Tell me about incorporating in Nevada

[supahjew]

Would incorporating in Nevada save a bunch of money on taxes? Here's what I figure: by opening a C-Corporation vs. the S-Corp I have now in NY, I can save on self-employment tax and state corporate tax, which comes out to 15%+8%=23%.

The second part of my question is what corporate money with a C-corp can be used for, as it is double taxed. Can't I just buy things with corporate money without claiming the money as personal income? I know this means not everything can be written off as a business expense, so I am still paying one form of tax on it, just not income tax.

[Lil_Red]

I would suggest making an appointment with someone familiar with tax law in relation to businesses.

You can't just buy yourself stuff with corporate money. Anything you buy with corporate money should have some relationship to the business you are in and you will need to depreciate each item on your taxes per the IRS depreciation schedule.

[Steelsun]

Unless you live in Nevada, incorporating there will probably not save you taxes, as you'll also have to domicile your corporation in the area (state) where you also practice business, and pay taxes there.
Nevada corps are usually used to hide ownership and protect additional assets.

I am not saying you WON'T save, but you will PROBABLY not. If you are making over $250K a year, it MIGHT be a different story.

PS: I am not a lawyer, or an accountant.
Then again I am also not on the IRS watch sheet for using some of these cheating ones.