With no corporate or personal income taxes, Nevada is a popular state for forming a limited liability company (LLC).
But favorable taxation doesn’t mean there are no other company formation costs to account for.
If you plan to set up shop in the Silver State, there are certain state fees involved. Nevada isn’t the cheapest place to start your new company, but local taxes and regulations are business-friendly.
We’ll walk you through the costs you can expect.
Nevada LLC formation cost: $75
Articles of Organization is the main document you’ll submit with the Nevada Secretary of State for company incorporation. The state filing fee is $75.
Rushing to get things done? In that case, you’ll appreciate Nevada’s expedited processing fees:
- 24-hour turnaround: + $125 per document
- 2-hour turnaround: + $500 per document
- 1-hour turnaround: + $1,000 per document
Certified copy costs
Sometimes you may need officially certified business documents from the state, especially when opening bank accounts or applying for loans.
In Nevada, those will cost $30 per document. You can request them through the Secretary of State’s business portal, Silverflume.
Extra Nevada LLC formation costs to account for
Apart from obtaining Articles of Organization, you’ll need to complete several more operational and organizational formalities, such as adding a registered agent and getting a business license.
Below are other types of optional and mandatory expenses to budget for when forming your Nevada LLC.
Registered agent fees
All new businesses need to designate a registered agent to receive the service of process documents and other business correspondence on your behalf.
When you submit your Articles of Organization, you appoint your initial Nevada registered agent. So there’s no additional fee to pay.
But if you decide to change agents down the road, you’ll have to complete a form and pay the $60 filing fee to update the details with the state.
Also, some Nevada business owners prefer to hire a professional registered agent service, especially when they don’t have a physical presence in the state. Doing so also helps home-run businesses to prevent disclosure of personal street addresses.
In Nevada, professional registered agent services cost between $100 and $300 per year, depending on the scope of provided services.
A business name reservation is an optional service you may select. If you’re not ready to file your formation documents yet, you may reserve the LLC name after conducting a name search and verifying it’s available.
Name reservation in Nevada is $25 for 90 days.
Fictitious name registration
Trademark and service mark applications
Suppose you have a logo, a marketing slogan, or a unique service that you want to protect and help distinguish your business from competitors. In that case, you should consider registering a trade or service mark.
To obtain a state trademark, you’ll need to file the Mark Registration Form with the Secretary of State and pay a $100 application fee. When approved, your trademark will be valid for 5 years. Afterward, you’d have to renew it.
Expedited processing is also available with the same turnaround time and fees as for Articles of Organization.
Business permits and licenses
Nevada is one of the states that require companies to obtain a state business license before operating. You’ll need to apply for a state business license when you submit your Articles of Organization and the initial list of managers with the Secretary of State.
General business license in Nevada costs $200 per year. LLCs must renew it annually to maintain good standing with the state.
You may need a special permit depending on your company’s location and the industry you operate in.
For example, accounting, architects, construction workers, and medical professionals require specific licenses to perform their duties.
Occupational (professional) licenses and permits are granted on a city/county level. Thus, the requirements and costs differ a lot.
For example, in Las Vegas, animal breeders need a business license that costs $50 per year. Barbers or cosmetologists opening a salon must pay $100+ in permit fees: $50.00 for the first customer chair + $50.00 for each additional customer chair + $50.00 processing fee.
Check with your local government to find out what permits you’ll need.
Does Nevada have an annual LLC fee?
The fee is $150, and this is where you can notify the state of any change in business owners or company contact information. If there were no changes, you’d have to file the report regardless.
What taxes do LLCs pay in Nevada?
LLCs are generally taxed as pass-through entities for federal tax purposes by the IRS. That means the company isn’t subject to corporate income tax. Instead, the owners report company profits on their personal income tax returns.
And while Nevada has no state income tax on companies or individuals, there are some other business taxes you may need to pay. To pay these, you’ll need to obtain a state tax ID number from the Department of Taxation.
Nevada collects a commerce tax from all LLCs with annual gross revenue of over $4 million. Tax rates vary depending on the industry and currently range from 0.051% to 0.331%.
If you sell taxable goods, you’ll need to register with the Nevada Department of Revenue so you can remit sales tax to the state. The state sales tax rate is 6.85% in 2021, but you may need to collect a higher rate since counties can add specific surcharges.
State employee taxes
When you have employees, you’ll need to pay state unemployment tax. New businesses start with a 2.95% tax rate that you’ll pay on the first $36,600 of each employee’s wages in 2022, and the rates change progressively YoY (year-over-year).
If you have full-time employees, you can report state employee taxes using your federal employer identification number (EIN). Or use your personal social security number if you’re a single-member LLC with contractors.
Conclusion: How much does an LLC cost in Nevada?
You can open a small business in Nevada for just $275 — the cost of state fees and initial business license costs. However, you may end up spending more money if you opt for extra services such as name reservation, professional registered agent services, or LLC formation services.
Maintaining your LLC in Nevada is a bit steep since you’d have to pay a minimum of $350 in annual fees. While there’s no personal income tax and corporate income tax for NV businesses, you may be subject to alternative taxes such as commerce tax or sales tax.
However, the tax savings end up being rather substantial for resident business entities.