Midnight Think Tank

[WayneC777]

Welcome to the Internet's leading resource for current, up to the minute information on Asset Protection and Annuities.
“Nevada Corporations” have been touted by so-called “Asset Protection Experts as the best form of asset protection. Unfortunately, many people have been duped into incorporating in Nevada only to find out that, outside of Nevada, the corporation is useless. Many Nevada Corporations use “Bearer Bonds” and other means of subterfuge to hide assets, which in itself is “Fraudulent Conveyance” and is contrary to state and federal law.
Common mistakes involving Nevada Corporations

Nevada Corporations - Some common mistakes
When forming an entity in Nevada, whether it is a Corporation, Limited Liability Company or Limited Partnership, they have to be formed properly because failure to do causes both legal and tax challenges.
The business of forming Nevada corporations has skyrocketed over the past several years, and there are quite a few people around the country who are saving a lot money in state taxes by incorporating in Nevada. And some states, like the state of California, aren’t thrilled about losing state tax revenue to Nevada, especially when people still reside and operate their business there while, at the same time, running all their profits through a Nevada bank account, thereby avoiding payment of California state taxes.
As in anything, there is always the existence of misinformations. This is also true in forming Nevada corporations. The increase of companies that are forming Nevada corporations without doing their homework has taken many people down the path of uncertainly at best, and illegal activities at worst. It is currently estimated that close to 70% of the people that incorporated in Nevada are NOT going to be able to take advantage of the tax benefits that the state offers.
It is becoming economically profitable by other states to review their procedures to ensure their tax is being collected and to do some checking. In the future, you will begin to find people who thought they were getting away with tax savings begin to become audited for actions they have done improperly over the last few years.
In other words, just because you haven't been audited by the state taxation authorities does not mean that you have a properly structured business. Keep in mind, we seldom get audited for something we did last year; usually it was for something we did 2-3 years previously. And when states such as California begins auditing people and is looking to collect penalties and interest for the previous three years because you failed to register to do business in California, they’ll be sorry!
Here are the most common mistakes people have made when incorporating in Nevada:
Relying on Bearer Shares
Not having any employees in the corporation
Having to rely on privacy as the primary asset protection strategy
Having an independent contractor take fringe benefits that are entitled to employees
Failing to actually being based in Nevada
Not issuing any stock
Thinking a Nevada corporation is an asset protection tool
Owning a Nevada corporation without a business license
Advantages of incorporating in Nevada

Here are some of the advantages in Nevada incorporation:
There is no Nevada State Corporate Income Tax or Nevada Taxes on Corporate Shares
There is no Nevada Franchise Tax
There is no Nevada Personal Income Tax
No IRS Information Sharing Agreement
Nominal Annual Fees
Nevada Reporting and Disclosure Requirements are minimal
Stockholders are not Public Record
Stockholders, directors and officers are not required to reside or hold meetings in Nevada, nor are they required to even be U.S. Citizens.
Directors need not be Stockholders
Officers and directors of a Nevada corporation are protected from personal liability for lawful acts of the corporation
Nevada corporations may purchase, hold, sell or transfer shares of its own stock
Nevada corporations may issue stock for capital, services, personal property, or real estate, including leases and options. The directors may determine the value of any of these transactions and, once their determination is made, their decision is final