INCORPORATION IN THE STATE OF NEVADA

Nevada has developed a corporate structure that is unique throughout the world. Nevada began with corporate statutes based in Delaware law, and then went further, establishing a corporate structure that allows investors and owners of Nevada corporations to remain completely private. Since these changes in Nevada's statutes came into effect in 1991 the number of new incorporations in Nevada has exploded.

The benefits of incorporating in Nevada are numerous. Nevada is the only state in the country able to accommodate those seeking privacy, tax savings, and liability protection all in one. Below, please find the most common reasons for incorporating in Nevada.

Asset Protection - In Nevada there is no risk of personal liability. Liability stops with the corporation.

Privacy - No other state protects the privacy of its corporate owners like Nevada. Shareholders do not need to register with the state. It is the only state that allows the use of bearer shares for complete privacy of ownership.

Use of Bearer Shares - The use of bearer shares is much like that of cash. The person who is the holder of the shares is the owner of the corporation.

Taxes - Nevada has no corporate or personal income taxes. Further, there is no franchise tax, capital stock tax, or tax on corporate shares. Please be aware that, if your Nevada corporation does business in the state of Arizona, you should consult a tax professional to prepare proper tax returns as this benefit does not affect the need to report to the government taxable events of the corporation.

No Reciprocity with the IRS - Nevada is the only state that has consistently refused to exchange confidential information regarding its corporate citizens with the Internal Revenue Service.

No Minimum Startup Capital Required - Nevada does not have capitalization requirements. Stock can be issued in exchange for services.

One Person Required - Nevada allows you to have a one-person corporation. The same person may serve in all Officer / Director positions.

Bank Account Anonymity - If done properly, a checking account can be set-up with complete anonymity.

INCORPORATION OFFSHORE

For those who need even greater privacy, incorporation offshore, in the right setting, may be more beneficial than a local corporation. Below, please find answers to frequently asked questions about offshore incorporation and banking.

Privacy - People cannot find your offshore assets.

U.S. Judgments are Not Recognized Offshore - If setup in the right country, the courts there do not recognize U.S. court judgments against a company incorporated in their jurisdiction.

Federal Courts have No Jurisdiction - U.S. Federal Court judges have no power or authority outside the U.S. borders. Internal Revenue Service liens and levies are not recognized offshore. Seizure Warrants from the U.S. Customs service are not recognized offshore.

Invisible Corporate Ownership - An offshore corporation can issue bearer shares and have nominee officers allowing its owners to be completely anonymous.

Elimination of Governmental Interference - An offshore corporation can conduct business anywhere in the world without interference from the government.

Prospective Reduction or Elimination of Taxes - Many offshore countries will not tax your corporation. Proper planning allows for the reduction of any U.S. taxes.

Additional Investment Opportunities - Many international stock offerings and mutual funds cannot be sold to U.S. citizens, but they can be sold to an offshore corporation with an offshore brokerage account.