Why Incorporate in Nevada?
There are many benefits to incorporating in Nevada but don’t get fooled into thinking that it’s the end-all-be-all entity. There are valid arguments for forming a Nevada LLC or Corporation; you should do your research before you pull the trigger and foreign file in a state where you don’t live.
The first thing that I would recommend is to let someone sell you on a reason for filing in a particular state. Call up some Nevada Incorporation Services companies and ask them to give you reasons why Nevada is the best place to incorporate or why you should form an LLC in Nevada. After that I would call up your home state incorporating service firms and ask them the same questions. If you are worried about asset protection then you should consult with an attorney. If you are concerned about tax reduction, then some good advice would be to consult with a CPA.
I don’t live in Nevada but I get direct mail pieces or spam emails that say INCORPORATE NEVADA. You need to keep in mind that these are sales pieces that took a lot of time and energy to create. The Nevada incorporation or Nevada LLC formation firms might not always have your best interest in mind when designing these mailers. Their primary objective is to make money. I’m obviously making a blanket and general statement because I understand that some Nevada incorporation services are designed for the consumer and not primarily for the firm’s owner.
As you do your research, just be aware that Nevada might not be the answer for everyone. It does have a feel, to some outsiders, of hiding. After all, if you live in New Jersey and file an entity in Nevada, but you don’t actually do business there, won’t that raise red flags for vendors, creditors, etc. Are you hiding something from the IRS? Then why wouldn’t you hide something from your vendors or creditors. My belief is that you look more risky if you foreign file in Nevada and don’t actually conduct business there.
Whether you are going to Incorporate Nevada or form a Nevada LLC, you need to be fully briefed on the advantages and disadvantages or either staying in your home state or filing something the great state of Nevada.
