must breathe, but corporations must make money" ¾
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
BizJump Consulting will expeditiously form your new corporation
in New York, Nevada,
Delaware or any
other state in the
Advantages of incorporating In 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.
most other states, Nevada does not have personal income tax,
state corporation tax, Corporation Succession Tax or corporate
shares taxes or franchise tax
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.
Nevada the shareholders of a standard corporation may consist
of any number of individuals of any nationality, and/or any
number of Corporations.
of incorporating in Delaware
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.
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).
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.
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
of incorporating in a State that is not Your Home State
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.
will have to pay a registered agent in the state of incorporation
to conduct your corporate affairs and receive your mail.
might still have to pay taxes for the state in which you
are conducting businesses.
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.