Delaware Corporations
In recent years more than 50% of all
corporations have been incorporated in Delaware. The state of Delaware is well equipped for corporations because it has a
separate court for the adjudication of corporate litigation resulting in
extensive case law for corporate matters. Delaware provides many tax benefits including: no state
corporate tax on interest or other investment income, no state sales tax, no
ad-valorem or value added tax, and no taxes on
business transactions. A single person can hold all offices including Director,
Shareholder, President, Secretary, and Treasurer. The corporate headquarters of
Delaware corporations can be located anywhere in the world.
Delaware corporation benefits include:
-
Established case law
- Tax
Benefits
-
Stockholders do not have to be U.S. Citizens
- A
single person can hold all offices
-
Directors can change the corporate bylaws
-
Shareholder liability is limited to the value of stock owned in the company
-
Potential limited director liability for breach of fiduciary duty
California Corporations
Incorporating a business in California offers a number of advantages that aid in the
protection of both assets and privacy.
A California Corporation will protect the individual from personal liability. A
single individual can hold all offices including: Director, Shareholder,
President, Secretary, and Treasurer. Incorporating in California can allow you to take advantage of tax deductible
benefits such as health, accident, disability insurance, life insurance, and
medical reimbursement plans. Corporations that have fewer than 75 shareholders
can elect S corporation status which allows for the profits to flow through the
company and directly to the shareholders of the corporation without being
taxed.
The
benefits of a California corporation include:
-
Personal liability protection
-
Stockholders names are not public
-
Availability of corporate retirement plans
-
Corporate fringe benefits
-
Unending corporation existence
- Tax
benefits
-
Possible S corporation status
- A
single person can hold all offices
-
Available to professionals: Doctors, Dentists, Nurses, Attorneys, Pharmacists,
Accountants, etc.
Nevada Corporations
The
combination of Nevada’s thriving business climate combined with their
extremely low state and local taxes have made it a desirable location for
business incorporation. In Nevada
the names of stockholders are not made public and there is no information
exchange program with the Internal Revenue Service. This offers greater
protection of your privacy. The Nevada legislature is committed to making Nevada corporate law attractive and flexible. A few of the
many tax benefits include no state personal income tax, and no state corporate
tax on profits or major annual fees.
Nevada corporation benefits include:
- Tax
Benefits
-
Stockholders do not have to be U.S. Citizens
- A
single person can change the corporate bylaws
-
Relaxed annual corporate reporting requirements
-
Increased privacy for stockholders
- No
information exchange with the Internal Revenue Service