nevada corporation and mastercard account

Nevada Corporation And Mastercard Account – An Alternative To A Bank Account?

September 10, 2004
By Richard Smith

Undoubtedly two of the major reasons why larger corporations elect to incorporate in Nevada are due to it’s zero-rate state income tax (both corporate and personal) and strict corporate privacy laws. However, these may not be enough of a reason for smaller corporations to incorporate in the state. Indeed, costs and overheads, for example in hiring a resident agent, may mean that any value created by these benefits is quickly eroded. Nonetheless, the fact that state law does not specify that officers and directors of the corporation need to be Nevada residents, nor that the corporation need have a bank account throw the ball back in favour of some small-time corporate. Now it is possible for a small time, say internet, Nevada corporation and MasterCard account to trade, whilst still enjoying the additional protections afforded to all corporations incorporating in the state at large.

In addition to the above, as Nevada state law acknowledges the corporate concept of single member limited liability companies (LLCs), anyone who would normally need to trade as a sole trader (or “trading as”) entity elsewhere now has further reason to operate an incorporated business out of Nevada. With only their [merchant] MasterCard account, which is universally accepted payment method, these small time operators can now look forward to:

trading as sole trader, but with the protections afforded to ‘C’ corporations, by means of incorporating as an LLC;

not needing to be located in the state;

not being required to pay corporate income tax;

being able to generate income revenue flow through their MasterCard account, without the need to pass such through a Nevada bank account;

living secure in the knowledge that their income information will not be shared with the IRS.

As you can see then, the mere fact that Nevada has zero-rate corporate income tax need not be the driving force behind deciding to incorporate your small business in the state – there are a number of additional fringe benefits in place that should provide you with ample reason to decide that Nevada is the state to incorporate your business entity.

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