Fact checked for accuracy by Billie Anne Grigg, a bookkeeper and Mastery Level Certified Profit First Professional.
Nevada has some of the most lenient tax laws in the country which attracts many entrepreneurs. If you’re starting a business in Nevada, you may be wondering what business structure you should choose for your company.
An LLC, or limited liability company, is a business structure that can offer you personal liability protection. In other words, if your LLC is sued, the plaintiff can only go after your LLC’s assets, and not your personal assets (if your LLC is managed correctly).
Forming an LLC is a great way to protect your personal assets and gain credibility with customers and vendors. This guide will walk you through the process of forming an LLC in Nevada, from filing the Certificate of Organization to obtaining the necessary licenses and permits.
Step 1: Choose a Business Name
You need a distinctive and original name for your LLC that is not already being used by another business in Nevada. You can check this by doing a Nevada Business Search. The name of your LLC must be unique and distinguishable from other businesses registered in Nevada. It must also include the phrase “Limited Liability Company,” “LLC,” or “L.L.C.”
You can reserve your chosen business name for up to 90 days if you want to make sure no one else takes that name while you sort out the paperwork to officially file for your business.
You can also register your company by a fictitious name, which allows you to do business under a name that is different from your LLC’s legal name.
Step 2: Appoint a Registered Agent
A registered agent is an individual or business that agrees to accept legal documents on behalf of your LLC. The registered agent must have a physical address in Nevada and be available during business hours. You or anyone else in your company can be the nominated registered agent, but you can also choose a third-party registered agent service for a small annual fee.
Step 3: File the Certificate of Organization
The Certificate of Organization is the document that officially forms your LLC. It must be filed with the Nevada Secretary of State and include the following information:
- The LLC’s name and address
- The name and address of the registered agent
- The LLC’s purpose
- The names of the organizers
- The signature of the organizer
You can file online on SilverFlume, but you can also file by mail, fax, or even email. Once you file, the Secretary of State will review your filing and approve it.
You also need to file the annual report and pay the registration fee in order to keep your Nevada LLC in good standing with the state.
Step 4: Create an LLC Operating Agreement
An LLC Operating Agreement is not required by the state of Nevada, but it is a good idea to create one. This document sets forth the rights and responsibilities of the LLC members, as well as the rules for running the LLC. It can help if any future disputes arise during the life of your LLC.
There are many guidelines and templates you can use to create your operating agreement, but at a minimum, it should include:
- LLC information, such as name and address
- Registered agent information
- Certificate of Organization information
- Purpose of the business
- Members and their roles
- Profits and losses division
Step 5: Obtain an EIN
You will need an Employer Identification Number (EIN) from the IRS to open a business bank account and file taxes for your LLC. You can apply for an EIN online, by fax, or by mail.
Although obtaining an EIN is not a necessity if you are a one-member LLC, if you want to hire someone to open a business bank account at any point, you will need to get one. So, it’s good practice to get your nine-digit number just in case anyway. It’s free and easy to apply online.
Step 6: Open a Business Bank Account
Once you have obtained your EIN, open a business bank account in the name of your LLC. By doing so, you will be able to keep your personal and business finances separate. It will make it easier for you or your accountant to keep track of everything – especially when it comes to taxes. Getting a business credit card on top of a bank account could be another way to help make accounting easier for business expenses.
This guide provides an overview of the process of forming an LLC in Nevada. For more detailed information, please consult the Nevada Revised Statutes or speak with an attorney. By following these steps, you can form a strong and legally sound LLC in Nevada.
Cost to Start an LLC in Nevada
The filing fee for the Certificate of Organization is $75. You can reserve a name for your LLC for $25, and the annual report filing fee is $150. You also need to pay $200 for business license registration.
There are no additional fees required to form an LLC in Nevada. If you are hiring a registered agent to help you with the formation process, their fees will vary. Overall, the cost to start an LLC in Nevada is relatively low.
What To Do After Forming Your LLC in Nevada
Congratulations on successfully forming your LLC in Nevada! Now that your business is up and running, here are a few things you should do to run it smoothly.
Hold an LLC Organizational Meeting
Once your LLC is formed, you will need to hold an organizational meeting to elect the members of the LLC and adopt your LLC’s operating agreement.
File Your Annual Report
You need to file an annual report and pay the registration fee of $150 to keep your LLC in good standing with the state of Nevada.
