Urgent Alert for Nevada Corporations

June 23rd, 2015 by Matt Knee

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.

 

How to Organize Your Corporation or LLC Minute Book

February 25th, 2015 by Matt Knee

Maintaining corporate or LLC compliance is an essential function that begins with being organized. Ultimately, it’s a job that starts with you, your company’s owner, secretary or shareholders—and it doesn’t have to be difficult or complicated.

One compliance task you can easily manage without having to meet a deadline or pay a fee is getting your company minute book up-to-date. Your company minute book is where you keep all your company’s important paperwork such as your state filing documents and company meeting minutes. As you update certain documents such as stock ledgers (if you own a corporation) or the member ledger for your LLC, you will want to make sure to place the updated copies in your minute book to keep it current. You will also want to keep your minute book handy for inspection at all times (for shareholders, members, investors or even the IRS or state taxation agencies).

If you are organizing a corporation minute book, start out by making sure that you have your original Articles of Incorporation from your state of formation. You will also need the Corporate Bylaws that you adopted during your organizational meeting, and the organizational minutes from that meeting. In addition to your organizational meeting minutes, you will need copies of minutes taken at all meetings including annual meetings and corporate board meetings. For reference to company ownership, your corporation minute book should also contain a stock ledger that shows percentages issued, dates of issue and any transfers of ownership or stock.

An LLC minute book will need to hold the Articles of Organization from your state of formation and the LLC Operating Agreement that was set forth by the LLC members during your organizational meeting. Place both documents in your LLC minute book along with the organizational meeting minutes. You will also need copies of all meeting minutes such as those recorded at annual meetings and any special meetings that were held to discuss company changes. Don’t forget to include a current LLC member ledger that tracks ownership of the company, including the percentage owned by each member.

MyNewCompany.com provides an easy solution to keeping a compliant minute book with a complete corporate kit or LLC kit including a 3-ring binder embossed with the company name, index tabs, sample stock or membership certificates, a corporate or LLC seal with your engraved company name and more. If you are just starting out or have an existing corporation or LLC in need of a perfectly organized minute book, MyNewCompany.com can order a corporate or LLC kit for you today.

Still worried about getting your other compliance tasks done? Consider ComplianceLock™ the peace-of-mind service that 1) sends email and text alerts (SMS) for important compliance due dates, 2) generates meeting minutes/consents with one click 3) monitors the status of your company and 4) securely stores your personal and corporate documents “in the cloud” for safekeeping and instant retrieval when you need them. It’s 4 products in 1 for total entity protection – one full year is easily less than one hour of attorney advice!

How to Evaluate Your Startup Idea (infographic)

January 22nd, 2015 by Matt Knee

Click for enlarged version!

hows-my-startup-idea

 

How to Incorporate in Nevada

January 14th, 2015 by Matt Knee

Forming a Nevada corporation comes with a number of benefits that might be worthwhile. Nevada corporation owners enjoy a pro-business atmosphere, low-tax mentality and freedom from information sharing with the IRS (opposed to other states that have agreed to share your company information). Personal liability protection, prestige and convenience are some additional advantages to incorporating in Nevada.

To get started with forming your corporation in Nevada, you will first need to confirm that your company name is available with the Nevada Secretary of State. Please note that you will need to include a corporate identifier such as Inc., Corp. or Ltd. You can verify that your Nevada corporation name is available through a search with the Nevada Secretary of State online.

Before you go on to file any paperwork with the state, you will need to appoint a Nevada Registered Agent. Your Registered Agent will serve as your main point of physical contact in Nevada and must be available during business hours to receive official state documents and any other legal papers. If you incorporate in Nevada because you plan to operate your business here and will have a physical office, then someone at that location can serve as your registered agent. Otherwise, you will need to select a registered agent provider. MyNewCompany.com can provide you with a Nevada registered agent for only $99/year and is a member of the Nevada Registered Agents Association.

Now that you’ve appointed a registered agent, you can file your state paperwork. You will also need to obtain a Federal Tax ID and open a Nevada business bank account, and submit foreign qualification paperwork with the state where you will do business if you will not be operating in Nevada. Click here to view further steps for incorporating in Nevada. Please be aware of companies that promise you a Nevada company without having to foreign qualify in your actual state of operation. Virtually every state requires that a Nevada company “re-register” in that state to do business there, so if you are operating in a state other than Nevada, you may be required to pay additional fees.

MyNewCompany.com offers Nevada business filing packages starting as low as $79 plus the state filing fee. All packages include unlimited name availability searches, next business day processing, unlimited phone and email support, the new Corporation Handbook, the Nevada Startup Checklist, free company alerts, free first class shipping and more. Visit MyNewCompany.com or Order Online right now!

 

How to Keep Your Corporation or LLC Compliant

December 19th, 2014 by Matt Knee

Maintaining corporate compliance is an important task that you as a small business owner can accomplish by simply staying organized and keeping current with recurring tasks such as holding annual meetings and paying your taxes. Most companies are in fact required by law to fulfill certain tasks on a regular basis and company owners can encounter costly fees, loss of personal liability protection and even company dissolution as the result of losing good standing status.

You can easily maintain your company’s good standing status by starting with the up-to-date organization of your Corporate or LLC Minute Book. Your Corporate Minute Book should hold your Articles of Incorporation, Corporate Bylaws, the corporation minutes from your first Organizational Meeting, the stock ledger that tracks who owns which percentage of the company and copies of all Annual Meeting minutes or Special Meeting minutes documenting all major company decisions.

For LLC compliance, your LLC Minute Book should hold your Articles of Organization, LLC Operating Agreement, the board meeting minutes from your Organizational Meeting, the member ledger tracking ownership of the company and copies of all Annual Meeting minutes and Special Meeting minutes documenting all major company decisions. Keep your current Corporate or LLC Minute Book handy at all times for inspection by the IRS, legal professionals and potential investors or buyers of your company.

To maintain corporate and LLC compliance you will also want to familiarize yourself with all the dates that your compliance tasks must be completed. At minimum your company will probably need to file an Annual Report or other required state filing, pay all federal, state and local taxes and schedule and keep minutes of an Annual Meeting each year.

Annual Meetings are typically required under state law and serve several purposes including providing written records of company decisions, keeping stakeholders up-to-date on company happenings to ensure the safety of their investment and preventing potential problems in the future by getting a written agreement now. Some institutions such as government entities and banks even require documented proof that an Annual Meeting was held before they will do business with a company. To that effect, all meetings should be properly documented.

Does compliance still seem complicated? Not to worry. MyNewCompany.com offers ComplianceLock™ – a service designed for your total entity protection. With ComplianceLock you will get email and SMS text message alerts informing you ahead of time of important compliance due dates, you can generate meeting minutes, consents and corporate resolutions with just one click and your company will be consistently monitored throughout the year to avoid any pitfalls or setbacks.

Get instant access to ComplianceLock™ right now and put your company’s compliance on auto-pilot!