Why should I incorporate? Call 1-800-344-1294 for Details.

All legal and tax professionals agree, if your business is not incorporated you may be throwing away thousands of dollars in tax savings and deductions. In addition, all of your Personal and Family assets such as your home, cars, boats, savings and investments are at risk and could be used to satisfy any law suits, debt or liability incurred by the business. Forming a Corporation can provide the protection and tax savings needed to give you peace of mind and make your business even more manageable, successful and profitable.

Some of the Benefits include:

• Liability Protection: Properly forming and maintaining a corporation will provide personal liability protection to the shareholders and their families of the corporation for any debt or liability incurred by the business. Personal liability of the shareholders is normally limited to the amount of money invested in the corporation unless the original capital has already been returned in which case their may be no personal liability. The Nevada Statutes state that no shareholder is the appropriate party to any lawsuit and all officers are indemnified.
• Tax Advantages: Another important benefit is that a corporation can be structured many ways to provide substantial tax savings. You can minimize self-employment taxes and increase the number of allowable deductions lowering the taxes you pay on the income of the business. Many corporations structure retirement and tax deferred savings plans for their owners and employees which can provide even greater tax savings. In Nevada there is no Corporate Tax or filing of a tax return except for Casinos and Financial Institutions.
• Privacy: Douglas County Nevada offers the most privacy available in the USA. A benefit that is becoming increasingly difficult secondary for the need of the Patriot Act. Except for a Nevada or Federal Court order the Corporate Statutes in Nevada are designed for maximum privacy & protection to insure the anonymity of shareholders and certain officers.
• Raising Capital: Sale of stock for the purposes of raising capital is often more attractive to investors than other forms of equity sales. A corporation can also issue Corporate Bonds to raise capital for expenditures without compromising the ownership of the business.

Nevada has become well known as a US Corporate Haven among business planners, attorneys and accountants. Experts in the fields of asset protection, privacy, and tax strategies have come to know Nevada as "AMERICA'S TAX HAVEN." Nevada received a "Perfect 10" score from the Tax Foundation for its Corporate tax structure. Nevada has no Corporate tax or filing.

Nevada's privacy, liability protection and tax status for corporations have made it the clear choice as the preferred state for incorporating privately held businesses. Nevada has written into the State Statutes (Law) the strongest Corporate veil protection available and Nevada Judges have a history of not "piercing the veil". Those are just a few reasons Nevada now ranks Second in the Top Ten States with the largest number of incorporations. That's impressive for a state ranked 37th in total population. Delaware has the most due to the large concentration of publicly traded companies.

Nevada's pro-business attitude has resulted in MSN Business News, INC. Magazine, Money Magazine, and a host of others ranking it # 1 among all states for its favorable business climate. Nevada has the best Corporate Veil protection available and has clearly established itself as the "Corporation Capital of the West". Nevada continues to set new incorporation records every year.

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Is Delaware better than Nevada for Privacy, Protection & Taxes?
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No, not for privately held Corporations or LLCs. Delaware has taxes and private information reporting. Delaware is popular for public offerings secondary to its transparency and because its laws give more power to the public shareholder; typically a requirement for large Institutional Investors to buy stock in the company. Nevada gives the power to the private owner/shareholder and offers much greater Privacy, Protection & Tax Strategy benefits.

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What is a C corporation ? Call 1-800-344-1294 for Details.

The "C" Corporation is still the most common form of ownership. It is a separate and legal entity that offers the greatest flexibility with respect to ownership and the free transferability of ownership interest. Although a "C" Corporation allows for many advantageous tax deductions and benefits, small business owners may be at a disadvantage due to the double taxation associated with a "C" Corporation. Income is first taxed at the corporate level at corporate tax rates. Then when the corporation issues dividends to its shareholders, the same money is taxed again at the shareholder level. The result is that the same income generated by the corporation is being taxed twice. Still, the popularity of the "C" Corporation is largely due to its overall recognition and acceptance in our society. Review Corporate Tutorial.

