Effective August 1st, 2001 Nevada Secretary of State will be raising its fees for new corporations. The minimum fee for filing a new corporation will increase to $175.00, from $125.00. Filing fees can go as high as $25,000.00 (no change). Also going up is the 24-hour expedite fee to $100 from $50 for all corporation & LLC filings. Other expedite fees will increase too, including Apostilles & Certificates of Good Standing doubling from $25 to $50.
For those who do not want to wait for 24 hours, Nevada is also introducing a new 2-hour expedite service for $500.00. Delaware for many years has had a similar two-hour service (also $500). Nevada for the past several years has been trying to play catch-up with Delaware, including some favorable liability rule changes for Nevada corporations passed a couple of months ago. Nevada?s legislators have publicly stated their desire to become ?the Delaware of the west.?
To estimate a corporation?s filing fees, you must figure out the value of the total number of authorized shares stated in the Articles of Incorporation. Value is determined by computing the:
A. total authorized shares multiplied by their par value (Minimum par value is calculated at one-tenth of a cent (.001), regardless if the stated par value is less.) or;
B. total authorized shares without par value multiplied by $1.00 or;
C. the sum of (a) and (b) above if both par and no par shares.
Then fees are assessed as follows:
$75,000 or less - $175.00
$75,001 and not over $200,000 - $225.00
$200,001 and not over $500,000 ? $325.00
$500,001 and not over $1,000,000 - $425.00
For the first $1,000,000 - $425.00
For each additional $500,000 - or fraction thereof - $225.00
Maximum fee - $25,000.00
The current minimum fee of $125 was based on a value of $25,000 or less. All other fees are on the same schedule. For instance if a person wanted to incorporate and have 7.5 million shares of stock at a par value of $0.001 per share, the fee is currently $175 ($75,000 value = 7,500,000 X $0.001). So, actually only the minimum fee has increased.
What does all this mean to the entrepreneur? Unless they file their corporations in the next few days (before august 1st), they will pay more and have the ability to get their papers a little faster (for a much larger fee). Otherwise, there will be little change.
Will these changes help Nevada become more like Delaware? Probably not! Delaware?s fees are still among the lowest and there is no word of their planning to raise their fees like Nevada anytime soon.