Nevada :: Misleading Solicitations

NevadaThe Nevada Secretary of State has advised Parasec that a private company is targeting businesses with misleading notices implying a publication requirement exists for all business entities in the state.

The notice states “An Annual Statement Must Be Published Before the End of March Each Calendar Year” and goes on to provide Nevada Revised Statute 80.190. The notice also provides penalty information as a scare tactic, hoping to intimidate unwilling recipients so they take action. What the notice fails to state is:

  • The term qualified has a very specific definition and applies only to corporations that were not initially incorporated in the state of Nevada, but another states laws and registered the corporation in order to conduct business in the state
  • The requirement only applies to foreign corporations that are qualified (registered) in the state of Nevada
  • Limited Liability Companies (LLCs) are exempt from a publishing requirement
  • The notice is not an official notice but rather a solicitation for business from a private firm

The State of Nevada is aware of the issue and has previously issued cease and desist orders to several companies regarding the misleading notices.

Parasec suggests that if you receive a notice with a logo that does not contain the state seal or requests money for filing in addition to a statutory fee you question the validity of the notice. Contact Parasec at 800.533.7272 if you have questions regarding any notices and their validity, as our professional staff can assist you in determining the legitimacy of the notice and verify state requirements.

For an example of the misleading solicitation letter, go here.

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