Section 3

Privacy Benefits of a Nevada Corporation

A corporate principal has a great deal of privacy from the prying eyes of government agencies and outsiders. Nevada does not have a corporation commission, as does Delaware, California and so many others, which heavily regulates the transfer and issuance of stock. Shares of stock in a Nevada corporation can be easily transferred to another person(s), corporation or trust without a government agency granting permission or even knowing the identity of the shareholders. The only information that the State of Nevada maintains is contained in the articles of incorporation and the annual and Initial List of Officers, Directors and Agent form. This information is public record.

In the articles of incorporation (a form filed with the Secretary of State provided in this report), the only information revealed are the director(s) names and addresses and the name and address of the incorporators. A mailing address where the persons can be reached, such as a P.O. Box in your hometown or the address of your resident agent will suffice. The annual list of officers, directors and agent requires names and addresses of all officers and directors, with the exception of vice president(s), which must be updated and filed each year as required by law to keep the corporation in good standing.

A list of shareholders and their addresses are not required to be filed, which means they are not public record. However, a copy of the stock ledger statement must be maintained at the resident agent's office along with a copy of the articles of incorporation and bylaws, including all amendments. The duplicate ledger must be revised annually. The information maintained by the resident agent is available to any judgement creditor or stockholder of record more than six months.

In lieu of the duplicate stock ledger in the possession of the resident agent, the "Certificate of Record Location" must be completed and signed and maintained at the resident agent's office. A copy of this form is illustrated in Section 12 and gives the name of the person in charge of maintaining these records for the corporation and their physical location.

This is the only information available on officers, director and shareholders of a Nevada corporation. Many people have incorporated in Nevada because of the additional privacy it affords them. As for shareholders, usually stock is registered, that is issued in a person or entity's name. But "bearer shares" are also permissible. The bearer becomes the registered shareholder and possession of the stock certificate makes that party the legal owner.

Another method of transferring ownership of shares without disclosure is to issue the stock in registered form and have the registered shareholder sign the backside of the certificate. This thereby transfers their interest, but you leave it undated for future transfers. Hold the certificate until ready to take ownership or convey it to someone else, or a corporation or trust.


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