Nevada Doing Business As

Date: 01/13/2020 | Category: | Author: Martin Pouzar


One of the important considerations to be made while registering a business entity is identifying if you require a Nevada doing business as (DBA) registration. DBA refers to an entity that is said to be “doing business as” when the name they are operating under is different from their registered name.

Nevada DBA – Doing Business As

A Nevada doing business as (DBA) name is also known as an “assumed name”, “trade name” or “fictitious business name”. A business entity can assume any number of DBAs as there is no defined limit in the business laws. It is also important to note that unless you file for a DBA, you will not be able to conduct your business in any other name.

What is a DBA?

In order to understand Nevada doing business as (DBA), we need to understand what type of businesses requires DBA registration. A Nevada business would require a DBA registration if they want to transact business with any other name except for their registered name. In other words, every new or existing business has a “true name” also known as the legal name.

The legal name of a partnership or sole proprietorship would be the name of the business owners. The case is not the same for a business corporation, limited-liability company (LLC) or any other statutory business entity. The business name for such entities would be the name that has been mentioned or approved in their formation or incorporation documents. If and when a business entity requires a trade name, they will have to file a DBA or fictitious business name in Nevada. For example, if the owners of a start-up business named “Black Hat” want to conduct business as “Cryptic Linux” then they will have to file a DBA.

When you need a DBA?

If you are planning to register a new business in Nevada or have a business in any other state but are planning to start in Nevada using a different name then you will need to file for a Nevada doing business as (DBA).

It is important to understand that registering a fictitious business name in Nevada is not the same as incorporating your business and both have different processes. If you register the DBA without forming or registering your business entity in the state then the business will not be recognized under the law.

There are several reasons why a business entity or owner may need to register a fictitious business name in Nevada and some of these are:

  • New Name: The foremost reason for adopting a Nevada doing business as (DBA) name is if the owners don’t want to conduct business under their personal name. This is true for partnerships and proprietorships. If you are planning to register an LLC or business corporation then also the reason would be the same, which is not to use the legal name or registered name of the company.
  • Privacy: If you or your business requires privacy then you can opt for a fictitious business name in Nevada. In Nevada, once you register your business name or personal name for business purposes, it will automatically go on public record.
  • Distinctive Name: There are times when a business may register a name and realize that the name has no connection with the business. For Example: If you have a Plant Nursery and you have registered it as Joe Fish (owner name) or Green Leaf LLC then you can file for a Nevada doing business as (DBA) as Potting Plants. The name would provide a clear insight at what the business offers or its activities.
  • Bank Requirements: A bank may require an entity to register a DBA to facilitate the opening of a business account. This is true in cases of sole proprietorships and general partnerships. You may be required to show the bank copy of documents for a fictitious business name in Nevada filing or even assumed name certificates as proof.
  • Expansion: If your existing business is expanding into another area that is completely different from the current business activity then filing a Nevada doing business as (DBA) name will definitely be a distinct advantage.

Do you want assistance with DBA in Nevada?

How to choose a fictitious business name

There are specific laws in place when it comes to adopting a fictitious business name in Nevada. It is important to note that there are some limitations applicable to adoption of certain fictitious names pursuant to NV Rev Stat § 602.017 (2017). In order to choose the correct DBA for your Nevada business entity, you need to consider the following:

  • A person or individual cannot adopt any Nevada doing business as (DBA) name that has “Corporation,” “Incorporated”, “Corp.,” “Limited Liability Company”, “L.L.C.” or “LLC” in its title unless they own a business corporation or Limited-Liability Company.
  • You can brainstorm concepts or ideas pertaining to a DBA in the same way that you would choose a standard business name.
  • You need to ensure that the chosen fictitious business name in Nevada is distinguishable from any other name that exists in the records of the County Clerk. You can conduct your search with the county where you are planning to operate your business from. For example: If you are planning to form a business in Clark County then you can search for a DBA in their Records Search System.

How to file a Nevada DBA

It is important to know that in Nevada, a DBA is not filed at the state level and instead you will have to file it with the County Clerk’s office. The filing requirements as well as fictitious business name in Nevada requirements may vary from one county to another.

Nevada DBA Forms

If you plan to establish your Nevada business in Clark County you can file the DBA directly or We at IncParadise can assist you with the filing to save time. The fee for the Nevada doing business as (DBA) filing with the Clark County Clerk’s Office would include the following:

  • NV Clark County DBA filing – $75
  • USPS Shipping of Certificate – Free
  • USPS Express Mail Shipping of Certificate – $30.50
  • USPS Express International Shipping of Certificate – $74.25

Your Nevada DBA will expire 5 years from the date of filing and you will have to renew same from the respective county clerk office.

