Incorporate in Nevada: Everything You Need to Know
When a business incorporates, the owners are required to meet specific requirements within the state it incorporates. 3 min read
Incorporation: What is it?
Incorporation is the act of forming a corporation. When a business incorporates, the owners are required to meet specific requirements within the state it incorporates. This generally includes filing fees, registration documents, and other necessary documentation.
Nebraska Incorporation: Overview
There are steps that you as a business owner must take in order to incorporate in the State of Nebraska, which include:
- Prior to incorporating in Nevada, a business must have a business license. Nevada is one of five states in the U.S. that is required to obtain a business license who intend to incorporate.
- A Nevada LLC or Corporation must hire a registered agent.
- After obtaining a business license, the business must create articles of incorporation and bylaws.
- Create a business name that is unique and isn’t currently being used by another business.
Advantage to Incorporating in Nevada
There are many benefits to incorporating in Nevada, which include:
- Nevada law protects both directors and officers from individual liability for any acts committed by or on behalf of the business (with the exception of fraud).
- Jurisdiction for legal suits is in the state where the business incorporated.
- Nevada has significant privacy rights and doesn’t share any company information with the IRS. Therefore, no one will know the owner’s name of the corporation.
- You don’t have to identify the shareholders of the corporation.
- Unlimited stock is allowed.
- Nominee shareholders are allowed.
Disadvantages to Incorporating in Nevada
Some disadvantage to incorporating in Nevada include:
- It costs 75 percent less to incorporate in the State of Wyoming than in Nevada.
- If there is no reason for incorporating in Nevada, i.e., maintain property or employees, then the costs may not be worth it.
Frequently Asked Questions
- Why incorporate in Nevada?
- Are there any important things that I should keep in mind before incorporating?
You’ll need to choose a business name for your company. While it seems rather straightforward, there are important items to keep in mind when choosing a name.
In the State of Nevada, there are restricted designations, meaning that you cannot use certain terminology in your business name. Make sure that the business name you are choosing for your company will not be confused with the names of existing businesses.
The director of the company must be at least 18 years of age. The address and name of the director will also need to be identified in the articles of incorporation. All Nevada corporations must have a President, Secretary, and Treasurer.
- Will I save on taxes?
If you incorporate in your home state of Nevada, you’ll save money since you won’t be charged corporate or individual income taxes. However, when you conduct business outside the state, you’ll be subject to other state taxes within each respective state outside of Nevada. If you do conduct business outside of Nevada, you are required to register in those states, which will include additional fees. If you fail to register, you face additional penalties and subsequently being barred from doing business in that state.
Benefits of Incorporating in Nevada
- Nevada law offers protection for directors and officers from being personally liable for certain acts done on behalf of the company.
- There is a high level of privacy involved. There is certain information you do not have to disclose about your corporation.
- Nominee shareholders are allowed.
- There are other benefits of incorporating in Nevada, but these are the most major. The biggest con, on the other hand, is the cost-- incorporating in Nevada is costlier than incorporating in some other states, including Wyoming.
Let us Help
If you need additional help incorporating your business in the State of Nevada, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.