Nevada vs. South Dakota Incorporation Comparison

There are few states that rival Nevada for business friendly tax policy. South Dakota, like Nevada, has no corporate income tax, franchise tax, or tax on corporate shares. Both rate well on the Tax Foundations Corporate Tax Ranking. For individuals, South Dakota does have a estate tax to deal with. Where you can really benefit from incorporating your business in Nevada is asset protection. Nevada protects your assets with a business court, the highest standard for corporate veil protection, and the Nevada Series LLC. For a complete guide to incorporating in Nevada vs. So. Dakota, please see the chart below:

 Scroll Right to View    Nevada    South Dakota
Tax Foundation's, Corporate Tax Ranking Index 1 1
Personal Income Tax NONE None
Tax Foundations, Personal Income Tax Ranking Index 1 1
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 or LLC in South Dakota provides very low tax rates and beneficial asset protection options. However, starting a business in South Dakota includes some unfavorable tax policies. While you must pay franchise, unitary, and gift taxes in South Dakota, Nevada is free from these tax burdens. With a tax rate of 0%, you can save thousands by starting a business in Nevada. Additionally, corporations and LLCs in Nevada have policies that are the best in the nation. Combine these 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 all the steps 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 South Dakota, starting your businesses in Nevada is the obvious choice. You can save thousands of dollars by choosing a corporation in Nevada! Want to learn how to build business credit? We can help you out! Contact us today and we can run you through the necessary steps. Our business experts know the ins and outs of Nevada corporations and we can get you on the path to business success!

* rankings accurate as of 2013


Ready to Get Started?

Forming your LLC online is quick & easy with NCH. Get your Premier LLC Package now!

Start Now

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.
Your State vs. NV

Contact Us

Nevada Corporate Headquarters, Inc.
4730 S Fort Apache Road
Suite 300
Las Vegas, NV 89147
1-800-508-1729 Mon-Fri | 8am - 5pm PST
Nevada Edge


The newly released 5th Edition of The Nevada Edge is packed with everything you need to know about the benefits of launching your business in Nevada. Download your copy now!