Many businesses choose to incorporate in Nevada because of liability issues. Persons owning corporations do not run the risk of having their personal assets lost if the company is sued. One of the advantages to incorporating in Nevada is that this state has gotten rid of what is called “joint and several liabilities.” Normally, if a corporation gets sued, you and all of your shareholders are equally responsible, no matter how much each person might have had to do with actually causing the damage. This is not the case in Nevada, where each defendant is required to pay a share of the total penalty that is equal to his or her actual responsibility for the damage. The court assigns the percentage of liability in these instances.

If your business is physically operated and located in Nevada, and if your employees are legal residents of the state of Nevada, you will enjoy other benefits. One big one is that there is no state income tax that your business will need to pay. Another benefit to Nevada businesses is that Nevada does not exchange information with the Internal Revenue Service. Again, this applies only to Nevada-based businesses with resident of Nevada employees.

This entry was posted on February 25, 2008 at 2:53 am and is filed under Nevada Business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.