Why Should You Start a Business Corporation in Nevada?
A business corporation in Nevada has major advantages that might not be available for other states’ operations. One of the biggest factors why corporations are gaining grounds in Nevada is its government policies and low taxes. The Silver State’s business friendliness marked it in a few names of the fastest growing economies of the US prior to the 2008 recession. Therefore, many top-notch businesses are seeking their best to incorporate in Nevada for the following elaborated reasons:
According to the Secretary of State office, it is notable to form a corporation in Nevada because of the low tax burdens for business operations. Particularly, no income tax, property tax, or franchise taxes are required to be paid. Moreover, government taxes for individuals are also notably low in Nevada, as the state hurls no charge of estate or personal income taxes at the citizens.
It is quite obvious that the low tax burdens are revised because of the main industry of the state that’s gambling. According to the Gaming Control Board of Nevada, it is reported that gamblers lost about 10.4 billion dollars in Nevada’s casinos in a year’s period by May 2009. Therefore, gambling revenues in the state are taxed at rates up to 6.75 %.
Another advantage to start a Nevada corporation is to avail the benefits of the convenient system of business courts. Nevada upgraded its business court system when other major states modeled them for business convenience. Amendments were made to the court system to focus on the following aspects:
- Business courts that specialized particularly in hearing business litigations that avoids business interruptions when cases are being heard.
- To provide a consistency in ruling business related issues.
- To manage complex business cases the better way.
It is also one of the states of the US that ensure encouragement to entrepreneurs starting off with small businesses. As in Dec 2008, The Entrepreneurship and Small Business Council ranked Nevada as the second best state to encourage entrepreneurs with its policy terms. The council also credited the state for having low taxes, comparatively low worker’s compensation insurance cost, and low spending on local government services of Nevada.
The state policies along with the state’s tourism industry have benefitted the economy of the state largely. According to the governor’s notice, the employment rate in Nevada grew at an annual average rate of 4.6 % through a decade until 2006, which compares an average job growth up to 1.4 % for the United States at large. The state is still strong in terms of economy that affirms the favorability for businesses to incorporate in Nevada.