How IncParadise can help you with Nevada DBA

IncParadise is one of the most reputable registered agent in Nevada and we can assist you with the process of business formation as well as Nevada doing business as registration. We provide DBA filings in Clark County, Nevada and this ensures you are able to use your fictitious name for conducting business in cities like Las Vegas, North Las Vegas, Henderson, Boulder City, and Laughlin.

We can also provide assistance with finding the right fictitious business name in Nevada and thus help you avoid using any names that the state of Nevada may find to be deceptive. This will ensure timely filing of the DBA.


Small Business Ideas in Nevada

Date: | Category: | Author: Martin Pouzar


Nevada, also known as the “Silver State” has a strong and growing economy driven by a variety of industries including tourism, machinery, mining, food processing, gaming, logistics, aerospace, and manufacturing. It provides the perfect platform for a small business in Nevada to leverage from existing infrastructure, business incentives, financial aids, and a skilled workforce.

Why is Nevada a great place to start a small business?

A report was published by CNN-Money that Nevada is among the top 5 states for starting a business. This is primarily due to the fact that there are no capital gains, income, corporate capital gains, and corporate income tax in the Silver State. It also has the lowest property taxes in the nation and this is quite an advantage for a small business in Nevada.

If you have any small business ideas Nevada then it will definitely bear fruits in terms of growth and success due to the various benefits and advantages the state offers. There are several reasons why a number of small businesses and start-ups have chosen Nevada as their base of operations. Let’s look at what has made this state so popular amongst entrepreneurs.

  • Diverse Industries: Nevada is home to several big organizations from a variety of industries. The silver state provides a unique combination of low population density, natural resources, strong transportation infrastructure, and opens spaces, so that a start-up or small business in Nevada can derive maximum benefit.
  • Emerging Opportunities: There is a rise in emerging and exciting opportunities in different industries that will be able to accommodate almost any small business idea in Nevada. These opportunities are being created due to the increasing focus on innovation and use of technology.
  • Programs and Incentives: One of the salient benefits of starting a small business in Nevada is the several programs and incentives offered by the state. The Governor’s Office of Economic Development (GOED) is responsible for offering a variety of incentives to small businesses right from tax abatement to employee hiring incentives.

Nevada is one of the few states that offer low overall cost of forming a start-up but the question is what type of start-up would be the most profitable?

Top 8 small business ideas in Nevada

Nevada is home to a variety of small businesses and medium enterprises (SME’s) including Caesars Entertainment, Switch, Las Vegas Sands, Allegiant, Johnson Electric, American Retail Group Inc., Sierra Pacific Power Company, GES Global, AMERCO, Sierra Nevada Corporation, MGM Resorts International, and Skagen Designs among others. The innovation and technology enabled environment in the state helps small business ideas in Nevada grow. Let’s take a look at what type of start-up would do well in the state.

1. Bed and Breakfast

One of the top industries in the Silver State is tourism. If you start a small business in Nevada as a bed and breakfast establishment then it will help you align your business in the industry while ensuring tourism related accommodation requirements are fulfilled. If you already own a commercial or residential space in the state then this type of small business will be easier to start.

2. Social Media Consultant

In the age of the internet, every new business has to carve its niche in the market. The use of social media is one of the key elements of marketing and branding strategies. Hence, it is definitely an industry specialization that a small business in Nevada or start-up can focus their investment on.

3. Toy Making and Gifts Industry

An integral part of the Nevada Manufacturing Industry, toy making, has witnessed a positive growth since the state became a hotspot for tourism. In fact, Las Vegas hosted the first of its kind – ToyFest West 2019 and thus brought the toy and gift industry into the mainstream industries. Toys and gifts are currently being considered as one of the trending small business ideas in Nevada.

4. Consumer Technology

This is a highly new and innovative area that is raising some storms with the “smart-tech for homes” invasion. The truth is that consumer technology is one of the leading futuristic small business ideas in Nevada and the Silver State is just the place to transform your start-up dream to reality. The Consumer Technology Association (CTA) organized CES 2019 in Las Vegas and this was the world’s largest tech show. You can even showcase your innovation in CES!

5. Meal Prep Service

Thanks to technology and increased awareness for nutritious and wholesome meals, the meal prep service is becoming one of the fastest growing businesses in Nevada. This area of food catering or food preparation is just perfect for a small business in Nevada. The investment required will vary according to the offering, which can be a senior citizen diet meal to high protein meals.

