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Yes, with full Nevada Nexus you can take advantage of everything Nevada has to offer, including running your company from anywhere in the world.
Nexus involves the type of presence a company has in a state. There are many rulings on the issue (too many to name all here) such as Quill v. Epitaph, National Bella Hess v. Illinois Dept. of Revenue, Complete Auto Transit v. Brady, Shafer v. Hinter, Illinois et. al. v. Oklahoma Tax Commission just to name a few. This can make it confusing to understand and several cases have gone to the U.S. Supreme Court for interpretation and disposition. The cost of defending such a case could financially ruin a small company even if it has done everything right and could prevail.
To understand nexus, there are typically four parts; judicial nexus in the formation state, management nexus evidenced on public record, operational nexus where an insurable office headquarters with staff working for the company is located, and residency nexus of the owners. For non Nevada residents without full Nevada Nexus, the management, operational and foreign residency nexus typically requires foreign registration of the Nevada company in the owner's state under multi-state taxation laws.
Full Nevada Nexus provided by Corporate Nevada can mitigate many of these issues by consolidating the judicial and management nexus with operational and staffing nexus so the residency nexus is not an issue; similar to residency rules of ownership of a public company. Without full nexus a Nevada company with only a kit and Agent for judicial nexus where the owner is from another state, the multi-state taxation rules typically require the company to be registered in the owners state.
Nexus is not typically a Nevada issue except for banks and casinos. It is an issue for other states looking for sources of taxation revenue. Without full Nevada Nexus the company's nexus and locus of control is shared with the owner's residency state and foreign registration, regardless of commerce, is typically mandated by multi-state statute taxation laws.
In the absence of full Nevada nexus and Nevada management, failure to comply with multi-state nexus and taxation rules can create legal and financial hardships for the Company and it's Owners personally. Additionally, Privacy, Protection and Tax Advantages are compromised.
The following edited excerpt was written by a California CPA (Williams), who is on the state CPA licensing board, and provided courtesy of "Look Smart" articles. The CPA's comments are typically true of Nevada companies with out-of-state owners that do not have Corporate Nevada's Nexus. The same is true for any state looking to tax it's resident owners.
Edited Article Excerpt: (Williams, Cal CPA/Look Smart Articles) "With California resident ownership, California will take the position that management control is exercised in California. The only way to avoid California (or any state) nexus for the Nevada company would be to have all board meetings outside of California (in Nevada); the company records, including accounting, would have to be maintained outside of California (in Nevada) ; and every time there was a purchase or sale of a security, it would have to be executed outside of California (in Nevada), irrespective of where the brokerage house is located".
As stated by the CPA above, in order to properly form a substantiated Nexus base in Nevada with a compliant company that will not require foreign registration the following minimum requirements should be met:
**CAUTION: Item 2, Be Aware, Leases are required to be in appropriately zoned areas. Avoid Nexus scams with office leases offered at residential addresses. This direct zoning ordinance violation can have negative legal & financial consequences.
Do
You Need to Register Your Nevada Company
1) Yes, if you choose not to meet the full Nevada Nexus requirements your residency state will share nexus and needs to be registered in that state to avoid tax and protection problems as well as the ability to collect debts.
2) Yes, in any state in which you create a physical branch conducting commerce or need professional or service licensing in that state. NOTE: Registering a Nevada Company in another State may reduce tax advantages but offers the best protection & privacy.
Should you decide to conduct commerce in other states, your Nevada Nexus Headquarters makes it easy and affordable to set up multi state branch locations while maintaining the best of privacy, protection and tax advantages available through Nevada with your essential records and accounting service.
Don't throw good money after bad. Registered Agents & Kit formations are not enough for Nexus. Discover what a Registered Agent's function is and why Registered Agents with Kits, forms, etc. are not enough for a true Nexus pursuant to Statutes NRS 78.090 & NRS 86.231.
NOTE: There are always required procedures, records and nexus. The question is, will they be established properly in Nevada where it is in your best interest or by default with the courts and tax authorities in other states where it is in their best interest? Do It Right with Corporate Nevada Nexus.
Plan your strategies and incorporate with Corporate Nevada, the success and safety of your future depends on it.
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