S Corporation Nevada - Mixing Business With A Personal Appearance
November 12, 2004
By Katherine Curtis
Blending a business with the owner's personal
property can be a bit tricky but possible when contained
by an S Corporation Nevada-style. Understandably,
not all business owners want to be identified with
their business' operations. However, in some situations,
an owner prefers to tie his personal reputation to
the functions of a sole corporation.
The Double-Taxation Martini.
Why drink a double when a single has fewer calories?
For this reason alone, some lawyers may advise an
owner to select Nevada's S corporation.
To begin, Nevada's S Corporation is shrouded from "double
taxation" practices. Many states will tax not only the owner
of a business but also the business' profit. Fortunately, the state
of Nevada contains many tax exemptions for corporation and private
citizens whether joined or separate. So, when an owner files personal
tax forms, he is also filing for the S corporation. Hence, fewer
taxes mean more profit for the owner.
Responsible Consumption During Happy Hour.
As mentioned earlier, not every business owner wants his reputation
tied to the business. In the majority of states, litigations against
a sole corporation can stake claims against the business and the
owner - a big loose-loose situation for both scenarios. In Nevada,
however, an owner is typically exempt from litigations, even if
the company is a sole proprietorship.
A corporation that does not profit more than $30,000 each year
is sometimes advised to develop an S corporation. This is not always
the best advice since S corporations are more susceptible to litigation
and frivolous claims. Additionally, creditors who process litigations
against a sole corporation have an easier time penetrating the Nevada
corporate veil.
Connecting the owner with the business is an advantage come the
time to transfer ownership. Since the business entity is not separate
from the owner, an owner can pass along the business to anyone,
including a stockholder. Even though reporting a comprehensive list
of corporate stockholders to the state and IRS is exempted in Nevada,
an S Corporation is limited to 75 or less stockholders.
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