6. Jewelry Making

This is quite a niche area when it comes to small business ideas in Nevada. There are two different aspects of jewelry making to consider and that involves the type of jewelry that you plan to sell, will you be selling it online or through a store, the targeted audience etc. One of the interesting innovations is the introduction of lab-created or lab-grown diamonds and it is fast re-shaping the jewelry industry.

7. Apparel and Fashion

Clothes and fashion walk hand-in-hand as they complement each other. Clothes determine the fashion trends and fashion provides the necessary branding platform for clothes. There are plenty of choices for a small business in Nevada in the apparel and fashion industry. You can choose to be a retailer for a big brand or get creative with designing and manufacturing your own style of fashionable apparel. A 2010 report by the U.S. Bureau of Labor Statistics revealed that the average expenditure of consumers was $1,700 annually on apparel, footwear, and other related products.

8. Luxury Furniture Business

Furniture businesses have existed since time immemorial but this is the age of innovation, minimalistic design, and conveniently luxurious furniture. You can launch your small business in Nevada in the luxury furniture industry as there is a rising popularity in multi-functional luxury furniture. This type of furniture is attracting smaller households that require maximize utilization of furniture while minimizing use of space.

There are several other small business ideas in Nevada that you can invest in and they vary from the tourism and gaming industry to accommodation, food and beverages, manufacturing, and information technology.

Nevada is a state that has a pro-business environment and laws and hence any good business idea will help you carve a niche in the market. If you already have a concept or have an idea for a small business in Nevada then we can help you bring that idea to life by providing assistance in business formation or incorporation. Our assistance can be in the form of registered agent services and customized as well as additional services for specific business requirements like Nevada mail forwarding, filing of annual report in Nevada, corporate or LLC kits, and filing of EIN among others.


Marketing Strategies for Nevada Business

Date: | Category: | Author: Martin Pouzar


The success of any Nevada business depends on several factors but one of the prime catalysts is a strong marketing strategy. Marketing is basically a structured process and its objective is to target and engage new and existing customers of a start-up or small business to generate sales. A strong marketing strategy can help not only in improving the commercial focus of a business but also become an influential driver of business growth.

How marketing plays a role in growing your Nevada business?

A small business in Nevada or a start-up needs to target both short-term gains and long-term growth and the best way to do so is by implementing a sound marketing strategy. It is important to understand first what marketing really is and what roles it will play towards the growth of your business enterprise.

Sound marketing strategies and practices play the role of being the sales enabler for your Nevada business. In fact, what marketing really does is gather field or market intelligence from potential and existing customers along with information pertaining to competition. It also transforms it all into a deliverable services or products that focus on enabling the overall growth of the start-up or new business in Nevada.

Marketing plays a key role for small business in Nevada in the following ways:

  • Creates a brand: One of the most important roles of marketing is to create a brand! Your Nevada business and its product or services are an essential part of the process of branding. It creates high visibility for your company by telling customers what to expect from products and services offered by you. It also highlights how your products or services are different from that of your competitors.
  • Clear decision making: A small business in Nevada has to start by setting goals and creating strategic marketing plans so that it can achieve growth in local, national or international markets. A strategic marketing plan enables businesses to make clear decisions by considering various opportunities and threats that a start-up may face from their external environment.
  • Strengthens Growth Strategies: An important aspect of marketing is the formulation of Nevada business growth strategies. These strategies focus primarily on a product – market matrix that presents opportunities, threats, resource requirements, returns and risks.
  • Customer Connect: Marketing is essential towards driving growth for start-ups and an integral part is creating a “strong bond or connection with the prospective customer”. Marketing provides a Nevada business with a path defining the different ways through which it can identify what the customer needs and how the company can fulfill it.
  • Creates strong digital presence: In the age of the internet; marketing helps in strengthening the digital presence of a small business in Nevada.

Top 10 marketing strategies you can try for your Nevada Business

As an entrepreneur, you are probably wondering how to create a marketing strategy perfect for your start-up business in Nevada. It is never an easy path when it comes to starting a business and growing it. It all starts with an idea but how do you bring the idea to life? You will have to ensure there is enough visibility of your products or services. This can be quite a cumbersome process and hence, we have listed some of the top marketing strategies that will provide the much needed boost to your start-up business in Nevada.

