How to Go From a Sole Proprietor to a Corporation in Nevada
As a Nevada sole proprietor, you enjoy the luxury of operating a business on your own. However, there may come a time in which you wish to expand your business to include more partners. You may also wish to decrease personal liability and give your business the option of being publicly traded. In either case, making your Nevada sole proprietorship into a corporation affords you all of these benefits and more, provided you complete and submit the state's appropriate Articles of Incorporation.
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Instructions
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Choose the members of your new Nevada corporation and their roles. You will need to assign a registered agent, which is the person who will answer to the state, and a board of trustees, which can be the other organizing members. Have a candid discussion with these people about and come to a consensus concerning their roles, as well as the immediate and long-term business structure before filing corporate Articles of Incorporation with Nevada's Secretary of State.
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Devise a business plan with your corporation's members. The business plan will serve as a physical reference for yourself and potential investors if necessary. The business plan should thoroughly outline your corporation's intended trajectory and display a strong understanding of the industry in which you will operate. Consult the Small Business Administration website if you are not completely comfortable drafting a business plan of if you never did so for your sole proprietorship (see Resources).
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Seek advice from established Nevada corporations if you have good relationships with any. Show your business plan to a representative from such a corporation, as his or her insight and experience can prove invaluable as you leave sole proprietorship behind to navigate the more complex legal structure. Take a local business or corporation training course if you do not know any corporation members personally.
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Choose a location for your new Nevada corporation. As a sole proprietor, you may not have been required to establish a business address. However, your corporation will need a business address, even if it has to be part of your home for starters.
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Pursue business grants and loans if you do not already have sufficient start-up capital. Consult your county's chamber of commerce or small business bureau to inquire about possible loan and grant opportunities for your new business. Present your business plan to potential lenders and benefactors.
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Visit the Nevada Secretary of State website to acquire the Nevada Corporation Articles of Incorporation (see Resources). Download and print the Nevada Corporation Articles of Incorporation that pertain to your desired business substructure. Choose the domestic, close, non-profit, professional or sole corporation Articles of Incorporation accordingly. Skip this step if you intend to obtain the forms in person from the Nevada Secretary of State's office.
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Fill out and submit the Nevada Corporation Articles of Incorporation form. Include the new corporation's name, registered agent and board of trustees in the appropriate fields.
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Mail the Nevada Corporation Articles of Incorporation form to the Nevada Secretary of State address listed on the document. You may also submit the form in person if you prefer. Remember to include any applicable registration fees with the submission. Your new corporation's Employer Identification Number (EIN) will be its tax identification number and will come through either postal mail or email when the Nevada Secretary of State returns your signed Articles of Incorporation.
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Acquire your new corporation's State Business License from the Nevada Department of Taxation. You may not have needed one as a sole proprietorship, but you will need to file for one unless your new corporation is a religious nonprofit, charity or other tax exempt organization. Visit the Nevada Secretary of State office to obtain the form or file it online from their website (see Resources).
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