-
Many corporations choose to file their organizational papers in Nevada or Delaware. Nevada not only offers tax advantages to corporations, but protection from several threats.
Tax Benefits
Nevada does not have a franchise tax, corporate income tax, tax on corporate shares or personal income tax. The lack of these taxes provides Nevada corporations with a distinct advantage in lowering the cost of doing business and enhancing the ability to recruit top wage earners who do not wish to pay high taxes in less tax-friendly environments.
Corporate Controls
Nevada law allows corporate management and the board of directors to put in place rules making it difficult for a successful hostile takeover attempt to take place.
Asset Protection
Nevada corporate rules significantly limit the ability of creditors to seize corporate assets to satisfy the personal debts or liabilities of the corporate shareholders.
Changing the Bylaws
In Nevada, corporate officers are allowed to adopt, amend or repeal the corporations bylaws without having to receive approval from the shareholders.
Strong Case-Law History
Because so many corporate filings have occurred in Nevada, the Nevada court system has become extremely adept at the application of corporate law.
Source:
Corpthis.com; Incorporate in Nevada for Hidden Benefits
Nevada-Corporation-Faq.com; Benefits of Incorporation in Nevada
Copyright 2023, Wired Ivy, LLC