What message do you send as a sole proprietor?
First, let's get a marketing perspective on sole proprietorships and the image that they project. The typical CPA recommends that if you don't have over $40,000 in net profit, incorporating in Nevada may not make sense for you and may not reduce your taxes. That's no secret.
Knowing this, what message are you sending when your business card bills you as "Owner/Operator"? New prospects know that you didn't incorporate, and they probably assume that they know the reason why - that you probably don't earn $40,000 in profits, and your CPA recommended for tax reasons that you remain a sole proprietorship. Worse, you didn't believe in yourself enough to invest the money to incorporate.
Are those the messages you want to convey when trying to attract new business?
For Nevada Incorporation, you send a very different message : "This is John Smith, CEO of ABC, Inc." That "foot in the door" strategy is far superior to "This is John Smith, Owner/Operator of ABC."
Bottom line? From a purely marketing point of view, incorporating in Nevada makes sense 100%.
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