Nevada has been a popular destination to establish businesses and the popularity is recognized by foreign business owners as well. This is largely due to the tax benefits and protection that many Nevada entities currently have. It’s no secret that many businesses form shell companies here to protect sensitive information. In comparison to other states, Nevada has little power under the current statute to audit or investigate companies that have incorporated here, unless asked by law enforcement. The reason for the discussion of tightening the rules for Nevada entities is due to the recent discoveries of shell companies being linked to the government corruption scandal in Brazil, most commonly known as the Panama Papers in 2016.
So, how will tightening rules affect your business? The proposed legislation would authorize the Secretary of State to conduct periodic, special, or other examination of records and allow more insight into a business’s registered agent. If you are looking to form your business in Nevada, take a moment to speak to an experienced Nevada business formation lawyer. They will be able to provide you important insight regarding these regulations and provide quality registered agent services as well.