You no doubt have heard about the tax benefits of a Nevada address, but it still can be a shock to the system, in a good way, to live where no state income taxes come out of your check. There are also other tax advantages that come with dwelling or doing business in the Silver State. Here they are, as well as a look at countervailing factors.
Nevada and Taxes
One proviso off the bat is that, to take advantage of residential tax benefits, Nevada must be your primary residence. Now, this qualifier doesn’t preclude you from having homes or conducting business in other states, you just must be more closely tied to Nevada than any other state.
There’s also an asterisk by the whole “no state income tax” thing. To wit, you still must pay the IRS for earnings derived from sources based in another state. Even with that, though, you likely will still benefit from a substantial drop in your overall tax obligation.
Having said that, the tax advantages for residents and businesses include no personal or corporate income tax, and no gross receipts, franchise, or inventory taxes. There’s also no tax on the issuance of corporate shares, and shareholders and directors are not required to reside in Nevada.
Want more? Well, there’s no tax on the sale or transfer of shares, nor on succession or inheritances. There’s no sharing of information with the IRS, and no minimum or initial capital requirements.
Then there’s the fact that annual requirements are simple, and that the state provides protection for corporate directors and officers. What’s more, owners in Nevada can enjoy anonymity and low property taxes in a business-friendly environment.
A Focus on Las Vegas
Low state taxes? Can’t beat it. Residents and businesses certainly flock to Nevada to take advantage of lenient taxation.
People from all over the world also flock to Las Vegas, Nevada’s premier destination center, but for different reasons. Dubbed “The Entertainment Capital of the World,” Vegas hosts revelers from near and far who come to enjoy gambling as well as fine cuisine, shopping, and non-stop nightlife. It’s a party, for sure.
However, more than 600,000 people call the desert municipality home. These residents were attracted by year-round sunshine, a rich culture, and a myriad of outdoor activities.
But here’s a fact: the cost of living in “Sin City” is nothing to sneeze at. Vegas is also still rebounding from the devastating housing bust, and levels of joblessness exceed the national average. Further, many of those who are working do so within the service industry, which isn’t exactly known for high wages. People who live in Clark County, for instance, make an average monthly wage of $970. By contrast, service workers in the United States earn $1,152 on average.
So, yes, if you’re living in or around Vegas, you may be having a bit of a tough time, state tax advantages notwithstanding. The good news is that if you’re having financial difficulties, there’s debt relief for Las Vegas residents, including debt consolidation, debt settlement, and as a last resort, bankruptcy.
Debt Consolidation
With this financial strategy, multiple debts are rolled into a single payment of a fixed amount. This approach is particularly helpful in terms of making bill paying easier, since you no longer need to worry about keeping track of varying due dates and payment amounts. Debt consolidation loans are available even if you don’t have great credit, but if your score is good or better, you’ll also be able to get one with an interest rate that’s
better than what you’re paying. This means you’ll save money.
Debt Settlement
If you’re overwhelmed with debt such as from credit cards, and can’t see yourself paying it off, then debt settlement through a credible agency such as Freedom Debt Relief might be the ticket for you. With this strategy, the agency’s negotiators will approach your creditors to see whether they’d be willing to mark your debt as “settled” for less than what you owe. Creditors usually are amenable since they know that if you file bankruptcy – your next best option – they’ll get little to nothing.
Bankruptcy
You’re out of options after this one, a filing that could stay on your credit report for up to 10 years, depending on the type of bankruptcy filed. While going this route would avail you of a clean start, you’ll pay mightily in the form of an inability to get credit of any kind, including for a house, car, or student loan. You also may be required to liquidate assets to help pay your debts.
So, yes, living in Nevada offers many tax advantages, including the lack of a state income tax. But if you happen to live in or around Las Vegas proper, you may be having a bit of a tough time. Just remember that you have financial options, including debt settlement.