Your corporation is an artificial entity. Your corporation is a separate and distinct entity apart from any of you. Your Corporation is not YOU. The corporation is an entity that has its residency in Nevada and has its own rights and relationship with respect to the state of Nevada. A Corporation and/or Limited Liability Company (LLC) is a distinct, legal entity separate and apart from its stockholders, members, directors or officers. A stockholder (owner or partial owner) is a holder of shares of stock in the corporation and is not the corporation. One of the main advantages of a corporation is to Limit Personal Liability.

A corporation is a living entity and continues to exist, even if the stockholder/s cease to exist. The corporation is not affected by death or bankruptcy of a stockholder, officer or director. It continues to exist. The corporation entity is immortal for as long as it complies with the annual requirements of the state of Nevada.

It is important to remember that when you own a Nevada corporation, the corporation exists as a separate entity or person. You can live anywhere you choose, by state or country. The Corporation w is what conforms to the requirements of the state in which it resides. Nevada offers the most benefits to protect you and your Corporation.

A corporation in the state of Nevada must have a Director, President, Secretary and Treasurer. One person may hold all positions in Nevada. Directors and officers may be changed at any time.

(LLC) Limited Liability Company

A Limited Liability Company (LLC) is recognized in all 50 states and is considered to be a newer form of business entity. The LLC is somewhat of cross between a corporation and a partnership. The LLC can give you the best of both worlds:

Non-Profit Corporations

A Non-Profit corporation is simply a corporation that is formed according to the laws of the state of Nevada. The Non-Profit must be formed for some religious, charitable, educational, literary or scientific purpose. Most corporations are formed in order to attain a profit for its shareholders. A Non-Profit, on the other hand, does not have the profit motive as its purpose.

A Non-Profit corporation is allowed to apply for non-profit status at state and federal levels.

A Non-Profit corporation must comply with other corporate formalities such as, annual meetings of members and directors.

Rite Incorporated provides the filing, and Resident Agent services along with a corporate kit for the same fees as any other corporation.

Partnerships

A partnership is a relatively simple form of business used when two or more people get together to conduct a business enterprise. They are simple to form. The partners simply get together and enter into a partnership agreement. From that point the income or loss of the partnership is passed through to the individual partners and is included on their individual tax return. This creates ease of doing business and simplicity in figuring taxes.

The main disadvantage of a partnership is it provides no liability protection to the partners. If for example, Joe and Don get together and form a business partnership, and the partnership gets sued and loses, then both Joe's and Don's assets are on the line. Each of them could lose everything. This disadvantage alone is enough to compel those considering a partnership to consider another form of doing business - usually a corporation or a limited liability company.

As an added disadvantage, a partnership doesn't have many of the tax benefits available to a corporation, such as a medical reimbursement plan, pension plans and full deductibility of business related expenses. Further, in a partnership, the active partners are subject to a 15.3% self-employment tax on the income they receive from the partnership. This self-employment tax is not an income tax. It is a separate tax that must be paid by certain taxpayers. A corporation is not subject to self-employment tax on its income.

Proprietorships

The advantage of being a sole proprietor is that it is the easiest and simplest form of doing business. You simply start a business. You are then a proprietor. The main disadvantage is the individual proprietor is subject to full liability resulting from business acts.

If the proprietor gets sued because of a related activity, all of his personal assets as well as business assets are on the line. He or she could lose everything in a lawsuit. Also the proprietor is subject to the 15.3% self-employment tax on all income earned from the business. Further, proprietors do not have available to them benefits such as medical reimbursement plans, certain pension plans and full deductibility of business related expenses.