Where to Start an LLC: Nevada or New York?

Whether you’re a new or seasoned entrepreneur, you’ll face the challenge of choosing where to start a business. You can operate your venture under a specific type of business structure like an LLC.

Many U.S. states allow LLC formation, including Nevada and New York. Opening an LLC in each state comes with several benefits and drawbacks, which NCH’s business formation experts compare below.

Key Takeaways

• LLCs file a document called the Articles of Organization with Nevada and New York’s business filing office. Nevada charges $75 for filing this document, while New York charges $200.
• Newly formed LLCs in Nevada must submit an initial report upon formation. New York requires all new LLCs to publish a formation notice in two approved newspapers.
• Foreign LLC registration is available in both states. Nevada’s registration fee costs $75.
• Nevada’s strong charging order protection helps you shield significant assets from personal creditors. In New York, creditors can do more than just obtain a charging order to satisfy an LLC member’s debt, increasing the risk of asset seizure.
• A Nevada LLC’s compliance requirements includes filing an annual report and renewing their state business license. A New York LLC must submit a biennial report and pay an annual tax filing fee based on its state gross income.

The LLC Formation Process

In Nevada and New York, new LLCs register with the state by filing a document called the Articles of Organization. Nevada charges $75 for this document, while New York’s filing fee costs more at $200.

Both states have additional requirements for newly formed LLCs as well. Upon formation, Nevada LLCs must file an initial report about their members or managers and obtain a state business license. New York LLCs must publish a formation notice in two newspapers approved by their county clerk, although this requirement will cost you more.

Foreign LLC Registration

Nevada and New York also allow out-of-state LLCs to register as foreign LLCs. Both states charge varying registration fees, with Nevada’s fee as the cheapest at $75.

New York charges $250 for a foreign LLC’s Application of Authority. Plus, the state’s publication requirement for LLCs apply to foreign LLCs.

Related Resources

• Learn what’s needed to start a Nevada LLC and how to open one from NCH.
• Get an updated list of Nevada’s LLC filing fees here.
• Read about the publication requirement for LLCs in some U.S. states.

State-Level Taxes

Although LLCs avoid double taxation by passing their profits and losses onto their owners’ individual income tax returns, they may need to pay state-level taxes. Let’s look at how Nevada and New York taxes LLCs.

State-Level Taxes for Nevada LLCs

Nevada doesn’t impose state income tax on LLCs and their owners. Still, they may owe other types of business taxes to the state. They include a Commerce Tax for LLCs with annual gross revenues exceeding $4,000,000.

State-Level Taxes for New York LLCs

In New York, LLCs and their owners must pay state-level income tax. The Empire State’s corporate income tax rate ranges from 6.5% to 7.25%, while its individual income tax rate ranges from 4% to 10.9%.

Also, New York collects local income tax from LLCs. New York City imposes the highest local income tax rate among the state’s cities and counties at 3.876%.

Asset Protection

Personal creditors of LLC members can’t seize the entity’s assets to satisfy debts. But in Nevada and New York, these individuals can take certain actions to collect personal debts.

If you own a Nevada LLC and you owe a personal debt, your creditor can pursue your ownership interest (stake) in the entity through a charging order. This legal remedy is used to force the LLC to pay the creditor any distributions made to you. Nevada’s charging order protection applies to single-member and multi-member LLCs, making it stronger than that of other U.S. states.

New York also grants charging orders to personal creditors, although it offers two more options to satisfy personal debts. A creditor can obtain your financial rights and interest in the LLC, order the entity to close and pay off the debt from its assets, or both. Ultimately, you risk losing significant assets.

Annual Compliance Obligations

Every year, Nevada LLCs are required to file an annual report and renew their state business license. The Silver State’s annual report is called the Annual List of Managers or Members, which costs $150 to file. Meanwhile, state business license renewal costs $200 for LLCs.

A New York LLC’s compliance requirements include the following obligations:

• Filing a biennial statement with the Department of State ($9 filing fee)
• Paying an annual tax filing fee
  • LLCs without New York source gross incomes for the prior tax year pay $25.
  • LLCs with state gross incomes exceeding a specific monetary threshold can pay $50 to $4,500 in annual filing fees.

More importantly, both states require LLCs to maintain a registered agent and renew applicable local business licenses and permits. A registered agent can be an individual or company that receives official documents for your LLC.

