Nevada is one of the more popular states for forming an LLC. Not only is it often selected by business owners in the securities and financial industry, but small businesses benefit a lot too from a tax-friendly treatment.
There are no corporate taxes, personal income taxes, or franchise taxes.
Since starting an LLC in Nevada is so popular, you have plenty of supporting resources. Nevada Secretary of State (SOS) website provides much guidance and even templates for documents such as an operating agreement.
Even though registering a business entity and doing business in Nevada is simple, you still need to do some prep work.
Table of contents
- Step 1: Choose a business name for your Nevada LLC
- Step 2: Designate a registered agent
- Step 3: File the Nevada LLC articles of organization
- Step 4: Obtain an EIN (Employer Identification Number) from the IRS
- Step 5: Prepare an LLC operating agreement
- Step 6: Open a Nevada business bank account
Step 1: Choose a business name for your LLC
Nevada LLC formation begins with choosing a name for your business structure. Once you get some ideas, you need to check if your option is available to register as a legal business name.
For a foreign LLC (i.e., one already incorporated outside the state of Nevada that wants to do business in Nevada), you may have a business name in mind already. However, you’ll still need to check name availability.
Remember: Just because the name is available in one state, it doesn’t mean it’s available in every state.
To find out if the name is already in use in the state of Nevada, you can conduct a business name search on the Secretary of State’s website.
Additionally, your LLC business name must include Limited Liability Company or another abbreviation indicative of your status, e.g., LLC or Ltd.
Nevada also has some additional guidelines for some industries and rules for business names worth checking.
While preparing the formation documents for your Nevada LLC, you can reserve your business name. A name reservation keeps other businesses from using the name for 90 days. The standard filing fee is $25. Or $50 for expedited service.
A fictitious name, also called DBA (doing business as), lets you 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.”
DBA registrations in Nevada are handled by county clerks (not the Secretary of State). Costs vary from one city to another. But overall, expect to pay $20-$25 per name.
Step 2: Designate a registered agent
All Nevada LLCs need to appoint a registered agent.
The registered agent must have a Nevada physical street address where service of process documents can be delivered.
The registered agent’s address will also be the registered office for your LLC. It means that the address details will be listed publicly.
For the above reason, some LLCs choose to hire a registered agent service to maintain privacy. Registered agent service is also useful if you don’t have anyone present on-site during business hours to handle legal documents or don’t have a physical location at all, as many online businesses and foreign LLCs do.
The cost of a Nevada registered agent service is around $100 per year. There are many services to choose from due to the popularity of incorporating in this state.
Step 3: File the LLC articles of organization
Filing a Nevada LLC articles of organization is a key step to start an LLC in Nevada or register your business from another state.
Nevada’s Secretary of State created an online portal called SilverFlume for handling all corporate filings.
Using SilverFlume, you can submit your articles of organization online, and the system will walk you through the process. You can also submit by paper to one of the appropriate addresses listed on the articles of organization form, depending on whether you do regular service or expedited.
The fee structure for articles of organization in Nevada includes:
- $75 state filing fee
- $150 initial listing fee
- $200 business license fee
The Secretary of State’s office for Nevada posts a rough estimate on the processing dates for various filings, including new business registrations.
As of lately, they have a backlog of 15-20 days for processing paper forms. To expedite your filing, you can pay a $125 state fee for 24-hour service.
You’ll need to include the following information on articles of organization.
- LLC name
- The initial list of managers
- Whether the LLC is member-managed or manager-managed
- Each organizers’ name, address, and signature
- A list of any other members that will govern your LLC’s internal affairs, which may need to be in your LLC’s operating agreement as well
- Your LLC’s registered agent’s name, address, and signature
You can request an extra copy of your articles of organization for an additional $30.
Step 4: Obtain an EIN (Employer Identification Number) from the IRS
Your LLC may need an Employer Identification Number (EIN) for federal tax purposes. It’s used to identify your LLC on tax returns and is required by federal tax law if you have an employee.
Your Nevada LLC can apply for an EIN from the Internal Revenue Service (IRS) for free online, fax, or by paper. The IRS also offers a phone option for international applicants.
If you request EIN online, it’s issued immediately.
Step 5: Prepare an LLC operating agreement
Having an operating agreement is not mandatory. But it’s a good idea to have one to protect the interests of the LLC members and other parties.
Per Nevada laws, your operating agreement can specify:
- The rights and obligations of current LLC members.
- The rights and obligations of other persons that are not members (such as the addition of new members, other persons with interest in the LLC, or a transfer of interest).
- Management and governing principles of your LLC.
The Nevada Secretary of State offers a free online tool for generating an operating agreement template and customizing your LLC details.
Even though Nevada law doesn’t require the operating agreement, it’s worth creating one for multi-member LLCs.
Step 6: Open a Nevada business bank account
Always open a separate business bank account for your Nevada business.
Doing so allows you to have business credit cards and payment processing tools. But more importantly, keep business funds separate from personal ones, which makes tax time easier.
The fees will vary based on the bank you use, and most international and national banks offer business bank accounts so long as you meet the minimum deposit requirements.
Some of the types of accounts, just like personal ones, have extra value-added features such as discounted insurance rates, sign-up bonuses, and more.
One recommended option is the Nevada State Bank, which has plans starting at $12.50-$25 per month. However, you can avoid the monthly fee by meeting specific requirements.
Costs, Taxes and Fees
The perk of a limited liability company (LLC) is that the profits and losses pass through to the members (business owners). So there are no corporate income taxes or individual income tax filings due federally either.
While Nevada doesn’t charge a personal income tax, individuals located in other states may need to report income (or profits) received from the LLC on their individual income tax return, depending on their state of residence.
The only other type of tax you may be liable for is sales tax. Nevada state-wide rate is 4.6%, but individual municipalities may charge local sales taxes too.
Check with the Nevada Department of Taxation for more details on state taxes.
If you hire employees for your company, you may also be subject to Nevada’s Modified Business Tax of 1.378% on wages after deduction of applicable benefits. Then, you may also have to pay taxes for unemployment insurance.
Finally, you must file an annual company listing renewal with the state and pay a $150 state filing fee. It can be done online or by mail.
Nevada business permits and licenses
Any business entity that wants to do business in Nevada needs to file for a State Business License. This requirement is valid for both domestic LLCs and foreign LLCs.
Your LLC will need to get this from the county or city they are operating in, so it’s important to check with local agencies.
Some industries also have additional licensing requirements. The Nevada Department of Business & Industry provides extra details on occupational licenses and different permits you may need to obtain for your type of business.
Also, note that your LLC will need to submit an annual renewal for the general business license, which is $200 per year.
Pros and cons of starting an LLC in Nevada
Operating in the Silver State has some solid perks, such as a streamlined, easy-to-use formation system and no corporate income taxes.
But there are still some cons for a Nevada LLC new business to consider.
- No corporate incomes taxes
- Easy to use online filing system
- Better case law and corporate business laws
- No personal income tax
- Mandatory state business license and renewal costs
- Annual filing requirements and filing fees
- General LLC registration fees are high
Recently Asked Questions
Below are some of the most frequently asked questions (FAQs) about forming an LLC in Nevada.