Should I form a Nevada corporation?

Should I form a Nevada corporation?

You can’t turn on the radio these days without hearing about “Nevada” as the “secret state”, the “fortress of solitude”, the one state in the country that every entrepreneur needs to seek out for maximum liability protection.  I even open up the newspaper, and I see seminars on this all the time, but it’s an absolute myth.

Nevada provides absolutely no additional liability protection whatsoever.  And the reason for this is that if you form a Nevada corporation, then you need to qualify to do business in the state where you are actually conducting your business.  When you do that, you subject yourself to all of the same fees and taxes and laws as if you formed the corporation in your home state in the first place.

So, unless you are doing business in Nevada, Nevada provides no benefit.  And even worse, you wind up paying not only the fees and taxes of your own state, but Nevada’s as well.  So, do yourself a favor and avoid Nevada unless you are actually doing business there.