Bonus Resource

Learn why you should start a Nevada LLC from Ask NCH.

Frequently Asked Questions

Can I form a Nevada LLC while operating in New York?

Yes, you can form a Nevada LLC while operating in New York. You only need to register as a foreign LLC with the Nevada Secretary of State. The NCH blog has more information about the Silver State’s foreign LLC registration process.

How much does newspaper publication cost for New York LLCs?

Publication costs vary by county and each newspaper’s special advertising rates. But in general, the total cost ranges from $600 to $2,000.

Moreover, you must pay $50 for a Certificate of Publication. This document is filed with the New York Department of State.

Does Nevada impose no state income tax on LLCs?

Yes, Nevada imposes no state income tax on LLCs. Nonetheless, it requires LLCs to pay applicable business taxes such as:

• The Commerce Tax for LLCs earning over $4,000,000 in annual state gross income
• The Modified Business Tax for LLCs with employees
• Sales and use tax

What happens if a New York LLC fails to meet the state’s publication requirement?

If a New York LLC fails to meet the state’s publication requirement, its operations will be suspended. Also, the entity might not be allowed to sue in a state court or get a certificate of good standing. A New York LLC must meet the publication requirement to continue operating in the state.

Will forming a New York LLC help protect my privacy?

Forming a New York LLC won’t help protect your privacy, as the state requires all LLCs to publish a formation notice in selected local newspapers. Moreover, the personal information of LLC members may appear in public records.

Conversely, Nevada doesn’t require you to list the names of LLC members or managers on public records.

Which state is a better choice for online businesses?

Nevada is the better choice for online businesses because it doesn’t impose state-level corporate income tax. Plus, online businesses can fulfill some of their compliance obligations to the state using the SilverFlume business portal.

Do note that online businesses may need to collect and pay sales tax if they meet Nevada’s sales or transaction threshold.

Will I owe sales tax to New York if I operate as a Nevada LLC?

You’ll owe sales tax to New York if your Nevada LLC meets the state’s economic nexus threshold. As of 2026, remote sellers conducting business in New York must collect and remit sales tax once their sales exceed $500,000 and they make over 100 transactions.

Does a Nevada LLC need to meet New York’s publication requirement?

If a Nevada LLC registers as a foreign LLC in New York, it needs to meet the state’s publication requirement.

Like domestic LLCs, foreign LLCs in New York must publish a notice about their formation in two approved newspapers. Otherwise, their operations will be suspended until the requirement is met.

How much does LLC maintenance cost in Nevada & New York?

In Nevada, LLC maintenance initially costs $350. This amount includes the fees for annual report filings ($150) and state business license renewal ($200 for LLCs).

Meanwhile, New York requires all LLCs to file a Biennial Statement ($9)  and pay an annual tax filing fee. The latter is based on an LLC’s total state gross income.

Can I just operate in Nevada to reduce my compliance burden?

You can just operate in Nevada to reduce your compliance burden. Forming and maintaining an LLC in other states could mean more compliance obligations to fulfill, especially if the entity is registered as a foreign LLC.

Still, meeting your chosen state’s compliance requirements is important to avoid legal issues.

Expert Tips From NCH

1. Consider ongoing LLC maintenance fees when choosing between Nevada and New York. The Empire State’s publication requirement and annual tax filing fee make LLC formation in Nevada more affordable.
2. Plan for multi-state operations before starting your business. LLCs can register as foreign LLCs in Nevada and New York, although each state has different registration and renewal requirements.
3. If you’re operating in Nevada or New York as a foreign LLC, set a budget for business registration and maintenance. Again, New York charges more for foreign LLC registration and its publication requirement.
4. Make sure to meet New York’s publication requirement. Otherwise, your LLC risks getting its operations suspended or losing its right to file a lawsuit in a local court or secure a certificate of good standing.
5. If you’re registering an LLC with Nevada or New York online, check the information you’ve provided for any errors. A thorough review helps prevent delays.

Choose Nevada for LLC Formation

Starting an LLC in Nevada and in New York come with significant costs, including those for annual compliance. But if you look at how each state taxes LLCs and tackles asset protection, Nevada emerges as a clear winner. No state-level income taxes and strong charging order protection for LLCs give the Silver State an edge over the Empire State.

If you want to enjoy these benefits, consider forming a Nevada LLC with NCH’s expert assistance.

Open Your Nevada LLC Today

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.