- by admin
- November 17, 2023
One of the most important benefits of incorporating is limited liability protection. As opposed to Canada, where you can incorporate Federally, but this option is not available in the United States. You can only incorporate at the state level. Now, choosing a particular state in which you want to incorporate depends on various factors, and this selection could be challenging. You should seek professional guidance in this regard. We have written few blogs and tried to explain the requirements of these states that you will need to follow.
Every person or group that wants to start a new corporation in Nevada has to comply with certain rules and regulations which are imposed by the state in which the company is going to get established. Every state differs from other states in this set of requirements. Following are the state requirements of Nevada which must be considered by new and existing businesses.
Selecting the Company’s Name in Nevada
Following are some rulings for selecting a company name in Nevada:
- The name does not necessarily need to end in words like ‘Incorporation’ or ‘Inc.’, But the company name cannot only consist of a natural person’s name or its initials. In such a case, additional words like Incorporation, Limited, Company, Corporation or their abbreviations like Inc., Corp., Ltd., Co. should be used. For example, a person’s name is Stacy Mike, so the name of the company cannot be Stacy or SM; instead, it can be SM Inc.
- The chosen company name should be special in nature such that it does not show similarity with an already existing name of a corporation, limited partnership, limited liability company, foreign corporation, foreign limited partnership, or foreign limited liability company. Also, the name cannot be identical to a name that is booked by any other corporation-to-be unless written consent is obtained by the person or entity who has reserved that name. This consent must be mentioned in the Articles of Incorporation.
- Prior approval of the banking superintendent or insurance commissioner is needed if the company name indicates banking, trust, or insurance powers. If the company plans on using words like “Accountant”, “Bank”, “Brokerage”, “Financial”, “Realtor”, etc., then it must take prior authorization from the concerned state department or agency.
Director Selection Criteria
Given below is the mandate for selecting the Board of Directors in Nevada Corporations:
- The corporation must have at least one director and as many more because there is no limit for the maximum number of directors.
- Nevada does not have any restriction regarding directors’ residence.
- Every director must at least be of 18 years of age.
- It is compulsory to mention the names and addresses of board members in the Articles of Incorporation.
Requirements for an article of Incorporation in Nevada
To earn the status of a registered firm of Nevada, every corporation must file a document named ‘Article of Incorporation. Every state differs from other states in the requirements of this document. The following information should be included in the Article of Incorporation of Nevada corporations.
- Officer’s names and addresses need not be mentioned.
- The number of authorized shares and respective par values must be mentioned. Any change in the number of authorized shares or par value can affect the filing fees.
- The name and physical address (not PO Box No.) of the registered agent in Nevada. Agents must ensure their availability at the given address during office hours in order to receive important corporate documents.
Additional Requirements for filing in Nevada
There is an additional requirement for the corporations in Nevada to include an Initial List of Officers/Directors and Business License in the Articles of Incorporation. The filing charges are $150 and $500 for the Initial List and business license registration, respectively.
Professional Corporations (PC)
In Nevada, professionals like physicians, accountants, and attorneys are allowed to create a Professional Corporation (PC). After the successful establishment of a company, it is highly important to undergo certain steps in order to keep the business in compliance. Such steps also help to maintain the limited liability provided by a company to its proprietors. Following are some ongoing requirements for Nevada Corporations.
Corporate Records in Nevada Corporations
Corporations in Nevada must maintain a Corporate Records book in which the important legal documents must be kept for record. Corporate records are placed at the registered agent’s office. Following documents are included in the corporate records book:
- Article of Incorporation along with amendments made to it
- Bylaws formulated by the corporation.
- A stock transfer ledger or a statement of where it is kept
Tax and Ongoing Fees Criteria in Nevada
Given below is the information about tax requirements and ongoing fees for Nevada Corporations:
- Companies are needed to file an Annual List of Officers/Directors and a Business License by the last day of the company’s inauguration month. The charges for filing are $150 for the Annual List and $500 for the business license.
- To get more information on Nevada taxes, visit the Business Owner’s Toolkit or the State of Nevada website.
- To become eligible for hiring a workforce and open a business bank account in Nevada, corporations should have Federal Tax Identification Number (EIN).
- State Tax Identification number is also a necessity for Nevada Corporations.
Disclaimer: Information in the blog/post/article has been presented for a broad and simple understanding. This is not legal advice. RKB Accounting & Tax Services does not accept any liability for its application in any real situations. You need to contact your accountant or us for further information.
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