Guide to Forming an LLC in Nevada
Follow our free guide to form an LLC in Nevada
The process of starting an LLC in Nevada involves a number of steps. Follow Swyft Filings's step-by-step guide on how to form an LLC in Nevada and maintain your LLC.
Pros and Cons of Forming an LLC in Nevada
Pros
Privacy for Owners Nevada does not require full disclosure of all of the LLC’s members. A manager/managing member or an appointed organizer can sign and file the incorporation documents.
No Corporate/Franchise Taxes Nevada does not impose any corporate or franchise tax on businesses. LLC members are only required to pay federal income taxes on their earnings.
No State Income Tax Nevada is one of the few states in the US that does not have a state income tax.
Cons
Expensive for Businesses Nevada is among the most expensive states for starting a business; the beginning costs are over $400 and the annual fees due are $350.
Less Privacy for Managers Even though LLC members do not have to be listed in any official documentation, the manager/managing member is required to be named in the incorporation paperwork and the annual report.
High Crime Rate Recent reports show that Nevada’s violent crime rate is 83% higher than the national average. Burglary and vehicle theft are also noticeably higher than the U.S. median.
Cost of Doing Business
$425 filing fee / $350 annual fees
No corporate or state income tax
Phase One: Starting Your Nevada LLC
Starting an LLC in Nevada can be a little more difficult than other states, but the process is much less stressful when you have experienced and professional help like Swyft Filings. Begin your LLC in Nevada today with the following steps:
Step 1: Name Your Nevada LLC
The first step in creating your Nevada LLC is to name your business. State and federal regulations and restrictions exist regarding the use of certain words.
Tip: Use a free business name search tool to ensure your company’s desired name is available.
Business Name Guidelines
The official name of your business must end with: Limited Liability Company, Limited Company, LLC, or L.L.C.
Your business name cannot be intentionally misleading to consumers
The name of your new LLC must not be similar to another organization’s name/trademark
Restrictions
“Lottery” and “Bank” are ineligible for use (any state)
Terms that represent educational or Veterans’ organizations are restricted
Terms related to the Armed Forces or civil servants (police, EMT, fire)
LLC business names associated with government and/or financial entities are not always restricted - it depends on the state. Additional paperwork may be required.
URL Availability Creating an online presence for your LLC is equally important — check availability for websites addresses at a number of online web services sites.
Step 2: Establish Ownership
The owners of an LLC are known as members and/or managers. All LLCs will have members, but not every LLC will have managers — it depends on the chosen management structure of the business.
LLC Management Structures:
Member-managed: All members participate in operating and making decisions for the LLC
Manager-managed: An appointed manager oversees the daily operations of the LLC and the members are not actively involved.
Nevada LLC Member Guidelines
Required Number of Members There must be at least one member or manager to form an LLC in Nevada.
Member Disclosure Requirements All managers/members of the LLC must be included in the initial filing paperwork.
Age Restrictions LLC members in Nevada may be of any age.
Residence Restrictions There are no residency restrictions imposed on LLC members in Nevada.
Step 3: Find a Registered Agent in Nevada
All businesses in Nevada must appoint a registered agent. Your LLC will not be officially formed without filling this position.
What is a registered agent? A registered agent can be either a person or business who accepts official government mail and service of process notices for the LLC.
Why do you need a registered agent? Nevada law requires your LLC to appoint a registered agent so that the government has a consistent contact person for the business.
What are the main requirements for a registered agent?
The registered agent must have a physical address — not a P.O. Box
The registered agent must be available during business hours
Who can be a registered agent in Nevada?
A state resident with a physical address in Nevada
An LLC or corporation that is licensed to conduct business in Nevada
Is the registered agent’s contact information publicly accessible? The name and contact information of the LLC’s registered agent is a matter of public record.
Can I be my own registered agent for my business? You are legally allowed to be your own registered agent as long as you have a physical address in Nevada.
Is being my own registered agent discouraged? LLC business owners who choose to be their own registered agent risk compromising their personal information.
Tip: Avoid the hassles and choose Swyft Filings to fill the registered agent needs for small businesses in Nevada. Find more information here.
