Urgent Alert for Nevada Corporations

Urgent Alert for Clients with Nevada Corporations: Additional State Fees Effective July 1st

Dear Clients,

MyNewCompany.com, Inc. has been notified by the Nevada Secretary of State of two fee increases that were recently jammed through the legislature and signed by our Governor via Senate Bill 483 (we’ve only been notified within the past few weeks and it wasn’t clear until a few days ago when the fees would be effective). Those additional fees have been verified and are as follows:

• The “State Business License” (which is being renamed to the “State Business Registration”) is being raised from $200/year to $500/year effective July 1st for Nevada Corporation’s only – LLC’s and other entities are not affected and will continue to pay the $200/year fee.
• The “Annual List” which is due every year at the same time is being raised from $125/year to $150/year.

This means that basically it will now cost $650/year plus any Registered Agent fees (our fees are $99/year and guaranteed not to raise) to maintain your Nevada Corporation. I can assure you we and the Nevada Registered Agents Association are as angry about this as our clients. This is probably going to decimate our Nevada business so we’ve come up with the following options for our clients’ that do not want to pay that fee; please remember that time is of the essence and feel free to email or call us about any of the options mentioned below.

We apologize on behalf of the shortsightedness of our Governor and Legislature and hope one of the following 6 options will be beneficial to your company.

Thanks,
Matt Knee
Founder/President
MyNewCompany.com, Inc.

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Option 1: Not using the Company?  File a Dissolution

Option 2: Want to remain a Nevada entity but don’t want to pay that fee? Form a New Nevada LLC while Dissolving your current Nevada Corporation.

Important Details:

• Both the Articles of Organization for the new LLC and the Articles of Dissolution to close the Nevada Corporation must be submitted together to release the Corporation’s name for use as your new LLC name.  Please place both orders at the same time.
• The state fees start at $175 and the process takes about 10 – 12 Business Days.  Additional services and options and faster filing can be added when ordering.

Pros:

• Easier than filing a Conversion or Domestication (Discussed Below)
• Yearly State Maintenance Fees are $350 instead of $650 per year.

Cons:

• You’ll receive a new State File Date and Effective Date
• New FEIN (Federal Tax ID) will be required

Option 3: File a New Company in your Home State, then Dissolve your Nevada Corporation.

Important Details:

• The Nevada State Fee for the Dissolution is $100 and the process takes about 10 – 12 Business Days.  Additional options and faster filing can be added when ordering.
• The State Fees and turnaround time for the company formation depends on your home state.  Fees, packages and options are available on the Online Price Quote

Pros:

• You can act as your own Registered Agent in your Home State
• You’ll only have to deal with and pay fees to your Home State.

Cons:

• You’ll receive a new State File Date and Effective Date
• You will need a new FEIN (Federal Tax ID)

Option 4: Conversion from a Corporation to an LLC in Nevada (Get a quote here)

Important Details:

• The state fees start at $425 and the process takes about 10 – 12 Business Days.  Additional options for faster filing will be provided with your quote.

Pros:

• Your FEIN (Federal Tax ID) stays the same.
• Your State File Date and State Filing Number will stay the same.
• The State Business License yearly due date does not change, you’ll just pay $200 instead of $500
• No separate Dissolution is required to close the Nevada Corporation

Cons:

• A “Plan of Conversion” must be drafted by your attorney and adopted before the Conversion process starts.
• Your attorney or tax advisor will need to draft a new LLC Operating Agreement to replace your Corporation ByLaws to be adopted when the Conversion has been filed.

Option 5: Domesticate (Move) your Corporation from Nevada to Wyoming (Get a quote here)

Important Details:

• The state fees start at $432 and the process takes about 8 – 10 Business Days.

Pros:

• More affordable than keeping your Nevada Corporation: State yearly fees are $50 instead of  the $650 per year in Nevada.
• You keep your FEIN, File Date and company history.

Cons:

• A “Plan of Domestication” must be drafted by your attorney and adopted before the Domestication process starts.
• Your attorney or tax advisor will need to draft revisions to your ByLaws to be adopted when the Domestication has been filed.

Option 6: Domesticate (Move) your Corporation to your Home State (Get a quote here)

Important Details:

• The fees and turnaround time depends on your Home State.
• A detailed fee breakdown and time estimate will be provided with your Custom Quote

Pros:

• Usually more affordable than keeping your Nevada Corporation: Most states’ yearly fees are lower than the $650 required in Nevada.
• You keep your FEIN, File Date and company history.

Cons:

• A “Plan of Domestication” must be drafted by your attorney and adopted before the Domestication process starts.
• Your attorney or tax advisor will need to draft revisions to your ByLaws to be adopted when the Domestication has been filed.

This entry was posted on Tuesday, June 23rd, 2015 at 5:21 pm and is filed under Company News, Corporate/LLC Compliance, Incorporating in Nevada. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.