Incorporating in Nevada | Mistakes to Avoid
Businesses make certain mistakes when incorporating in a new state and end up in great trouble for not knowing regulations of the state regarding incorporations or any other issues. Companies often think their business is too small to incorporate, which is a grave mistake, in today’s time, it is necessary incorporate the business irrespective of its nature or size. Also, home based businesses do not go for incorporation. While incorporating in Nevada, following mistakes are to be avoided:
•Companies often do not place their order in time for incorporation, and often end up losing the name they chose after much dedicated time and effort.
•Choosing a wrong business structure could be detrimental as few states allow a change in future.
•Incorporating in Nevada only for the popular status is not a reason enough to incorporate in Nevada. The nature of business and the capital structure needs to be in cohesion and there has to be logical reason for the decision.
Resident Agent Mistakes
Selection of resident agents is a crucial part as well when incorporating in Nevada, and some firms make grave mistakes which are detrimental towards their success such as:
1) It has to be thoroughly checked that the resident agent is a commercial registered agent and complied with the Nevada revised statute chapter 77- model registered agents act. However, it is allowed in Nevada to have commercial or non commercial agents and that works both ways, but it is better to select a commercial resident agent as in that case the company would benefit with all the information and updates on legal proceedings and new laws. This also helps companies be in a good standing.
2) Selecting a resident agent in Nevada that has been in business for less than 10 years is not a good idea at all. There are companies that offer resident agent services for cheap prices and startups usually fall prey to these offers. But when there is renewal time and the resident agent’s business is no more in function, it is your company that faces the music.
3) Selecting a resident agent company that only offers resident agent services and no other business offerings is a mistake firms should definitely avoid. Businesses need viable services and products to earn them profits and providing services of resident agent is an additional service that could be provided. Companies that have other core business functions also prove to be good advisory resident agents in terms of investment options and other business needs.