Moving your company from California to Nevada is one of the best decisions you can make if you want to expand your business and grow as a company.
Making a personal move to Nevada? Here is a checklist of things to do when moving from California to Nevada.
Nevada is one of the fastest-growing states in the US, which means it’s a great place for companies and individuals to start their businesses.
Many things in the state of California make owning a business harder than in Nevada. If you are looking to move your company from California to Nevada, here are just 5 reasons to make your move:
1. Asset Protection
One of the most popular reasons for moving a business from California to Nevada is to take advantage of the state’s asset protection laws. Nevada’s laws are considered one of the strongest in the country, and they can help protect your assets from creditors and lawsuits.
These laws limit how much creditors can claim against your personal property and real estate holdings in cases where you owe money. For example, if you own a condo or house in San Francisco but also have significant debts, this law will protect your home so creditors cannot force a sale or foreclosure to collect their money back.
Limited Liability Companies (LLCs):
Another advantage to moving LLCs from California to Nevada is that it allows you to incorporate these entities as limited liability companies (LLCs). This allows owners and investors in an LLC to limit their liability for any claims against the company itself. It also makes it easier for owners or investors in an LLC with multiple memberships or shareholders to transfer shares without legal issues arising over who owns what percentage of shares owned by each.
2. Insurance Benefits
Moving is a stressful experience, no matter where you’re going. But if your move involves moving to a different state, the process can be even more complicated. Not only do you have to find an apartment or house, but you’ll also need to look into the cost of insurance in Nevada.
The good news is that moving LLCs are typically exempt from most state insurance regulations. You can usually keep the same insurance policy and add on a rider for Nevada. Here’s what you need to know about moving LLCs and insurance:
Many insurers offer discounts for customers who live out of state or go out of state for business purposes. While this may not apply to all policies, it’s worth asking when shopping around for new coverage.
If you already have an auto policy with California car insurance companies, those policies can be transferred to Nevada without much hassle. However, if you’ve had more recent claims or accidents since last year’s renewal date (or if there has been an increase in the number of miles driven), it may be best to start fresh with new coverage.
3. Tax Advantages
In the United States, many states offer tax advantages to new businesses and entrepreneurs. One of these states is Nevada, where you can set up a limited liability company (LLC) without paying franchise tax. Here are some common taxes in California that are virtually gone in Nevada:
No Franchise Tax:
The franchise tax is a state tax that you have to pay every year, and it is calculated based on the number of authorized shares and capital stock of your company. If your business is located in California, you need to pay a franchise tax, but if your business is located in Nevada, you do not have to pay it.
The state government uses the franchise tax to fund its expenses and projects. Suppose you are going to move your company from California to Nevada. In that case, you will not have to pay any franchise tax for the rest of your life since there are no restrictions on moving or relocating businesses between these two states.
No Inventory Tax:
Inventory tax is a type of sales tax that applies to goods stored or sold in California. It applies to products such as food, clothing, and medicine. There are several ways to avoid paying this type of tax, but most businesses do not want to deal with it because it can be complicated and time-consuming. Nevada does not have any inventory taxes, so there is no need for you to worry about this when running your business from there.
No Personal Income Tax:
Nevada has no personal income tax for residents or nonresidents who do not work in Nevada or maintain a permanent home. Residents are only taxed on income earned within Nevada or any other state when they return after leaving the state for less than six months (if they meet certain criteria). The same applies to nonresidents who work in Nevada but live elsewhere while maintaining their permanent homes elsewhere — they are taxed only on their income earned within the state of Nevada and not on any other state income they may have earned during that period spent working there.
No Income Tax:
While there has been talking about California adopting an income tax, it has yet to be implemented. In the meantime, California remains one of only seven states without an income tax. This means that the state government will not tax any income you earn through your business. However, if you have employees who work in California or your business owns property in California, you may still owe taxes on these items at the local level.
4. Less Company Hassles
Nevada has fewer regulations than California, making it easier for entrepreneurs to start new businesses quickly and easily without jumping through hoops first. This can be especially helpful for small businesses that need flexibility to succeed.
Cheaper To Form
Another benefit of moving your LLC from California to Nevada is that it will be cheaper to form an LLC than to form an LLC in California. This is because there are fewer requirements for setting up an LLC in Nevada than for setting up one in California. Moreover, there are no taxes on formation, unlike in California, where there are several fees involved with forming and maintaining an LLC
Cheaper To Maintain
One of the biggest advantages of moving your LLC from California to Nevada is that it will be cheaper to maintain your business. This is because all the paperwork and compliance requirements in Nevada are much less than in California. You will not have to pay as much money on accounting and legal fees.
5. Affordable Housing
Moving to Nevada is an exciting endeavor, and it can also be stress-free. The state has seen a lot of growth over the last few years, and there are many reasons why people choose to move to Las Vegas.
The cost of living in Nevada is significantly lower than in other states, making it a great place for entrepreneurs and small business owners to start their ventures. Nevada has low taxes, but there are no personal income taxes at all! This means that you could save thousands of dollars every year on your taxes, increasing over time.
Additionally, many businesses have chosen to relocate their headquarters to Nevada because of its favorable business climate. If you’re looking for affordable housing options in Las Vegas, you’ll find plenty of homes available at prices that fit nearly any budget.
Let Us Help You Make Your Move
As you can see, moving to Nevada is a straightforward process, and there’s no reason to wait any longer if you want to Move LLC from California to Nevada. If you’re still unsure, the state has plenty of resources to help convince you and answer any questions.
If you are considering moving your company from California to Nevada, call People Movers California and see how we make the moving process simple and easy.