Step 4: File the Incorporation Documents
Unlike most states, Nevada requires new LLCs to file three documents:
Articles of Organization
State Business License
Initial List of Managers/Managing Members
What is the Articles of Organization and why is it necessary? The Articles of Organization is a legally binding document that is filed with the state government to officially and legally form your LLC — your business will not be legally recognized by the Secretary of State without filing this document.
What information is included in the Articles of Organization?
The name and address of the LLC
The name of the organizer filing the paperwork
The contact information of a manager
The name and location of the registered agent
The chosen LLC management structure
The duration of the LLC (perpetual or not)
What is the State Business License and why is it necessary? All businesses operating in Nevada are required to have a State Business License. This license is filed at the time of LLC formation and must be renewed annually.
What is the Initial List of Managers/Managing Members and why is it necessary? The Initial List of Managers is a legal document that must be filed with the Articles of Operation and lists the manager(s) or managing member for your LLC — you cannot officially form your business without this form.
Additional Nevada Filing Information — Professional LLCs
Professional service businesses in Nevada can also to form an LLC, which is known as a Professional Limited Liability Company (PLLC).
Professional Service Professions:
Accountants
Attorneys
Physicians and Medical Professionals
Professional Counselors and Psychologists
Architects and Engineers
Veterinarians
Social Workers
A few points to consider:
The name of the business must include “PLLC”
All members of the PLLC must be licensed in the profession of the business.
The PLLC is only allowed to provide services for which the business was formed.
The members are still subject to whichever licensing boards govern the PLLC’s profession.
Step 5: Create an LLC Operating Agreement
An LLC Operating Agreement is necessary for the successful formation of your Nevada LLC. In fact, Nevada requires an Operating Agreement for all LLCs formed in the state.
What is an LLC Operating Agreement? The LLC Operating Agreement is a legal document that works like a contract between the members by defining each party’s role in the business and explaining the basic operating processes of the LLC. Voting rights and revenue percentages are also discussed in the Operating Agreement.
Why do I need an LLC Operating Agreement? The LLC Operating Agreement is necessary because it provides structure for the business and protects business assets from creditors. It can also reduce future disputes among members.
Do I need to file the LLC Operating Agreement? Even though it is required by the state, you do not need to file the Operating Agreement anywhere; it is for the benefit of your LLC and remains in-house.
What goes into an LLC Operating Agreement? Every LLC Operating Agreement is unique to the business; however, most documents include the following information:
List of the members/managers and their roles
Designation of authority in the LLC
Initial capital contributions of the members
Voting designations and percentages of the members
Member transfer/addition rules and restrictions
Distribution of profits
Meeting schedule
Tip: Get a customized LLC Operating Agreement for your small business with Swyft Filings. Add structure to your LLC now.
Step 6: Register for an EIN
Most businesses formed in Nevada must register for an EIN. Your Nevada LLC cannot legally operate without this ID.
What is an EIN? The EIN is a nine-digit number that is assigned to your business by the Internal Revenue Service (IRS). It identifies your business with the government much like a personal Social Security number.
What does EIN stand for? EIN is an acronym for Employer Identification Number. It is also known as a Federal Tax ID.
Are all businesses required to have an EIN? Federal law dictates that certain types of business entities register for an EIN:
Any business with employees (even if owned by one person)
Any business with more than one member
A partnership (LLC or C-corp)
Please Note: A sole proprietorship is not required to have an EIN, but it is still recommended.
Why does my LLC business need an EIN? The more common reasons you would need an EIN are:
To hire employees
To open a bank account in the U.S.
To file your company’s taxes
To pay independent contractors
In short, if you make money through your business and it has employees, you must have an EIN.
Is the EIN publicly listed? The EIN for your LLC will be part of public record.
Can I use my Social Security Number as the EIN? You can elect to use your social security number for your business’s EIN; however, be aware that this information is part of public record.
Swyft Filings offers EIN services for small businesses in Nevada. Find more information here.
Phase Two: Maintaining Your Nevada LLC
Now that the initial phase of setting up your Nevada LLC is finished, you must ready your LLC for conducting business. The next steps are:
Step 1: Register for Nevada State Taxes
Nevada does not impose a corporate or franchise tax on LLCs, although some businesses will be required to pay the Modified Business Tax (MBT) and the Commerce Tax — see below.
