Many businesspeople across the United States choose Nevada as the state in which they incorporate their businesses or form LLC’s (limited liability companies) for a number of important reasons. The most important of these motivations is the fact that Nevada does not tax corporate shares, has nothing resembling a corporate income tax, no operating franchise taxes, no equitable transfer taxes and no personal income tax.
Nevada also boasts robust protection of individual assets and does not meddle in many business activities. The relative corporate freedom Nevada provides leads many companies and partnerships to be formed in the state. This guide will show you how you can legally incorporate your business in the state of Nevada.
Name Your Business
Before you can incorporate your business in the State of Nevada you must choose a name for your corporation. This name must be unique and not assigned to any existing business in the State of Nevada. There are ways to conduct state name checks to find out if your business name is already taken. These state name checks can be run online or through the state business license offices by mail. Your name must be absolutely unique to your business to make sure that your business is not confused for another. This is for tax purposes as well as for purposes of reputation. The name must be unique in the State of Nevada only, if the name is taken in another state you are in the clear to use it if it is free in Nevada.
Name the Directors of Your Company
Corporations in the State of Nevada have a few requirements. The following is taken directly from the official Nevada corporation requirements: “Nevada requires a corporation to have one or more directors these directors must be at least 18 years old. Nevada requires director names and addresses to be listed in the Articles of Incorporation. Nevada does not require officer names and addresses to be listed in the Articles of Incorporation.(1)” In order to make sure that you are legally incorporated in the state you must appoint one director who must be above the age of 18 and fulfill the various requirements posted above. Failure to follow all of these guidelines may lead to your business license being revoked.
File the Official State of Nevada Incorporation Paperwork
Go to the official site of the Nevada Secretary of State and search for the “Domestic Corporation Filing Form” which is also known as “NRS 78”. If you do not have access to a computer you have the ability to call the Office of the Secretary of State at 775-684-5708. You must bring this paperwork with you for any number of services related to your business. If you want to open a business phone line, a business bank account or lease commercial property, it is imperative that you bring a copy of your business license along with your personal identification.
Publish a List of Officers and Directors+ Business License
The State of Nevada requires all incorporated businesses to file an annual list of officers and directors which is due on the last day of the corporation’s one year anniversary. If you are a business that is planning to physically move to the State of Nevada, you may have to fulfill other obligations depending on where your business is located and what your business entails. The costs of various permits and licenses is also variable and depends on your line of business. You may also need to obtain certain federal tax documents and an EIN or federal tax identification number.
Open Up a Bank Account for your Corporation
After incorporating in the State of Nevada it is required that you open up a business account. In order to do this you must go to a bank with your new business license that you received from the Secretary of State and ask them to help you open a business account. You will need your business license along with your federal EIN tax identification number. Opening a business account will help you keep your personal and business finances separate and make book keeping for your business much easier.
Add Any Services Depending on Your Business
Different business have different regulations which they must adhere to in the State of Nevada. Depending on what you do you may have environmental regulations, tax regulations, and many other considerations. Before doing business in the State of Nevada make sure you have obtained all necessary permits or licenses to legally do business.
If you follow all of the above steps you should be able to successfully incorporate your business in the State of Nevada. Make sure you do not skip any of these steps as the process for incorporation is very stringent, and violations may lead to tax issues or even criminal prosecution. If you have any questions about your particular situation it is best to contact the Secretary of State of Nevada’s Office. This office handles all of the queries related to business incorporation and can be a fantastic resource for newbies and business experts as well.