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Why Nevada
The Advantages of Operating a Public Company in Nevada
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| Why Incorporate and Operate a Public Company in Nevada? |
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Nevada is one of the top states in which to incorporate and operate a public company because of its well-established reputation for business-friendly laws.
Nevada offers several incentives to attract businesses to incorporate and operate here. These include tax advantages, favorable corporate structures and governance, legal systems that work in your favor, economic development incentive programs, and a cost-effective process for small business issuers to access the capital markets. |
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| Tax advantages |
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No corporate income tax — even on corporations that do not conduct business in Nevada |
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No taxes on corporate shares |
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No franchise tax |
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No inventory tax - constitutionally guaranteed |
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No personal income tax |
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No inheritance or gift tax |
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No unitary tax |
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No estate tax (Federal estate tax may still apply, and the state may receive a portion of it) |
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Nominal annual business fees |
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Competitive sales and property tax rates |
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Low unemployment tax |
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Minimal employer payroll tax rate — 0.63% of gross wages, with deductions for employer-paid health insurance |
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| Corporate Structure and Governance |
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Corporate stockholders, directors and officers need not live or hold meetings in Nevada (although living in Nevada does offer many advantages of its own). |
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Directors are not required to be stockholders. |
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The corporation's list of officers need be updated only annually. |
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Nevada, unlike many other states, allows one-person corporations. |
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Nevada has minimal capital requirements in order to incorporate. |
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Nevada lets you maintain control of your company by vesting authority to adopt, amend or repeal bylaws exclusively with the board of directors, thus denying shareholders the ability to change the bylaws. This helps prevent hostile takeovers. |
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Nevada corporations may purchase, hold, sell or transfer shares of their own stock, and may issue stock for capital, services, personal property, or real estate, including leases and options. The directors may determine the value of any of these transactions, and their decision is final. |
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Asset protection planning utilizing Nevada's Domestic Asset Protection Trust (DAPT) |
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Registration by Qualification, aka "The Nevada Affordable IPO" - Nevada allows qualified companies to register and self-distribute stock to the general public within the state. |
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| Legal Process |
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Nevada maintains a separate court system for business, and is currently investigating a full chancery court system. |
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Officers and directors of Nevada corporations gain lawsuit protection because they can be protected from personal liability for lawful acts of the corporation |
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Nevada has also abolished joint and several liabilities, i.e., defendants are not liable for shares of damages greater than their percentage of the fault. |
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Stockholders must prove gross negligence on the part of the Board of Directors in order to find the members liable for damages. |
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| Economic Development Incentive Programs |
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Sales and Use Tax Deferral Program |
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Sales and Use Tax Abatement |
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Modified Business Tax Abatement |
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Property Tax Abatement of up to 50% for up to 10 years on both personal and business property taxed |
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Train Employees Now (TEN) - short-term job training for qualified expanding firms. |
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Renewable and Energy Storage Abatements |
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Recycling Property Tax Abatement |
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Energy Efficient Building Property Tax Abatement |
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Industrial Development Revenue Bond (IDRB) Program - Low-interest tax-exempt financing for qualified development projects. |
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As a result, many major corporations are chartered in Nevada – particularly corporations whose headquarters are located in California and other western states. |
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According to statistics from the Nevada Secretary of State, over 300,000 companies are currently incorporated in Nevada, with new Nevada corporations showing a consistent uptrend over the past three years:
2004 - 35,186
2005 - 39,052
2006 - 41,083 |
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all evidence of Nevada’s growing popularity as a home for American corporations |
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| Some of the tax and operating benefits mentioned here may depend upon provisions of your corporate bylaws or require you to live in and/or maintain a business office in Nevada. So, it is best to check with your accountant and legal counsel to determine which of the many tax and other benefits mentioned above apply specifically to you, and to what extent.
For more details on the many advantages listed above, including the qualifications for participation, we would like to offer you a copy of our white paper, "The Nevada Advantage", at no cost to you (normally a $59.95 value). Please click here to get the free white paper. |
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For more information, please contact Robert Uithoven, Spokesperson and AB Member, regarding the information on this page or any questions regarding NEDAB.
Phone:
775-762-8550
Email: ruithoven@Nevada-edab.com
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