When
Can You Really Operate Your Business in Nevada, and Not Register in
you Home State?
If you can accomplish this, then you can
take advantage of everything Nevada promises and what everyone else
promises. The first step to understand that your employees must be based
in Nevada, doing the work in Nevada. This is the main factor missed
by so many people that form Nevada corporation. This has to do with
the multistate taxation rules. Next, you need to have the substance
of the company based in Nevada; another term is the Nexus. Also,
you must understand the term "Substance over Form".In order to properly form
a base in Nevada to serve your customers, the following requirements
should be met. They include having the following:
- A Nevada corporation
- A Nevada bank account
- A Nevada physical and mailing address
- A Nevada phone number
- A Nevada business license
- A Nevada office
- An Employee of the corporation [both the corporation
and individual must pay the proper payroll taxes (in general this
is true for all corporations).]
*NCP, Inc. offers a Las Vegas Office and bank account
that can accomplish 1-6 for you, and refers you to a company to help
you with your payroll!
Step 1:
Now, you have a presence in Nevada for
your company. If you look at it from a logical point
of view, would you do business with a company located in Nevada that
did not have all these things? Absolutely not!Note: "Substance over Form".
Form refers to the first part of this equation. This is met when you
form the corporation or LLC (This is what we can do for you at NCP,
Inc.).
Your new business should also have the proper substance
so it can stand up to any incident of questioning of its existence.
Forming the corporation or LLC alone would not stand up against scrutiny
by a judge or a state tax examiner. You need to add substance to the
equation. Substance is everything we put in place to establish your
presence in Nevada.
Do you see how having the proper business presence
in Nevada provides substance? Without substance the corporation may
be ruled a sham! In other words, if you are considering using a
Nevada corporation or LLC, and you do not operate it with proper substance,
serious challenges may soon follow!Now, step one is complete! That was the
easier one. And cutting corners is not recommended when it comes to
doing it the right way.
Now, step two is critical. The nexus
of the work must be based out of Nevada. That means the Nevada corporation
must have its employees living in Nevada doing the work
in Nevada! The bottom line is this: if you have people doing the
work for the corporation in another state other than Nevada, and it
is beyond the definition of an solicitation of sales, the company must
register to do business in that state!Many will say, "Well, we don’t
have any employees, I am just the independent contractor and I work
out of my home in my home state".
First, all corporations must
have at least one employee. The IRS doesn’t quite understand how
independent contractors operate corporations. Second, if you have employees
you can also have independent contractors if each meets the tests of
an independent contractor. The most important factor in determining
if someone is an independent contractor or employee is the right of
control. If the employer has the right to exercise control over the
manner and means by which an individual performs his or her services,
then there is no question, that person is an employee.
By the way, independent
contractors are not entitled to fringe benefits or meals,
travel and entertainment deductions! The last statement is the "sword
in the heart". You say, I do the work out of my home in
my home state, well, that really means, you are doing the work not
in Nevada, but in your home state, therefore, you must register to do
business in your home state! You could have done the work out of your
office in your home state. The result would have been the same.
What would be ideal? Move to Nevada! And we mean really move, not just fake it by getting a driver’s
license in Nevada. Many people think they are pulling a fast one on
their home state by claiming to be Nevada residents. They don’t
realize the hard part is revoking their residency in their home state!What do you do After you Get Started
With NCP and you Have Questions?Does this sound or look like it may be
a little more involved then you first thought? Perhaps there are a few
more details then our competitors have told you about.
It is like the
first time you purchased a new computer. You were told it would accomplish
many powerful things, but when you started getting involved you found
you had many questions, even on basic things like loading a new program
or connecting to the Internet. At first, the salesperson made it sound
all rather simple, and you may have realized that simply was not the
case.
The good news was that after you had some questions answered,
perhaps you invested more money with a computer consultant or you paid
fees to be on line with someone at the computer company to get the answers
you needed. Honestly, were you less inclined to hire someone after each
question you had, because of the added expense, and just decided to
struggle and figure it out on your own? Finally, you were up and running
and now the computer, which was promised to be such a powerful tool,
after some time of frustration, is now living up to that billing! Or
perhaps you have had this similar experience with another product or
service.
How, do we know this? Because we have been
through the same experience as you! What would have been ideal? It would
have been ideal to have an annual support service where if you
had questions you could simple fax or email them in to the computer
company and the technical department would either:
- Email or fax you back an answer or;
- Call you with the answer.
At NCP, you will not be alone as you get
started with us and have many questions. You can be reassured we have
a solution to the above challenge!
How to Keep Your Business in the Top 5%!