Monday, September 26, 2011

Nevada Cracks Down on Incorporation and Registered Agent Firms

Some non-attorney Nevada incorporation services are operated by convicted felons, Reuters reports:
Reuters detailed its discovery of former felons in the mass-incorporation industry to Nevada state officials. In response, [Secretary of State Ross] Miller said he plans to introduce a bill barring felons from running incorporation firms. In early September, he announced the creation of a Corporate Ownership Fraud Task Force to fight abuses of Nevada incorporation rules.
Special report: Nevada's big bet on secrecy, September 26, 2011

See also Shell games: A cautious crackdown in Nevada, Reuters, September 26, 2011:
Early this month, Nevada Secretary of State Ross Miller's office shut down a Las Vegas registered agent called Power Point Management and revoked the corporate status of its 427 active clients.

It was an example of how his office will "aggressively enforce our statutes and regulations," Miller said, warning that his state's 'business friendly' ethos "should not be interpreted to mean 'haven for bad actors.'"

Power Point is part of Nevada's booming industry of business incorporators and registered agents, more than 700 firms in all, whose key service is to receive on behalf of the companies they've registered any notices of litigation, tax documents and other records required by the state. Like most, it's a small operation. It has offices at the end of a winding interior hallway in a faded, stucco, two-story office park on Las Vegas' Flamingo Road. The building's rental manager, Laba Singh, says the firm sends in its "$200-something" rent check by mail each month, but he has never seen the tenant.

The issue that got Power Point in trouble seems minor: It claimed that it, and every one of its clients, was a home-based business making under $27,000 a year. Such businesses don't have to pay Nevada's $200 annual licensing fee. If all 427 of Power Point's clients falsely claimed the $200 exemption, then Nevada lost out annually on $85,400 in total. ...
Nevada incorporation attorney
Nevada registered agent service (a/k/a resident agent service)


  1. I just wanted you to know that I really appreciate your business law blog. It always makes for an interesting read. Great work on everything.

  2. Good point about convicted felons acting as corporate agents. I have alaways used the law firm who represents me in various dealings to act as my agent. Darren Chaker