The information is simply not kept on file with the state. To ensure privacy, Nevada is the only state that allows its corporations to use bearer stock certificates. It is virtually impossible to prove the ownership of a Nevada corporation handled in this manner. The state has continued to not tax the income of its corporations or its state's citizens. A Nevada corporation is also not subject to any other hidden taxes such as franchise taxes, capital stock taxes, or inventory taxes.
Sales tax applies only to products sold within the state.
Imagine a state that believes that taxation should not come directly off income from its citizens or businesses. This almost sounds like capitalism. No Reciprocity With The IRS Because Nevada has no state tax, and because budget-conscious Nevada does not keep much information on their own residents or their corporations, it has steadfastly refused IRS requests for reciprocity. Other states freely exchange all of the information they have on every resident and corporation. In this increasingly litigious society, it is becoming increasingly important to limit your exposure and protect any assets that you may have.