Nevada_corporation

Companies law
Basic forms:
Sole proprietorship
Partnership (General · Limited · LLP)
Corporation (LLC · S · C)
Cooperative
United States:
Business trust LLLP · Series LLC Delaware corporation Nevada corporation
European Economic Area, including European Union:
SE · SCE
United Kingdom / Commonwealth / Ireland:
Limited company (By shares · By guarantee) (Public · Proprietary) Community interest company
Civil law countries:
AB · AG · ANS · A/S · AS
K.K. · N.V. · OY · S.A. · GmbH
Doctrines
Corporate governance
Limited liability · Ultra vires
Business judgment rule
Internal affairs doctrine
De facto corporation and corporation by estoppel
Piercing the corporate veil
Rochdale Principles
Related areas of law
Contract · Civil procedure

A Nevada Corporation is a corporation chartered under the laws of the U.S. state of Nevada.

Nevada, like the state of Delaware (See Delaware corporation), is well known as a corporate haven. Many major corporations are chartered in Nevada, particularly corporations whose headquarters are located in California and other Western U.S. states.

While public companies can benefit from Nevada\'s flexible statute, Nevada is particularly attractive to privately-held corporations, and its statute\'s default provisions are particularly favorable to management. As in the case of Delaware, critics of the Nevada corporate law believe that its provisions, and the Nevada courts, are excessively friendly to corporations and their managers at the expense of shareholders\' rights.

Legal benefits

Nevada\'s laws offer flexibility to a board of directors in managing the affairs of a corporation, and permit management to put in place strong protection from hostile takeovers. It also provides extremely strong protection against piercing the corporate veil, where a corporation\'s owners can be held responsible for the actions of a corporation. As of 2007, in all of the court cases involving a corporation, in a period of twenty years, only one case has the piercing of a corporate veil been permitted under Nevada law, and in this single case the reason was because of fraud on the part of the corporation\'s owners.

Nevada (unlike other states) permits the corporation\'s articles of incorporation to vest authority to adopt, amend or repeal bylaws exclusively in the directors, so that shareholders would not be able to change the corporation\'s bylaws.

Disputes over the internal affairs of Nevada corporations are usually filed in the Nevada District Courts, from which judgments can be appealed to the state Supreme Court. Because of the large number of corporations chartered in Nevada, the courts in that state are more focused on the application of corporate law than the courts of most other states. Nevada\'s courts are developing a strong body of case law that serves to give corporations and their counsel guidance on matters of corporate governance, although Delaware and some other states have a larger body of such case law.

Bearer Shares

On February 28, 2007, the Wyoming legislature passed legislation barring the use of "bearer shares" and Nevada was quick to follow. Previous to this, Nevada and Wyoming had been the only two states allowing bearer shares, however now, Nevada and Wyoming have statutes specifically prohibiting them.^{[citation needed]}

Nevada Registered Agent Association

The Nevada Registered Agent Association (NRAA) is an organization of registered agents and business entity formation companies doing business in Nevada. The association advocates the adoption of a variation of the Model Registered Agents Act (MRAA) as well as a regulatory body to establish licensing standards for resident agent companies in response to concern in the government that unregulated incorporation businesses could possibly aid in financial crimes and terrorism funding.

Tax benefits

Nevada\'s tax structure is also a large benefit to incorporation in Nevada. Nevada has no franchise tax. It also has no corporate income tax or personal income tax [1]. While Nevada likes to promote that there are "no corporation taxes" in the state, there is an annual $100 "Business License Fee" which is paid to the Nevada Department of Taxation. Nevada and Texas are the only two states who do not have information sharing agreements with the Internal Revenue Service although the current Secretary of State Ross Miller directed his web staff to remove this attribute from the Nevada page describing the reasons to incorporate in Nevada.[2]

External links

• Nevada Secretary of State
• Nevada Government Main Website
• Nevada Corporation Statutes

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