For many years, business owners were drawn to incorporating in Delaware because of the state’s strong business laws. The state of Nevada took notice of this trend and began crafting its own laws that supported local businesses and made the state one of the most business friendly states in the Union. Why incorporate in Nevada? With no corporate income tax, no fees on corporate shares of stock, no personal income tax and no franchise taxes, as well as an emphasis on business privacy, Nevada has established itself as a leader in the field.
Below you’ll learn about why so many companies incorporate in Nevada and why the Nevada corporation has only become a stronger option over the years.
Nevada Corporation Advantages
- No Corporate Income Tax
Nevada is one of the few states that has no corporate income tax. This saves corporations in our state considerable money. In addition to no corporate income tax, there are also no taxes on corporation shares, no franchise tax, and no personal income tax. Nevada is one of the least-taxed of states when it comes to business taxes. This allows companies to reinvest their profits or distribute them how they see fit.
- Streamlined Incorporation System
You can incorporate in Nevada entirely online through the Nevada SilverFlume Business Portal. SilverFlume allows for instantaneous licensing and speedy turnaround. Initial and annual filings can all be completed online. Many states are still stuck in the past, requiring that you submit filings by mail or by fax, with slow turnaround and processing that holds up your business. Nevada continues to be on the cutting edge of the formation and compliance industry, looking for new ways to provide businesses with easy-to-use technology and fast processing.
- Legally Protected Liability
State law—Nevada Revised Statutes—allows only two ways in which to “pierce the corporate veil”: fraud or manifest injustice. There is no greater level of liability protection. Creditors seeking the collect from shareholders of closely-held corporations (corporations with between two and 75 shareholders) the only method allowed by law is the charging order. Nevada was the very first state to impose this strict limitation. This protection extends to and protects S-Corporations from losing their federally granted tax status in the case that a judgment is brought against a shareholder.
- Nevada Business Courts
For many, many years Delaware has claimed that businesses should incorporate there because of its unique Court of Chancery, which handles business law and business related cases. What most people don’t realize is that Nevada has its own unique court systerm: the Nevada Business Courts. Just like the Court of Chancery, Nevada’s Business Courts minimize the time and cost of commercial litigation by employing early, extensive case management, utilizing specialized judicial participation, and considering alternative settings for hearings to allow businesses to avoid any disruption. The decisions of the Nevada Business Courts are streamlined to create statewide precedent so that businesses understand exactly what to expect when litigation is brought before the courts.
- Statutory Protection for Directors and Officers
Directors and officers of Nevada corporations may exercise their duties in good faith on an informed basis and be fully protected from liability except in the case of intentional misconduct, fraud or a knowing violation of the law. While states such as Delaware allow for such protections of directors, Nevada extends this protection to officers as well. As well, directors are protected in Nevada from the corporation’s creditors, a protection not offered in Delaware.
- Director Flexibility in the Face of Takeovers
In many states, directors are hampered by laws that prevent them from taking certain factors into consideration when faced with a corporate takeover. In Delaware, for example, directors in many cases are required to accept an offer simply because it is the highest bid, regardless of the effects on employees or the interests of the community. In Nevada, however, state law allows directors to consider the effect a takeover will have on employees, the community and the local economy when faced with a takeover offer.
Can I Incorporate in Nevada if I Live Outside the State?
Of course you can! You can incorporate in Nevada by filing the proper formation document, paying the appropriate fees, and hiring a local Nevada registered agent. If you have followed these steps, you can own and manage a Nevada corporation even if you live in another state or another country.
Benefits of a Nevada corporation for non-residents:
- Minimal Corporate Taxation
There are no corporate income taxes in Nevada, no franchise taxes, and no taxes on corporate stock.
- Digital Incorporation
You can incorporate in Nevada online using the SilverFlume Business Portal. Furthermore, you can manage all of your initial and annual filings entirely online. There is no need to ever set foot in the state!
- Liability Protection
The liability protection for Nevada corporations extends to you even though you do not live in the state. Nevada has written some of the strongest liability laws in the nation.
How to Incorporate in Nevada
There are four stages to incorporating a corporation in Nevada. We offer services for both the initial formation filing and the initial maintenance filings.
Naming Your Corporation
You must choose a name for your corporation that is not already registered to another entity within the state. The name you select must include one of the following designations: Incorporated, Inc., Limited, Ltd., Company, Co., Corporation or Corp.
