Taxes. Nevada provides a no-income-tax haven for corporations.
Cost. The state-filing fees are lower than other states most of the time.
Anonymity. Nevada accommodates "bearer shares" for added privacy for shareholders. These are defined as shares of stock in a corporation that certify the "bearer" is the holder - rather than registering the stock in an individual or corporation name.
Residency. Officers, members, managers, directors and shareholders do not need to be residents of the state of Nevada.
Business courts. Nevada's system of business courts specialize in hearing business lawsuits. They are geared at helping avert situations that are disruptive to businesses. These courts manage very complex cases and provide rulings on issues that are business related.
When deciding on which state is best for the formation of your small business, seek the advice of your attorney or accountant. But remember, if you incorporate in Nevada but transact business in another state, you will most likely have to foreign qualify your business in that state. And as far as taxes go, small business owners are welcome to reap the rewards of the no-income-tax haven, but a solid business presence is necessary. Translated this means that you must have employees, property and an office - the whole nine yards.
It is best to do thorough research on benefits and drawbacks before making the final decision.
Have any of you incorporated in Nevada? What do you consider to be advantages and disadvantages?