Incorporating a business or company in the United States will prove to have several advantages for the shareholders involved. However, it may be argued that no other state in the country can provide for the advantages that are allowed by Nevada law. Nevada incorporation is often seen as having the most legal incentives and advantages, with the possible sole exception being the State of Delaware.
Many companies will take advantage of Nevada incorporation because of the protection and benefits it may offer. Furthermore, Nevada incorporation does not necessarily require that the business or company be based in the State of Nevada, which is one of the benefits incorporating in the State offers.
Even though Delaware has incorporation advantages similar those offered by Nevada, it is usually accepted that Nevada offers the most benefits. The main reason why many companies and businesses will consider Nevada incorporation has to do with tax and legal benefits. In the case that a company that has undergone Nevada incorporation procedures is taken to court or faces legal action, it will always be subject to Nevada incorporation laws, regardless of where it is headquartered.
Furthermore, Nevada incorporation does not require the corporation to pay franchise taxes, corporate income tax, or personal income tax, which will save millions of dollars for such corporations. Other advantages of Nevada incorporation include strong protection of the board of directors from legal action and against corporate takeovers and allowing for the identity of shareholders to remain private.