with numerous advantages of issuing stock. Nevada is predominantly attractive to privately held companies because of its default provisions, which are for the most part constructive and beneficial to management. On the other hand, critics of the corporate law of Nevada deem that its provisions as well as its state courts are very friendly and accommodating to corporations to include their managers at the expense of the rights of the shareholders.
If you are wondering why do companies issue stock and would like to perform incorporating in Nevada, the primary reason is that the laws of Nevada present flexibility to the board of directors in administering the corporation’s affairs, and authorize management to establish strong protection from aggressive takeovers. It also offers very strong protection against obstructing the corporate veil, wherein the owners of the corporation may be held liable for actions of a corporation.
Nevada’s tax benefits recompense the costs of going public of a privately held company. Nevada does not consent the corporations to incur franchise tax, personal income tax, and corporate income tax.
However, even though Nevada takes pleasure in promoting that there are “no corporation taxes” in their state, you should note that there is a yearly $200 “business license fee” which is reimbursed to the Nevada Department of Taxation in some instances. In actual fact, Texas and Nevada are the only states that do not encompass information sharing agreements with the IRS.
Steps to Incorporate in Nevada
Before anything else, it’s critical to obtain investment advice first to ensure that you are going on the right path.
- Visit the website where you prefer to complete the registration of your company. The Nevada incorporation website is a component of the Nevada Secretary of State website.
- Find out if your desired business name is available. You should understand that you will be proscribed from using the name of a company that is incorporated already. Thus, you must know if the name you want to employ for your business is still available.
- To reserve a company name, you should choose the “Name Reservation” link, which you can locate under Business Services’ link. Nevada necessitates you to establish an online account to be able to reserve a company name. The fee is set at $50. If you don’t want to reserve the name, you may continue looking for its availability by selecting “Business Entity Search” located under the Business Services on the webpage’s left side. Place the name that you want to operate your business under and select the “Search” button. If you can’t find other businesses using the same name that you wish, you can use such freely.
- Look for a registered agent. Note that every new company must have a registered agent currently living in that state who can accept documents like “service of process”. You must include your registered agent on your incorporation forms. There are no set qualifications for this task except residency, the awareness of the person that he or she must receive service for your company, and ensure that such service is submitted or forwarded to you in a timely manner.
- Complete the business registration process. Search for “Forms and Fees” section located on the page’s left-hand side. Once you have chosen that link, search once again on that part and look for the “organization type” that is appropriate for your business. Select the correct type, and comply with the instructions on the following page to complete the steps on how to incorporate in Nevada.