Nevada: Hottest Corporate Haven to Incorporate a Business
Searching for the cheapest and most corporate-friendly environment to start-up your business in the US? Pick up any newspaper, search on the web or ask for advice from anyone; every single source will recommend the same state, Nevada. Yes, it is indeed the hottest corporate place these days, flaunting numerous advantages.
Traditionally, the corporate sector was ruled by Delaware due to its business-friendly approach but in the early 90s, a few states, including Nevada, planned a competitive agenda and tried their best to beat Delaware in terms of attracting new business ventures. Nevada’s aggressive program soon became successful due to which the state is now given more preference and is recognized as the most popular and best place in the country to form a corporation.
The below listed points elaborate the benefits that one may attain when they form a corporation in Nevada:
Leverage on Taxes
The most dominant and attractive advantage to businessmen in Nevada is that they do not have to pay huge taxes. Aside from that, no taxes are imposed on corporate profits, which include Corporate Income Tax, Taxes on Corporate Stocks and Personal Income Tax. Similarly, no Franchise Tax is charged. However, the state does charge a certain amount of fee at the time of incorporation.
Commitment to Privacy
Since Nevada has a tax-free culture, therefore it doesn’t have any Information Sharing Agreement with the Internal Revenue Service (IRS). Hence, everything is kept private. Additionally, shareholders of Nevada are also exempt from public records. They remain unknown and anonymous. The foremost benefit with respect to this private policy is protection from any lawsuit against the company owner.
Sell, Own & Purchase Corporate Stocks
This is the most valuable right given by Nevada, as not all other states allow corporations to buy their own shares. If you start a Nevada corporation, you can hold, sell, purchase and own their shares individually.
This concept can be explained simply through an example. The shares are issued to a corporation in return for their services. Unfortunately, if the services seem inappropriate, then the corporation has the right to make a claim from the shareholder, in terms of transferring the issued shares into the corporation’s treasury stock. Upon receiving the shares, they can be held or sold by the corporation to any other third party respectively.
All in all, Nevada is now known for its favorable taxation policies, for the protection and privacy it gives to its corporation owners, and for allowing businesses to sell, own and purchase their own corporate stocks. Therefore, if you aim to form a corporation in Nevada, be prepared to enjoy a business friendly environment.