A business license is one of your first requirements before operating your Nevada LLC. Nevada typically requires every person or company to get a business license before starting their operations. This, however, has a few exceptions.
Find out if your LLC needs a business license and how to get one in Nevada through this blog.
Do I Need A Nevada Business License?
Everyone who wants to conduct business in Nevada needs to get a business license from the Secretary of State. This rule mainly applies to the following entities:
General and limited partnerships
Non-qualified foreign corporations
Companies that don’t fall under these categories, like nonprofits, are exempted from the rule. However, they still need to file the required paperwork to be exempted. If not, Nevada won’t recognize their nonprofit status and will most likely ask them to get their business license.
Aside from a state business license, you must also have a license to operate within your city and county.
How to Get A Business License in Nevada
Now that we know LLCs need a license to operate, let’s discuss how you can get a business license in Nevada.
Find Out Your LLC’s Location
The first thing you need to do when getting a Nevada business license is to find your LLC’s exact location. This is an essential step because it determines which jurisdiction you should follow.
Nevada has six jurisdictions, each with their respective licensing agency. Where you’ll file your LLC’s business license depends on your location’s primary jurisdiction.
But what if your company has a few branches in multiple cities? In that case, you must file a business license for each branch’s jurisdiction after applying in your primary jurisdiction.
Get A Doing Business As (DBA) License
Once you find out which jurisdiction you’ll be filing your license in, you can get your Doing Business As (DBA) license. A DBA or a fictitious firm name is the official registration for your business name. People who want to use a different name to operate their LLCs must file a DBA license with the County Clerk’s office.
All business entities that want to use a fictitious firm name need to get a DBA license before they start operating.
Obtain Your Employer’s Identification Number
An Employer’s Identification Number (EIN) functions as the social security number of your LL. With your EIN, you can open a business bank account, file taxes, and apply for a Nevada business license. Hence, you must obtain your EIN from the IRS before applying for a business license.
In certain cases, sole proprietors without employees don’t necessarily need an EIN. But having an EIN is still ideal since it can protect you from identity theft and fraud.
Apply for A State Business License
After you’ve gathered everything you need to apply, you can start filing for your Nevada business license. You can get the form from the Secretary of State’s website or the SilverFlume portal.
The state government created Nevada’s SilverFlume portal to make the business registration process more convenient for everyone. All you need to do is to go to the portal, and they’ll provide you with a checklist to follow.
We suggest you use the portal to register directly with the Department of Taxation for a more convenient filing process.
Acquire Other Necessary Permits
Now that your LLC has a Nevada business license, you can start processing the remaining permits you need for your operation.
Depending on the type and location of your LLC, some counties will require you to obtain additional permits, such as:
Typically, contractors, restaurants, and daycares need these additional permits. But if you need clarification on whether your LLC needs other licenses, we suggest you check the State of Nevada Department of Business website.
Why Nevada is The Best Location For Your LLC
There are plenty of reasons why Nevada is considered one of the country’s most business-friendly states. Here are a few perks you can enjoy if you start your business in Nevada:
Strong Liability Protection
Nevada has some of the country’s strongest liability protection and corporate veil. Incorporating your business as a Nevada LLC separates you and your assets from the company. The court can’t hold you liable if someone decides to sue your company or fails to pay off a loan it took.
Suppose your company incurs debt. In that case, creditors can only go after your LLCs assets. Your assets are protected since there’s a legal distinction between you and your company.
One of the major reasons why people love incorporating in Nevada is its lenient taxation regulations. Nevada has no franchise, corporate, or capital gain taxes, unlike other states. The state only requires its LLCS to pay a model annual fee.
Nevada’s tax exemptions make it the perfect location for LLCs with limited capital.
Cheaper Registration Costs
Another benefit to having a Nevada LLC is its cheap registration costs. Starting an LLC in Nevada is cheaper than starting a corporation.
You only have to pay $425 to register an LLC, while corporations have to pay a minimum of $725 for initial registration. The annual fees of a corporation will also increase if it authorizes more than $75,000 worth of stocks.
Nevada’s regulations for LLCs are also relatively more relaxed compared to other states. Nevada doesn’t require LLCs to hold annual meetings or keep detailed minutes as they do for corporations. Non-residents who register businesses in Nevada can easily manage their operations in another state.
Additionally, the process of filing for an LLC is so much easier than filing for a corporation. All you need to do is to file your Articles of Organization to the Secretary of State and get your business license. You can skip the heavy paperwork of registering a corporation by structuring your business as an LLC.
Get Your Nevada Business License Today
Ultimately, Nevada has a lot to offer to startups. Its low registration fees and fewer formalities make it the perfect environment for starting an LLC. If you need more help getting a business license for your LLC in Nevada, NCH is here to help.
Our business specialists will guide you through acquiring your LLC’s Neva business license. Learn more about our business formation services and visit our website here.