Resident Agents of Nevada

Worldwide Business Opportunities

Your Nevada corporation can conduct any lawful business anywhere in the United States or, indeed, anywhere in the world. As you incorporate in Nevada, your business will have not only the corporate attributes which caused you to incorporate a business in the first place, but it will also present a more professional image to the business world. Even if you are already doing business as a corporation in your home state, forming a second corporation in Nevada will provide an opportunity to legally shift a portion of your profits from your highly taxed home state to your no state income tax Nevada corporation.

Whatever you do, don't make the mistake of most small company incorporations and merely form the corporation, make yourself president, and then wait for the profits to roll in. In order for your corporation to offer you the protection you seek, it is important that the "incidents of incorporation" exist. You must hold regular officer's and annual director's meetings and keep minutes, although in Nevada, those meetings can be with yourself as sole officer and director.

After you setup a Nevada Corporation you must formally issue capital stock, exercise voter rights, if applicable, etc. Be sure to conduct your business in a thoroughly businesslike manner by obtaining the proper licenses and permits, by mailing invoices for your corporation's products or services, by paying the bills, and by keeping proper records. There must be no doubt in anyone's mind that your Nevada corporation is indeed a legitimate and worthwhile enterprise which is conducting a real business. Anything less is vulnerable to attack as a sham, the corporate veil may be pierced, and all will have been for naught.

A word of caution is appropriate here. While a Nevada corporation offers individuals protection from creditors, it does not relieve you of wrongful acts which you might personally be liable for. Although it is generally true that the master is responsible for the acts of his servant who is engaged in the pursuit of his employment, it logically follows that for the master to become liable the servant must have been guilty of some wrong in the first place. Therefore, while your corporation may be liable for your actions, as its employee, you are not thereby insulated from the consequences of your wrongful acts.

Incorporate Nevada - Doing Business with Your Nevada Corporation

Here's one idea that illustrates the power of having a Nevada corporation in addition to your home state business organization. Suppose your Nevada corporation makes your home state business a loan. You will want to be sure that the loan is properly documented and that payments are actually made as scheduled and duly recorded. Now you or your home state business have full use of the borrowed funds without creating a taxable event-borrowed money is not taxable as income. Furthermore, the interest income to your Nevada corporation is not taxable as income by the State of Nevada.

Here is another idea to get your creative juices flowing. Suppose your Nevada corporation supplies your home business with consulting services for which your home corporation pays $20,000. If the profits from your home corporation would otherwise have amounted to $25,000, by deducting the $20,000 business expense, you will have reduced your home state income to just $5,000; the other $20,000 becomes income to your Nevada corporation and is not taxed by the State of Nevada! This is just one way your Nevada corporation can put dollars in your pocket rather than in state coffers.

Use your imagination. There are probably hundreds of ways to arrange your affairs to maximize your bottom line. You are the expert in your business. You can probably think of dozens of products and services which your Nevada corporation might provide your current business. Keep in mind that your Nevada corporation is a separate legal entity; it is not you and you are not it, but each of you has a friendly business associate who wants to see you achieve superior results in your business.