In deciding which state is the best state in which to incorporate, several factors must be analyzed. What is a state's regulatory climate? What is a state's tax situation? What is a state's stance on individual privacy? Which state will allow you the greatest flexibility to run your business the way you see fit? Which state has the best body of statute? Which states offer the best business climate?
For years, Delaware has been the leading state of choice for businesses wishing to incorporate. Delaware drafted an excellent body of statutory law. Delaware was very, very flexible and allowed ease of operation throughout the United States. But over the last few decades, a new state has risen and has taken Delaware's place as the preferred state for new businesses, and that state is Nevada. Let's consider several points and after we do, I am certain you will agree with me that Delaware is no longer the best state in which to incorporate, and why you should Incorporate in Nevada.
Delaware has a franchise tax, Nevada does not. - Incorporate In Nevada today!
Delaware has an income tax, Nevada does not. While it is true that this 8.7% income tax applies only to corporations doing business in Delaware, it significantly reduces the possibility of reducing or eliminating your home state corporate income tax (because the strategy used to do this involves doing business in the preferred state -- in this case, Delaware). This means reporting, forms, red tape, etc., you do not need. Delaware also has a gross receipts tax which most businesses doing business in Delaware must pay. This tax ranges from 0.096% to 1.92%, depending on your type of business.
Some states make a major item out of the fact they recognize S-Corporations. The status of a corporation as an S-Corporation really has no significance to the corporate owners if the state has no income tax. In Nevada, whether you have a Nevada S-Corporation or not really doesn't matter to the Nevada Department of Taxation since allocation of taxable income from corporations to the individual has no effect on the state's revenue.
With Nevada corporations, you do not have to divulge information such as the date appointed for the next annual meeting of the stockholders or directors.
When you Incorporate in Nevada you are not required to list places of business outside Nevada.
With Nevada Corporations, Nevada does not require notification of stock issued or stock transfers, names of stockholders, etc.
Clearly the best place to incorporate is Nevada...the state of the future...the frontier state with new horizons...the fastest growing state in the nation. The smart move is to keep in step with progress, to turn from the old to the new. The state of Nevada offers maximum flexibility, maximum privacy, and a minimum of regulation and red tape.
Why did Madonna, Prince, Michael Jackson, Chevy Chase, Paul Simon, Rodney Dangerfield, and Diane Keaton all incorporate in Nevada? These are people who can afford the best legal and tax help available anywhere, and their advisors all advised them to incorporate in Nevada. You, too, can have this advantage. You, too, can take advantage of the same opportunities that they have taken advantage of. You, too, can gain the benefits of incorporating in Nevada, and when you do incorporate in Nevada you will find that you have a corporation which will allow you to accomplish all of your goals and objectives...as well as a support system to keep you up to date with your corporate filings and Nevada incorporation service needs—Val-U-Corp Services, Inc.
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