• Advantages
  Limited liability protection, unlimited life, easy to raise capital, complete flexibility of ownership, may have various classes of stock, free transferability of ownership and tax benefits allowing for certain health and life insurance deductions.
• Disadvantages
  Governmental regulations, double taxation, must maintain corporate formalities such as annual meetings and other resolutions. Also, Stock is personal property and could be transferred from an owner to a creditor with a court order.

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What is a Subchapter S corporation? Call 1-800-344-1294 for Details.

A Subchapter S Corporation or "S" Corporation is similar to the "C" Corporation and operates primarily in the same manner. The main advantage associated with the "S" Corporation is that the income passes through to the shareholders, thus avoiding the double taxation of a "C" Corporation. However, the corporation must meet certain requirements to qualify for the "S" status under the current IRS rules. It also loses some of the tax deductions allowed to "C" Corporations.

• Advantages
  Limited liability protection, avoids "double taxation" and has an unlimited life. With the right strategy the pass thru income may be split to accommodate a reduction in Self Employment and Withholding Tax. In some cases the savings may be significant.
• Disadvantages
  No more than 75 shareholders, limited ownership (Individuals, estates and certain trusts), limited to one class of stock, some tax deductions are lost as compared to "C" Corporation, subject to governmental regulations, must maintain corporate formalities such as annual meetings and other resolutions.

For more detailed information refer to the Corporate Tutorial.

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What is an LLC? Call 1-800-344-1294 for Details.

A limited liability company is a business structure described as a hybrid between a partnership and a corporation that gives its owners the best of all worlds -- a "pass through" of all profits and losses to the owners without taxation of the entity itself, as in a partnership, and a shield from personal liability, as in a corporation. For maximum privacy and protection it may also be taxed as a corporation. The personal liability shield, known as "Charging Order Protection" may even be stronger than that of a Corporation as there is no stock held as personal property.

The IRS now allows for LLC's to be taxed four (4) different ways: Disregarded Entity; Partnership; Subchapter "S"; and a traditional "C" Corporation.

The limited liability company, then, offers a great deal of flexibility. For more detailed information refer to the LLC tutorial.

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Must I have a resident Agent? Call 1-800-344-1294 for Details.

All Nevada Corporations & LLCs are required to have a Resident Agent located in the State of Nevada, per NRS 78.090. Companies that are actually located in Nevada with an office and staff may qualify to be their own Resident Agent. Corporate Nevada has chosen not to provide this service to better provide management, privacy and protection for its clients. However, if your Company does not elect or doesn't qualify to be its own Resident Agent, Corporate Nevada will assist in subcontracting this requirement for clients with reputable agents, typically for little or no additional fee.

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Do I need a Corporate Kit? Call 1-800-344-1294 for Details.

No. The law does not mandate the use of a corporate kit and it most often does more harm than good. A corporate kit contains generic, "fill in the blank" & "do it your self" minutes of meetings, resolutions, stock certificates, and corporate seal. Unfortunately, even with the help of a "Kit", owners still have difficulty choosing the correct generic form and typically don't understand the important timelines, additional filings and proper procedures necessary to maintain the company's Legal Veil. Many "Low Budget" Incorporators use "Corp Kits" as a way to appear that they are providing necessary services, when in fact, they are selling a "Do it yourself" Kit. The "Do it yourself" system can have devastating consequences when challenged. Review Full Service Corporate Consultants.

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Do I have to be a Nevada resident? Call 1-800-344-1294 for Details.

No. Stockholders, directors and officers need not live or hold meetings in Nevada, or even be U.S. citizens. (Except Subchapter S; Ask for details)

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Do my directors need to hold stock? Call 1-800-344-1294 for Details.

No, directors need not be stockholders.

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What is my corporate liability? Call 1-800-344-1294 for Details.

Officers and Directors of a Nevada corporation can be protected from personal liability for lawful acts of the corporation.

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What are uses of my stock, and what is the value?
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Nevada corporations may issue stock for capital, services, personal property or real estate, including leases and options. The directors may determine the value of any of these transactions, and their decision is final.

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Disclaimer

Corporate Nevada Ltd. Ltd. provides business planning with company formation and maintenance services and are not responsible or liable for any independent use or outcome of any services. We are not a legal services firm and do not render legal advice. Consult an attorney for legal advice or CPA for tax advice. Call 1-800-344-1294 for Details.

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