I have recently had a couple of conversations with people about incorporating in Nevada and I wanted to share them. Scammers are making money and putting companies at risk.

First, the CYA – I am not providing legal advice. What I am stating is my understanding as a CPA and former CFO of a publicly-traded company. Before you take any actions, you should consult with counsel.

At a meeting two weeks ago, someone stated that they had just incorporated in Nevada and were going to save CA taxes, IE the $800 minimum tax. I asked them where they were doing business and they told me San Diego. I asked them if they were aware that foreign corporations (corporations incorporated in another state) that are doing business in CA were required to register in CA and pay CA taxes as if they were incorporated in CA. They said no. So I had to tell them that they needed to register in CA and the money they had spent to incorporate in Nevada was probably thrown away.

Please do not shoot the messenger 🙂