This article will walk you through the procedure and address some of the most often asked concerns regarding Nevada LLC creation if you’re serious about learning how to create an LLC in the state. If you decide to do it yourself, Nevada has plenty of useful checklists and educational sites to guide you through the process.
Before diving into how to start an LLC in Nevada, you should decide which kind of LLC you’re going to form. There are a few different types to choose from.
Starting an LLC in Nevada will include the following steps:
- #1: Name Your Nevada LLC
- #2: Register an Agent
- #3: File the Required Forms for Your Nevada LLC
- #4: Create an Operating Agreement
- #5: Get an EIN for Your Nevada LLC
How to Start an LLC in Nevada
Step 1: Name Your Nevada LLC
If you’re figuring out how to start an LLC in Nevada, you’ve probably already been thinking a great deal about what you want to name your LLC. That’s good because your name should be unique and meaningful for your company. You also need to follow Nevada’s naming guidelines:
- Your name must contain the words Limited-Liability Company, Limited Company, Limited or one of the abbreviations for those phrases (Ltd., L.L.C., LLC or LC); the word “company” may also be abbreviated (Co.)
- You can’t use words that might confuse your business with a government entity (no terms like NSA, Treasury, IRS or FBI)
- Your name must be completely distinct from other entity names already reserved or in existence
- There are also restrictions on words that imply a professional association without prior state approval (i.e., bank, underwriting, mortgage, engineer, registered architect, HOA)
Before you become too attached to a name, you should run a Nevada LLC lookup to see if your name is already in use or reserved by another entity.
Step 2: Register an Agent
To be a viable business entity you will need to nominate a Nevada LLC registered agent. A registered agent is the individual or entity that will be the point of contact for all state communications and will accept service of process on behalf of your LLC.
The registered agent should always be accessible, so they must be a Nevada resident or a corporation that’s authorized to provide registered agent services in Nevada. You can even elect a member of your LLC (including yourself) to be the registered agent.
Step 3: File the Required Forms for Your Nevada LLC
The state provides a PDF packet with all required documents needed for those who are wondering how to start an LLC in Nevada. The packet can be filed using the SilverFlume online business portal or by mail.
Secretary of State
Commercial Recordings Division
202 N. Carson St.
Carson City, NV 89701-4201
Articles of Organization
Filing the articles of organization is perhaps the most important step when figuring out how to start an LLC in Nevada. This document will give the state all the information needed to certify your business and create a record of your LLC in the state. The form requires:
- The name being registered
- Registered agent’s name, address and signature of consent (Certificate of Acceptance of Appointment of Registered Agent)
- Management designation (manager-managed or member-managed)
- Name and address of each manager or managing member
- There’s a box to complete for LLCs with a designated dissolution date if the LLC is only temporary
- Signature of the filing manager or member
Initial List and State Business License Application
This form requires the name and address of the Nevada LLC members. There are designations on the form for the positions of each member. This will also serve as the application to conduct business within Nevada.
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Step 4: Create an Operating Agreement
Now that you’ve figured out how to start an LLC in Nevada, you should be aware of common practices that aren’t required in Nevada but would greatly benefit your LLC. The first of these additional steps is creating an operating agreement for your LLC.
An operating agreement can state anything the members want from the big decisions to the tiniest details. Think about including these key elements in your contract:
- Management structure (member-managed or manager-managed)
- Division of profits and losses
- Voting rights
- Rights and responsibilities of members
Having an agreement in place can put important decisions in writing and prevent future conflict amongst members. Nevada’s SilverFlume portal offers a free service to help digitally create the agreement.
Step 5: Get an EIN for Your Nevada LLC
An EIN (employer identification number) is a nine-digit number the IRS requires for businesses with multiple members or employees. This number is primarily used for filing taxes (although you may use your personal Social Security number for that in the absence of an EIN), but is also required for other business practices, including:
- Opening a business checking account
- Taking out a business loan
- Hiring employees
The Cost of Forming an LLC in Nevada
The primary expense is the filing fee for the articles of organization, which is approximately $75. This fee covers the state’s administrative costs for processing your LLC formation documents.
Additionally, Nevada imposes an annual state business license fee, which varies based on your LLC’s gross revenue. For many businesses, this fee can be several hundred dollars or more. It’s important to note that this fee is separate from any other taxes or fees your LLC may be subject to, so budgeting for this annual expense is crucial.
Pros and Cons of Forming an LLC in Nevada
Pros
- Nevada offers robust asset protection for LLC members, making it challenging for creditors to seize personal assets
- Nevada is known for its favorable tax climate with no state income tax, no corporate income tax, and no franchise tax
- Nevada allows for a high degree of privacy, as it doesn’t require the disclosure of members’ names in public records
Cons
- Nevada imposes an annual state business license fee on LLCs, which can be relatively high compared to some other states. This fee is separate from any other business taxes
- If your LLC is managed by individuals or entities located outside of Nevada, you may need to appoint a registered agent within the state
Nevada LLC: Overview
A limited liability company is the business entity of choice for those who want a flexible management structure with the liability protection otherwise only available to corporations. An LLC is a great choice for those who have a high-risk business, personal assets that need protection or those who desire a simple tax scheme.
