Nevada vs. Alabama Incorporation Comparison

Alabama comes in at #21 on the Tax Foundation's Corporate Tax Ranking Index, almost right in the middle of the 50 states. They do have a corporate franchise tax which is fairly rare among states. Alabama also has a high personal income tax level at 2-5%. The registered agent must reside in Alabama. You can search for corporate names in Alabama on their website. The main benefits of incorporating in Nevada instead of Alabama are the lower tax rates and higher legal protection. Check out these stats below comparing incorporating in Alabama vs. Nevada:

 Scroll Right to View    Nevada    Alabama
Tax Foundation's, Corporate Tax Ranking Index 1 21
Personal Income Tax NONE 2%-5%
Tax Foundations, Personal Income Tax Ranking Index 1 19
No Franchise Tax
No Tax on corp shares
No Gift Tax
No Unitary Tax
No Estate Tax
Statutory Indemnification of Officers, Directors & Employees
Charging Order Protection for Corporation
Charging Order is Creditor's Sole Remedy for LLC or Corporation
Highest Standard of Corporate Veil Protection
Series LLC Allowed
Business Court *

Forming a corporation in Alabama can provide fairly low tax rates and beneficial asset protection options. However, starting a business in Alabama includes some unfavorable tax policies. While you must pay estate and franchise tax in Alabama, Nevada is free from these tax burdens. With a tax rate of 0%, you can save thousands by forming a Nevada LLC. Additionally, starting a business in Nevada includes asset protection policies that are the best in the nation. Combine these Nevada LLC benefits with huge tax savings and you’re well on your way to a successful business. Need help through the process? At Nevada Corporate, we can help you through the whole process and get you the professional advice you deserve. Don’t get stuck paying ridiculous taxes or working with unreliable business experts. At Nevada Corporate, we have the best business professionals in the United States and we take pride in our amazing services! Compared to Alabama, filing a corporation in Nevada is the obvious choice. You can save thousands of dollars by choosing a Nevada corporation! Contact us today and we can run you through the necessary steps. Our business experts know the ins and outs of Nevada corporation filing and we can get you on the path to business success! Do you have more questions about Nevada business corporations? We have the answers. Call us today!

* rankings accurate as of 2013


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Why Nevada?

  • You can live and run your business in any state and still incorporate in Nevada.
  • Forming your entity involves no minimum capital requirements
  • Lawsuit proof laws - If your business does get sued, your personal assets will stay safe.
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Nevada Edge


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