Nevada Corporate Scams | Mark J Kohler | Tax & Legal Tip

Hi, Mark Kohler here and I want to talk about a very, very controversial statement and that Nevada corporations are a scam. Now I'm an attorney, cpa. I've written two best selling books. I speak around the country. I'm a senior partner in a law firm and accounting firm. And I know this is a bold statement, but I'm going to cut to the truth. I'm going to offend a lot of people. But I am sick and tired of people getting ripped off on this scam. And I'm going to tell you how it works right now. I'll give you three reasons. Number one, there are so many companies out there, non law firms, non lawyers, saying oh, our documents are reviewed by lawyers. And then some guy or gal is sitting in a cubicle calling you, selling you thousands of dollars of unneeded entities at an excessive price, preying on your fear and misdirection. That Nevada is where you're supposed to set up people, get a second opinion. And you should not be paying more than a thousand dollars at most for an entity. And you should be getting a consultation one on one over the phone with a lawyer explaining why it's in your best interest. And they're going to want to have a relationship with you, not some company that's going to disappear the next day or do it online for you. And you're never going to talk to a lawyer. We charge 800 bucks to set up any entity in any state and you're going to talk to a lawyer to do it. Watch out for that first type of scam. Number two, they're going to tell you that Nevada laws and statutes are the best in the country and no one can pierce the corporate bail unless you're grossly negligent and you're going to be totally protected. Yeah, they have great laws if you're doing business in Nevada. But if you have an operational business in another state or rental property in another state, you now have to register that entity in that state to get protection. And you've availed yourself of the laws of that state. And when someone sues you in that state, 90% of the time they're gonna apply the laws of that state. You're stuck paying for two states registration fees when it didn't help you at all, folks. It's a farce. Be careful. Watch out when someone's trying to set you up an entity in Nevada when you're not doing business there and not living there. Number three, the state tax myth. Oh yeah. If you set up your entity In Nevada you're not going to pay any state tax. Hold it. Let me get this straight. I live in Arizona or I live in California. My clients are in California, I'm making sales in California. But if I set up a Nevada entity, no one's going to tax me there. Wrong. You're going to pay tax in the state where you live and are a resident and they may add insult to injury and try to talk you into a C corp. We'll talk about that in a minute. But folks, going to Nevada is not going to save you any state tax. Be careful and get a console again, a second opinion. But before someone oversells you on one of these entities, get a second opinion from someone that's going to sign your tax return next tax season and tell you if you're really going to save taxes. I doubt it. Alright, now let's talk about the insult to injury factor and how it even gets worse. These companies, again, not your accountant, not your ongoing lawyer, just a company trying to sell you after a workshop or online are going to say oh set up a C corporation because it's a lower tax rate. They didn't bring up double tax. Or the fact you've got to somehow suck out all these expenses that may not even be applicable in your situation. Folks, getting a second opinion from your CPA that's actually going to do your tax return could save you thousands in this mishap. Number two, they're going to not tell you about the filing fees in Nevada which are one of the highest in the country, and then the ongoing fees to maintain your company and the fact that you're going to have to pay fees in two states when you have to register in your state. Oh and by the way, you're not going to hide because within a certain few weeks or months you've got to register in Nevada and disclose all the owners and officers. So hiding isn't going to work either. My dear viewer, thank you for making it through this video. You can see how passionate I am about this. I have had so many people over the phone or in face to face meetings break down in tears after spending thousands of dollars for an entity that is useless. I am sick and tired of it. If you feel that you want to share your voice in this and you think I'm wrong or you want to just echo what I'm saying, please give me a like share the video, make a comment. Please go visit my website and go talk to a real lawyer. Please. We would love to be of service. We can help you in any state. Design a structure affordably for you and be there on day two to help you file taxes or do whatever it takes to help take your business to the next level. It's a jungle out there folks. And be careful of any video out there of someone trying to sell you a Nevada corporation for excessive costs. Get a second opinion. Thanks so much. If you thought that information was amazing and helpful. I have so much more to share with you. Please look at the links below and head to my website markjkohler.com you can subscribe to my weekly newsletter. Check out my weekly radio show. I have my online videos for tax and legal strategies that'll save you thousands ways to learn QuickBooks with my fun videos online. And also if you enjoyed it, please leave a comment and give it a like and follow me on YouTube. I promise that these videos will change your life. Thanks so much.