1. Name Branding

A business is known by the name. A name defines the business logo and they should be such that higher retention value gets created, like it is at Apple, Nike, or Linux. The name and logo of these companies define the brand. A start-up business in Nevada needs to ensure their name and logo are in sync and provide an insight into the type of business it is. Some of the options for developing a name are:

  • Use the founder’s name like HP (Hewlett-Packard)
  • You can describe what the business does like Delta Airlines, FedEx
  • You can describe an experience or image like Disney, Sprint
  • You can describe the type of product like Jaguar, Land Rover
  • You can use a non-traditional or innovative word like Nike, Amazon
  • You can create your own word like Google

2. Official Website

This is a must have for every small business especially in the digital age. A website is the face of the company and at the same time it acts as the branding vehicle. If you are an e-commerce company like Amazon, a shopping cart and product listing within the website can lead to high sales. A website can be brief with the basic informative pages related to the start-up Nevada business or it can be an in-depth website with articles and blog posts linked to products and services. There are several tools that you can use to create your website and these includes:

  • WordPress
  • Constant Contact
  • SiteBuilder
  • BigCommerce
  • Shopify
  • Weebly
  • Squarespace
  • Wix

3. Run A/B Testing

A/B testing is a fairly new concept that you can try out for your start-up business in Nevada. It refers to two variations of a single website design or content or copy, which is tried with random customers. Here is an example to understand this well: you can design two different landing pages of the same website and upload them. The pages will be randomly served to different visitors to the site. The type, demography, age and other related information of the visitors to each of the landing page will be tracked to check which page performs better. This is how A/B testing will help you determine if changes or additions are required to bring about the necessary improvement in conversions.

4. Digital Marketing Strategy

An important part of the overall marketing strategy of any Nevada business is defining a digital marketing strategy and tools to be used. A sound digital marketing strategy can help start-ups to thrive in the competitive landscape. Some of the tactics that will definitely keep your business one step ahead include:

  • Optimize your website or blogs for mobile platform
  • Increase your organic engagement rate on social media platforms
  • Create and share engaging webinars with strong marketing and informative content on start-up Nevada business
  • Work out ways to connect and interact with your target audience in real-time
  • Create a targeted email list for sharing products, services, and discounts

5. Create Visibility on social media

Social media is the most powerful platform for small businesses and start-ups. It may come across as highly intimidating at first but the first step will help a small business in Nevada to gain the required momentum. It is a platform appropriate for implementing both branding and marketing strategies. As start-ups can create visibility and target their prospective customers by making posts on future products or services as well as post existing product photographs. Some of the top social media platforms including Instagram, Snapchat, Twitter, Facebook, and SocialDrift among others.

6. Start Blogging

One of the most effective ways of engaging your audience is by starting a blog. It is considered to be a content marketing tool that a small business in Nevada can use to amplify their message directly to the customer. A blog will let you provide information pertaining to your company, history, ideas, introduction to and salient benefits of product or services, how the customer would benefit, business events, summer sales, pictorials, and much more. The more informative your blog is; the higher will be the customer engagement. You can choose to start with a free blog or you can book a domain name and start a blog with the business name. You can also use specific blog marketing tools to maximize impact like Buffer and Tweriod.

7. Content Marketing

One of the top marketing strategies for businesses in Nevada is content marketing. Content is and will always be the king and it is needed to build trust. When a prospective customer reads the content on social media sites or your blog, they should be able to make the decision of buying the product or service. Call to action is an integral part of content marketing for small businesses in Nevada. In order to make content marketing, a success you need to focus on 3 key areas and they are:

  • Content production: This is the first and most creative aspect of content marketing. If you have identified your target base and the market then you need to create content that is search engine friendly (SEO), informative, and engaging.
  • Content Syndication: Once content has been created, it needs to undergo syndication. It has significant SEO benefits for a small business in Nevada like generation of backlinks and enhancement of domain authority (DA). Some of the content syndication platforms include Inbound, Medium, and Slideshare.
  • Content Sharing: The final step is to enable the content created by you to be shared by the customers. The shareability factor of any content depends on how engaging and useful it is to the prospective customer.

