Nevada is known for gambling and showgirls, but it has also become a haven for business incorporation service. Among the many advantages of a Nevada incorporation, there is no corporate or personal income tax and, unlike Delaware, no tax on capitalization. A brief list of advantages touted by the Nevada Secretary of State are:

• No Corporate Income Tax
• No Taxes on Corporate Shares
• No Franchise Tax
• No Personal Income Tax
• No I.R.S. Information Sharing Agreement
• Nominal Annual Fees
• Minimal Reporting and Disclosure Requirements
• Stockholders are not Public Record

Nevada is the only state left in the union that has no information sharing agreement with the Internal Revenue Service. Privacy advocates cheer this last remaining bastion of the “Don’t tread on me” attitude. Nevada’s corporate laws give broad discretion to management.

Additional Advantages

• Stockholders, directors and officers need not live or hold meetings in Nevada, or even be U.S. Citizens.
• Directors need not be Stockholders.
• Officers and directors of a Nevada corporation can be protected from personal liability for lawful acts of the corporation.
• Nevada corporations may purchase, hold, sell or transfer shares of its own stock.
• Nevada corporations may issue stock for capital, services, personal property, or real estate, including leases and options. The directors may determine the value of any of these transactions, and their decision is final.

One serious disadvantage of a Nevada corporation is that liability attaches to the last remaining officers if the corporation is dissolved. Therefore, it is a good idea to keep the corporate structure in place for many years after the cessation of the business. Certainly, the corporate shell should be maintained until well past the expiration of any statutes of limitations that might apply.