Business Formation

Now, if you are a loyal reader of my blog, and I'm sure you are (wink, wink)...you read my article on the benefits of incorporating.  And if you've done some homework, you've discovered that Nevada is a pretty friendly place to incorporate your business.  In addition to having no state income tax, and relatively low business licensing fee...

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I sometimes get calls from people asking whether they should incorporate.  When I am somehow able to stifle my automatic "YES YOU SHOULD!" knee-jerk reaction, I calmly provide some semblance of a well-reasoned argument in favor of incorporating. Now, to clarify, by "incorporating" I don't necessarily mean forming a corporation.  I simp...

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Previously, entities such as LLCs and corporations in Nevada could apply for an exemption from the $200 annual state business license fee if the business was home-based and made less than approximately $26,000 a year. Today, the Secretary of State issued a press release about its regulation clarifying that the exemption was intended to apply ...

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I recently met with a client who had formed a Wyoming LLC because it appeared that he would save a few bucks on fees.   He lives and works in Nevada and has no other connection to Wyoming other than the LLC he formed.  I asked him if he was aware of and complying with the law (NRS 86.543) that requires him to register in Nevada as a forei...

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Recently, I made a pretty compelling argument for maintaining a corporate book, if I do say so myself.  Now that you're convinced, what types of records should be included?  Generally speaking, you should include records of corporate meetings of members or shareholders, action taken without holding a meeting first, and approvals of common...

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When you form an LLC or a corporation with a commercial formation company, you'll usually receive as part of the package a fancy-looking fake leather binder, sometimes with a heavy metal document sealer thingy.  Often, this binder sits on your shelf, gathering dust, doing you and your company absolutely no good.  There are many reasons to...

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I'm super serious this time. Lately I've heard from a number of business owners whose partners have stopped contributing to the business, financially or otherwise, and the business owner calling me simply wants out.  Of course, it's rarely simple. A few callers are lucky in that the company has not yet transacted any business and therefore n...

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A potential client called me.  We'll call her Helen.  Over the last ten years, Helen's partner "Jane" had perfected this FABULOUS idea that would make them both rich.  Six months ago, Helen quit her lucrative job and had since worked full-time assembling Jane's scraps of papers and mental notes into a formal proposal they could shop ...

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