Is it a good idea to incorporate in Nevada ?

Answer 1

Unless your attorney and/or CPA suggest it, no.

Most people who are considering forming a company are doing so to shield themselves from liabilities of owning a small business. For example, if you have an employee driving your plumbing company truck and they run over somebody, your liability stops at the company. Incorporating in another state won't make a difference either way. One thing corporations will not do is shield you from personal liability for personal negligent or deliberate acts, so if you're driving your company truck drunk, you're stuck anyway.

What it will do is add paperwork and filing costs. After you form the corporation in Nevada, you still have to register in your home state as a Foreign Corporation, which costs the same in many states, so you not only didn't save money, you added cost. In addition, you probably have to pay an annual fee to both states, which means twice the paperwork and additional fees each year.

If all of your business is in your home state, you aren't going to save on taxes, either. Your home state will want the taxes on anything earned in-state, so a Floridian will probably still have to pay Missouri income taxes on rental income earned in Missouri on property owned in a Nevada corporation.

I can't see any advantage to incorporating out of state for most small businesses.