Professional LLCs
A Professional Limited Liability Company (PLLC) is an LLC formed specifically by people who will provide a licensed professional service. Nevada doesn’t list professional services that are included but some examples of PLLC professions include:
- Doctors
- Therapists
- Architects
- Attorneys
To form a PLLC, each member must hold a license for their service and meet any requirements by the state if prior approval to join a PLLC is required. Your business will be restricted to providing only the service your PLLC was created to provide, unless a specific combination of services is allowed by the state.
For example, three attorneys licensed to practice in Nevada may form a legal PLLC. However, if one of the attorneys also has their medical license, they will be prohibited from practicing medicine under the name of the PLLC because it’s unrelated to the law. But, if three architects have a PLLC together and one is also a licensed engineer or interior designer, then they may use that license under the PLLC because of the relation to the architecture service.
Foreign LLCs
If you have an LLC that already operates in a different state, then you will need to register a foreign LLC in Nevada. Each state has restrictions on the extent of a company’s practice in a state it isn’t registered in.
For example, to get a liquor license in Nevada you must have a registered business entity in Nevada. If Booze 4 Breakfast LLC owns a chain of brunch bars in Arizona and it wants to expand to Nevada, it can’t just buy a space and open a bar. It must get a liquor license to legally operate the business. Booze 4 Brunch LLC would apply to become a foreign (non-Nevada) LLC before starting the liquor license process.
Now that you have a better idea of what kind of LLC you want to form, here’s a look at how to start an LLC in Nevada. The baseline process is the same for every type of LLC, but the professional and foreign varieties will fill in a couple extra boxes on the filing form.
Incentives to Start a Business in Nevada
To spark interest in starting a business in Nevada, the state has created several programs to incentivize small and large business owners to start an LLC or register a foreign LLC in Nevada. Some of the top opportunities are listed below.
- Standard tax abatements. A business can qualify for an assortment of tax reductions when it participates in desired NV practices, such as meeting the city or state average wage for their employees, job creation or capital investment
- Procurement assistance and outreach. This program was created to help businesses become contractors for government projects, offering education about contracting and networking opportunities for small and large businesses
- Community Development Block Grant (CDBG). This grant offers assistance to non-profit and for-profit businesses that carry out economic development activities like creating jobs or supplying housing
- STEP grant. This program offers financial assistance to small businesses that participate in trade missions and other international marketing opportunities
The Bottom Line: Forming an LLC in Nevada
In Nevada, forming an LLC just takes a few simple steps and is a reasonably uncomplicated procedure. To further simplify this exciting undertaking, it’s worth looking at the top LLC formation services.
How to Start an LLC in Nevada: FAQ
What Are Some Tips for Naming My Business?
Check if the domain name is available. Making sure your name is distinct from other Nevada businesses is just the first step. Even if you don’t need a website right now, you should check to see whether your company’s name is available as a domain name. You can always purchase the domain name now and keep it for when you are ready to start your website.
Check social media usernames and handles. Another essential move is to check whether your potential business name is available as a handle or username on social media platforms. If you can use your company’s name on Twitter or Instagram, you can advertise through posts and easily reach a wider customer base.
Make it memorable. The easier your company’s name is to remember, the more likely it is that future customers or potential business partners will reach out when they need a service or product that you offer. To make it catchy, you could include a play on words or alliteration.
What Are Nevada LLC Tax Filing Requirements?
Not only is it important to figure out how to start an LLC in Nevada, you must also know how taxes work for your LLC. As you may already know, Nevada has no state income tax. However, this perk only applies to Nevada residents (those with foreign LLCs will not get this benefit).
The forms required for filing will depend on the type of Nevada LLC you have:
- Single-member LLC. This LLC is considered a disregarded entity and is taxed like a sole proprietorship, using Form 1040 (a personal income tax return)
- Multi-member LLC. This LLC will be taxed as a partnership, will file Form 1065 for federal information return and will need to issue a Schedule K-1 to each of the members for reporting their share of the profit
Additionally, if your LLC makes more than $4 million annually, you will need to file a Commerce Tax Return.
How Much Does it Cost to Start an LLC in Nevada?
Unfortunately, there’s no such thing as a “cheap LLC” in Nevada. The Silver State has the second most expensive LLC cost in the United States with a total initial fee of $425. This includes:
- $75 filing fee for the articles of organization
- $200 fee for the state business license (due annually)
- $150 for the list of managers or managing members (due annually)
If you’re thinking about how to start an LLC in Nevada, you may want to consider where you’re going to conduct your business. Depending on where you operate your business, your respective county may have additional fees or requirements to conduct business within its borders.
For example, let’s say you really want to start a Casino as an LLC. Las Vegas cost is calculated as a semiannual license fee that’s based on your LLC’s gross sales, which usually ranges from $55 to $700 (if your company makes $1,250,001 or more, your fee is the income multiplied by 0.00056).
What Do I Need to Do to Keep My LLC Active?
It’s not enough to figure out how to start an LLC in Nevada, you must also know how to keep your LLC active in Nevada. Each year, you’re required to file an annual list of managers or members and you must renew your business license. The annual cost of upkeep for your Nevada LLC will be at least $350.
