The major reasons for incorporating your business are
the following:
- LIMITED LIABILITY- When a corporation
enters into a transaction or becomes liable for other reasons,
its individual owners do not suffer the liability also. Therefore,
you can protect your personal assets for yourself and your family
when establishing or running a Nevada corporation. This is a general rule
and has its exceptions such as when there are personal guarantees
or when the corporation is not run and managed as an entity separate
from its owners.
- EASE OF OWNERSHIP DIVISION- By
the issuance of shares, owners may easily divide up their respective
interests. Further, upon the death or retirement of one or
more of the owners, the Nevada corporation continues to exist as before
- BENEFITS TO OWNERS- A Nevada corporation
may offer benefits such as medical insurance and retirement benefits
which are often more difficult when the business entity is a partnership
or a sole proprietorship.
- TAXES- A Nevada corporation, being a separate
entity, pays its own taxes. In many cases this is an advantage
to taxation on an individual. There are means of passing
through taxation on corporate profits to the individuals (Subchapter "S" corporations,
for example), and those decisions must be made by each business
owner.
There are many other reasons one may choose to incorporate
in Nevada,
but the above is simply an overview of the major reasons for incorporation.
CORP95 DOES NOT OFFER LEGAL ADVICE.
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