A Limited Liability Company (LLC) offers aspiring business owners in Nevada a superior way of doing business. LLCs are relatively easy to form because they avoid the complex compliance requirements of other corporations.
LLCs in Nevada also offer liability protection and tax flexibility. In addition, the formation process is straightforward, and the business structure provides flexible management.
Nevada is the state of choice for many business owners to form an LLC because of its business-friendly laws and regulations.
Starting a successful LLC doesn't have to be complicated. In the following section, we will give you a simplified step-by-step business guide on creating an LLC in Nevada. Each step will include the most essential action to take to ensure you do it according to Nevada state laws.
Table of contents
- Step 1: Name Your LLC
- Step 2: Appoint a Registered Agent
- Step 3: Draft and Submit the Certificate of Formation
- Step 4: Obtain a Certificate of LLC Registration from the State
- Step 5: Create an Operating Agreement
- Step 6: Get an Employer Identification Number (EIN)
- Costs to Set Up an LLC in Nevada
- Last Steps
Step 1: Choose a Name Your LLC
The initial step in forming an LLC is choosing a name that will reflect your business's nature, resonate well with your target audience, and be memorable. It should also be unique and can distinguish you from similar companies on record.
In Nevada, you must follow the naming guidelines and first check with the Nevada Secretary of State that the desired name is available. Besides, LLC in Nevada must end with an abbreviation such as LLC, Ltd, or Liability Co.
Some words like realtor, master association, licensed engineer, and certified public accountant are restricted from use unless you submit additional paperwork for consideration.
Before filing, search the Secretary of State database to ensure the preferred name is available. Even if the name is not in use, check if the website domain is available and secure that as well.
If the name is in the database, it is advisable to fill out a name reservation form while you complete the LLC formation process. Nevada allows you to reserve a name for 90 days for $25.
In some situations, you may want to reserve a fictitious name officially known as Doing Business As (DBA). This provision allows you to conduct business under a brand name different from your business entity.
For example, you can register a company named “Electrics General LLC” but then operate as “Jason's Electro Repairs.” County clerks (not the Secretary of State) handle DBA registrations in Nevada. Costs vary from one city to another. But overall, expect to pay $20–$25 per name.
Step 2: Appoint a Registered Agent
A registered agent is an individual or a professional service provider who agrees to accept your legal documents and service of process on behalf of your LLC. Authorizing a person as the agent is a crucial step when filing for your Articles of Organization.
The registered agent must have an updated physical address in Nevada, not only a Nevada mailing address. Most businesses prefer to use a third-party registered service provider instead of themselves.
Choosing someone else as the registered agent allows you to focus on growing the LLC without worrying about late communications or missing important documents. A Nevada registered agent service costs around $100 per year.
Step 3: Draft and Submit the Certificate of Formation
Once you reach step three, you are at a point of no return. This step establishes your LLC with the state of Nevada. Draft and submit your Articles of Organization or Certificate of Formation with the Nevada Secretary of State. The Articles of Organization form requires you to provide the following information:
- LLC name
- The list of managers
- Whether the LLC is member-managed or manager-managed
- Each organizer's name, address, and signature
- A list of any other members that will govern your LLC's internal affairs
- Your LLC's registered agent's name, address, and signature
Within the document, you can also outline the specific operating agreements to clarify the internal structure and management procedures of your LLC. Nevada provides a simple LLC registration form to use. Ensure you complete all sections and the information is accurate to avoid preventable delays or complications in the registration process.
Once you complete the form, submit it to the Nevada Secretary of State and pay the required filing fee. The total amount you pay varies depending on the stage you are on as a business, but ideally, you'll pay $75 as filing fees, $150 as an initial listing fee, and $200 as a business license fee. The image below shows other expenses that may be of interest.
When you receive approval notification, you are now legally recognized as an LLC in Nevada. It also signifies you are ready to comply with the LLC requirement as you reap the benefits of operating your business as an LLC.
Step 4: Obtain a Certificate of LLC Registration from the State
After filing your Articles of Organization, your next step is obtaining a Certificate of LLC Registration from the Nevada Secretary of State. This landmark document authorizes your business to operate as an LLC. Other activities this certificate allows you to perform include the following:
- Enter and sign contracts on behalf of the LLC
- Open bank and credit union accounts under the LLC's name
- Obtain business permits and licenses
- Protect your assets and that of your members from liability
- File income tax and other taxes as a separate entity
- Distribute ownership interest to investors and members
The Certificate of LLC Formation contains crucial details verifying your business's legal state. It contains your business information, such as your official name, business identification number, date of formation, and names and addresses of managers or members. Once you receive this document, your client and investor reach widens as it gives you more credibility.
The Nevada Secretary of State should give you several copies of your Certificate of Registration to keep in your records. You will need to submit them as proof of your LLC status as you conduct business with various state agencies.
Step 5: Create an Operating Agreement
Having an operating agreement in Nevada acts as a roadmap for how your LLC will run. This document outlines the following functions:
- Ownership structure
- Member responsibilities
- Distribution of profit and losses
- Governance policies
- Operational procedures
Although having an operating agreement in Nevada is not mandatory, it is highly recommended, or else you'll use the default Nevada laws to tackle arising challenges. These state rules may fail to capture all your business's specific needs.
The Nevada Secretary of State offers a free online tool for generating an operating agreement template and customizing your LLC details, as shown in the image.
Step 6: Get an Employer Identification Number (EIN)
An Employer Identification Number is a business's social security number for tax purposes. It is essential to have it if you plan to hire employees. Even if you run the business alone, having it may be necessary for banking and tax filing purposes. In Nevada, the EIN application is free and easily done online via the IRS website.
During the registration process, you'll be requested to enter your business name and physical address. The other information you are required to add is your preferred tax filing status. The options listed are sole proprietorship, partnership, S-corp, or C-Corp—choose the most appropriate.
Nevada provides the EIN almost immediately when you apply online—as opposed to using the mailing method. Use your EIN to request permits and licenses, open a business bank account, and file taxes.
Costs to Set Up an LLC in Nevada
When starting an LLC in Nevada, you'll incur initial one-time fees and other costs that are paid annually. The following table shows the minimum price you might pay as you set up your LLC.
|Nevada LLC Set Up Requirement||Fee|
|Initial listing fee||$150|
|Business license fee||$200|
|Legal and professional consultation||$500–2,000|
While these costs may appear excessive for a startup, the benefits eventually outweigh these costs. Regular costs you will incur as you conduct your business include permits or license charges, insurance, and income and payroll taxes.
Once you have legally established your LLC, there are additional steps to help you operate without disruptions or incurring penalties. They include the following:
Open a Bank Account
When searching for a bank in Nevada, you choose one with favorable terms for your LLC. Consider factors such as transaction limits, account fees, customer support, and online banking capabilities. You also want a bank with an excellent reputation for fraud protection. Establishing a business account allows you maintain separate and clear financial records.
Obtain Permits and Licenses
Depending on the nature of your business, identify the permits and licenses required to conduct business in your specific location. Examples include local business licenses, industry-specific licenses, health permits, and zoning permits. Complying with the terms of these permits and licenses safeguards your company from legal complications.
Submit Annual Report and Tax Filing
You will need to file an annual report with the Nevada Secretary of State including any updated businesses information. Submitting the annual report helps your LLC maintain a good standing with the state. It is critical that you comply with the required tax obligations such as sales, employment, and income taxes. Since tax responsibilities can be overwhelming, consider consulting a tax professional or an accountant to assist.
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