8. Search Engine Marketing (SEM)

Search engine marketing is considered as one of the most effective ways of attracting prospective customers and generating revenue, especially for a small business in Nevada. SEM as it is commonly known will help your business grow in a highly demanding and competitive marketplace. Some of the important elements that every small business should work with include:

  • Paid search marketing
  • Logical keyword grouping for higher click-through rates
  • AdWords and Bing Ads accounts for start-up Nevada business
  • Search Engine Marketing Ad Auction
  • Maintaining high Google AdWords’ Quality Score
  • Use high-end web analytic tools

9. Search Engine Optimization (SEO)

Search engine optimization (SEO) is a process by which a start-up business in Nevada can increase the quality as well as quantity of website traffic. This in-turn helps in increasing overall brand visibility leading to higher footfalls and revenue generation. If you implement SEO as a part of your marketing strategy, then it will work through several vehicles like image search, academic search, specific product related search, video search, and news search among others. It is a proven method that helps generate a good return on investment. Some of the tools you can use include:

  • Google Search Console for a start-up Nevada business
  • Keyword research tools like SEMrush
  • Email marketing and project management tools like BuzzStream
  • Link building tools like Linkody
  • Tools for analyzing website performance like HubSpot’s Website Grader

10. Affiliate Marketing

The final element in your marketing strategy should definitely be affiliate marketing as it is still one of the most effective tools for generating sales. A small business in Nevada can incorporate an affiliate program through which business rewards can be given to one or more affiliates for each new customer they bring in using their own marketing or sales strategies.


Nevada LLC Asset Protection

Date: 11/12/2019 | Category: | Author: Martin Pouzar


A small sized start-up or a medium sized business planning to register in Nevada will definitely enjoy the many benefits the state offers in terms of taxes and business incentives. There is however a consideration that most businesses are required to make, which is the organizational type or form. A Limited Liability Company is the most opted form of business due to the asset protection Nevada LLC benefits that its owners or members enjoy. The question is how asset protection works in Nevada and how a business can benefit from it.

Protecting Assets by Forming Nevada LLC

Nevada is considered as one of the most favorable destinations for forming an LLC. Apart from the salient benefits the state provides, “limited liability” in itself is one of the greatest assets a Limited Liability Company can enjoy. Limited liability in the simplest of words translates to separating business assets from personal assets, so that creditors of the business are unable to touch personal assets. This is an integral part of asset protection for a Nevada LLC although some states like Nevada also have other types of asset protection plans to help businesses.

For some time now, asset protection has been an integral part of estate planning as trusts for members of a family are there to protect and preserve asset or property for use and benefit in the future. The question is – does this work for businesses as well?

When a business starts operating, at some point there is bound to be wealth creation and accumulation. The accumulated wealth creates the greater concern, which is losing it. Hence, there has been increasing emphasis on asset protection for Nevada LLCs. A Nevada Limited Liability Company plays a dual role when it comes to planning for asset protection and they are:

  • Internal Trap: A Nevada LLC has been designed to trap any liabilities connected to business or asset. It traps them inside the entity itself and as a result, a member of the said LLC is not personally liable for such a liability.
  • External Insulation: A Nevada LLC has the power to insulate its assets from the creditors of each individual member and thus protecting member assets.

Nevada LLC – Popular for Asset Protection

There are several states that provide asset protection and yet, asset protection for a Nevada LLC is considered the most popular. It is more so because the Silver State has some of the best protection laws in the nation for limited-liability companies. At the same time, it is important to understand that in order to maximize asset protection benefits in the state, a business entity will be required to obtain the utmost protection possible. How do you obtain a high degree of asset protection?

In order to enjoy asset protection for a Nevada LLC fully, you will have to consider your liabilities in advance so that you are able to structure and fund the limited liability company (LLC). The liabilities to consider are:

  • Liability related to business debts: these types of liability are those that arise from LLC transactions
  • Liability related to personal debts: these types of liability are those that arise from debts incurred due to personal or non-business activities.

Most often than not, businesses have the misconception that all assets within an LLC would automatically be protected from debt or liability but that is not the case; you need asset protection for a Nevada LLC plan to ensure that protection. This is not all, business owners may not realize but the greatest risk to their assets is from businesses and not personal transactions. The good news is that Nevada asset protection options provide a Limited Liability Company the platform to structure and operate in a manner that will negate the risk of assets being exposed to liability.

Nevada Law for LLC

Nevada is one of the few states considered to have a strong legal environment that is pro-business. The 2017 Nevada Revised Statutes, Chapter 86 – Limited-Liability Companies, NRS 86.371 states that a member or manager of an LLC formed under Chapter 86 of NRS cannot be held liable for any debt or liability of the business entity. This is an integral part of the asset protection in Nevada LLC laws.

The Nevada laws are favorable when it comes to asset protection and this is largely due to a provision that exists for the creation of a domestic asset protection trust (DAPT). Currently there are 17 states that have DAPT laws and these include asset protection of Nevada LLC laws. DAPT jurisdiction in Nevada is the strongest as compared to other states because of specific features mentioned in NRS Chapter 166.

