Known as the "Delaware of the West", Nevada has become a very popular venue in which to form a corporation because of its many advantages, among which are the following:

No Corporate Income Tax
No Taxes on Corporate Shares
No Personal Income Tax
No I.R.S. Information Sharing Agreement
Nominal Annual Fees
Minimal Reporting and Disclosure Requirements
Stockholders are not Public Record

However, many people are not aware that there is a requirement that a company actually "doing business" in Nevada must register and file and pay a business tax (based on number of employees.) The State of Nevada requires that all businesses doing business in the State of Nevada secure a Business License from the Tax Division of the State of Nevada at the time of formation.

The good news is that, if you meet these requirements and you did not comply, there is an amnesty program in effect for companies that have not complied with the State requirement. This amnesty program runs until the end of this month (June 30, 2002.) Roughly put, the amnesty program requires that all companies not licensed complete and file the appropriate forms along with State tax returns for the years in business.

The information and forms necessary to comply with either requirement
can be found at www.tax.state.nv.us. There is a link at the top of the page for information on the amnesty program. If you then follow the forms link at the top of the home page and then the link for general purpose, you will see the two forms necessary to comply with the requirement. The first is the Nevada Business Registration form (APP-01.00) and the second on the list of general
purpose forms is the supplemental application (APP-01.01). These forms
must be completed and submitted along with a check for $25.00.

Again, please note that the critical date for you to avoid any penalties for non-compliance is June 30th, 2002. Please feel free to call us toll-free at 1.888.664.6263 if you have any questions or if we can ever be of service in this or any other regard.