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.
Morever, you can get other benefits if you register your LLC in a business-friendly state like Nevada. The Silver State offers LLCs more tax savings and stronger asset protection than other states. You can maximize the benefits of your business structure in a business-friendly state like Nevada.
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 need to 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
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 to file a Name Reservation Request to the Secretary of the State and pay a $25 filing fee.
Meanwhile, you must register with your county to use a fictitious or “Doing Business As”(DBA) name. The filing fee for a DBA name varies from one county to another.
Lastly, if you want to get a Certificate of Good Standing, you’ll have to pay an additional fee of $30. A Certificate of Good Standing helps a company prove that they are compliant with state laws and taxes.
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. A registered agent is a person who 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.
There are plenty of registered agent service providers in Nevada. They typically cost between $100 to $300 per year.
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 2021, 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.
So, if you applied for your business license at the same time in March, you need to renew it before the month ends.
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.
Nevada is one of the few states in the country that has 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%.
Benefits of Forming An LLC in Nevada
Aside from the affordable LLC formation fees, you can get plenty of other benefits when you do business in Nevada.
For one, the state allows LLCs to have noneconomic members. Noneconomic members are LLC members that 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.
The state also has fewer corporate formalities for LLCs. You don’t have to be a Nevada resident to start a business in the state. Lastly, Nevada is one of the few states allowing series LLCs. This type of LLC allows you to protect your properties from creditors and collectors.
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 these expenses 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.