How to Start an LLC in Nevada (Full 2021 Guide, 8 Steps)
If you are planning on setting up an LLC in Nevada, there are a few processes you will have to go through first. Although there are a fair few stages, and there are some fees involved, completing the formation process is very achievable. Many people choose to go through the whole process themselves, and there are many online tools available to help you do this. However, the process can be quite confusing and time consuming, especially if you are new to the industry, which is why many others choose to get a little help. There are many LLC formation services out there that make the process as easy and hassle free as possible, and we will be talking about some of the best later in this article.
In order to form an LLC in Nevada, you will have to choose a name for your business, appoint a registered agent and file your Articles of Organization, as well as a few additional steps after the LLC has been formed. Let’s take a closer look at some of these steps.
- Jump to Best LLC Formation Services for Your Nevada LLC
- Here are the 8 steps on forming an LLC in Nevada
- Step 1: Picking the name for your Nevada LLC
- Step 2: Check if business name is still available in NV
- Step 3: Finding a Domain Name for Your Nevada LLC (optional)
- Step 4: Getting set up with a registered agent in NV
- Step 5: Filing the Articles of Organization for Nevada
- Step 6: Write Operating Agreement for Your Nevada LLC
- Step 7: Get an EIN
- Step 8: File your annual reports in Nevada
- Things to Remember After Nevada LLC Formation
- Best Rated LLC Formation Services for Your Nevada LLC
- Nevada LLC FAQ
Here are the 8 steps on forming an LLC in Nevada
Step 1: Picking the name for your Nevada LLC
The very first step you need to think about when creating an LLC in the state of Nevada is to come up with the name for your LLC. Although the choice is pretty much your own when it comes to choosing a name, there are a few restrictions that you have to adhere to. You will also have to think of a name that is easily searchable, as you are going to want potential customers to be able to find you as easily as possible.
These are the main naming rooms in the state of Nevada, but there are several more. These can be found if you read the whole of the Secretary of State’s Guidelines, which is advisable if you are planning on starting an LLC in the state.
Step 2: Check if business name is still available in NV
Before you fall in love with a name too much, you need to see that no one else has come up with the great idea before you. With more and more LLCs being set up, more and more names are being claimed, so you need to get in there as soon as possible. There is a business search facility on the Secretary of State’s website which you are able to use yourself for free. Alternatively, if you don’t want to conduct the search yourself, there are LLC formation companies that will include this as part of their formation packages. You can find out if your required name is still available here on the state’s business name database, and then if the name is still available, you are able to reserve the name for 90 days using this Name Reservation Request Form.
Step 3: Finding a Domain Name for Your Nevada LLC (optional)
The last thing you want to do when it comes to your business name is seeing if the URL for it is still available. Even if there are no other businesses in the state with the same name as you, that doesn’t mean that no one has used the name to create a URL. Even if you are not planning on making a website at any point soon, it may be worth buying the URL so that other people are not able to, meaning when you do get round to creating a website, you won’t be able to use your own business name as your URL.
Step 4: Getting set up with a registered agent in NV
The next step when it comes LLC formation in Nevada is to nominate a Nevada Registered Agent. This is a requirement, so not a stage you can skip or bypass.
To put it simply, a registered agent is an individual or a company that acts as the person responsible for receiving important correspondence from the state.
This means important documents such as legal documents, notices of lawsuits and tax forms.
Most people are able to be a registered agent, the only restrictions are they need to be either a corporation, like a company that you will pay to be your registered agent, or it can be an individual, just as long as they are a resident of the state. It is even possible for you to be your own registered agent, but it can be a lot of work.
Step 5: Filing the Articles of Organization for Nevada
This, for many, is one of the most complicated parts of forming an LLC. There is a lot to think about here, and each will be completely different depending on the LLC you are forming. You need to think long and hard about each part of the form, as all the information that you provide will be part of the permanent public records.
If you find things are too complicated, or you simply don’t have the time to fill in your Articles of Organization yourself, there are plenty of companies that can fill them out for you.
The Articles of Organization must include the name of the LLC, and the name, address, and the signature of the LLC’s registered agent. If there is a date of dissolution, this must also be included, along with stating whether it is run by managers or members. Their names and addresses must be listed, as well as the name, address and signature of the LLC’s organizer.
The whole process can be filed out online with ease, or alternatively you can use postal mail, although this is a longer process. The cost of filing your Articles of Organization Is $75. You can submit your Articles of Organization using Silverflume, which is the state’s web-based filing portal.
Step 6: Write Operating Agreement for Your Nevada LLC
The state of Nevada doesn’t legally require an operating agreement in order to be successfully formed, but it is a step that is very much encouraged. Important things, such as how your business operates, should be put in writing, and that is essentially what an operating agreement is.
