Are you considering moving your business to Nevada or Delaware?

Moving to Nevada

Incorporating your business in Nevada can entitle you to a number of benefits that include a favorable tax environment. As long as you can utilize the services effectively, your business may turn out to be very profitable. Tax lawyers in the Silver State know the main attractions are:

• Nevada has no private income tax
• No franchise tax
• No tax on corporate shares
• No capital stock tax
• No tax on corporation shares
• No corporate income tax
• No stock transfer fee or tax
• No succession tax
• No minimum capital requirement required to incorporate
• Stockholders and directors need not be US citizens
• Only the names and address of directors and officers are listed in public records

An increasing number of businesses have turned to Nevada for incorporation, certainly from the high tax state of California. Nevada ensures the privacy of corporate stockowners by allowing its corporations to use bearer stock certificates so that owners can remain anonymous. Even the sales tax is applicable only on products sold within in Nevada and tax attorneys have dealt with this aspect many times.  

The flexibility in maintaining and operating a business in Nevada along with tax exemptions are the major advantages of incorporating in Nevada. In most companies, the stockholders and management are the same, and receive the benefits of Nevada’s conservative tax and incorporation laws. Another major attraction is that Nevada corporations can issue stock for services, capital, real estate, and personal property, while the directors have the final authority to determine the value of such transactions.

Moving to Delaware

Like Nevada, Delaware has a favorable business climate, which is an incentive for many business owners to incorporate their companies in the state which has happened considering the state of New York in recent years. Delaware state courts and laws are known to uphold the interest of business owners and pass reasonable judgments to reach fair conclusions. Corporate laws vary from state to state in the US and incorporating in Delaware is considered beneficial, as the processes involved are generally hassle free and does not consume that much of anyone’s time. 

There are numerous advantages for companies that choose to incorporate in The First State since the state’s corporate laws encompass a variety of encouraging clauses that includes laws related to sales tax, personal property tax or intangible property tax, and the franchise tax of corporations. The state regulations in Delaware offer non-taxation upon shares held by non-residents and there is no inheritance tax for non-resident holders which is another selling point for Delaware tax lawyers.

Delaware corporations may issue a single class of stock or numerous stock types. This differs depending upon the conditions listed in the ‘Certificate of Incorporation.’ The Delaware ‘General Corporation Law’ lays down clauses for various aspects of how a corporation should function. 

This includes regulations regarding the power to borrow money, issue bonds, and guarantee debts and otherwise incur debt. Clients residing outside the state can also engage in online registering of a corporation. The only requirement is that the online information form has to be filled out correctly.

Business owners are provided a great deal of flexibility when incorporating in Delaware. They can even press the button for a close corporation under a shareholders' contract. This allows them to carry out business operations in a convenient manner without external interference. This is not how it is done in Russia where entire operations of a business can become part of the government.

This is not how it is done in Cuba where farmers do not own their own land and this is why there is a shortage of food in communist countries because what is the incentive to work hard if the government does not allow you to set your own prices nor even earn a profit? Polish farmers faced this prospect when they were incorporated into Russia decades ago in their past. It is not just farmers that do not own their own land, no businesses to in Cuba and even businesses in again Russia, Venezuela and so on face heavy regulation and very little freedom.

Tax lawyers are not needed in Cuba, for instance, since all the land belongs to the government.

This is what America now is doing to the coal companies in Kentucky and West Virginia wiping out thousands of jobs and destroying families all for the sake of some myth called human made global warming. The planet’s temperature has been fluctuating for millions of years, if the earth is getting warmer is this because of human kind? Real science does not support that and others believe who cares if the earth gets a little warmer, it is cold enough anyhow. Meanwhile, energy prices have increased for this pseudo-science. These companies no longer need tax lawyers since they barely operate or do not operate anymore. 

It is easy to interpret Delaware corporation laws allowing businesses to employ them to their benefit. Due to the expedient process involved in incorporating a business in Delaware, some business owners from other states of the US, mainly New York, are choosing to incorporate their companies there.

How to Find a Tax Lawyer

If you are a small business owner you may not benefit significantly from out-of-state incorporation. Nevertheless, you ought to speak with a tax lawyer to understand your options. If your state is collapsing like New York or California is, you should consider leaving since things do not look like they are going to improve anytime soon. You legal representative can help deal with tax issues and in setting up entities suited to the needs of your business.

It does not matter what state you plan in moving your business to, you will need a tax lawyer regardless. You can find one right here: Tax.USAttorneys. The larger the business the harder it is to move. Years ago, Boeing moved from Seattle to Chicago, it was a huge deal. Even if a small business moves though you will be altering peoples’ lives. This is a serious decision that should not be made alone. Contact us if you need a tax lawyer.