There is a provision in Nevada law for asset protection for Nevada LLCs through a Charging Order. This order provides protection to assets by allowing a judgment creditor to receive distributions from a Nevada limited-liability company just the way a judgment debtor would receive. The laws of the charging order are governed by NV Rev Stat § 86.401 (2013). Let’s look at the following example to understand this well:

A creditor of a Limited Liability Company obtains a charging order from the Nevada court or local jurisdiction ordering the LLC to pay any distributions of property or money amounting to $40,000. In such a scenario, if there are no LLC distributions then payment would not be possible. As a result, the assets of the said LLC would be protected.

Protecting Personal Property

Although, a charging order may provide some relief to an LLC but not always, as a court order does have the power to freeze all your assets – how do you protect personal property in Nevada?

What is personal property? It is defined as any property or asset that you own excluding real estate. It could be your bank account or jewellery or even stock certificates and intellectual property. In order to understand asset protection for Nevada LLCs, you have to understand the fact that creditors find specific assets to be more attractive and valuable as compared to others. At the same time, creditors also consider the liquidity of a specific asset for satisfying the judgment brought against the LLC.

Once you have registered your Limited Liability Company in Nevada, the asset protection Nevada LLC laws will come into effect. Your assets or personal property that has been transferred to the LLC will receive the same protection as your business. As a result, the probability of your business being exposed to liability or getting sued is reduced considerably. Even if a creditor obtains a charging order to satisfy the judgment using LLC’s assets, he or she will be entitled to the LLC distributions only.

Want to know how Nevada LLC Asset Protection Works?


Asset Protection Trust in Nevada

Before you can think of the asset protection in Nevada LLC option, you need to identify, discuss, and then implement an asset protection strategy. Although, there are no specific trusts for a limited-liability company in Nevada, you can always opt for the Domestic Asset Protection Trust (DAPT). What is a DAPT?

A Domestic Asset Protection Trust is a type of irrevocable trust that allows the trust creator to become a discretionary beneficiary and at the same time offers significant protection to the assets held in the trust. There are features of NRS Chapter 166 that imparts immense value to the DAPT and asset protection Nevada LLC. The features are:

  • Statute of Limitations Period: A DAPT jurisdiction like Nevada has a statute of limitations period, which should expire so that any assets in this trust can be protected from the creditor. Nevada has one of the shortest periods.
  • No Exception Creditors: Nevada is one of the two states where no statutory exception creditors are applicable. This simply means that an exception creditor is someone with the ability to access DAPT assets post the statute of limitations period.

There is another type of asset protection for Nevada LLCs option that businesses can explore. This option is known as the Nevada Asset Protection Trust (NAPT) and it requires the LLC to transfer its assets into the NAPT, which is also an irrevocable trust. The NAPT provides insulation to LLC assets from any future judgments, lawsuits, and creditors. In order to operate this trust, an LLC will need to meet certain requirements. For instance, one of the trustees needs to be a Nevada resident.


Nevada Series LLC

Date: | Category: | Author: Martin Pouzar


If you are planning to set up a business in Nevada and want to take advantage of asset protection laws in the state then you can opt to form a traditional Limited-Liability Company or a Series LLC governed by Chapter 86 of the 2017 Nevada Revised Statutes. Let’s try and understand the difference between either forms of LLC.

What is Nevada Series LLC? How does it differ from a Regular LLC?

Nevada is one amongst 14 jurisdictions in the nation to have adopted statutes that provide for the formation of a series limited liability company. A series LLC abbreviated as an SLLC; is a type of limited liability company providing liability protection across several series. In simpler terms, it can be defined as a single entity that constitutes separate assets, management, members, liabilities, investment objectives, and ownership structures.

The assets of each series, also known as divisions are protected from liabilities of the main LLC as well as other series or divisions. The structure of a Series LLC is hence quite different from that of a traditional LLC. This type of limited-liability company structure is quite an uncommon option for businesses as there is a lack of clear guidance from the judicial, legislative, and regulatory body. Perspectives are changing now as the IRS has proposed regulations indicating that IRS considers a series limited-liability company as a legitimate structure.

Now that you know what a series LLC is, ever wondered how it is different from a regular LLC? One of the biggest differences between these two types of LLCs is that a series limited liability company will allow you to compartmentalize or segregate your assets. Hence, this form of limited-liability company provides a business with the best possible asset protection in Nevada.

Series LLC Benefits

As compared to the traditional limited liability company, a Series LLC registration in Nevada will allow businesses to enjoy a different set of benefits although some advantages are similar. One of the salient aspects of a series limited-liability company is that the benefits would be long-term, so that it can support sustainability and enable overall growth of the business. Here’s a window into the different benefits for a start-up business in Nevada.

