Defining Foreign Corporation and Privacy

[MalluMama]

What is the name of your state? Illinois

I started an online business one month ago. It is strictly online. Never will it become a brick and mortar location.

I would like to incorporate. I am very much interested in a S Corporation (I've done my homework there) in Nevada. Why Nevada? The privacy of ownership is very important to me. I do not like having the owners of my business become public record as I believe it would in my home state, IL.

If I file for a S Corp. in Nevada, is my business a foreign corporation to IL (with the necessary filings and fees, etc.)? I would be an officer in my business.

The mailing address for my business where I receive mail is in the IL. There I receive my products that I sell on the Internet.

Am I a foreign corporation in IL if I file S Corp in Nevada? Additionally, if the answer is yes, is there a way to make my information (company ownership) private (not public record) in the state of IL if I file S Corp? I noticed there is a website that incorporates businesses selling something called Anonymity for the state of IL.

Thank you.

 

[clueless3]

If I file for a S Corp. in Nevada, is my business a foreign corporation to IL (with the necessary filings and fees, etc.)?

Yes, if you run the business out of IL, then the Nevada Corp needs to qualify to do business (as a foreign corp) in IL.

is there a way to make my information (company ownership) private (not public record) in the state of IL if I file S Corp?

How much are you willing to pay for "Privacy"?? Is Privacy worth all that money and effort?

If the answers are YES to you, then you need to hire Nominee Officers who are willing to take on the roles of the Officers for you, sign your documents, and [possibly] take on the responsibilities in case of fraud or whatever. In NV you can hire them, but in other states it may be difficult because the laws in other states do not protect Officers as well as NV law, therefore few people want to be responsible for YOUR actions for little money. Therefore, you'll find that you will end up holding those Officer positions, therefore becoming public record.

As far as company ownership goes, the shareholders are recorded in the company's ledger but that information is harder for the public to find out. So you don't have to worry too much about ownership. Yes, NV does have bearer shares, but it's a lot more trouble than it's worth. What if you lose those stock certificates (in a fire or flood or tornado)??? They are like CASH; once you lose them, it's VERY hard to prove that you own the company.

I would be an officer in my business.
The mailing address for my business where I receive mail is in the IL.

Once you are an Officer and your mailing address is State record, what is the Privacy that you're looking for???


One thing: the IRS ALWAYS knows who owns your company; you cannot keep it "private" from them. Your tax return may be private, but it CAN be summoned into court, eg, by your ex-spouse.

With all the identity thefts and increase in computer break-ins nowadays, data about you might not be as hard to get as it once was.

All in all, Privacy is good, and many people want Privacy, but in my opinion it's costly and very hard to achieve perfectly, even if you work out of NV. A Corp is a good protector enough that any more protection is diminishing in return; ie, you can spend 100% more money but get only 10% more in protection. But, if you have the money, then it's your call.