Protect Your Corporate Veil
Protect Your Corporate Veil
It is only in the state of Nevada where it is most difficult to pierce the corporate veil. In other words, it is the state where other people will hardly be able to penetrate the corporation and personally aim for its managers or stockholders. If anyone wants to pierce the corporate veil of a Nevada corporation, he has to go though a three – prong test.
In other countries, the corporate veil can be pierces simply because of insufficient capitalization. The only circumstance that can permit another entity to pierce the corporate veil of a Nevada LLC is when the company is involved with fraud.
This is the reason why many attorneys suggest that you incorporate in Nevada even before you still have to register the corporation as a foreign corporation in your state. Nevada provides the greatest protection compared to any other state. The expense of forming a Nevada corporation is also very nominal.
Another advantage of forming a Nevada corporation is the state’s lenient laws regarding the company’s use of its stocks. If you are also a company seeking for confidentiality and privacy, Nevada is definitely the state for you. Because of the absence of a formal agreement with the IRS, it is impossible to identify the owner of a Nevada corporation.