Big events such as allocating profits and losses and how the business will be dissolved should all be put in the operating agreement, to prevent any problems later on down the line. Your operating agreement should also include things like: transfer of membership interest, voting rights, management, and initial investments to name a few. Really, you are able to choose what goes into your operating agreement, as long as it isn’t contrary to Nevada law.
You can either write your operating agreement yourself, follow one of the many templates available online, or have an outside company write your operating agreement for you. Some LLC formation services offer operating agreement services in their formation packages.
Step 7: Get an EIN
An EIN stands for Employer Identification Number, which is very important to have as a business. It is a federal tax ID that is used to identify your business for tax filings. An EIN is necessary when it comes to conducting specific business actions, such as if you want to open a business bank account. Your bank will ask you to see your EIN, the same applies to if you want to establish credit with a vendor or if you want to file local tax forms, all will require you to have an EIN. You will even need one if you want to do something as simple as hire employees.
There is no cost for obtaining an EIN, so there is no downside to getting one. You can go through the process of getting one yourself pretty easily, or alternatively you can use an LLC formation service to do it for you. Some will include it as part of their formation packages, while others will have it as an additional service for an additional fee. You are able to apply directly to the IRS online if you have a social security number. If you don’t then you will need to apply on paper.
Step 8: File your annual reports in Nevada
If you are LLC running in Nevada, either domestic or foreign, then you will need to file an annual report. The report should list all offers, directors and the registered agent of the LLC. This can sometimes also be known as an Annual List, the first of which must also be sent off with the Articles of Organization.
From then on, an Annual List is required to be submitted every year on the anniversary of the LLC’s formation, with the deadline being at the end of that month. For example, if you created your LLC in November, then your next Annual List is due at the end of the following November. Every time you file a new Annual List, you will have to pay the $150 filing fee. This can be done either online or via post.
Things to Remember After Nevada LLC Formation
After your organization has been approved, there is still a lot of hard work that need to be done. For a start, there are likely taxes that needs to be paid. Nevada is one of the few states that have no personal net income and no corporate net income tax, however, if you have any employees at all, then you will need to file a return for Nevada’s Modified Business Tax. Additionally, if your LLC has more than $4 million in gross revenue, you must pay a Commerce Tax. The cost of this tax varies depending on the industry you are in.
Another type of tax you may be required to pay is sales tax. In Nevada, this is 4.6%, plus the counties are able to add on their own tax to this as well. If you sell any goods to customers in the state, you are required to pay sales tax, which means you will need to register with the Nevada Department of Taxation. Additionally, some specific products and services have speciality tax rates, such as room occupancy taxes for hotels on the strip of Las Vegas.
Best Rated LLC Formation Services for Your Nevada LLC
Although it is possible to form your LLC on your own, the process is time consuming, and if you don’t know what you are doing, it can be a little confusing. Many business owners instead chose to use an LLC formation service to help with the formation process. It will save you a lot of time and stress, so you can focus on the most important thing, running your business.
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Nevada LLC FAQ
Should I consider forming an LLC in the state of Nevada?
There are serval reasons you should consider forming an LLC. If you are just starting a business it is a good option, as it limits your personal liability for issues such as lawsuits and business debts. Not only that, but an LLC is a very flexible way to run a business when it comes things like management and taxation.
How much should I expect to pay when forming in LLC in Nevada?
There are several costs relating to forming an LLC in Nevada. In order to file your Articles of Organization, you will be required to pay a fee of $75 which is paid to the Secretary of State. You then have the option of reserving the business name which is an additional $25. These could be the only costs you pay if you are able to file the articles on your own. The costs will increase if you hire a lawyer or an LLC formation service to do the job for you. All LLC formation services charge different prices, so it is worth shopping around.
Are there any taxes I need to pay if I have an LLC in Nevada?
There are circumstances where you will be required to pay taxes, such as if you have any employees, you will have to sign up with the Nevada Department of Taxation. There are lots of different requirements and rules when it comes to taxation, so it is best to check with the state.
I have a foreign LLC, am I still able to do business in Nevada?
If you have a business that is outside the state, but you wish to conduct business in Nevada, you must first register with the Nevada Secretary of State. You will have to go through the process of registering as a foreign LLC, which includes processes such as appointing a registered agent, and filing an application for the Registration of Foreign Limited-Liability Company. There are fees related to this, and the process can be achieved either through the mail or filing it online.
If I don’t want my LLC anymore, how do I dissolve it?
There may be a point in the timeline of your business when you want to cease all operations. At this point, it is very important that you properly dissolve your LLC. By going through the process, it will limit your liability for government fees and lawsuits. There are several steps you will need to take, but it is worth going through the whole process.
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