Comply With License and Permit Requirements
Depending on the type of business you are operating, you may need specific licenses and permits from the state of Nevada. For example, if you will be selling food or alcohol, you will need to obtain a license from the Nevada Department of Taxation. Certain licenses have to be renewed on a regular basis, so make sure you keep up with the requirements.
Get Professional Help
If you want peace of mind and assurance that your LLC is being formed correctly, you can hire a professional service to help you with the process. Professional registered agents and LLC formation services have extensive experience forming LLCs in Nevada and can help you every step of the way, from filing the Articles of Organization to maintaining your LLC.
Hire an Accountant
If you want to save time and money, it’s best to hire a professional accountant to help you with your LLC’s finances. A professional accountant can help you set up your LLC’s financial records, file taxes, and keep up with annual report filings. You can either hire a third-party accountant or put one on your payroll.
Hire an Attorney
If you have any legal questions or concerns about your LLC, it’s best to consult with a professional attorney. A business attorney can help you understand the laws and regulations governing LLCs in Nevada and can guide you properly to comply with them.
Get Business Insurance
It’s important to get insurance for your LLC to protect your business from potential lawsuits and liabilities. There are a variety of insurance policies available, so make sure you choose the one that’s right for your business.
Plan for the Future
Forming an LLC is just the first step in starting a successful business. You also need to have a solid business plan and goals for your LLC. By planning for the future, you can ensure that your LLC is successful in the long run.
How to Keep Your LLC Compliant in Nevada
Now that you’ve formed your LLC in Nevada, you need to make sure you keep it in good standing with the state. It means complying with all the necessary licenses, permits, and requirements. Here are a few tips on how to keep your LLC compliant in Nevada:
- Maintain your registered agent
- Hold an LLC organizational meeting
- File and pay for annual reports
- Comply with license and permit requirements
- Keep up with LLC maintenance
- Get professional help, if needed
By following these simple tips, you can ensure that your LLC stays compliant with the state of Nevada. If you have any questions you can visit the state of Nevada’s official website for detailed guidance.
Tax Filing Requirements for LLCs in Nevada
An LLC is a type of business entity that offers certain tax benefits. In most cases, the responsibility for paying federal income taxes falls on the individual members of the LLC. One thing that really draws business owners to Nevada is that it is one of a few states that does not have a state income tax for individuals or corporations. This means that LLC members will not usually owe any state taxes on their income from a Nevada LLC.
However, if your LLC has listed assets in Nevada, you will be required to file an annual report with the Nevada Secretary of State. The report must list the LLC’s name, address, and the names of its current members. There is a filing fee of $150.
In addition, your LLC will need to obtain a business license if it is engaging in any business activity in Nevada. If you are selling products or services subject to sales tax, you will also need to obtain a Nevada Sales Tax License.
If you have any employees, you are subject to pay the Modified Business Tax if you pay more than $50,000 in wages quarterly. And if you have annual gross revenue exceeding $4,000,000, you will be subject to pay the Commerce Tax
The requirements for filing taxes and obtaining licenses and permits can be complex. It’s best to consult with a professional accountant or attorney to ensure that you are complying with all the requirements.
Frequently Asked Questions
How long does it take to register an LLC in Nevada?
The time it takes to register an LLC in Nevada varies depending on how you file the Certificate of Organization. If you file by mail, the process will usually take about two weeks. The other option is to file online, which will only take 2 to 3 business days. There is also expedited filing available in Nevada, which costs $125 and takes only 24 hours.
What tax structure should I choose for an LLC in Nevada?
The most common tax structure for an LLC in Nevada is the pass-through tax structure. This means that the tax responsibility passes down to the members of the LLC for paying federal income taxes on the LLC’s profits. There is also the possibility to have your LLC taxed as a corporation in Nevada. If you are unsure of which tax structure will work the best for your company, contact an accountant or tax attorney for professional advice.
Should you hire an LLC formation service in Nevada?
While several LLC formation services are available in Nevada such as IncParadise or ZenBusiness, you are not required to use one. Forming an LLC in Nevada is relatively simple and can be done on your own. LLC formation services make the process of forming an LLC easier, and most services can take on registered agent responsibilities as well. It is ultimately up to you to decide if you want to use an LLC formation service and if it fits in your budget.