Writing Corporate Bylaws
Your Bylaws dictate the ownership and management of your corporation. When writing Bylaws, you need to lay out the initial shareholders of your company (the owners), the number and class of shares they control, and the rights and responsibilities that come with those shares. You will also need to designate the board of directors and corporate officers (President, Secretary, Treasurer) of your company.
Finding a Registered Agent
You are legally required to designate a registered agent to accept service of process on behalf of your company. You must appoint an agent on your Articles of Incorporation. This is a good time to compare agents and make your selection.
Why Hire Us?
- Additional Privacy: Nevada Registered Agent LLC can list its name and address on your formation documents as a way to keep your private information off the public record.
- Total Compliance Monitoring: As your registered agent, we track all of your compliance deadlines and keep you updated. There are numerous requirements in Nevada that you must meet in order to maintain good standing.
- Filing Expertise: Nevada doesn’t make it easy to form a corporation. There are numerous filings and fees, and the information is not generally clear concerning exactly what you must do and in what order. Our local filing experts can handle your incorporation every step of the way.
2. Nevada Corporation Formation
To form a Nevada corporation you must file Articles of Incorporation with the Secretary of State. The filing fee is a minimum of $75, although the actual fee is based upon the number of your authorized shares of stock.
You must appoint your Nevada registered agent on the Articles of Incorporation.
Our formation filing service includes the following:
- $75 Secretary of State Filing Fee (minimum)
- $35 1-Year Nevada Registered Agent Service
- $100 Filing Service Fee
3. Initial Corporate Maintenance
The formation of your corporation is only the first step. Nevada requires a number of additional filings. Within 30 days you must file an Initial List of Officers and Directors. There is a $150 filing fee.
You must also file for a business license and pay the Business Registration Fee. This fee is $500 for corporations.
Nevada Registered Agent LLC can handle these filings for you:
- $700 Initial List and Business Registration Fees
4. Annual Nevada Corporation Maintenance
Once your corporation is formed and your initial maintenance filings complete, you will be required to file annual maintenance filings and pay ongoing corporate maintenance fees.
Every year you must file an Annual List of Officers. The filing fee is $150.
You must also pay the Annual Business Privilege Tax of $500.
Both of these are submitted to the Secretary of State. As your registered agent, we will send you regular reminders to file you Annual List and pay your Business Privilege Tax, but we do not handle these filings for you.
Annual Maintenance Fees: $650
Does a Nevada Corporation Need Bylaws?
Yes. Nevada state law requires that a corporation write corporate bylaws and keep the bylaws with other business records. Bylaws are an internal document and are not required to be filed with any government agency. It is important to write clear bylaws that address all the issues of ownership and management of your Nevada corporation, including (but not limited to): how shares of stock can be bought and sold; the rights and duties of directors and officers; the responsibilities of shareholders; the formal procedures for annual meetings; and the distribution of profits.
Why Hire Nevada Registered Agent LLC to Form Your Nevada Corporation?
Nevada Registered Agent LLC is the premier agency for Nevada incorporation and Nevada registered agent service. We’ll be up front with you: incorporating in Nevada is complicated. There are many steps, multiple filings, and a number of initial fees that must be paid within certain time limits. If you’ve never formed a Nevada corporation before, it is easy to make a mistake and have your incorporation rejected.
We are a local Nevada company, and we handle Nevada incorporations every day. When you hire us, you can rest assured that our expert filing staff will give the proper time and attention to your filing. You can feel confident that the company handling your incorporation understands all of the particular requirements for forming a corporation in Nevada.
As well, we provide the most reliable Nevada registered agent service in the industry for one low annual price. Unlike most of our competition, we don’t hook you with an “introductory price” only to upsell you later or charge you exorbitant renewal fees. We believe in straightforward prices, quality service, and building long-term relationships with our clients.
We look forward to working with you through the life of your Nevada business!
Our Service Options
Formation & Initial Maintenance
|$75 Secretary of State Filing Fee||$75 Secretary of State Filing Fee|
|$35: One Year Registered Agent Service||$35: One Year Registered Agent Service|
|$100 Filing Service Fee||$100 Filing Service Fee|
|$700 Initial List Fee and Business Registration Fee|
|$50 Initial Maintenance Filing Service Fee|
Option 1: Don’t forget you must still file your Initial List and Business Registration within 30 days of formation.