Why Nevada?
For decades, Nevada has been considered to be the #1 state in witch to form a business entity. Nevada is well known for its favorable “pro-business” attitude towards minimal regulation, disclosure of information and taxes. Recently, Nevada has passed some of the most aggressive asset protection and privacy legislation in the country. Specifically, it became the first state to enact unique legislation that provides that a charging order will be the sole remedy for creditors of stockholders of certain Nevada corporations in regards to those shares. If that’s not enough reason to choose Nevada, here are a few more:
- No Corporate Income Tax
- No Taxes on Corporate Shares
- No Franchise Tax
- No Personal Income Tax
- Nominal Annual Fees
- Nevada corporations may purchase, hold, sell or transfer shares of its own stock.
- 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.
- No Franchise Tax on Income
- No Inheritance or Gift Tax
- No Unitary Tax
- No Estate Tax
- Competitive Sales and Property Tax Rates
- Minimal Employer Payroll Tax – 0.7% of gross wages with deductions for employer paid health insurance
- Nevada’s Business Court
- Developed on the Delaware model, the Business Court in Nevada minimizes the time, cost and risks of commercial litigation by:
- Early, comprehensive case management
- Active judicial participation in settlement
- Priority for hearing settings to avoid business disruption
- Predictability of legal decisions in commercial matters
Offshore Income is Taxable
Many United States (U.S.) citizens and resident aliens receive income from foreign sources. There have been recent reports about the interest of the Internal Revenue Service (IRS) in taxpayers with accounts in Liechtenstein. The interest of the IRS, however, extends beyond accounts in Liechtenstein to accounts anywhere in the world. Consequently, the IRS reminds you to report your worldwide income on your U.S. tax return.
If you are a U.S. citizen or resident alien, you must report income from all sources within and outside of the U.S. This is true whether or not you receive a Form W-2 Wage and Tax Statement, a Form 1099 (Information Return) or the foreign equivalents. See Publication 525, Taxable and Nontaxable Income for more information.
Additionally, if you are a U.S. citizen or resident alien, the rules for filing income, estate and gift tax returns and for paying estimated tax are generally the same whether you are living in the U.S. or abroad.
