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May 21, 2009 
Many asset protection strategists tell you that you need to incorporate in Nevada and they’ll help you do it. Now, if you actually live in Nevada and plan to operate the business from there, then Nevada is most likely the best place to incorporate. But if you plan to operate elsewhere and have no other ties to Nevada this is probably not the best place to incorporate.
The major reasons that they usually give for a Nevada Corporation are privacy, better lawsuit protection, and tax savings.
Let’s look at these three reasons—
1. Privacy. The thinking is that it is possible to incorporate in Nevada and not declare who the owners of the corporation are. This would supposedly allow you to remain under the radar of any creditors. But in reality, there is no way that you can remain anonymous and still operate the business. Even if you were able to have a surrogate (they call them nominee agents) listed as the directors and officers of your business, how are you going to operate the business day-t0-day and sign paperwork etc? Lastly, if your business is sued, the opposing lawyers are going to be able to get your names anyway. Strike 1.
2. Better Lawsuit Protection. Basically, if the event that prompted the lawsuit occurred in another state, you will not be able to hide behind Nevada’s favorable laws and you will not see any higher level of lawsuit protection.
3. Tax Savings. Nevada has no income tax or corporate tax, but if you are doing your business in another state then you are almost certainly liable for the taxes in that state. So, no tax savings. Strike 3.
For most people, the best place to incorporate is their home state…
Have a great day.
Rob
PS: This is not intended as legal advice, check with your own attorney and accountant for the specifics of your case. Just look long and hard at anyone telling you that you need to buy a Nevada Corporation through them…
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• May 21, 2009 @7:13 pm
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