One of the most effective ways a company can generate more profit is to expand its operations outside its home state. And once they decide to do business in another location, they become foreign LLCs.
Foreign LLCs are businesses formed outside of one state. For instance, if a company is formed in Alabama and plans to operate in Nevada, the state will consider them a foreign LLC and require the company to register with the Secretary of State.
Luckily, Nevada’s registration process for foreign LLCs is fairly easy. It doesn’t take a lot of paperwork, and the state’s filing fees are more affordable than in other states.
If you’re considering doing business in Nevada but need assistance figuring out where to start, we’re here to help. This blog will discuss the registration process for foreign LLCs in Nevada and how you can determine whether or not your business qualifiesas one.
How to Qualify As A Foreign LLC in Nevada
Your company must be formed outside of the state and transact business in Nevada to be qualified as a foreign LLC.
It’s difficult to determine what Nevada meant by “transacting business.” Still, state laws around non-domestic companies state that they must collect state sales tax to be considered a foreign business. This is only possible by having a store, a warehouse, or an office in Nevada.
There are certain exemptions to this rule. Some activities that aren’t considered transacting business in the state include the following:
Selling through independent contractors
Defending or settling a lawsuit
Internal business affairs like holding member or manager meetings
But as long as you have an office or a store in Nevada, you must register your company as a foreign LLC if it’s based outside the state.
How to Register A Foreign LLC in Nevada
Now that we know how you can qualify as a foreign company let’s go through the registration process.
Choosing Your New Name
The first thing you need to do when registering your foreign LLC is to find out if your company’s name is already in use. If there’s a domestic business registered under your foreign LLC’s name in Nevada, you need to use a new one.
Once you’ve decided on a name, we suggest you use Nevada’s name availability search tool to check if it’s available. If the name is not in use, you can reserve it for 90 days with the Secretary of the State.
Finding A Registered Agent
The next thing you need to do after choosing your new name is to find a registered agent living in Nevada to receive and submit important legal documents on behalf of your company.
You can outsource an agent or designate an employee as your registered agent, so long as they stay in Nevada.
Applying For Registration of Foreign Limited Liability Company
After determining your new name and finding a registered agent, you can register it with the Secretary of State. You must file an Application for Registration of Foreign LLC in Nevada and ensure that one of your members signs the form.
Typically, the application includes important information about your company, like its jurisdiction and the date of its formation. Once completing the form, you can submit it and mail it to the office of the Secretary of State.
You can request that your application be expedited, but this step typically comes with an extra fee.
Filing For A Business License & Submitting An Initial List of Managers
Once you’re done registering with the Secretary of the State, there are two other documents you need to file within 30 days: your initial list of managers and your Nevada business license. Each document will cost you a filing fee of $400.
Unlike your registration for foreign LLCs, you don’t have to mail or submit these documents yourself. Instead, you can use Nevada’s SilverFlume to file them.
SilverFlume is the state’s online business portal. The site has made business formation so much easier for everyone. Through SilverFlume, you can file all of the important documents you need to run your company.
Renewing Your License
The last step to registering your foreign LLC is ensuring you file your annual reports. Nevada requires you to file your annual list of members and your business license tax through SilverFlume.
Each document has a filing fee ranging from $125 to $200, and you must file them on the same day of your registration. For example, if your company was registered on September 2, 2022, you need to renew your license on or before September 2, 2023.
Why Nevada is The Perfect Home For Foreign LLCs
Aside from its easy registration process, Nevada has much more to offer to startups. For instance, it doesn’t have any franchise or state income taxes. Foreign LLCs can use this tax advantage to invest more capital.
Additionally, they don’t tax corporate shares. Your partners can get their shares without any deductions whatsoever. This tax advantage is perfect if you want to invest in other areas of your business.
The state also has some of the strongest liability protections in the country. Unlike in other states, Nevada ensures that you and your assets are protected from claims against your company. It won’t affect your assets if someone decides to sue your LLC.
Lastly, Nevada has laws that protect your privacy. The state doesn’t require you to have a formal information-sharing agreement with the IRS. This means that you can stay anonymous as long as you want.
Ultimately, the state of Nevada has created the perfect environment for foreign startups to thrive. And with NCH’s business specialists, you’ll have your Nevada LLC up and running in no time.
NCH is one of the state’s leading business formation services providers. Our expert business specialists will accompany you through kickstarting your company, from finding the right legal entity to helping you hire a registered agent.
Start your foreign LLC and contact us today. You can visit our website here to learn more about our business formation services.