Having a small business gives you the opportunity to make your financial dreams come true, but that dream comes with risk. If you own an unincorporated business, you may lose all of your personal assets if your business is sued. If you are running any type of business, you should seriously consider incorporation. Not only can you protect your personal assets from liability, but you can also save on taxes. You have the option of incorporating in your home state, or you can incorporate in any of the 50 states you want. One of the most business-friendly states in terms of business law is the state of Nevada. Incorporating in Nevada can be a great solution for your small business. You may want to form an LLC in Nevada or in any of the other types of corporate formats. A Nevada limited liability company could help protect you and your business and also save you money.
One way that small business owners form an LLC is to use the services of an online incorporation company. Online business services save you the time and headache of going through each state’s business laws and paperwork to establish a corporation, because they have done the research and can do the paperwork for you. What you are trying to achieve by moving from sole proprietorship to LLC is liability protection and tax benefits, along with greater control over your business. For many business owners, an LLC in Nevada is the right choice, but you should check with your online incorporation service to determine if the LLC format is right for you and the specific needs of your business.
Another aspect of incorporating in Nevada that you will want to consider is whether you want to establish and operate your business outside of your home state. You will need to find a resident agent to be your proxy in the state in which your business is established. This person is the person to turn to for any legal document or annual report sent to your company operating in that state, as well as documents from the Internal Revenue Service. Your resident agent then forwards this important information to you in your home state. If you want to incorporate outside of your home state, you will want to ask if your online incorporation company offers a Resident Agent service. It is much easier to use this type of service rather than trying to rent an office and find someone to be your agent when you live out of state.
You can put “Nevada, Inc.” behind your small business name as a highly respected credential if you are incorporating in Nevada, or forming a limited liability company in Nevada.
