Incorporating In Nevada
I'm thinking of incorporating my business in Nevada. I've been reading that it is perfectly legal and has many advantages to the capital gains issue . Does anybody else have their business incorporated in Nevada or know any thing about this?
The main advantage will be that there is strong NV case law in favor of corporations. As of last year, there was only 1 case where a corporate veil was pierced and the principals held liable, and there was strong evidence of fraud in that case.
Taxes: There are no personal or state income taxes in NV. But unless you will be doing your business in that state and living here, you will still need to pay state taxes where you do business/live and of course, federal taxes are everywhere!
Some websites will advertise that you can save on taxes by loading your expenses (leases, loans, advertising, etc) from a NV corp that you own onto your out-of-state corp, thereby reducing your taxable income for the out-of-state corp's taxes. Doesn't work if the owners are the same for both companies, that is clearly stated in corp/tax laws.
Anonymity: another nice thing about NV corpsis that you can keep your name completely off the public books of the corp. This is done by using a 3rd party agent to be on all the papers. NV is one of very few states with this benefit if you want privacy, and has the best corp protection of any that do.
As for capital gains, that is available in all states on the federal level once you've held investment property for at least one year and one day. States vary on how they handle cap gains.
-Joe