Asset Protection

The first and foremost benefit that a business entity will enjoy post series LLC registration in Nevada is “asset protection”. The concept of a series limited liability company is quite well suited for different types of assets that an LLC owner or members may have including real estate. This type of LLC comes with a protective shield for all internal liabilities. This shield allows owners or members to segregate assets into multiple series. As a result, exposure of assets to liabilities is reduced considerably.

Here’s an example: ABC LLC owns a Fast-Moving Consumer Goods (FMCG) business and has its own fleet of transportation vehicles to transfer products to the market. A small accident of even a single truck or transportation vehicle can increase liability of ABC LLC but if the same company forms a series LLC for each section or activity that the business is involved in then it will restrict the liability to that activity or section. If the production is one series and transportation is another series then an accident on either of the series or divisions will not hamper the entire company. As a result, the entire company cannot be sued.

Independent Structure

A series LLC registration in Nevada simply means that there is a parent LLC and there is sub LLC within the parent LLC. It should not be confused with a “parent-child” relationship of the series but should be considered as a horizontal relationship (siblings). At the same time, each division in the series limited-liability company has its own profit, loss, and liability. It is also separate from other divisions legally and in economic structure.

An example of a business that will benefit through series LLC registration is a property management company, which owns multiple properties. In such a company, each of the properties can be an independent cell or division under the parent SLLC.

Low cost of startup

One of the finer aspects of series LLC registration is low cost of start-up. An SLLC will require a single filing fee even though it has multiple series. It can easily be set up by a Nevada registered agent like IncParadise at a lesser cost as compared to setting up multiple LLCs.

Lower Complexity

A series LLC registration has a less complicated structure as compared to corporations. An SLLC will not have complexities in structure, taxes or even document formalities.

Tax Return

Even though a Series LLC constitutes multiple series or divisions, only the parent LLC will need to file a tax return and not each division.

Risks of Series LLC

There are provisions for series LLC registration in Nevada Revised Statutes as seen in NV Rev Stat § 86.296 and NRS 86.296(3) yet there is not enough detail regarding their operations. This is mostly due to the fact that they are considered to be in their legal infancy stage and have been adopted in only one-third of the states.

Since there is a cloud of uncertainty around the operations of the SLLC, there are certain risks that businesses need to consider prior to Nevada series LLC registration. Some of these risks identified below:

  • Taxation: One of the prominent issues that pose a risk to series LLC is payment of Federal tax. The procedure is quite complex. Apart from this, the tax treatment of a series limited-liability company and by the IRS as well as state tax departments is quite unclear due to the lack of uniform tax guidelines.
  • Bankruptcy: The Nevada Series LLC laws surrounding Federal Bankruptcy provides no guidance whatsoever. This is due to the fact that the U.S. Bankruptcy Code has not recognized the Series limited liability company. As a result, there is a lack of consensus on whether an SLLC should file bankruptcy in a series or as a single entity.
  • Registered Agent: Unlike in traditional LLC, a series LLC registration will lead to each series or division being managed by separate registered agents. This could lead to higher expense of hiring additional agents.
  • Banking and Accounts: A series LLC has multiple divisions and each division needs to have a separate bank account. Since, each series will have their own financial statements; they need to have separate accounting as well. The greater the number of LLC’s in a series, the bigger the administrative issues.
  • Governing Documents: It is imperative that the governing documents for series LLC registration are carefully drafted. These documents should take into consideration specific statutory requirements of NRS 86.296(3). Even the slightest mistake could hamper the formation of such an entity.
  • Operation in another state: This is an area of concern for a Nevada series LLC. With such business plans to operate outside of Nevada, especially in a jurisdiction that does not have a series LLC statute the court will not recognize such a business entity.

Series LLC Requirements & Registration

A limited-liability company is definitely beneficial to businesses looking at asset protection but what is the process for Nevada series LLC registration? The process is as follows:

  • In order to form an SLLC in Nevada, you will be required to file “Articles of Organization” for establishing an umbrella or master Limited Liability Company.
  • The Articles of Organization and Operating Agreement of the LLC should contain the following information:
    • A statement confirming the master LLC will have multiple series
    • A statement of series LLC registration setting forth the powers, rights, and duties of the series
    • A statement indicating that the rights or powers of each series is provided in detail in the Operating Agreement of the LLC

It is important to note that a Series LLC is not considered as a separate business entity under Nevada Revised Statutes.

