Nevada Corporation

AAA

DEFINITION of 'Nevada Corporation'

A business incorporated in the state of Nevada, which is known to be business-friendly through its tax and corporate law statutes. Companies that incorporate in Nevada have several distinct advantages, including no state income tax, no franchise taxes, no personal income taxes and no succession taxes.

Another unique advantage of Nevada Corporations is that company officers and directors are well-protected against lawsuits arising from lawful business pursuits.

INVESTOPEDIA EXPLAINS 'Nevada Corporation'

Nevada has become a well-utilized tax haven in recent years, drawing a large number of West Coast-based companies in the United States. In addition to public companies that choose to incorporate there, many private companies are attracted to the state because of its strong protection laws against hostile takeovers of a business.

A term known as "piercing the corporate veil" refers to the ability of a plaintiff to go after the personal assets of a company owner or director. While piercing the veil is rare in any state, Nevada is well-known for its strict adherence to the protection of personal assets and information.

RELATED TERMS
  1. Tax Haven

    A country that offers foreign individuals and businesses little ...
  2. Franchise Tax

    A tax levied at the state level against businesses and partnerships ...
  3. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
  4. Hostile Takeover

    The acquisition of one company (called the target company) by ...
  5. Delaware Corporation

    A corporation that is legally registered in the state of Delaware, ...
  6. Fair Housing Act

    This law (Title VIII of the Civil Rights Act of 1968) forbids ...
RELATED FAQS
  1. When might an abatement be granted by the IRS?

    The Internal Revenue Service (IRS) frequently imposes interest and penalties due to the late filing of a tax return, underpayment ... Read Full Answer >>
  2. How is residual value of assets taxed?

    Residual value has several meanings, each with its own potential tax consequences. Tax laws vary between jurisdictions, so ... Read Full Answer >>
  3. How does the effective tax rate for an individual differ from that of a corporation?

    There is not much difference between the method of calculating or meaning behind the effective tax rate for individuals on ... Read Full Answer >>
  4. What are some examples of a deferred tax liability?

    In the United States, laws allow companies to maintain two separate sets of books for financial and tax purposes. Because ... Read Full Answer >>
  5. How are transfer prices set?

    The United States, like most nations, does not want to allow transfer pricing methods that reduce the amount of taxes the ... Read Full Answer >>
  6. Where do deferred tax liabilities come from?

    A deferred tax liability is the result of differences in the way a company does its financial accounting for reporting purposes ... Read Full Answer >>
Related Articles
  1. Investing

    Zooming In On Net Operating Income

    NOI is a long-run profitability measure that smart investors can count on.
  2. Entrepreneurship

    Should You Incorporate Your Business?

    Find out how becoming a corporation can protect and further your finances.
  3. Options & Futures

    What Is Your Risk Tolerance?

    Forget the cliches and uncover how much volatility you can really stand.
  4. Personal Finance

    Share The Wealth With Franchises

    Skip the first step and build off of someone else's successful business model.
  5. Entrepreneurship

    Employment Negotiations: What To Ask For & How

    Improving their first offer: What you should know
  6. Entrepreneurship

    Corporate Inversion: How It Works

    Large corporations are making all kinds of moves to decrease expenses and increase profits in an increasingly competitive global market.
  7. Entrepreneurship

    How To Talk To Headhunters

    8 tips on forging a fruitful relationship with an executive recruiter.
  8. Investing

    Should Amtrak Be Privatized?

    This story examines whether or not Amtrak, the US consumer rail system, should be privatized in the wake of its tragic accident.
  9. Personal Finance

    The Purpose Of a FMLA Form

    Parsing the different types of paperwork that accompany a leave of absence under the Family Medical Leave Act.
  10. Personal Finance

    8 Ways To Seriously Blow It With A Headhunter

    Job hunters, beware. These are the 8 things that blow your chances with headhunters. So pay attention to your behavior when you're being interviewed.

You May Also Like

Hot Definitions
  1. Bund

    A bond issued by Germany's federal government, or the German word for "bond." Bunds are the German equivalent of U.S. Treasury ...
  2. European Central Bank - ECB

    The central bank responsible for the monetary system of the European Union (EU) and the euro currency. The bank was formed ...
  3. Quantitative Easing

    An unconventional monetary policy in which a central bank purchases private sector financial assets in order to lower interest ...
  4. Current Account Deficit

    A measurement of a country’s trade in which the value of goods and services it imports exceeds the value of goods and services ...
  5. International Monetary Fund - IMF

    An international organization created for the purpose of: 1. Promoting global monetary and exchange stability. 2. Facilitating ...
  6. Risk-Return Tradeoff

    The principle that potential return rises with an increase in risk. Low levels of uncertainty (low-risk) are associated with ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!