Tesla’s decision to relocate to Reno, Nevada back in 2014 sparked a national debate that soon turned into a mass Exodus of companies trading their home state for the desert state. But why? What did Elon Musk discover about Nevada that made him think such a big, expensive move was worth it? What did other companies like Apple and Microsoft learn that inspired them to make the same move?
In this post, we’ll look at five reasons why Nevada is such an appealing place for companies and why you should consider forming a Nevada business as well.
Unrivaled Tax Breaks
Nevada is a unique state, earning a significant amount of tax revenue from its casinos. But instead of pocketing this extra money, Nevada passes on these tax savings to individuals and businesses. The result? In Nevada there’s NO state tax, NO corporate income tax, and NO personal income tax.
In many states, annual business filings require the inclusion of significant financial information about both the business and its principals. Nevada, however, takes privacy very seriously and requires only minimal filing requirements. This allows you to shield the identities of you, your investors, and other interested parties.
The fact that the State of Nevada collects such limited information at the time of filing means there’s little to share about you or your Nevada business with anyone, including anyone trying to make a claim against you.
Unprecedented lawsuit and asset protection
Unlike other states, Nevada doesn’t believe that the individuals controlling businesses should be in danger of losing their personal assets because of business matters. Nevada also doesn’t believe that businesses should be responsible for the personal liabilities of its controllers.
Because of this strong “pro-business” stance, Nevada’s courts have taken firm measures to prevent lawsuits against a Nevada business from personally affecting its representatives.
No Residency Required
You can use and maintain a Nevada business even if you’re not a resident of Nevada. Matter of fact, you can establish one without ever visiting Nevada.
Form your business by mail, fax, or phone, and you as the business owner never has to visit the state, even to conduct annual meetings. If, however, you want the tax benefits that come from forming you business in Nevada, you’ll need to set up business operations in Nevada. This is where having a Registered Agent comes in handy.
No Minimum Capital Required
Many states require that an LLC or corporation have at least $1,000 in capital. But you can organize a Nevada startup with little capital if desired.
It’s these facts about Nevada that made it the common-sense choice for big companies like Tesla, Microsoft, and Apple. And it’s these facts about Nevada that could give your business the support and edge it needs to thrive.