State Corporate Income Taxes

The rate of tax among the forty-five states that have corporate tax ranges from approximately 1% to 12%. Many States have additional surtaxes, aternative minimum taxes (AMT's) and/or allow local governments to assess their own corporate taxes on top of that. This reality makes for a strong argument for 1) incoporating in a state, like Nevada, that does not have a state corporate income tax; and 2) organizing the business processes of the company in such a way that it legally avoids tax liabilities in those states wherever possible. Nevada is the perfect state for such an incorporation nexus. Call us at Silver Shield Services, Inc. to find out more about this important business strategy. Phone number (775) 577-4822.

Corporate Havens

Some of the main reasons people incorporate are 1) Tax advantages, 2) Protection from personal liability, 3) Financial privacy 4) Flexibility in management and control. All corporations provide advantages in these areas to a degree, but some states do it better than others. A corporate haven is a jurisdiction that provides a favorable climate for forming corporations. A corporate haven is attractive to individuals located outside that specific jurisdiction, who live in places that don't provide the same advantages. Contact at (775) 577-4822 or on the web and we will explain why Nevada is the leader in corporate formations.

Holding Corporations

It is not necessarily true that a Holding Corporation is only involved in the passive business of owing other companies. Often, the holding company is the primary business, and by virtue of its business activities decides to separately incorporate individual aspects of its business. So a holding company is any corporation that owns or "holds" control of other corporations, which are called subsidiaries. According to the Internal Revenue Service, a corporation maintains control of a subsidiary when it owns at least 80 percent of its stock.