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Nevada and Delaware Corporations Compared

Nevada vs. Delaware Corporations

Here we compare Nevada and Delaware corporations. Nevada and Delaware are two of the most popular states in which to incorporate. So, we discuss the benefits and why so many people chose these two states. First we will take a look at Delaware corporations. Then we look at corporations in Nevada.

Incorporating in Delaware

For someone who is not familiar with the Corporate laws in the various states, “Why should I consider incorporating in Delaware?” may be a question that comes up. After conducting some brief research, it is relatively simple to see why over half the Corporations listed on the New York Stock Exchange (NYSE) are registered in Delaware.  For over 200 years, Delaware has had the Court of Chancery which presides over matters pertaining to Corporate law. The judges found in that Court are very knowledgeable and specialize in Corporate cases, making Delaware very Corporate friendly. The following are some additional benefits to forming a Corporation in Delaware:

  • There is no requirement to disclose
    the names and personal information of the Corporate Board of Directors.
  • The incorporation fees are minimal.
  • Delaware does not impose a state
    income tax on Delaware Corporations not doing business in Delaware.
  • There is no sales tax or personal
    property tax in Delaware.
  • A Delaware Corporation is not
    required to have a physical presence or business office in Delaware; only
    a registered agent is required.
  • An individual is allowed to act as
    the director, officer, and shareholder of a Delaware Corporation.
  • Shareholders of Delaware Corporations
    can make written decisions as opposed to only making decisions in
    face-to-face meetings.
  • Delaware Corporations are allowed to
    conduct different types of businesses within one Corporation.
  • Delaware has fast and easy
    incorporation processing, making it possible to form a Delaware
    Corporation in as little as one hour!

With all of these benefits, Delaware is one of the best jurisdictions to consider when forming a

Incorporating in Nevada

Nevada is another extremely popular state in which to form a Corporation due to the wide array
benefits it offers to Nevada Corporations. Building on the successful Corporate models offered in
Delaware, the State of Nevada offers the following Corporate benefits:

  • Charging order protection for corporations. That is, when a someone sues a shareholder in a personal lawsuit, there are provisions that can keep the creditor from seizing the shares of stock.
  • The State of Nevada does not assess
    any personal income tax.
  • A Nevada Corporation doing business in Nevada does not pay any State Income Tax.
  • Nevada Corporations are subjected to
    minimal disclosure and reporting requirements.
  • Nearly impenetrable liability and
    asset protection for Nevada Corporations.
  • Stockholders of Nevada Corporations
    are not included in the public records which results in enhanced privacy
    for the Corporation.
  • Directors of Nevada Corporations do
    not necessarily have to be shareholders.
  • Nevada Corporations are not assessed
    any franchise taxes or Corporate income tax.
  • Nevada has no information sharing
    agreements with the IRS.
  • Nevada Corporations are permitted to
    issue stock to raise capital, to compensate someone for services rendered,and in exchange for personal property or real estate.  The Corporate directors are empowered to make binding decisions with regards to assessing the value in
    these circumstances.

With all these benefits, Nevada is an excellent location to consider when making the decision of where to register your Corporation.