6 {{ upvoteCount | shortNum }}
6 {{ upvoteCount | shortNum }}

Where to start an affiliate business? Not Nevada

by affenpinscher
5 replies
These states don't have a sales tax: Alaska, Delaware, Oregon, Montana, and New Hampshire.

That's important because it's much harder to establish a new tax than to increase or expand an existing tax. The former usually requires an election while the latter can be done by state legislature.

For instance, voters in liberal Washington state rejected a state income tax even though Democrats control the governor's office and the state legislature. While the sales tax rate keeps growing, there's still no state income tax.

I posted this in response to the several threads where people were recommending incorporation in Nevada. Yes, Nevada has been business friendly, but that's changing.

Last year the Republican governor vetoed tax increases, but Democrats control the state legislature and overrode his veto to pass $1B in tax increases. This is a state that already has a sales tax, a payroll tax and went for Obama/Biden in the last presidential election.

Food for thought.
#affiliate #business #nevada #start
  • Profile picture of the author webapex
    This one report from a few years ago found to be the cheapest for corporations Wyoming.

    WHY CONVERT A NEVADA CORPORATION TO A WYOMING CORPORATION? 1. Nevada filing fees are too high, and rising.
    Nevada's Annual List of Officers is $125 VS. Wyoming Annual Report $50
    Signature

    “An expert is a person who has made all the mistakes that can be made in a very narrow field” Niels Bohr

    {{ DiscussionBoard.errors[4169346].message }}
  • Profile picture of the author Brian John
    not sure as to the validity of this but have heard and read that nevada has one of the strongest corporate veils, with some saying that it has the strongest. supposedly it's only been penetrated like once in the last several decades. i've also read that nevada-registered corporation owners (for lack of a better description) have a greater level of anonymity that those in most other states.
    {{ DiscussionBoard.errors[4169539].message }}
  • Profile picture of the author timpears
    I think that over all, my favorite method of hiding from the public is to create a trust. A trust can be set up with a piece of paper and it does not have to be filed any where. If you need to open up a bank account, just take the trust to the bank and if you are the trustee, you are all set.

    There is a lot to this that has to be done right, so I would do much more research or talk to a lawyer before I did this.

    Also, for when you pass on, the trust should have a procedure spelled out for what to do and no lawyers need to be involved to suck money out of your estate. No inheritance taxes if you have an estate that large as the trust will not die, you may have died, but your trust owns all the property and the trust didn't die. The distribution only changed and a new trustee will need to be activated.

    I once ran into a lady who was having problems with her mortgage and couldn't keep her house. We put it into a trust, and she signed the trust over to me. I took her house and fixed it up and sold it, thus avoiding the foreclosure. I got the money I had put into the house for repairs back and we made a profit. Everyone was happy.

    The lady lived in Colorado and the house was in Washington. Her daughter had been living in the house and not paying the mortgage. So the lady could not handle this herself. But I took care of it and saved the situation. All of this was done with a trust, so they are very flexible in such situations.

    There are different types of trusts, and the one I used would be different than putting your internet marketing assets into a trust. But they work similar. So check them out and see if this wouldn't solve the problems.
    Signature

    Tim Pears

    {{ DiscussionBoard.errors[4169623].message }}
  • Profile picture of the author Lori Kelly
    If your online affiliate business has no physical presence, you are not required to collect sales tax from customers in any state in the US. Except California, now that the new law passed today.

    Wyoming, Nevada and Delaware (DE being the choice for Fortune 500 companies, and especially banks) have long been known as corporate friendly states and each state has its own advantages and disadvantages.

    Nevada has been known as having one of the strongest laws regarding piercing the corporate veil. However, it is not difficult to pierce a corporate veil in Nevada; many corporate veils have been pierced in Nevada.

    If you are a one person corporation, you are more likely to have your corporate veil pierced as opposed to a multi-member or shareholder corporation. Another disadvantage to having a Nevada corporation and living in another state, you will be subject to a creditor attorney filing ex-parte paperwork in court (ex-parte = you don't know about it), the creditor getting a writ and freezing your corporate account. At that time it becomes a court battle. So please do not believe Nevada is a safe place and rarely has a corporate veil been pierced.

    It is true that in Nevada, you can use what is called nominee services to remain anonymous. That would prevent a public search revealing your ownership interest in the corporation, but it would not eliminate the IRS's ability to find out who really owns that corporation. The IRS is using The Patriot Act to force resident/registered agents to turn over their confidential client files, which, in turn, identify the owners and/or officers of the corporations.

    Tim, I am very interested to know what type of trust it was you used to help the lady who could not pay the mortgage. I would assume it was a Revocable Living Trust, one that could be changed, revised while the original Trustee is still living (the woman you helped). However, I am at a loss as to why it would stave off foreclosure. By simply putting the house into the trust does not necessarily transfer the debt to the trustees...... or does it? No, I don't think it does until the original Trustee dies. A good question to ask my attorney friend.

    Sorry to get long winded here. If you set up your affiliate business in Nevada and you live in, let's say, Texas, you would have to claim the income you earned in whatever state you live in. Now with Texas being a state with no state income tax, the only tax we report here is Federal. Same with Nevada.
    Signature
    Learn Website Tips, How to Do Keyword Research, & How to Write Killer Content.
    Stop Wasting Time.
    Start Living Your Dream.
    Click Here NOW to Get Your Hands on
    One of the Most Valuable Ebooks Ever!
    {{ DiscussionBoard.errors[4169917].message }}
    • Profile picture of the author Aubaine
      I've actually read into this a bit. When filing an LLC or any kind of corp you can choose which state to file in... even if you have no physical location in that state. It's pretty incredible actually, seems like a loophole but it's not.

      I've also read that Utah is a great place to start a company, (even though it's not included in the provided list) and as a few of us know, there are a lot of call centers in Utah ;]
      {{ DiscussionBoard.errors[4170138].message }}

Trending Topics