Incorporate in Nevada
How much could you save by incorporating?
Corporations are entitled by law to many tax deductions that are not available to individuals or sole propietors. Many of the tax benefits that accrue to a corporation end up greatly benefiting corporate owners and officers. Since President Clinton signed retroactive tax increases his first year in office 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).
An individual can only carry losses forward for three years. The Corporation can carry forward losses for twenty years. The individual 1040 tax returns are not designed for business. Period. If you were to "write off" your home office as an individual you raise red flags and potentialize an audit. The 1120 corporate form has no space for home office expenses, only corporate expenses. Your corporate expenses may include automobiles, planes, home offices and equipment,cellular phones, business travel, business meals, medical, dental, and optical benefits for the officers of the corporation, tax deferred retirement plans, are all among the many legitimate pre-tax expenses allowed corporations. As long as the Corporation has the same benefit policy for all of it's employees, even if it's just mom and pop, the pre-tax benefit package will more than pay for the cost and time involved taking care of business corporately rather than individually.
There are many proven and effective tax-reduction strategies easily employed through a corporation.
Owing to the ability to maintain privacy of 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”.
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—individuals or businesses! This almost sounds like capitalism! In Nevada, there is:
Corporate federal tax is only 15% on the first $50,000 of net income.
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.
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Silver Shield Services, Inc.
3315 Hwy 50
Silver Springs, Nevada 89429
(775) 577-4822 - Telephone
(775) 546-9955 - fax