The Nevada Secretary of State webpage
is the first place to look for information about Nevada corporations.
Kevin McCoy writes for the USA Today:
Reacting to criticism of its business laws, Nevada has enacted reforms
aimed at making it easier for law enforcement officials to identify
the owners of any company registered in the state. A Senate Permanent
Subcommittee on Investigations hearing last year spotlighted testimony
showing that Nevada was one of several states where a company's true
owners could hide their role by listing the names of stand-ins in state
records. Separately, USA TODAY reported in February that a thriving
mini-industry has capitalized on gaps in incorporation laws and virtually
non-existent oversight to promote Nevada and other states as secrecy
rivals of traditional offshore havens.
Here's a good site
on Nevada corporations:
When forming an entity in Nevada, whether it is a Corporation, Limited
Liability Company or Limited Partnership it is critical that they are
formed properly. Failure to do so may cause legal and tax challenges.
The business of forming Nevada corporations has skyrocketed over the
last couple of years. Many people around the country are saving money
in state taxes by incorporating in Nevada. States like California do
not like losing state tax revenue to Nevada. They especially don't like
it when people still live in California and operate their business there,
while running all their profits through a Nevada bank account and not
pay California taxes.
In any area, there is always misinformation that exists. For many years
we thought the world was flat until there was some investigation to
discover that was not true! That is also true in the business of forming
Nevada corporations. The increase of companies forming Nevada corporations
without doing their proper homework is taking many people down the path
of uncertainly at best, and illegal activities at worst.
We estimate that 70% of the people that incorporate in Nevada are NOT
going to be able to take advantage of the tax benefits that Nevada offers.
It is becoming economically profitable by other states to review their
procedures to make sure their tax is being collected and to do some
checking. You will begin to find people that thought they were getting
away with tax savings start to become audited for things they have done
improperly over the last few years. In other words, just because you
haven't been audited by the state taxing authorities does not mean you
have structured your business properly.
a good site on asset protection:
Many groups sell Nevada corporations as the "ultimate"
asset protection device. Indeed, some groups even sell franchises that
allow the average Joe with no experience or training to become an "asset
protection consultant" and start selling Nevada incorporation
services to their buddies.
The pitch of these groups is usually the same and focuses on Nevada
allowing bearer shares and having a higher degree of secrecy and privacy.
The claim is made that since the corporation has bearer shares that
nobody can know who owns it. This is enhanced by the fact that Nevada
gives some protection to the identities of the ownership of the corporation.
While all this sounds good, it does not mean that the owners of the
corporation can be kept hidden or that the corporation will offer
special protections to either the owners of the corporation or the
assets held within it. Indeed, as will be shown there are absolutely
no advantages to using a Nevada corporation for somebody living outside
of Nevada, or who get sued in federal court. Even within Nevada, the
special benefits offered by the Nevada corporation are highly questionable.
Additionally, those who sell Nevada corporations do not fully disclose
the tax effects of what they are selling – which is not surprising
since they usually do not understand those tax consequences themselves
(and have no education or worthwhile training on these subjects).
Thus, somebody who purchases a Nevada corporation from one of these
so-called "asset protection consultant" groups is probably
putting themselves at risk of doing something that will unnecessarily
cause them taxes down the road.