State Income Taxes Nevada does not have a state income tax. Members are only required to pay federal income taxes on their earnings.
Modified Business Tax Nevada does not have a standard corporate/franchise tax. All businesses with employees must pay the Modified Business Tax (MBT) — a quarterly state payroll tax that covers the gross salaries paid to employees each year. See table below:
Gross Salary Tax Rate Under $50,000No Tax Over $50,000 1.475%
Commerce Tax All businesses with over $4 million in annual gross revenue will be charged a commerce tax. The tax rate ranges from .051% to .331%, depending on the industry.
Please Note: All businesses must file a commerce tax return, even if the company’s revenue falls below the $4 million threshold.
Additional Tax Information Other taxes your LLC may need to pay:
Sales and Use Tax at 6.85%
Employee Withholding Tax
Unemployment Tax
Step 2: Obtain Business Licenses and Permits
Some of the licenses and permits required for an LLC in Nevada can vary, depending on a number of variables:
Location (city and county)
Type of Business
Industry
All businesses operating in Nevada is required to obtain the following:
State Business License
Regulatory License
County/Municipal License
Tip: If you would like to see more in-depth information on licenses and permits, please feel free to visit the content in our learning library that covers business licenses and permits.
Step 3: File the Annual Reports
Instead of a traditional annual report, Nevada businesses are required to file/update two documents every year:
Initial List of Managers/Managing Members
State Business License
What is the State Business License? The State Business License, which is required by Nevada, allows businesses to operate in the state. This license is filed at the time of LLC formation and must be renewed annually.
Fees and Due Date
Fee: $200 Due Date: Anniversary month of LLC formation Frequency: Annually Implications of Late Filings: $100 late fee
What is the Initial List of Managers/Managing Members? The Initial List of Managers is a legal document that is filed with the Articles of Operation and lists the manager(s) or managing member for your LLC. This document is filed at the time of LLC formation and must be renewed annually.
Fees and Due Date
Fee: $150 Due Date: Anniversary month of LLC formation Frequency: Annually Implications of Late Filings: $75 late fee
Swyft Filings helps you stay compliant by providing stress-free solutions. File your annual report with us today.
Step 4: Request a Certificate of Good Standing
After your Nevada LLC is ready for business, your last step is requesting a Certificate of Good Standing.
What is a Certificate of Good Standing? The Certificate of Good Standing is an official notification that confirms your business is properly formed and in compliance with all state regulations.
Who issues the Certificate of Good Standing? The Certificate of Good Standing is generally issued by the Secretary of State.
When can I request a Certificate of Good Standing for my business? Request a Certificate of Good Standing from the Secretary of State after your LLC is officially formed.
Why do I need a Certificate of Good Standing? You can offer banks and other businesses proof that your LLC is in good standing with the state government by obtaining a Certificate of Good Standing.
Additionally, some states require a Certificate of Good Standing before a business can apply for Foreign Qualification.
Does the Certificate of Good Standing have an expiration date? The Certificate of Good Standing does not expire/does not need to be renewed.
Swyft Filings can create a Certificate of Good Standing for your Nevada LLC. Click here for more information.
Additional Nevada Resources
Don’t Just Take Our Word for It
Every day, business owners from all over the nation rely on Swyft Filings to help them file an LLC online and maintain their company.
Frequently Asked Questions
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Orders are processed as they are received. However, clients that select Express Processing or Same Day Processing will have their orders processed before Standard Processing orders.
Orders are processed as they are received. However, clients that select Express Processing or Same Day Processing will have their orders processed before Standard Processing orders.
Orders are processed as they are received. However, clients that select Express Processing or Same Day Processing will have their orders processed before Standard Processing orders.
Orders are processed as they are received. However, clients that select Express Processing or Same Day Processing will have their orders processed before Standard Processing orders.
Orders are processed as they are received. However, clients that select Express Processing or Same Day Processing will have their orders processed before Standard Processing orders.
Orders are processed as they are received. However, clients that select Express Processing or Same Day Processing will have their orders processed before Standard Processing orders.
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