Setting up an LLC is essential if you want to protect your company from liabilities and separate your business and personal assets. A Nevada LLC, in particular, gives you more perks and advantages compared to what other states provide. Having an LLC in Nevada means you don’t have to pay corporate, franchise, and state income taxes. You can also choose to declare an anonymous ownership of your business and create shares without having to go through a lot of red tape, among other benefits.
While setting up a Nevada LLC is easy, you still need to navigate the process and set it up correctly to take advantage of its benefits and avoid future legal issues.
We’ve listed down the essential steps to make the process seamless and efficient.
What is an LLC?
A Limited Liability Company (LLC) is a business structure in the U.S. designed to protect the owners from being responsible for corporate losses, debts, or liabilities of their organizations. Limited Liability Companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship. This means that business owners can separate their business assets from their personal assets, protecting them from any debts and liabilities that the LLC may have.
How do I start an LLC in Nevada?
You first need to get all the requirements for setting up an LLC in the state of Nevada. These include:
Appointing a Registered Agent
Articles of Organization
Local Licenses and Registration
Certification from the State
LLC Update Forms
IRS Federal Tax Forms 1065 and 8832
Statement of Information Form
IRS Employer Identification Number (EIN)
Why Should You Form an LLC in Nevada?
While you can set up an LLC in Nevada on your own, you might miss out on vital steps and legal documents. This is why you should consult with experts and get their services if you want to form an LLC correctly.
Nevada doesn’t have an income tax. This makes your corporate shares safe from taxes. More importantly, your personal information stays private and off the public record. This ensures that the state won’t divulge anything about your business.
LLCs in Nevada are allowed to issue the stock for capital, real estate, and leasing options. Many business owners file their LLC name in Nevada to take advantage of the quick turnaround time, asset protection, low fees, and strong corporate privacy protection.
Benefits of Getting an LLC in Nevada
A registered LLC in Nevada can take advantage of the following perks:
Easily apply for professional business licenses, including zoning permits, health department permits, home occupation permits, and more
Get your documents in order to register your business with the state’s tax agency
Purchase insurance for your company
Open a business bank account and apply for a credit card
Acquire your own trademark to protect your name and logo
A Step-by-Step Guide on How to Start an LLC in Nevada
Forming an LLC in Nevada is a straightforward process for protecting your assets while gaining full control of your business. However, if not done correctly, you and your company can face business and legal consequences down the line.
Here are the necessary steps you need to take when starting an LLC in Nevada:
1. Name Your LLC
For starters, business owners need to come up with a name that complies with the Nevada LLC naming requirements. According to Nevada law, your corporate name must contain the phrase Limited Liability Company or LLC. You can also use either of the abbreviations: Ltd., L.L.C., LLC, or LC. Meanwhile, the word company can be shortened to “Co”.
Other important things to consider include the following:
Don’t include words that could confuse your LLC with government agencies such as the FBI, Treasury, or the State Department.
Avoid using restricted words like Bank, Attorney, or University. These may require additional paperwork and a licensed doctor or lawyer to be part of your LLC.
Make sure that your LLC name is not similar to other LLCs or LLPs (Limited Liability Partnership).
Browse through the Nevada business name database to ensure that your business name is not already taken. You can go here to check for name availability as well.
While you don’t need to have your own domain when forming an LLC, you can get free domain services if you file your LLC through us.
Once you’ve decided on a name for your LLC, file a reservation form request immediately. You can send your application via the Secretary of State’s web portal for a minimal fee of $25.
2. Seek a Registered Agent
The next step is to appoint a registered agent who will discuss legal agreements on your behalf. The registered agent should receive legal documents for you during business hours to avoid getting default judgment.
You may choose a Nevada resident or business entity authorized to do business in the state.
You can look up the detailed list of registered agents available on the Nevada Secretary of State website. Choose someone at least 18 years old who has a physical address in Nevada, not just a P.O. Box. He or she will be your point of contact for receiving tax forms, notices of lawsuits, and official government correspondence in the state.
While you can pick third-party services, you may also opt to hire yourself or someone within your company. However, it’s safer and more convenient to look for someone knowledgeable about the law. Your agent must be available within normal business hours should the state contact him or her.
3. File the Articles of Organization
Once you have your LLC name and agent, make sure to submit the critical documents to the Nevada Secretary of State. You can apply online, by mail, or in person with a filing fee of $75.
The articles of organization are some of the essential documents you need to prepare. These files should include the name and address of the LLC, registered agent, manager, and each member of the organization. There should be an indicated date if the LLC will be dissolved eventually, or whether the members of managers will administer it.
Below are other forms you need to register your Nevada LLC alongside the articles of organization:
Initial List of Managers
State Business License Application
Certificate of Acceptance of Appointment
4. Obtain a Certificate of Existence From the State
A Certificate of Existence or Good Standing certifies that your corporation exists legally. It also proves that your documents and fees are updated. You can apply via the state’s web portal or by mail. Just sign up on their website and print your certificate right away.
Online processing of certificates costs around $50. However, unlike the standard processing, it won’t take 15 days to wait for your printed certification.
5. Create an Operating Agreement
While the state doesn’t require an LLC operating agreement, we still recommend drafting your own. An operating agreement outlines your business operations and provides a detailed list of the rights and responsibilities of every member of the organization. More importantly, it shows how the LLC will be managed, making it a separate business entity.
Without an operating agreement, the state LLC will take over the decision of how your business should run. This is a crucial component of any LLC organization as it helps resolve any financial dispute or potential litigation.
6. Obtain Your Employer Identification Number (EIN)
For LLCs with several employees, an Employee Identification Number (EIN) or Federal Tax Identification Number (FTIN) is mandatory to help identify businesses for tax purposes. It is similar to your Social Security Number which contains nine digits assigned by the Internal Revenue Service (IRS).
Aside from those planning to hire multiple employees, EINs are also necessary for LLCs that identify as corporations instead of sole proprietorships or disregarded entities. To obtain your EIN, you only need to complete an online EIN application on the IRS website for free.
7. File Annual Reports
The state of Nevada requires all foreign and resident LLCs to file an annual report that contains their members, officers, and registered agent. Your annual list must include a copy of your Articles of Organization. The deadline for filing these subsequent lists is by the end of the month after creating your LLC.
Annual reports must be completed every year to update your basic business information such as the names and addresses of the managers and founding members. These will ensure that your company conforms to state regulations and helps preserve your limited liability protection and tax benefits.
The formation of your LLC is only the start of your business journey. Once you’ve established your business or company, you need to ensure it’s compliant with state regulations. Keep your organization up to date with fees, payment deadlines, and the filing of annual reports. This will help maintain the good standing and track record of your company.
Launch Your Own LLC With Ease and Confidence
Setting up an LLC is one of the most crucial components of starting your own business. It can safeguard your company against possible business disputes, among other perks. By registering your LLC, you can obtain a legal foundation to conduct your operations. With an LLC trademark and logo, you can run your business more efficiently.
Ready to launch your own LLC? Seek professional advice and assistance from our business experts at NCH. We can fast-track your application and make sure all the files and documentations are done correctly. We are a leading provider for the formation of Nevada LLCs and Corporations. Book a consultation or visit our website to learn more about our wide range of services.