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Avoiding Potential Pitfalls
 So, you think you're ready to acquire a Nevada corporation shell and get started. Before you do, we invite you to spend a few moments while we guide you through some additional considerations.
Which corporate-formation service should you use? That one that advertises corporate formations starting from just $25*? Check out the asterisk and you'll see there's not much to save when compared with Budget pricing. How about that one that charges thousands of dollars and claims to be worth every penny? Ask them if they earn a commission to make the sale and weigh that into the equation.
You know where we're going with this already, don't you? So allow us this opportunity to shamelessly plug our own services for a moment.
Choose the Right Nevada Resident Agent
We provide you with free consultation not just at the point of sale but on an ongoing basis. We put ourselves in your shoes but with our specialized knowledge of Nevada corporations. We help you set things up properly and with the least expense. For example, we don't sell you a "virtual office" package for hundreds or thousands of dollars a year when you don't need it. We show you how to handle things without the need for a lot of expensive professional services. We can help you keep your corporation's books and records impeccably. And have we mentioned: no-pressure, non-commission consultants? We can help. We care. It makes a difference. We call it "the Budget difference".
Some entrepreneurs fail to value their time. You're different. You delegate the mundane tasks, freeing yourself up to execute on some of those great ideas. Right? How many hours do you spend keeping your business' books and records? We can help. Budget bookkeeping service starts from just $50 per month. And we can usually handle the entire year of corporate documentation with you just by asking you a number of questions on the phone. (We will soon be introducing a new section of the site to allow you to handle recordkeeping online, too.) Now you're free to handle your business better. "Just Do It."
At BCR we pride ourselves on providing "old fashioned" service. Don't you just hate those automated phone systems: "We care about your call. Please hold and the next available operator will be with you in a moment." Sure. If you cared about my call, you'd answer it. Things can get a little busy at times but we're never too busy to take your call, even if it means someone has to get back to you. Yes, sometimes we even handle emails after hours. When you have a question we often have the answer at our fingertips. When we don't, we'll help you find the answer. Sometimes "old fashioned" isn't so bad.
We respect your right to privacy and do what we can to protect it. We think that's important, even if some of our competitors don't see things quite the same way.
Great customer service; Budget pricing; everything you need, nothing you don't: Enjoy the Budget difference!
Avoid Common, Costly Mistakes
If you've read this far, you've probably avoided one common mistake: paying too much and getting too little. Congratulations! Let's look at some other errors commonly committed in acquiring and managing Nevada corporation structures:
- Thinking all Nevada corporations are created equal: In order to take advantage of the special provisions in Nevada's statutes, you will want to use articles of incorporation that do so. Many incorporation services can help you estalish "a" corporation in Nevada. Doing it right is another matter. Dealing with a knowledgable incorporation service can make all the difference, especially when it comes to establishing an entity at "arm's length" to yourself, which is what Nevada is all about. Many of our competitors somehow never get around to explaining that it's really not a good thing to set up a private Nevada corporation paying for it by credit card.
- Thinking "It's mine. I own it.": That which you own can be taken from you. You should NEVER declare to anyone your ownership of a Nevada corporation unless you have been unwise enough to structure your affairs with complete disregard for all that has been presented on this site relating to the benefits of PRIVACY. If you have done things right, you do NOT own the corporation, even if you are in a position to whisper in the ear of its Board and subtly influence decisions.
- Thinking it's too complex: Whenever confronted by a new body of knowledge one of the first reactions is: "Oh, my, how will I ever get to know what I need to know about this?" Don't worry. We're here to help and will always answer your questions to the best of our abilities. We'll take the time to walk you past the jargon so you have a clear understanding of how things work. When you have questions later, we're still here for you. We make it simple.
- Thinking it's too simple: For a corporation to function properly, basic "corporate formalities" must be upheld: licensing; bookkeeping; recordkeeping; and staying current with the Secretary of State. Failure to handle these responsibilities properly will result in premature death of the corporation due to neglect. If you need help with maintaining your corporation in top form, we will work with you to ensure everything is in order.
- Thinking privacy is unimportant: One of the best protective devices available to you is also one of the cheapest: privacy in your business affairs. Keep your private corporation business to yourself. Of course, the use of contract officers and director can help a lot in this regard by keeping your name off the public database, which is easily accessed by anyone with a little curiosity.
- Thinking a privacy screen is the same as being bulletproof: Uh, no. Privacy is not a "be all, end all" strategy in and of itself. It's nice to know that asset and public database searches will not connect you to the corporation, which minimizes your profile for everything from adversarial lawsuits to IRS deemings of your lifestyle and income. But you still must handle things properly and responsibly from behind the privacy screen.
- Thinking a one-man corporation provides solid protection: No, not really. The idea is to work with an entity that is completely separate and apart from yourself and that is not the case if the corporation is nothing more than your alter-ego. (Notwithstanding Rowland v. Lepire, the Alter-Ego Doctrine allows the courts to pierce the corporate veil anytime upholding the fiction of separate existence would "sanction fraud or promote injustice", a hole just about big enough to drive a Mack truck through it, if you are unprepared for adversarial courtroom proceedings. This is especially true outside of Nevada, if there is any nexus to a foreign jurisdiction.) Get other people involved (or at a minimum work with a knowledgable Director who will uphold the fiduciary responsibility to protect the corporation instead of handing it over to an adversary). Remember, you can still retain control, quietly and from behind the scenes: "Control everything; own nothing." Let us show you how to control a corporation without owning any part of it.
- Thinking you can do business in another jurisdiction without registering: No, this approach is almost certain to get you into trouble with your home jurisdiction's licensing and taxation authorities. On the other hand, it is often possible to avail yourself of the benefits of a Nevada corporation without having the corporation do business in your home state. Even when it is necessary to do business in your home state, it is usually very advantageous for your home-jurisdiction business to be able to do business with a private, arm's-length (separate, as in, you do not own it) Nevada corporation.
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Guidelines:
In your planning, structuring and managing of a Nevada corporation shelter, you might benefit by studying the following considerations:
- Separate assets from potential liabilities;
- Know that when no stock is issued (and in Nevada there is no statutory requirement to issue stock) it is up to the Board to decide who owns the corporation;
- "Keep your business to yourself" by maintaining financial privacy;
- Remember that it is often better to control assets and cash flows than to own them;
- Lose your assets to friends and family, not to a vexatious litigant;
- Keep a low profile;
- Live within your means; be personally frugal;
- Save and plan for the future;
- Think in terms of legacy or estate considerations;
- Maintain proper corporate formalities: Document corporate decisions with appropriate resolutions or in the minutes of meetings; maintain accurate accounting records; and remit all taxes due in a timely manner.
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