How to Form a Corporation in Nevada
Nevada is a great spot for businesses and that is why many people decide to form corporations in the state. The economic situation In Nevada is all a business needs to thrive and realize its greatest potential. Among the benefits of incorporate in Nevada or an LLC in Nevada, include no taxes on corporate shares, no corporate income tax, no equity transfer tax, no personal income tax and no franchise tax. Moreover, Nevada is popular for its asset protection and privacy legislation. The following are guidelines on how to go about incorporating in Nevada.
– Choose a Corporate Name
When choosing corporate name, keep in mind that picking a person’s name, r the initials of a name are not enough to be used as corporate names. If you add a corporate ending like Inc. that stands for Incorporated, or Ltd. Limited or Co. Company or Corp. Corporation then you are good.
Apart from knowing how to form the name of your corporation, you should also know that you cannot choose a name for your corporation that is similar to another business already filed with the Nevada Secretary of State. The Nevada Secretary of State can check the availability of the name you choose on their database.
It is possible for you to reserve a name for 90 days. You only need to file a Name Reservation Request form with the Nevada Secretary of State. You can apply online, so it does not interfere with your schedule at all. Go to the Nevada Silver Flume Business Portal website to file it or send mail. You will pay a $25 fee for the filing.
– Prepare and File Articles of Incorporation
As a legal requirement, and since you want to run a legal business in Nevada, you will need to document the Incorporation Articles with the Nevada Secretary of State. The article usually includes the name of the corporate, the address and the signature of the agent for service of process. You will also include the number of shares and the values of shares the corporation can issue, the names as well as addresses of the board of directors and the name and address of the incorporator. The registered agent signing should also complete and sign a certificate of acceptance, which is also part of the Article when you incorporate in Nevada.
-Set up a Corporate Records Book
A corporate records book is as the name suggests, a book where you record all your corporation’s important minutes of shareholders and directors meetings, papers, stock certificates and subs. The best place to keep the corporate records book is at the principal office of your corporation. Order a corporate records kit from a corporate kit supplier or use a three ring binder for recording.
-Prepare Corporate Bylaws
Corporate bylaws are the inside rules governing the corporate. The bylaws are in form of a document and they will help with operating the corporation smoothly. Yu do not to file these bylaws with testate, they are just meant to maintain order and balance in your corporation. It is also not a legal requirement but still a very important element that you cannot overlook. They help to establish how your corporation will operate; they help to show creditors, banks and the IRS that your corporation is serious and legitimate. Visit Nomo’s website to get corporate bylaw forms. Corporate kits also contain sample bylaws that will help you prepare bylaws or your corporation.
-Hold Your First Board of Directors Meeting
During this first meeting, the directors can adopt bylaws, authorize issuance of stocks, adopt an official stock certificate form and corporate seal, select a corporate bank and set the corporation’s fiscal year. The first meeting is therefore important to the beginning and setting up process of the company.
You then need to issue stock to each shareholder. Some corporations usually offer per stock certificates but it is not a legal requirement. After issuing stock, you enter each shareholder’s name and his or her contact information in the corporation’s stock transfer ledger.
–Comply With Other Tax and Regulatory Requirements
There are requirements that your corporation must meet. For example,
EIN: your corporation should have a federal employer identification number (EIN). To obtain an EIN complete an online application on the IRS website and no fee is required for filing.
S Corporation Filing: if you want to choose S Corporation status because of tax, you need to submit form 2553 Election by a Small Business Corporation, with all the shareholder’s signatures. The filing of the form should be within 15 days of the beginning of the corporation’s first tax year.
Business Licenses: you may need local and state business licenses depending on where your business is incorporated.
– Foreign Corporations Doing Business in Nevada
If your corporation is outside of Nevada, you will first register with the Nevada Secretary of State in order to do business in Nevada. You will also have to appoint a registered agent whose physical location is at Nevada. Inclusive in your registration will be you filing a Foreign Non –Nevada Corporation Qualification and in the application include an original certificate of good standing or existence that is not more than 90 days old, which you will get from the secretary of state in your state of residence. You can fill the form online or through mail and the initial fee is $150. Trading under another name than your registered business? Easy: just file a DBA for “doing business as