Yeah, I met with an accountant a couple years ago and he sort of asked the same thing. Why Nevada? I guess you could say that I could have done some more homework on all of the variations as to why (or why not) to incorporate there. My business is not real estate-based, so I didn’t consider the whole property location issue.

With that said, it has served me well so far. I remember when I was researching it that Nevada and Delaware were the two most business-friendly states in the Union. I took this to mean that when push came to shove, my corporation had at least a fair shot in a trial. Did I have hard evidence to substantiate this at the time? No. However, I do know first-hand that California, or at least certain elements of California state government, favor a person over a corporation.

This might come up if there ever is a lawsuit from a tenant against a property owner (or vice-versa) for whatever reason (mold, accidents on property, negligence, etc.). There are many factors to consider and I am not an expert. But there’s something to be said for doing your best research and just going for it. Just my $0.02.