Business & Finance Deals

Nevada Corporations are not the same in organization and formation. If you are one of those business owners thinking of starting a corporation within the state, you will soon be confronted with a decision to make. You have to choose from different types of corporation.

The most common corporations are the S and C Corporation. Before we can explain the disparities between the two types, it is important that you know that every state has unique laws for corporations. Therefore what applies for Nevada corporations may not be the same for a corporation formed in another state.

C Corporation

- Provides owners/directors with limited liability protection
- Moves along a calendar based on finances
- Information on the corporate owners can be kept confidential
- Taxation: At corporate rates on an 1120 return apart from the individual return
- Profits can be reserved as retained income
- Nevada Corporations are not charged with corporate taxes

S Corporation

- Provides owners/directors with limited liability protection
- Moves along a year based on actual calendar
- Information on the corporate owners is required to be disclosed
- Taxation: Revenues pass through to the individual tax return 1040. No tax brackets detach from the personal tax brackets.
- Even though revenues are not distributed, they are still taxed
- Individuals residing in state imposed with an individual state tax have to pay state taxes

You can learn more about C Corporations & S Corporations by contacting Nevada LLC.