A NEVADA SUBSIDIARY MUST BE PREPARED TO SATISFY
OTHER STATES AS TO ITS SUBSTANCE IN NEVADA

Some of the steps that can be taken in Nevada to establish substance are listed below.
We urge you to discuss your company's specific needs with your tax and legal advisors.

• Incorporated by Nevada law firm
• Title for investments and other assets should be transferred to Nevada Company
• Evidence of passive income assets such as trademarks, licenses, copyrights should be held in Nevada
• All subsidiary portfolio work completed in Nevada
• portfolio management subject to investment policy and board of directors oversight
• trade executions
• interest and dividends received in Nevada
• investment strategy and decisions
• investment meetings
• Separate contracts or agreements executed in Nevada by a Nevada officer/employee for
• custody/bond accounting
• payroll
• financial accounting
• employment
• lease office space and equipment
• investment management
• Nevada resident employee/manager on payroll
• Nevada resident director
• Board of Directors meetings held in Nevada
• Corporate records should be kept in Nevada
• Separate checking account all supplies, postage, equipment, services and payroll
• are purchased in Nevada and paid with checks written on your checking account 

at a Nevada bank
• Maintain a permanent office in Nevada
• Nevada subsidiary name listed on building or office directory
• Subsidiary should have separate brokerage accounts
• Subsidiary should have separate telephone number with the number listed
• in the Las Vegas telephone directory 
• Subsidiary should have letterhead and business cards
• Employment taxes paid to State of Nevada
• Compliance with Nevada Tax and Corporate Laws
• Federal tax identification number applied for from subsidiary's Nevada address

WE RECOMMEND THAT YOU CONSULT YOUR NEVADA
AND HOME STATE TAX AND LEGAL ADVISORS