Requirements for Incorporating in Nevada
If you have taken the decision to form a corporation in Nevada, there are some important things that you must know that might help you understand the entire process of starting a Nevada corporation much better.
What is the Stock Structure?
A corporation is one that offers different stock types, called series or classes. Shareholders can benefit from certain rights with these classes, i.e. some may offer voting rights to shareholder while others don’t. Generally, there’s a structure that applies which is the following:
- The corporation can issue only the total number of shares
- In case of more than one class/series of shares, the articles must state the number of shares that will be issued and the rights of each of the shareholders.
- The number and value of the shares with their par value and shares without par value must also be stated in the articles of incorporation.
What to Know When Specifying Incorporators?
The incorporator is the person who is responsible for signing and filing the articles of incorporation with the Secretary of State. That responsibility and duty ends when all the documents required have been filed. Take note of the following when specifying incorporators in Nevada.
- The names and address of incorporators must be visibly listed
- There must be at least one incorporator taking on the duty
- The incorporator must be a person
Specifying Directors: What You Need to Know
It’s the corporate directors who are responsible for setting up the company’s long-term goals and strategies and they oversee the management of all business affairs. This means that directors must place the interests of the corporation above their own.
When specifying the directors for your corporation, the following must be taken into account:
- Directors of a corporation must of minimum 18 years of age
- There must be at least one director running the corporation, although the State of Nevada doesn’t place an exact limit of the number a corporation can have.
- Names and addresses of initial directors must be listed
Necessity of Stating a Corporate Purpose
While there are some states that require corporations to present a purpose in the articles of incorporation, the State of Nevada doesn’t have any such requirement. It’s solely up to the director whether there should be a corporate purpose highlighted or not.
What are the Costs of Incorporating in Nevada?
You will be required to pay a fee to the Nevada Secretary of State upon filing the articles of incorporation or even when reserving a name for the corporation. Additionally, you will be required to pay federal income taxes upon starting the Nevada Corporation.