What are the advantages of a Delaware or Nevada corporation?

What are the advantages of a Delaware or Nevada corporation?

Delaware, though no longer considered a preferred state of incorporation for tax-savings purposes, is a great state in which to incorporate if your intention is to take your company public and offer publicly traded stock. Delaware has kept its fees low and is one of the friendliest states to corporations. Names and addresses of initial directors need not be listed in public records. The cost to form a Delaware corporation is among the lowest in the nation. No minimum capital is required to organize the corporation and there is no need to have a bank account in Delaware. Just one person can hold all the offices of the corporation: President, Vice President, Secretary and Treasurer. There is no state corporate income tax on Delaware corporations that do not operate within the state. Shares of stock owned by persons outside of Delaware are not subject to Delaware personal income tax. There is no Delaware inheritance tax levied on stock held by non-residents.

Nevada is becoming increasingly friendly to corporations with its privacy and liability protection status. Numerous companies are relocating their business entities to Nevada in order to receive the numerous tax benefits. Listed below are some of the reasons why Nevada is attracting more businesses each day: No state corporate tax on profits; No state annual franchise tax; No personal income tax; Stockholders are not public record which permits complete anonymity; One person can hold all the offices of the corporation: President, Vice President, Secretary and Treasurer; Stockholders, directors and officers need not be residents of Nevada.