Nevada Corps And LLCs
Here in west central Florida, we are hearing rumors that the govt is cracking down on Nevada corporations and LLCs.
The rumors are vague and seem to be saying that these entities no longer enjoy anominity (sp) and that those having them have been targeted by the IRS.
Does anyone have any legitimate info about this?
Thanks,
Nancy
Yes, I certainly do. A Nevada corp or LLC is a red flag on a tax return. Unfortunately, they are commonly used by shady operators. My advice is that if someone recommends that you buy one, go in the opposite direction. The better advice is to establish a LLC in your own home state. You'll get the same protection without putting up the red flag.
Here's some text from an article I wrote ... it applies equally to Nevada LLCs.
"Watch out for scams that proclaim the asset protection benefits of Nevada corporations. Simply put, Nevada corporations are not worth the cost. There is nothing magical about a Nevada corporation. Assets in a Nevada corporation are not protected from seizure, attachment or garnishment. Nevada courts will have to recognize judgments obtained in other states under the Full Faith and Credit clause of the U.S. Constitution. In addition, try telling a federal judge that you refuse to provide information because of Nevada’s secrecy laws. You may soon find yourself on the wrong side of the jail bars. Although Nevada corporations do not pay state income taxes, your own home state will tax any income of the LLC so that's a wash. The only people who really benefit from the Nevada laws are Nevada residents who are defendants in Nevada state lawsuits. Because Nevada corporations have such a bad reputation among respectable planners, we recommend staying away from any other planners who use them regularly. "