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Nevada Corporations |
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LEGAL NOTICE: |
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Why Nevada Corporations: Tax Saving Strategy AdvantagesThe tax saving advantages of a Nevada corporation can be enjoyed by you no matter where you are. You too can avoid paying so much in taxes once you become aware of tax-saving strategies involving Nevada corporations. Tax savings might be secondary to the many other benefits afforded by corporate structuring but for most people it's a very nice "side benefit". No matter in which state you incorporate, corporations are entitled by law to many tax deductions that are not available to individuals. Many of the tax benefits that accrue to a corporation can end up greatly benefiting corporate owners and operators. Properly structured, overall tax savings can often be as high as 50%. In many cases you can avoid paying taxes on income from a business in your home state altogether (because the income is earned in Nevada by an arm's length corporation instead). Corporations have a lower federal tax rate at all levels of income compared with individuals. A corporation only pays 15% federal tax on the first 50 thousand dollars of profit, plus whatever additional tax applies in the state in which it is incorporated (NONE in Nevada). It is the responsibility of each individual to structure financial affairs in such a manner as to minimize the amount of tax payable. While tax evasion is a serious crime, tax avoidance-saving thousands of dollars in taxes through structuring of your financial affairs within the laws-is the duty of the taxpayer. There are many proven and effective tax-saving strategies that can be easily employed through the use of Nevada corporations. Tax Saving with a Nevada corporate structure is a matter of keeping yourself "at arm's length" from the corporation with regard to ownership, so you and the corporation are considered different entities for purposes of taxation. How very fortunate that Nevada corporations feature privacy of ownership and privacy of control. Your name never needs to appear on any public record relating to a corporation over which you might exert pretty much complete control, if only as the "whisper in the ear" of the Board of Directors. Properly structured with regard to ownership, a Nevada corporation never has to endure IRS designations that result in tax surcharges, such as "controlled group", "personal service corporation" and "personal holding company". ALL of these IRS designations hinge on ownership attributes and all are addressed when a corporation has a number of owners other than yourself. The "personal holding company" designation, for instance, results in a surcharge of 39.6% of undistributed earnings from passive income-but only applies to situations where there are five or fewer stockholders. Similarly, a "personal service corporation" is taxed at a flat rate of 35%-but this only applies when the individual providing the services is a primary owner of the corporation. With a progressive income tax whereby one pays at a higher rate as income increases, income splitting allows for more income to be taxed at a lower rate. Such income streams are not subject to being lumped together as a "controlled group" as long as the various entities to which the income is split are "at arm's length" to each other with regard to ownership. A little creative thinking and strategic planning can easily avoid "controlled group" designations aimed at lumping all that income together and taxing it at the highest possible rate. With the many ways of handling ownership of a Nevada corporation (discussed on the Private Ownership page) there is always a way to lawfully avoid these punitive IRS designations. Unless one chooses to live a high lifestyle, it is usually quite possible to maintain an overall taxation rate of just around 15% with judicious use of Nevada corporations. Nevada itself charges no tax on the income of its citizens, whether individual or corporate. Pro-business Nevada, unlike most every state in this country, has taken a stand AGAINST taxation of the income of its citizens. A Nevada corporation is also not subject to any other hidden taxes. Sales tax applies only to products sold within the state. Imagine a state that believes that taxation should not come directly from the income of its citizens! This almost sounds like capitalism! No Corporate Taxes in Nevada
Because Nevada has no state tax, and because budget-conscious Nevada does not keep much information on their own residents or their corporations, it has steadfastly refused IRS requests for reciprocity. Other states freely exchange all of the information they have on every resident and corporation but Nevada has no reciprocity arrangement with the IRS. As a cautionary note, however, be advised that the information on the Nevada Business Registration Form CAN be obtained by the IRS-and that information relates to ownership of the corporation, so it's best to consider ownership structuring issues early on in your strategic planning. Nevada's array of provisions for handling ownership of a corporation allows for some serious creative strategies relating to tax savings by the splitting off and direction of income streams, all nicely "at arm's length", making it the premier location in the country for handling income and minimizing taxes. Why go offshore when setting up a Nevada corporation is so easy, affordable and safe? Talk to one of our knowledgable consultants and see why Nevada is the ONshore tax haven! Call 702-870-5351 to speak with one of our knowledgable, no-pressure, non-commission consultants and see how you can start saving taxes right away. Learn how you can make your top tax bracket just 15%!
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