Incorporate in Nevada?

[Al Boettger]

I am from NJ, and about to set up a RE investment company. Normally would have set up an LLC but heard just last week at my real estate club-as an advertisement hook for our January meeting which will deal on the subject-that 40% of the time the corporate veil is pierced, so it might be better to inc. in Nevada. I am looking for feedback on this, thanks.

[Jerry W.]

@Al Boettger, I would love a link if you have it to the article showing 40% fail rate for LLCs. That has not been my experience. The few times I have seen the veil pierced it is usually from someone who neglects the corporate formalities. Using the LLC checkbook for your own uses is the biggest one, and undercapitializing is not far behind. I am unaware of any piercing case where there was not an alter ego problem. If that is the case the problem is not where you incorporate, the problem is not following the rules. Filing in a different state won't help if you break the rules.