Once you've decided to incorporate, the question becomes, "Where?" For many, the best choice is Nevada. Why?
The corporate veil in Nevada has been pierced only twice in
the last 36 years, and both cases involved outright fraud.
In fact, there were other Nevada cases where the corporation
didn't do resolutions, minutes and meetings, had thinly capitalized
the company, commingled funds... and still, Nevada protected the
corporate veil! Nevada is a pro-business state, meaning they strongly
protect the business owner.
Listen to the "Circle of Liablity™" and Discover the Real Benefit of Incorporating in Nevada!
"But My Business Is Halfway Across The Country..."
You may wonder how incorporating in Nevada applies to your business
when your business operations are NOT in Nevada. The answer is that
they don't have to be.
how it works: First, incorporate your business in Nevada (in whatever
form of corporation or LLC you decide is best for you.) This makes
Nevada your domicile. Then register your new corporation
(this is called "foreign registration") in your state
If your company is sued, it will most likely be in your home state.
If the plaintiff (the person suing you) wants to go beyond the corporation
(or LLC) and after you personally, the case will most likely go back
to the state of domicile, which in this case is Nevada - where you
get the most protection.
However, if you incorporate in a weaker state (without Nevada's
protection) and your veil is pierced... That's right. You're right
back where you did not want to be. You will be held personally liable.
You might lose the lawsuit - and lose your personal assets.
You Can Make
question: How much does it cost to incorporate in Nevada first,
versus incorporating in your home state only? Without being dismissive,
the answer is that you can't afford not to.
You've put in a lot of hours, blood, sweat and tears to develop
your business into your major asset and a significant part of your
net worth. If you're like most successful people, you probably work
10, 12, 14 hours per day.
Your goal is to protect all your hard work, and the valuable asset
Want numbers? (As of this writing,) it will cost you less
than you think to incorporate in Nevada. Then, only a small fee for
foreign registration (plus whatever your home state charges for registration)
and only $525 annually for Nevada renewal. Does that sound like too
much money to protect not only the most important asset you (and your
family) have, but also the well-being of all the employees, contractors,
and clients depending on you?
I would think that if it does, not only are you shortsightedly exposing
yourself, but you do not fully revere the contribution you make
to the lives of those around you.
As my friend Jack Miller, well-known real estate guru and entrepreneur,
says, "If that sounds like too much to you... come
on! Are you really in business? An $800 franchise
tax - that's the cost of a few cases of paper, some toner, and maybe
some software. Don't let $800 stand in the way of protecting yourself."
Nevada Corporate Planners has set up over 6,000 business entities
in Nevada , providing them with a barrier that protects them from
devastating legal repercussions. And just in case you think this risk
seems overblown, consider this:
In 1990 there were 655,191 lawyers in this country.
Today, just fourteen years later, there are 1,084,504* active lawyers nationwide. (And let me tell you, they don't call
them "active" for nothing.)
Not sure if Nevada is right for you? Call NCP today and let us help you make the best decision for your situation. Keep in mind, NCP does incorporate in all 50 states.
*American Bar Association estimate
Questions about Forming an LLC or Corporation?
Call NCP at 1-800-351-5111