C Corporation In Nevada

Written by Joe Chamberlain
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If you have spent any time researching asset protection, you may have heard about business owners who form corporations to secure their assets. You may have wondered, however, why incorporation is such a viable and popular option. The answers lie in the type of corporation formed and the laws in certain states that ensure complete financial privacy.

Incorporating for Asset Protection

Certain types of corporations are taxed differently than regular businesses or individuals. In the case of the popular C Corporation, the corporation becomes an actual entity and pays taxes. Once taxes are paid, the interest earned is then distributed evenly among those who own stock. The only disadvantage to the C Corporation is that the shareholders must also pay taxes on their dividends.

The state of Nevada has particular laws surrounding its corporations that ensure full privacy for the corporation owners. It is the only US State that is not required to share information with the IRS and one person can hold 100 percent of the stock in a Nevada corporation. Additionally, Nevada corporations are not linked to the name or social security number of any stockholder.

These elements come together to form a wonderful asset protection plan. If a person is somehow sued for all of his or her assets, the corporation earnings will still be intact since there can be no direct link to the person in question. While this process may seem rather simple, the paperwork and legal work involved is rather complicated, so be sure to speak with an attorney or a professional consultant before beginning an incorporation process.

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