Businesses can be incorporated in any state in the U.S., regardless of where the business is operated. Corporate laws vary from state to state. Many small business owners prefer to incorporate in their own state, to reduce costs as well as to simplify the incorporation process. If a business owner incorporates in a different state, then he still needs to qualify himself to conduct business in his own state. Business owners incorporating in their own state, also save on paying franchise taxes and filing annual reports in two different states. Business owners usually choose the state where they want to incorporate, depending on the taxation rules of the state and their registration requirements. Delaware and Nevada are the most favored states for incorporation as they are very corporate-friendly. Incorporating in Nevada has extraordinary benefits for business owners such as tax benefits and liability protection benefits.
Business owners from other states, often make errors while incorporating in Nevada, due to lack of knowledge of the prevailing corporate laws. It is advisable for business owners from outside Nevada to employ an experienced incorporation service. Outsiders require a registered agent to incorporate in Nevada.
If the business owner is from a different state, then the registration is called as foreign registration in his state. If a company is sued for any reason, it will be sued in the business owner's own state. If the applicant filing the case holds the business owner liable for any act, then the case goes to the state of domicile that is Nevada. When compared to other states, Nevada incorporation ensures maximum protection, against getting personal assets exposed in a lawsuit commonly referred to as "piercing the corporation veil." "Piercing the corporate veil" refers to having personal assets exposed in a corporate lawsuit.
By incorporating in Nevada, business owners do not have to pay state corporate or franchise taxes. Nevada has a policy by which, it does not divulge any information to the IRS, and Nevada has lower fees when compared to most states.
Nevada Corporations provides detailed information on Forming Nevada Corporations, Nevada Corporation Advantages, Nevada Corporation Commission, Nevada Corporation Law and more. Nevada Corporations is affiliated with How to Start an LLC in Nevada.
Article Source: http://EzineArticles.com/?expert=Damian_Sofsian
