Frivolous Lawsuits Cost Businesses Millions Annually
Nevada Corporate Headquarters Inc. (NCH, Inc.) offers business owners protection and peace of mind.
Las Vegas, NV (PRWEB) February 28, 2006 -- According to a survey released by the National Federation of Independent Business (NFIB) Research Foundation, small-business owners rank the “Cost and Availability of Liability Insurance” as the second most important problem facing small-business owners today. This problem is a direct result in the dramatic rise of lawsuits filed nationwide in the past five years. Business owners are scrambling for relief from the cost of both liability insurance and defending lawsuits. In most cases a corporation or LLC can effectively be used to insulate personal assets against liability. However, certain states fall short of providing business owners the extent of protection they need, to keep personal assets completely safe from lawsuits.
According to published reports, a couple recently filed suit against Wal-Mart when the contents fell out of their bags onto the wife’s foot, the couple decided to sue the store for $60,000 for not bagging the groceries adequately. (“Couple sues Wal-Mart over broken grocery bag,” Tribune-Review, January 8, 2004). While companies like Wal-Mart can afford to deal with these types of lawsuits, this could be ruinous to small businesses. Small business must find a way to protect themselves and the answer could reside in Nevada.
Regardless of where you conduct business, you can own and operate a Nevada corporation. One of the primary benefits to incorporating in Nevada is that according to Nevada regulations the “officers and directors of a Nevada corporation can be protected from personal liability for lawful acts of the corporation.” Nevada Corporations are among the most difficult to pierce the corporate veil, thus keeping the business owners personal assets better protected than any other state. This pro-business aspect of the Silver State makes it very advantageous for business owners from all 50 states to form their corporation or LLC in Nevada and still operate the business inside their home state.
In the race for the White House in 2004, President Bush addressed the negative effects of frivolous lawsuits on small businesses. "Small business is the backbone of our society. Most new jobs are created by small business. And when you have junk and frivolous lawsuits that could completely wipe out a small business hanging over the heads of small business people, it doesn't help. It hurts economic vitality and economic growth."
One of the main reasons for incorporating is to limit the exposure of your assets to business losses. Incorporating separates corporate activities from personal assets. This is true in any state. However, Nevada corporations take this concept to a higher level, making it virtually impossible for creditors and litigants to get at your hard-earned assets.
About Nevada Corporate Headquarters, Inc.
Nevada Corporate Headquarters, Inc. is the largest incorporator of Nevada based entities having formed more than 25,000 corporations and LLCs over the past 15 years. To receive a free copy of the 3rd Edition of NCH's Nevada strategy and secrets book called "The Nevada Edge" call 1-800-508-1729.
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