The "Nevada corp" thing was not phrased how you mentioned but I agree that it was misleading. The site said this: From what I know this is true. I also know that California (and probably most other states) tax income based on where it was earned. But perhaps the nevada corp is beneficial for a trader who travels a lot? Using the C corp as a member to take the first $50k in taxes to the lowest corporate tax bracket sounds like a clever idea. Also with a corporate structure I believe it is possible to defer taxes using retirement and pension plans. Im not an accountant, but I did run over that site and cross check its claim against what I could find on the subject and it does not appear to be a scam operation. What I plan to do with them is consult to see how the setup would best fit in my situation, and then maybe cross check their advice with another competent accountant. If the fees are high then I would still consider the setup if the savings were good enough or I felt I could handle future tax returns with a regular CPA (after the structure is set up, I would just need someone who is competent to tax code changes)