Nevada LLC
Corporate Nevada has more than forty years of experience and they can help you form a Nevada LLC for your business. Many attorneys and CPAs alike view the Limited Liability Company as the business for of choice the business owners who are looking for protection from individual liability for company debts, negligence, and breaches of contract with personal liability limited to the contribution and any personally guaranteed loans. They also want the charging order protection and flow through taxation that they will get as long as the LLC is not taxed as a Corporation. In addition, a Nevada LLC offers even more benefits than those in other states.
A Nevada LLC is a hybrid between the corporation and the limited partnership that brings you the best features of both. The LLC protects all of its members, or owners, from individual liability for company debts and misdeeds, much like the corporation. In addition, while a creditor of the corporation can attach corporate stock and gain control of the corporation, a creditor of a Nevada LLC is not allowed to become a member and control the company. They can only receive an income interest in the company.
If the member of a Nevada LLC is sued and a judgment rendered, the creditor only has an income interest of that member. This is called the Charging Order Protection for the LLC and its other members. The creditor may end up with no control in the company and no money if the losing member does not take a distribution and be liable for the members tax liability causing the member to have no control or money and an additional tax liability. This means that the attorneys for the creditor will normally be anxious to settle since it is in the best interest of their clients. The Nevada LLC combines the best of both worlds by offering its members protection from individual liability and, like a limited partnership, will allow others to become a member only if the other members unanimously agree.
The Nevada LLC has a natural tax default so that a partnership or a disregarded entity in the event of only one member. This is what makes it a flow-through entity. The LLC does not pay income tax but income is distributed to the members according to their ownership interests and the members report the income on their individual income tax returns. The Nevada LLC may also be taxed as a corporation in order for its members to take advantage of some corporate tax benefits that include retained earnings. Additionally, with the proper strategy the LLC taxed as a corporation with the proper structure can offer maximum privacy.
The Nevada LLC is governed by its regulations called an operating agreement. The Limited Liability Company is further distinguished from the corporation in that it is not normally required to have annual meetings unless otherwise stated in the operating agreement although prudency would dictate that you have a minimum of annual meetings to ensure good records and accountability are maintained. To learn more about how a Nevada LLC can benefit you and why you should consider Corporate Nevada to help you form your LLC, visit www.corporatenevada.com/
Entrepreneur's Creed
I do not choose to be a common person.
It is my right to be uncommon.
I seek opportunity -- not security.
I do not wish to be a kept citizen, humbled and dulled by having the state look after me.
I want to take the calculated risk, to dream and to build, to fail and to succeed.
I refuse to barter incentive for a dole;
I prefer the challenges of life to the guaranteed existence: the thrill of fulfillment to the stale calm of Utopia.
I will not trade my freedom for beneficence nor my dignity for a handout.
I will never cower before any earthly master nor bend to any threat.
It is my heritage to stand erect, proud and unafraid: to think and act for myself,
to enjoy the benefit of my creations and to face the world boldly and say:
This I have done. For I am an entrepreneur.
Author unknown
Are You A Commingler?
If you are…there’s only one cure, separation! Always separate your safe assets like cash, intellectual property and stock portfolios, from dangerous assets like autos, heavy equipment, rental real estate, etc. For example, it is better to place expensive equipment critical to operations in an LLC and lease it back to the operating company. If the operating company is sued, the income producing equipment is not at risk of being seized in a judgment. Isolating dangerous assets, such as rental property, from one another is also a wise strategy.
