The First Thing You Need When Incorporating in Nevada

The number of companies that are now incorporating in Nevada as opposed to their home state has been steadily increasing for many years due to the major tax advantages this offers. However, before you can form a new corporation in Nevada there is one thing that you are going to need have in order to get the whole process started and that is a name for your new company.

Incorporating in Nevada Means Having a Unique Name

If you plan on incorporating in Nevada, you will need to spend a little time coming up with a unique name for your business that will need to be followed by the suffix, Inc., Co. or Ltd. to distinguish the fact that this is a business name and not that of an individual. You should try to make the name you choose relate to your business, for example John Doe Plumbing Inc. is a much better choice that just John Doe Inc. as the latter does not tell anyone what John Doe does.

Your Nevada LLC is a Separate Entity

One thing that many people do not realize is that your Nevada LLC is a completely separate entity from your home state corporation. You are in essence created a new company such that any time you write a check from your home state corporation to the one in Nevada, the money you spend is a tax deductible expense in your home state and the income is transferred to Nevada completely tax free.

This is only one of the many advantages of forming a Nevada LLC; you can also enjoy a number of other tax free benefits such as retirement plans, medical reimbursement plan and more as your Nevada LLC will not have any employees. What you will find is that this will present you with numerous ways to make money from your corporation tax-free and not have to pass the majority of these benefits on to your employees.

What is a Registered Agent?

If you plan to incorporate your business in the state of Nevada, state law requires you to have a registered agent. A registered agent is a person or company that has maintains a physical address within the state. This street address will be used by the state for the service of process and is required by Nevada Revised Statutes (NRS) 78.090. This will be the physical address of your corporation here in the state.

In accordance with these statutes all legal process, demand or notice that has been duly authorized to be served upon your corporation, can be served to you registered agent at the registered address. It then becomes their job to forward these to you at your company's actual physical address so that you can take care of them. Your agent will be able to take care of many other functions that must be handled in person so that you do not have to come to Nevada to handle them yourself, saving you both time and money.

Nevada Incorporation Makes Sense for Small Businesses

As the owner of a small business, when you look at your tax bill for the year it can be quite a scary number, even if you have an outstanding tax accountant. It might even make you wonder if being in business for yourself is really worth it, at least when you worked for someone else your taxes were affordable. If this is the situation you find yourself in, then you might find that filing for incorporation in Nevada makes good sense.

When you file for incorporation in Nevada as an LLC or Limited Liability Corporation, one of the first things you are going to notice is that the state charges you no taxes of any kind on your income. The next thing you will notice is that as an LLC your income taxes will be cut practically in half. Finally depending on your state and their laws, being "based" in Nevada may reduce or eliminate many of the tax liabilities businesses based in your state are subject to. As always check with a tax attorney to make sure you meet your state tax liabilities at all times.

Can You Incorporate In Nevada?

When you started your own business, you may or may not have given much thought to incorporating. Chances are good that you simply wanted to be your own boss and provide your customers with outstanding services or products. Now that the income tax bill is due, you might be thinking about becoming a corporation and many people suggest you incorporate in Nevada for tax purposes.

The question is can you actually incorporate in Nevada when your business is located in another state? The reality is that under Nevada law it does not matter where your business is physically located, you can file your papers of incorporation in Nevada and take advantage of the state's very lax corporate laws. At the same time you will not pay any taxes to Nevada and lower your income tax rates, this is one of the biggest reasons so many company file their papers in Nevada instead of the state where they are located.

Nevada Corporations Enjoy No Business or Occupation Tax

Depending on what state your business is located in, if you choose to incorporate in that state, you could be subjected to heavy business and occupation taxes that will eat away at what little profits you are managing to make in the current recession. There are many advantages to turning your company into a Nevada corporation, but paying neither of these taxes or any one of many other taxes has to be one of the biggest benefits.

Nevada corporations enjoy the most favorable corporate laws of any state in the country. Even if your business is located in New Jersey, as long as you are incorporated in Nevada, you fall under the jurisdiction of the state in which your company is incorporated. As one more advantage, Nevada is the only state that shares no information about your company with the IRS at any time.

Should You Establish a Nevada LLC?

When you have your own business it can be very important from a legal point of view for you to protect your private assets. In most cases you are going to find that forming a Limited Liability Corporation will do this for you. By taking the appropriate steps to form a Nevada LLC, even if your business fails and you are heavily in debt, your personal possessions are safe from being seized as assets to offset your debt.

While no one ever goes into business with the intention of failing, when you look at the current economy and the unbelievably high number of businesses of all sizes that have failed, you need to take every possible precaution to ensure that you cannot lose things like your house or your possessions to be sold at auction to pay the bills. Forming a Nevada LLC is the best way to make sure that this cannot happen.