MsHuggys - 4:09 am on Jun 12, 2011 (gmt 0)
Yes, setting up a corporation can be very complicated when you reside in a anti-business state. There are other factors to consider than I mentioned, which depend on your lifestyle and business model.
For me, this solution works perfectly. Can't fuss over having a home office in Las Vegas and needing to go there for business a few times a year, in addition to those trade shows that just have to be attended in order to stay on top of things. For $400 a month, a modern business class studio apartment can be had, complete with swimming pool in a nice neighborhood. A full-service business office is only $125 a month. I can use the apt or office when I am in town, yet have no fixed office, it's shared space with a fixed mailing address.
I actually figured that out from watching what you and I think are American corporations (traded on our stock exchange) formed in Panama. After looking into what their home office was like, I was surprised to find it was a a series of cubicles and conference rooms, shared space, with an ala carte lawyer and mail drop. Why? Tax advantage for American corporations that are actually under the laws of Panama.
Car registration is expensive in Arkansas, it's taxed every year as property. I'm paying $1000 a year for mine. It's less than $100 in Nevada. Flights there are only $49 from here. I think you can begin to see the big picture. Yeah, it can be so much more than I posted. It really depends on your needs and what exactly you want to accomplish by incorporating in another state.
For years, I have done research on companies that are incorporated in Florida. It's another state of choice. Browse through their online database, and you will see it's loaded with corporations who only have a agent in Florida, have likely never stepped foot in the state, everyone on their board lives somewhere else, some not even in the USA.
The big worry can come with two other factors, whether a state is a community property state and whether they have a state income tax. Arkansas is not a community property state, though Nevada is. Nevada has no state income tax, though Arkansas does. When you consider the options for setting up in Nevada, it becomes clear the advantages are immense.
The lawyer and accountant? Yeah, they are the ones who suggested it.
Nevada adding an "Amazon Tax"? Yeah, they made noise, then shut their mouths, tucked their tails and went home. They are a big employer in Nevada, lot of jobs to lose if Amazon gets their panties in a twist.
In fact, "Legislation that would have required Amazon to collect sales tax on purchases shipped to Nevada failed in committee in the state legislature in May 2011. The legislation was proposed by the Retail Association of Nevada and was expected to generate $16 million annually in additional sales tax collections. Concerns about whether such a move might prompt Amazon.com to close its distribution center in the state were partially responsible for derailing this legislation."
How many jobs at the distribution center? "Amazon.comís Fernley, 1 million square foot facility employs an average of 700 full-time employees and over 2,000 workers during peak season."
No state needs that kind of threat in this economy, least of all Nevada.