Corporation Friendly States That You Should Look Into
In this blog, we will look into two of the friendliest states in establishing a corporation and then compare and contrast these two states so that you can have a better understanding between them. Once you have a better understanding, you will be able to decide whether you should look into Delaware and Nevada for incorporation purposes or not.
It has long been known that if you wish to incorporate, then you should incorporate in Delaware. In the past, this state had been highly liberal when it came to incorporating businesses and this gave the management a great amount of flexibility when it came to operating the business of the corporation. Such flexibility was of a huge advantage to many of the big corporations that conduct businesses and consist of nationwide or even worldwide shareholders. However, such an advantage is not entirely applicable for small corporations. Additionally, more of the states these days have now incorporated laws that follow more of the laws in Delaware.
One great advantage of this state is that it has a separate court that deals with business dispute resolutions. This helps in resolving cases more quickly, no matter how complex they are.
Here are the main reasons why you should incorporate in Nevada according to Nevada Secretary of State:
• No Corporate Income Tax
• No Franchise Tax
• No Personal Income Tax
• No Corporate Shares tax
• Nominal and Reasonable Annual Fees
However, these advantages do not apply to a business headquartered in a different state, yet doing little to no business in Nevada. A business that is run in a different state cannot incorporate in Nevada just to avoid taxes and fees that are imposed on them in their home state.
Protecting Personal Assets
Incorporating in Nevada also involves the state giving your business amazing liability protection for all your personal assets as well as better privacy so that you can anonymously operate as a shareholder, director, or officer. However, if a business is located outside of Nevada, then they will not be able to take advantage of this law in Nevada.
If you plan to incorporate in Nevada or Delaware, you should be sure to read up on all of their laws and regulations regarding incorporating because this will give you a better idea of whether the move is advantageous for you or not. This is primarily because conditions differ for small businesses and large corporations as well as what your home state is. Additionally, you might also be interested in looking into the protection of your personal assets and the role these play in your overall business practices.