The Pros and Cons of Starting a Business in Nevada
Starting a Business in Nevada
Nevada is one of the most sought-after states for incorporating a business. Many across the United States are starting a business in Nevada due to the low Secretary of State fees and very good tax structure. From the entrepreneur starting a business in Nevada, to the large company trying to benefit from Nevada laws and taxation, Nevada has firmly established itself as one of the go to states for new businesses in the United States.
Pros of Starting a Business in Nevada
Generally, Nevada has consistently had some of the lowest incorporation fees in the country, thereby allowing entrepreneurs and new business owners to incorporate for relatively cheap. Specifically, regarding taxes, Nevada has no state corporate income tax, does not have a state personal income tax, does not have a franchise tax, and does not have a tax on the shares of a Nevada corporation.
Furthermore, given the ease of the Secretary of State’s office to work with businesses, many businesses find it very easy and are very comfortable incorporating in Nevada.
Finally, Nevada laws are very favorable to companies and their management. This includes the idea of “piercing the corporate veil.” Piercing the corporate veil refers to the idea that a potential plaintiff might be able to get past the company and go for the assets of the company’s managers or owners to seek compensation.
Nevada law has consistently been in favor of protection of Nevada company managers and owners and has prevented such piercing of the corporate protections in many cases. Many court cases and employment rules and regulations have also been seen as benefiting employers and their rights. While, Nevada does have employment and labor laws, including those mandated by federal laws, Nevada is generally considered to be an employer friendly state; however, there are some difficulties and cons about incorporating in Nevada.
Cons of Starting a Business in Nevada
Nevada requires that every incorporated entity have a registered agent that has a physical address in Nevada. A registered agent is a person or business that accepts legal paperwork on behalf of the incorporated entity. Thus, while anyone outside of Nevada can form a Nevada entity, the registered agent must be someone or some company with an address in Nevada.
Another potential issue with starting a business in Nevada is that should an issue arise, Nevada law, while developed, is not as developed as the case law in other states such as California or Delaware.
Finally, Nevada has laws that require proper corporate record keeping and maintenance, which must be followed.
We Make Starting a Business in Nevada Easy
Raich Law PLLC in Las Vegas has formed various entities over the years and would be glad to assist you with starting a business in Nevada. We can serve as the registered agent, provide for a review of Nevada law on your specific company’s industry, and can discuss with you the requirements that you would need should you incorporate in Nevada. We can even form the company, and complete all paperwork for the business license, annual list of officers, and the articles of organization for your entity. For a free consultation, fill out our contact form or call us at (702) 758-4240 and speak to a Nevada Licensed Attorney today!