Incorporating separates your business assets from your personal assets to prevent your savings, home, retirement and other personal assets from being targeted by any lawsuit against your business. In addition, incorporating may create additional tax deductions that could put money back on the bottom line of your business.
Why Incorporate in Nevada?
Nevada is known as an extremely pro-business state; Nevada has no corporate income tax and no franchise tax. Nevada is one of the few states where the corporate veil has never been pierced, except in instances of fraud.
Why Incorporate with FortuneDNA?
Unlike many other incorporating companies, FortuneDNA is a one stop, full service incorporator. Senior Consultants are certified asset protection specialists. FortuneDNA is a large incorporating service in Nevada. Staff support and systems make creating your business and protecting your assets easy, quick and convenient. Count on FortuneDNA to help you grow you business and protect your family’s future.
Step One – So you want to incorporate?
- Are you starting your own company?
- Do you have investment real estate?
- Does your estate plan need sophisticated structuring? There are a number of good reasons to protect personal assets by using state law to create separate financial entities. Perhaps the most sought after benefit of incorporating is the ability to separate personal assets from business assets legally by establishing a corporate veil. The corporate veil prevents lawsuits and other adverse actions against a business from targeting the personal assets of the business owner.
- Fact: 90% of all companies are engaged in a lawsuit.
- Fact: More than 50% of all companies have filed a lawsuit in the last year.
- Fact: Personal injury claims average 385 days of litigation.
- Fact: 40% of corporate counsel can’t quantify what it costs to defend a lawsuit. The mere fact that you are reading this is a sign that you are conscious of the benefits of forming corporate entities. Your next step is to select the proper type of legal entity from a lengthy list of choices:
- Limited Liability Company (LLC)
- S Corporation
- C Corporation
- General Partnership
- Limited Partnership
- Limited Liability Limited Partnership (LLLP)
Selecting the proper structure is important because each has its own operational requirements, tax implications and legal privileges.
Step Two – Selecting the Best State Law
Many people are unaware that each of the fifty states writes its own unique statutes regarding corporate structuring, operational requirements, legal protection (such as the corporate veil) and personal privacy protection. No state in the union has more business friendly incorporation statutes than the state of Nevada. In 1996, Nevada made its first appearance on the top ten list of states with the highest number of corporations, even though thirty six states had larger populations.
Each month, more than 5,000 corporations are formed in Nevada, with more than 80% of them formed by people who live outside Nevada. Almost without exception, you may form your corporate entity in Nevada even if you operate your company outside the state. Doing so usually provides the individual business owner with maximum asset protection and can even have positive tax implications. For example, in the state of Nevada, the corporate veil may be pierced only if the owner of a company is deemed you have committed deliberate fraud. The corporate veil may be pierced much more easily in other states for reasons such as:
Utah: Commingling of personal and business funds Connecticut: Failure to keep minutes of corporate meetings
Texas: Improper documentation of loans between the company and shareholders
Missouri: Court ruling that a business owner (not the company) benefited from business losses.