Form an LLC in Nevada

Not sure if you do enough business in Nevada to need to qualify or register? If you meet any of these criteria, you do.

• Your business actively engages in any transaction in Nevada for the purpose of financial gain or profit.
• Your business is organized or commercially based in Nevada. A business is commercially based in Nevada if it is the primary place from which the business is directed.
• Your Nevada sales exceed either $500,000 (annually adjusted for inflation) or 25% of your total sales. Sales include sales made by an agent or independent contractor of the entity.
• Your Nevada real property and tangible personal property exceeds either $50,000 (annually adjusted for inflation) or 25% of your total real property and tangible personal property.
• Your Nevada compensation paid exceeds either $50,000 (annually adjusted for inflation) or 25% of the total compensation.
• Any of your business’ members, managers, or other agents conduct business in Nevada on behalf of the company, regardless of where your business primarily conducts business.

So if you conduct a substantial amount of business in Nevada, it’s wise to incorporate your business here.

• The fee to submit LLC formation documents in Nevada is $75.
• The fee for filing an initial list of managers is $150, and a state business license costs $200.
• The fee to reserve an LLC business name in Nevada is $25.
• LLCs must file an annual or amended list of managers or members. The fee is $150.

• LLCs must complete an Articles of Organization, an initial list of managers, and a state business license either online or in paper format.
• Nevada requires LLCs to file an annual list of members/managers and a state business license.

• Yes, you can form an LLC through Nevada’s Secretary of State business portal SilverFlume.
• You can also form an LLC online through CorpNet.

A Nevada LLC must contain the words Limited-Liability Company, Limited Company or Limited or the abbreviations Ltd., L.L.C., LLC or LC.

The business name cannot include language stating or implying that the LLC relates to a state or federal government agency. You can find the complete list of restricted words for Nevada businesses on the Nevada Secretary of State’s website.

Yes. You can name an individual (yourself or someone else) as your registered agent or a registered professional agent, such as CorpNet, if their physical address is in Nevada.

Nevada requires LLCs to file an annual list of members/managers and a business license.

LLCs must file an annual managers list (filing fee $150) and state business license (filing fee $200).

Processing time varies from a few days to a few weeks. Filing can be expedited for an additional $125 – $1,000 fee.

• All Limited Liability Companies formed or registered in Nevada are required to register with the Nevada Department of Revenue.
• Nevada has no corporate income tax or personal income tax.
• LLCs with gross revenues exceeding $4 million are required to file the Nevada commerce tax.
• Nevada’s commerce tax is based on gross revenue and varies by industry.

• The Nevada state sales tax rate is 4.6%.
• Municipalities might add a local tax making the total tax rate as high as 8.265%.
• Your LLC must pay the state’s sales and use tax to the Nevada Department of Taxation.

LLC stands for “limited liability company.” An LLC is a business entity that is legally separate from its owners. The owners of an LLC are called “members.”

An LLC offers some legal protections to business owners, shielding their personal assets from being taken to settle debts and legal claims against the business. Another advantage is tax flexibility. LLCs are by default pass-through tax entities, with all profit and loss flowing through to the owners’ personal tax returns. However, eligible LLCs may be taxed as S Corporations to help minimize business owners’ Social Security and Medicare tax obligations

A potential drawback of the LLC is that pass-through taxation may create an unfavorable financial situation for some business owners. Because all profit and loss are taxed at the owners’ individual tax rates, the LLC structure could cost owners more in taxes — depending on their tax bracket. In some cases, the corporate tax rate (at the federal or state level) might be less than the individuals’ tax rates. It’s important for entrepreneurs to talk with a tax professional for advice on how setting up an LLC will affect their tax obligations.

Individuals, other LLCs, C Corporations, or foreign entities may own a Limited Liability Company. Note that some states also allow the registration of variations on the LLC, such as PLLC (Professional Liability Company), and those may come with restrictions on who may own them.

There are no requirements to have an attorney complete LLC formation paperwork. CorpNet saves our clients money on legal costs because we can prepare and submit your LLC registration documents for less than many lawyers charge for providing those services. However, entrepreneurs can greatly benefit from consulting an attorney when deciding which business entity type will be best for their business.

That will depend on several factors, such as how many owners the business has and who will manage day-to-day operations. Also, the eligibility requirements for certain types of LLCs may limit which kind of LLC entrepreneurs may form. That’s why it’s essential to ask for professional advice on the legal and tax aspects before deciding on a business structure.

No restrictions exist on the number of LLCs that eligible individuals or companies may set up and operate. Know that how entrepreneurs structure their multiple LLCs has legal and financial impacts, so it’s helpful to research the options carefully before forming the entities.

A single-member LLC must have a sole owner or be a married couple that is collectively considered the owner. An LLC with multiple owners is considered a multi-member LLC.

LLCs may have an unlimited number of members. The exception is if an LLC elects to be considered an S Corporation for tax purposes; then, it may have no more than 100 members.

No. An LLC is not required to have a board of directors. However, LLC members may choose to have one if they adopt that method of management in the LLC operating agreement.

Typically, an LLC that conducts business in states beyond its home state must apply for foreign qualification in those additional states. The rules for what “conducting business” means vary depending on the state. In general, the following activities require an LLC to foreign qualify:

• Having a physical presence, such as an office, retail store, or warehouse in the state.
• Having a distributor or sales representative in the state who sells the LLC’s products and services there.
• Owning property (e.g., a vehicle fleet or real estate) in the state.
• Reaching a level of income or sales in the state that defines the LLC as having economic nexus there.

If an LLC will use its registered name to do business, it does not have to file that name as a DBA (doing business as). However, if the LLC’s owners want to conduct business under a different name or use another name for a particular product line or another purpose, they will have to file a DBA to get the state’s permission to use the fictitious name. For example, suppose an entrepreneur forms an LLC registered as “Josephine’s Creperie.” If Josephine wants to offer catering services under a different name, say “Josephine’s Event Catering,” she would need to file a DBA for that name.