Having a small business provides you the opportunity for making your financial dreams come true, but that dream comes with a risk. If you are the owner of an unincorporated business, you stand to lose all of your personal assets if your business is sued. If you are conducting any type of business, you should seriously consider incorporating. Not only can you protect your personal assets from liability, but you may also be able to save on taxes as well. You have a choice of incorporating in your home state, or you may incorporate in any of the 50 states that you wish. One of the most business-friendly states in terms of business law is the state of Nevada. Incorporating in Nevada can be a great solution for your small business. You might wish to form an LLC in Nevada, or any of the other types of corporate formats. A Nevada limited liability company might help protect you and your business and save you money as well.

One way that small business owners form an LLC is to utilize the services of an online incorporation company. Online business services save you the time and headache of wading through each state's business laws and paperwork for setting up a corporation, because they have done the research and they can do the paperwork for you. What you are trying to achieve by making the move from sole proprietor to an LLC is the liability protection and tax benefits, along with the most control over your business. For many business owners, an LLC in Nevada is the right choice, but you should consult with your online incorporation service to determine if the LLC format is the right one for you and your specific company's needs.

Another aspect of incorporation that you will want to consider is if you want to set up and operate your business outside of your home state. You will need to find a Resident Agent to be your proxy in the state in which your business is set up. This person is the go-to person for any legal documents or annual reports sent to your business operating in that state, as well as Internal Revenue Service documents. Your Resident Agent then forwards this important information to you in your home state. If you want to incorporate outside of your home state, you will want to inquire if your online incorporation company offers a Resident Agent service. It is much easier to use this type of service rather than try to rent an office and find someone to be an agent for you when you live out of state.

You can put "Nevada, Inc." behind your small business's name as a well-respected credential if you are incorporating in Nevada, of if you form a Nevada limited liability company.