Nevada Corporations -The Grand Silver Shield Of The State
November 1, 2004
By Katherine Curtis
Many businesses are attracted to the exclusive
laws given to Nevada corporations. Businesses throughout
the world are allowed to incorporate their operations
under the Silver State's domicile. Knowing that the
prying eyes of the IRS are unable to pierce into their
operations, many companies call the state of Nevada
its home base.
When Nevada is considered a company's
home base, any liability is tried in this state and
under this state's laws. By registering its corporation
in Nevada, corporations are entitled to reap its shielding
rewards.
Can Nevada Keep The Big Bad Wolf In Check?
The taxing practices of Nevada are not the number one reason that
businesses incorporate in Nevada. Yes, it is true that a Nevada
corporation is exempt from corporate income tax, taxation on corporate
shares, franchise tax, and personal tax. However, the tax-free environment
does not outrank Nevada's impenetrable corporate cloak.
Nevada's corporate veil holds back the Big Bad Wolf from infiltrating
every corner of a corporation's functions. In other words, Nevada
is a debtor-friendly state and creditors have next to no chance
of breaking through. While Nevadan corporations have more rights
than foreign (out of state) corporations, all corporate owners in
Nevada are protected from liabilities against personal possessions;
liability claims may go after only the company's debts.
Nevada corporations also hold other rights that are not available
in every other state:
§ Shareholders can hold and exchange stock.
§ The Secretary of State does not record a list of shareholders.
§ The "Nevada Corporation Code" protects a Nevada-based
corporation's workers from actions, if proven that the actions were
thought to be legal.
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