Comparing Nevada and Florida LLC: Which State is Right for You?

It's important to consider your location when starting a business. Where you set up your organization determines your regulatory tax system, business regulations, and overall economic performance. It also gives you an idea of your company’s chances of success and survival.

Determining the best state for your venture’s needs can be challenging. Fortunately, we’re here to help. Below we discuss various factors you should consider if you plan to set up an LLC in Florida vs. Nevada.

Learn why the Silver state is the most pro-business location to form an LLC with this quick guide.

No Charging Order Protection

There are only five states with charging order protection, and Florida is not one of them. This means your shares in a company are at risk from lawsuits filed against your co-owner.

For example, if your partner spends a lot of money and incurs a huge amount of debt on their personal credit cards. If you do not have charging order protection, creditors can take money from your company’s earnings and use it to pay for your co-owner’s debts.

No Recognition of Series LLCs

A series LLC is a limited liability corporation with an umbrella company and one or more sub-companies under it. Although they are under the mother venture, each subsidiary is considered a separate and individual entity with separate assets, membership interests, and operations.

This form of LLC provides business owners full liability protection as the fault of other subsidiaries within the same series LLC cannot put your venture at risk. You are completely protected from their liabilities.

For instance, you own three food chains: a cafe, baked goods, and a grill house. If a customer sues the cafe, the two other ventures are safe from large-scale problems. The rest of your properties are safe and won’t be affected, and only the cafe will have to deal with these complications.

Florida doesn’t recognize series LLCs. On the other hand, you may want to consider incorporating your business in Nevada to enjoy the benefits of these protections.

Business Tax Climate Ranking

Nevada and Florida placed in the top 10 of the Tax Foundation’s State Business Tax Climate Index at seventh and fourth, respectively. This ranking gives business owners, taxpayers, and government policymakers an idea of their state’s tax systems compare.

One of the reasons why Florida ranked fourth is the absence of individual income tax. Meanwhile, Nevada placed seventh as it has no corporate tax, although it imposes gross receipt taxes.

Want to Know More? Speak With Nevada's Best LLC & Business Formation Company

NCH is Nevada’s leading business formation services provider. We’ll aid you every step of the way with our team of specialists. We’ll help you determine the best place to form an LLC and explore what differentiates Nevada from Florida.

With our proven track record of success, you have peace of mind knowing you’re in good hands. As an industry leader in business formation, we’ll ensure you’re ready for success. We settle for nothing for less and continually seek new ways to help you grow. If you are unsatisfied, so are we.

Make the most of our business licensing services and private consultations. Partner with NCH today.