The corporation was conjured mainly to resolve the problem of unlimited liability faced by the sole proprietorship and partnership forms of businesses. Because it's a separate legal entity, the corporation can protect its owners from being personally liable if lawsuits are brought against the business. Over the years, various forms of corporation have evolved with many other advantages over the other forms of business.

BizJump Consulting  will expeditiously form your new corporation in New York, Nevada, Delaware or any other state in the Unites States.

Main Advantages of incorporating In Nevada

Nevada is fast becoming the incorporating state of choice for most businesses. In contrast to most other states, Nevada has the following advantages: Lower taxes, Privacy and flexibility.

Lower Taxes

Unlike most other states, Nevada does not have personal income tax, state corporation tax, Corporation Succession Tax or corporate shares taxes or franchise tax. 

Privacy

Unlike most other states, Nevada has Minimal Reporting And Disclosure policies. Nevada Corporations do not have to file tax reports or share information with IRS. Furthermore Corporate Stockholders are NOT Public Record. 

Flexibility

In Nevada the shareholders of a standard corporation may consist of any number of individuals of any nationality, and/or any number of Corporations.

Advantages of incorporating in Delaware

More than 308,000 companies are incorporated in Delaware, including 60 percent of the Fortune 500 and 50 percent of all the companies listed on the New York Stock Exchange. Delaware as a result of its progressive corporation laws and customer service-oriented State Division of Corporations is the leading territory for New Company formation in the US.

Lower Taxes

• Unlike most other states, Delaware does not have sales tax, personal property tax or intangible property tax. Non-resident shareholders do not pay  Delaware tax on shares. No Delaware state income tax for corporations that are not conducting business in Delaware. Finannly, Annual franchise tax is low (minimum $30 tax plus $20 filing fee, total $50).

Flexibility

• Delaware allows for conversion of corporate entities from one form to another - corporations can convert into LLCs and LLCs can convert into corporations. Also, one person can be the only Officer, Director, and Shareholder.

• In comparison to other states, Delaware has numerous corporation friendly laws protecting the rights of shareholders. For example: shareholders are protected by takeover statue, which limits abusive hostile takeover tactics

Disadvantages of  incorporating in a State that is not Your Home State

• You will still have to pay a fee to register your business with your home state as an "out-of-state corporation". In some cases this fee is more than that of incorporating your business in your home state.

• You will have to pay a registered agent in the state of incorporation to conduct your corporate affairs and receive your mail.

• You might still have to pay taxes for the state in which you are conducting businesses.

• After adding up all the expenses of incorporating your business in a states like Nevada and Delaware , you will realize that in the long run, it is more cost effective  for small businesses to incorporate in their home state. Contact a CPA or a lawyer for more information.