When we started offering corporations and services, we only offered Nevada. We saw changes coming in Nevada and slowly divested from the “Silver State.” First off, Nevada privacy is dead. This is how the state killed it:

So, let’s say you don’t want privacy. You seek to build business credit, and that requires transparency.

A change of owners on record results in a setting of the age of the company to zero. If you think about it, new owners means the company may not be run the same way as the previous owner. Even if the company has no credit history, a change of ownership may result in a negative credit history.

Again, the dangerous part is that many Nevada resident agents are not talking about this requirement because they know of the negative impact it’ll have on their business. From the perspective of the bank or financial institution, they will reset the respective age of the company when the owners change. And since the owners are listed on the Nevada business license, that shift is easily noticed through public records. See the form here.

There’s more to consider than the age of the company. The mortgage crisis also resulted in many defaults in business loans. Scores of those loan defaults involved corporations from Nevada and Delaware. In addition, Nevada suffers from rampant financial fraud due to businesses that support access to rapid funds; due to activity related to gambling, legalized prostitution, adult entertainment and drugs. Using a Nevada corporation to build business credit is simply counter-productive. In building business credit, you’re much better off with a corporation from Montana. In contrast, Montana is known for clean business practices.

All of our companies are without a credit history, without an EIN and without a transaction history. So, what does this mean to you? This means that you don’t need to worry about back taxes owed, delayed fused litigation, or unseen liabilities.

The loan defaults made Delaware, Nevada and Wyoming famous as states that source shelf companies. This means that shelf companies that come from Nevada, Delaware and Wyoming are all facing increasing scrutiny when obtaining business loans.

You probably don’t know of anyone who obtained a shelf company from Montana. That’s good. Since Montana is not known for selling shelf companies, this means that your business project isn’t harassed as a result of the stigma that follows companies from other states; Nevada, Delaware and Wyoming.

We shifted our focus to Montana for the following reasons:

Always speak to a tax advisor before and after you incorporate. You may need to file as a foreign corporation in another state, if that’s where you do business.