Nevada Single Entity Strategy
Tuesday/August/19 20:48 Filed in:
corporate strategySarah lives in New York City and acts as a manufacturer’s representative for
several products in the medical field.
Sarah lives in New York City and acts as a manufacturer’s representative for
several products in the medical field. Sarah currently operates her business as a
sole proprietorship. Sarah travels around the United States selling on the road
and lives out of her laptop and suitcase.
Sarah wishes to avoid paying the high income taxes that come with living in New
York City and has chosen to set up a Nevada C-Corporation with the Nevada
Management Service for financial privacy to work from. Sarah hires a New York
Professional Employer Organization to handle her personal payroll and benefits
so that she can still get herself a paycheck but not show up as a direct employee
of her Nevada Corporation.
Sarah now runs her private Nevada C-Corporation and only pays NY tax on her
personal income. Sarah leaves profits in her Nevada Corporation that she will
use for future investments and/or business growth. (10% state/city tax rate in
NY,NY)
Note: If Sarah does not have a surplus in her business over and above her
salary/draw she will not save anything in taxes in this example.