But there is another state that is giving Delaware a run for its money: Nevada.

Believe it or not, businesses are flocking to the land of the neon lights to incorporate and here's why . . . .

Tax Benefits

Nevada corporations reap the benefits of some tremendous tax breaks compared to businesses incorporated in other states. For starters, there is no corporate income tax in Nevada. Additionally, Nevada businesses enjoy no franchise tax, no sales tax, no taxes on corporate shares and no personal income tax. Depending on the scope and nature of your business, these combined tax breaks can result in substantial savings that can be invested in growing your business.

Minimal Reporting & Disclosure Requirements

Another bonus of incorporating in Nevada is that the state has established a system to protect your company's privacy. Nevada itself has minimal reporting requirements. But unlike many other states, Nevada also does not have an information sharing agreement with the IRS. In other words, Nevada will not share your corporate information with the IRS and stockholders' names are not part of the public record. In Nevada, all that is on public record are the names of the corporation's officers and directors. If privacy is important to your business, Nevada is definitely an attractive option.

Small Business Advantages

Nevada has a number of significant advantages that are custom-built for small businesses. One advantage is that the minimum number of officers or directors in a Nevada corporation is one. That means you don't need to recruit people to serve as corporate officers or as members of a board. You can fulfill the requirements yourself. If your business is new, another advantage is that Nevada requires no minimum capital investment for incorporation. For a small business struggling to get off the ground, that alone makes Nevada worth exploring.

Geographic Flexibility

What if you want to incorporate in Nevada and live in another state? Can you do that? Absolutely! Stockholders, directors, and officers don't need to live or hold meetings in Nevada. In fact, they don't even need to be U.S. citizens.

Other Benefits

Nevada has other benefits as well. In Nevada, officers and directors of the corporation can be protected from personal liability for acts of the corporation, provided those acts are lawful. Nevada corporations can also issue stock in exchange for capital, services, personal property, real estate, leases, and options. The determination of value for these transactions is determined solely by the corporation's directors and their decision is final.

If a Nevada incorporation sounds like the right move for your business, the next step is to contact several companies who specialize in helping businesses incorporate in the state. It's possible to do it yourself, but like any incorporation process it is complex and probably not worth the time, hassle, and headache involved.