The Nevada Myth: Rethinking the Nevada Corporation

October 8th, 2022 by admin No comments »

After you have decided that incorporating is beneficial for your business,Guest Posting some people consider incorporating in states outside of their home state. Most notably, Nevada has been promoted by many “incorporating services” as having incredible benefits as opposed to the client’s home state. Other states such as Delaware and more recently Wyoming have also received consideration for incorporating. In some cases, depending on the facts of your business, there are some benefits in forming an out-of-the-home-state corporation in states such as Nevada. However, in the majority of cases the benefits of forming a Nevada corporation is simply a myth and will often be more expensive and troublesome than filing in the company’s home state.

Law of the Land: Foreign Entities

This may be a surprise to many, typically, corporations will be governed under California law despite being incorporated in Nevada. Let’s assume you do file a Nevada, yet you operate all of your business in California. Under this scenario, you are deemed to be a “pseudo foreign” corporation. If the corporation is a pseudo foreign corporation, California law in many areas will supersede the law of the state where the company was incorporated in. (See California Corporation Code §2115(b)). Therefore, for companies entirely based in California and doing business in California, practically all of the claimed benefits of incorporating in Nevada are out the window. It should be noted that if a Nevada corporation operating in California fails to qualify as foreign corporation, it may be subject to a number of sanctions. (See California Corporation Code §§2203, 2258, 2259).

Nevada v. California

The benefits typically touted by a Nevada corporation are the following: lower costs; tax savings; and greater privacy. But is any of it true? Below we will discuss some of these issues.

Expense: Contrary to what many people believe, it is more expensive to file in Nevada than in California. Here are some of the additional expenses: the initial filing fee is more; the Statement of Information is much more; you will be required to file a Statement and Designation of Foreign Corporation in California; and you will be required to hire a Nevada Agent for Service of Process each year. For large clients, the additional cost (of approximately $500 more) is not a big consideration, but for smaller businesses every dollar counts.

An Architect Explains The Pros And Cons Of Different Roofs

March 16th, 2022 by admin No comments »

Homeowners have a variety of roofing materials that an architect can incorporate into the building design. Depending upon use and preferred style of construction, material choices can range from centuries-old grass thatch to modern uses of plastic and fiberglass. A local architect will present available roof types to clients and explain the pros and cons of each. Below are a few of the options people can choose from.

Composition Shingles

Composition shingles are a popular choice and are used on a variety of projects from historic renovations to contemporary new construction. An architect would recommend this choice because it is inexpensive, has a wide selection of colors, is available from many suppliers, has a good fire rating, easy to repair, and is an appropriate choice for almost every type of home built.

Natural Wood

Homeowners can also consider using wood shingles and shakes. This type of material is well suited for many types of construction, from renovated historic bungalows and cottages to contemporary styled family homes. This roof type evokes a natural weathered look and provides good insulation value. However, this quality roof is more expensive. It requires a higher degree of maintenance than other roof types. A professional must install a wood shingle or shake roof. This type of roof is subject to rot and splitting and is prone to mold and mildew. Furthermore, the fire rating on wood shingles is poor therefore, this type of roof will cause your insurance rates to go up.

Tile Roofs

Clay and concrete tile roofs are popular choices in warm climates where architects seek to evoke a Spanish, French or Italian Mediterranean look. This roof style also is used to obtain a “Mission-style” appearance. The great advantage using tile roofs is the material is non-combustible, which provides a fireproof building cover that is well accepted by insurance underwriters. There are endless selections of styles and colors. Tile roofs are exceptionally durable and easily maintained.

A disadvantage of using tile roofs is the high expense of installation. The material is heavy and needs special handling when installing. Expect a about a 10% material loss in shipping because the material is fragile. In some areas, tile roofs are popular but can be damaged with heavy snow; this should be considered as the installation and repair costs will be higher. In addition, because tile roofs weigh more, the structural requirements are increased.