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How Much Does It Cost to Set up a Nevada LLC in 2024?

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Limited Liability Companies (LLCs) are some of the most popular business entities in the country. With strong liability protections and plenty of tax advantages, it’s no wonder that most aspiring business owners in the country prefer this structure.

July 18, 2023
Author: NCH

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Limited liability companies (LLCs) are some of the most popular business entities in the country. With strong liability protections and plenty of tax advantages, it’s no wonder that most aspiring business owners in the country prefer this structure. 

Additionally, you receive even more benefits if you register your LLC in a business-friendly state like Nevada. In fact, the Silver State provides LLCs more tax savings and stronger asset protection than other states in the US. 

If you’re planning to start an LLC in Nevada and are worried about the costs, you’ve come to the right place. In this blog, we’ll discuss how much it costs to set up an LLC in Nevada and the other fees you need to consider.

Initial Fees of Starting an LLC in Nevada

The initial cost of an LLC in Nevada is around $425. When you form an LLC in Nevada, you need to file three documents:

  • Articles of Organization
  • Nevada State Business License application
  • Initial List of Managers

Each document comes with a different filing fee. You must pay $75 for your Articles of Organization and $200 for your state business license application. Lastly, you must pay a $150 filing fee for your Initial List of Managers to complete the process.

If you want your applications to be processed immediately, you’ll have to pay an additional fee. Here’s the breakdown for Nevada’s expedited services:

  • 24-hour Expedited State Processing: $75-$125
  • 2-hour Expedited State Processing: $500
  • 1-hour Expedited State Processing: $1,000

Optional Costs for Forming an LLC in Nevada

Name Reservation

If you want to use a specific name for your LLC, you can reserve it up to 90 days before registering your company. All you need to do is file a Name Reservation Request to the Secretary of the State and pay a $25 filing fee. 

Fictitious / DBA Name

You may need to file for a fictitious or “doing business as” (DBA) name when you want to operate your business under a name different from the one officially registered. The filing fee for a DBA name varies from one county to another.  

Certificate of Good Standing

A Certificate of Good Standing (or Certificate of Existence) is often required for certain business transactions and loans, as well as for showing compliance with state regulations. If you want one, you’ll have to pay an additional $30.

Business Insurance Premiums

While basic business insurance costs were outlined earlier, some businesses may opt for additional coverage or higher policy limits, leading to higher premium costs. Premiums vary based on factors such as coverage type, business size, industry, and risk tolerance.

Maintenance Fees of an LLC in Nevada

Besides the initial $425 cost of filing for an LLC in Nevada, there are other expenses that you need to consider. 

Registered Agent Services

Nevada requires all businesses to have a registered agent regardless of their structure. This person receives legal documents and other important notices on behalf of your company. 

The state allows you to appoint anyone to be your registered agent so long as they live in Nevada. But, if you don’t have an employee who lives in the state, you can always hire one. 

The services of a registered agent in Nevada typically cost between $100 to $300 per year. 

Annual Reports

The annual cost to maintain a Nevada LLC is $350. Annual reports cost $150, while business license renewal fees are $200. 

Annual reports are due by the end of your anniversary formation. For instance, if you registered your company in March 2024, you must file your annual report by the end of March every year. On the other hand, you need to file your license renewal form before or on the last day of the month it was originally filed. 

With that said, if you applied for your business license at the same time in March, you need to renew it before the month ends. 

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Professional Licenses

Depending on the nature of your business, you may be required to get additional licenses and permits before you start your operation. For example, before massage therapists can start offering their services, they need to get a professional license from the Nevada State Board of Massage Therapy. 

The cost for these licenses varies depending on your profession and the kind of service you want to offer. 

Taxes

Nevada is one of the few states in the country with no corporate or personal income taxes. This means you don’t have to pay taxes regardless of your LLC’s status. However, Nevada does have an annual commerce tax on gross receipts. 

This tax type is imposed on companies that make over $4,000,000 in a taxable year. Commerce tax rates vary depending on the business category and typically range from 0.051% to 0.331%.

Accountant Fees

Although not mandatory, many businesses choose to hire an accountant to handle their financial matters and ensure compliance with tax regulations. The fees for an accountant can vary based on the complexity of your LLC’s financial activities and the services required.

Accountants in Nevada may charge hourly rates, project-based fees, or monthly retainers. On average, you can expect to pay anywhere from $100 to $300 per hour for professional accounting services. The cost may be higher if your business transactions are complex or if you require additional services like tax planning and advisory.

Additional Considerations for Nevada LLCs

Operating Agreement

While there is no specific fee imposed by the state for creating an operating agreement, it is highly recommended to have one in place for your LLC. You may choose to create this document yourself or seek legal assistance, and the cost of legal services can vary.

State Business License

The cost for the Nevada State Business License is $200. This license is required for all businesses operating in the state and is separate from any local city business permits. It needs to be renewed annually along with the annual reports.

EIN Number

Obtaining an Employer Identification Number (EIN) from the IRS is free. You can apply for an EIN online through the IRS website, and the process is relatively straightforward. An EIN is a must for tax purposes, opening a business bank account, and hiring employees.

City Business Permit

The cost of a city business permit can vary depending on the city in which your LLC is located. It’s advisable to check with the local city government or licensing department to get accurate and up-to-date information on the cost of a business permit in your specific location.

Benefits of Forming an LLC in Nevada

  • No State Income Tax: Nevada is one of the few US states that does not impose corporate or personal income taxes. This can result in significant tax savings for businesses operating in the state.
  • Asset Protection: The “limited liability” feature of an LLC protects the personal assets of its members from business debts and liabilities. It prevents individual members from being personally responsible for the company’s financial obligations.
  • Flexibility in Management Structure: Members can choose to manage the company themselves or designate a manager or managers to handle day-to-day operations.
  • Charging Order Protection: This means that creditors of individual members cannot seize control of the LLC; instead, they are limited to obtaining a charging order, which provides a more favorable scenario for business owners.
  • Allows Noneconomic Members: Noneconomic members are LLC members who don’t own any part of the company but have managerial and voting rights. This way, you can work with investors while you let experts handle your daily operations. 
  • Privacy and Confidentiality: Information about members and managers is not required to be disclosed publicly, providing an added layer of privacy for business owners.

Start Your Nevada LLC Today

Learning how to budget your capital is important when starting an LLC in Nevada. From the initial filing fees to annual expenses, understanding the costs of starting a Nevada LLC will help you prepare for the formation process. 

If you need help starting an LLC in Nevada, look no further than NCH. NCH is one of Nevada’s leading providers of business formation services. Our business specialists are here to guide you through the entire process of starting your own business. 

We’ll help you find ways to lessen the cost of starting an LLC in Nevada and assist you in filing your documents on time. With our team by your side, you’ll have your Nevada LLC up and running in no time.

To learn more about our formation services, visit our website here or call us at 1-800-508-1729.

DISCLAIMER: The above material has been prepared for informational purposes only, containing opinions of the provider, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Please consider consulting tax, legal, and accounting advisors before engaging in any transaction.

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