Nevada Corporations
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LEGAL NOTICE:
Information on this site is not intended as and shall not be construed to be LEGAL ADVICE.
When dealing with legal matters, you should always avail yourself of the services of a qualified member of the Bar Association.

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THE BENEFITS OF INCORPORATING

Incorporation can offer your business many advantages! In addition to liability protection, incorporation can also mean attractive tax advantages, prestige, the road to better financing and the ability to raise cash through the sale of stock.  Corporations can also be used to own real estate, automobiles, yachts or aircraft for further asset and liability protection.

Stock Offerings: A Breath of New Life

Raising capital to finance expansion, equipment or development, without borrowing, is a fundamental reason for incorporating.  Many companies that were unable to secure traditional financing as a sole proprietorship are literally “reborn” overnight through stock offerings. Have you considered how these advantages could benefit your company? Whenever you have a really good business idea, consider forming a corporation and offering stock in it first to family members and friends who might want to particpate in your success.

Tax Savings

How much could you have saved by incorporating?  Corporations are entitled by law to many tax deductions that are not available to individuals.  Many of the tax benefits that accrue to a corporation can end up greatly benefiting corporate owners.  Corporations have a lower federal tax rate at all levels of income compared with individuals.  A corporation only pays 15% federal tax on the first 50 thousand dollars of profit, plus whatever additional tax applies in the state in which it is incorporated (NONE in Nevada). The law states that it’s the responsibility of each individual to structure their business affairs in such a manner as to minimize the amount of tax payable.  While tax evasion is a serious crime, tax avoidance—saving thousands of dollars in taxes through structuring of your financial affairs within the laws—is the duty of the taxpayer.  There are many proven and effective tax-reduction strategies that can be easily employed through a corporation.

Liability Protection: Business Owners Risk it ALL by Not Incorporating

While most sole proprietors know that incorporation can shield their personal assets in the event of frivolous, million-dollar, “wrongful-whatever” lawsuits, many are lulled into complacency by the “it-won’t-happen-to-me” attitude.  Unfortunately, this thinking has resulted in tremendous losses by too many unprepared business owners.

If YOU become involved in a lawsuit (and the odds are that you will, sooner or later), your bank will want to know and it will want to reign in any credit it has extended to you.  Whether you win or lose in the end, your proprietorship will be affected immediately.  On the other hand, a properly structured Nevada corporation is entirely separate from you.

In addition, what many sole proprietors fail to realize is that it doesn’t take a catastrophic lawsuit to wipe out everything they own. There are more common business events that can equally affect sole proprietors, leaving their personal assets fully exposed.  As a sole proprietor, consider what would happen:

• If one or more of your largest customers ceased paying their bills or filed for bankruptcy;
• If new technologies rendered your product or service obsolete;
• If competition, new legislation or market conditions cut your business in half—or more; or
• If you suddenly became ill or incapacitated.

Would you be able to satisfy all of your debts, without losing all your personal assets in the process?

Additionally, remember that existing assets (bank accounts, your home, cars, etc.) aren’t the only targets in a lawsuit.  Unrealized assets such as future earnings, inheritance and insurance settlements are all potentials for loss in the event of an unfavorable judgment.

If limiting personal liability for the debts or claims against the business is important to you, incorporating your business would generally be a significant enough reason to incorporate even the smallest of businesses.

It is worth noting at this point, however, that there are vast differences in the extent of liability protection afforded through incorporation in the various states, each of which has its own set of laws regarding incorporation—and, most importantly, its own ways of interpreting those laws.

The issue of liability protection sets Nevada corporations apart from all others.  But you are going to find several such advantages for Nevada corporations throughout the information section of this site.

Please contact us with questions or comments:
Budget Corporate Renewals
Email: Service@BudgetCorporateRenewals.com

LEGAL NOTICE: Information on this site is not intended as and shall not be construed to be LEGAL ADVICE.
When dealing with legal matters, you should always avail yourself of the services of a qualified member of the Bar Association.
© Copyright 2001-2007 Ronald W. Kirzinger All rights reserved.