Taxation for Series LLC

When it comes to taxes, do taxation for series LLC work in a different ways as compared to traditional LLCs? Do you need to pay federal taxes or state taxes? These are some of the questions frequently asked by business owners planning to form a series limited liability company. So, let us look at what tax obligations SLLCs have.

If we look at a series LLC from the point of view of Nevada state laws then the series limited liability company is not considered as a separate entity but in the case of taxation things are beginning to change. Recently, changes in federal tax regulations have been proposed that would treat each series in a series LLC as a separate entity when it comes to payment of federal income tax. This is governed by Proposed Reg. §30.7701-1, 75 Fed. Reg., 55,699 (2010). These proposed regulations are applicable to a series that has been created by a “series organization” pursuant to state specific series statutes.

The above is a proposed regulation only and therefore a series LLC would have to report as a single entity in the state of Nevada. You can form an LLC in Nevada as the first step towards starting a series.

Difference between series LLC and a Restricted LLC

The business structure of a limited-liability company is undergoing a vast change and this has allowed different states including Nevada to create different types of LLC. These LLC’s are being created to offer a variety of benefits to businesses like asset protection and tax benefits. The two new types of limited liability companies that are accepted in the state of Nevada are Series LLC and Restricted LLC.

The Notable Differences

Since Series LLCs and Restricted LLCs are two forms of a limited-liability company, how are they different?

  • Acceptance: The series LLC registration is possible in 17 states but a restricted LLC can only be formed in Nevada. A restricted LLC is a limited liability company that is organized and exists under chapter 86 of Nevada Revised Statutes. It is an LLC that elects to include the optional provisions as permitted by NV Rev Stat § 86.161 (2015).
  • Structure: A series LLC is a type of master LLC that constitutes several sub LLC’s or a series of business divisions with separate members or managers and assets. A Nevada restricted LLC is like a traditional LLC and does not have separate members or assets under divisions or series.
  • Distribution: A series LLC does not have restrictions when it comes to making distributions. As the name suggests, a restricted LLC however has certain restrictions. For instance, it cannot make any distributions to its members or managers prior to 10 years of existence. Of course, this type of restriction has its benefits as it provides a favorable tax treatment to the members.
  • Tax free Interest: A series LLC does not have a “tax free interest period” but a restricted LLC has such a period. If the interest generated from a restricted limited-liability company is gifted to family members then that interest will be tax free for a specific period of time.
  • Liability: A series LLC has been created specifically to protect assets and minimize liability but a restricted LLC faces the same liabilities as that of a traditional LLC.

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Nevada LLC Law

Date: | Category: | Author: Martin Pouzar


Nevada is one of the few states that provide a business friendly climate and a strong Nevada LLC law that intends to protect a business enterprise and provide valuable information regarding its formation and operation in the state.

An Introduction – Nevada LLC Act

The current Nevada LLC Act is known as the 2013 Nevada Revised Statutes, Chapter 86 – Limited-Liability Companies. Some of the most important laws related to the functioning and existence of a Limited Liability Company were first defined in the Nevada statutes between 1991 and 2001. The Chapter 86 – Limited-Liability Companies were added to Nevada Revised Statutes in 2005.

What does the Nevada LLC Law comprise of? It provides important information pertaining to operations, filing requirements, fees, agents, provisions, business name, registered agent, organizational existence, general powers, operating agreement, management, capital, profit, liability, and dissolution among others.

The primary objective of the Nevada LLC Act is to help businesses to legally operate in the state. The NRS86 of the Nevada Revised Statutes are considered to be pro-business and thus enables a business friendly legal as well as a tax environment. If you are planning to establish your business in Nevada then you will be required to file necessary formation or registration paperwork and meet requirements as specified by the Nevada Limited-Liability Companies Act.

Nevada LLC Name Requirement

The Nevada LLC name requirement is an important aspect of business formation in the state and is governed by Chapter 86 of the Nevada LLC Act. Naming requirements for a business entity can be categorized under two subsections and they are:

  • Naming Guidelines
  • Name Availability Check

Naming Guidelines

A business name is integral to any organization and is one of the most important aspects of forming an LLC in Nevada. There are certain naming requirements governed by the Nevada LLC Law that businesses will have to comply with. Let us look at the key naming guidelines as set forth in the 2013 Nevada Revised Statutes.

  • The name of your business entity must contain phrases like Limited-Liability Company, Limited Liability Company, Limited Company or Limited. The name may also contain abbreviations like L.L.C., Ltd., LLC or LC. The word “company” can also be abbreviated as Co. This is governed by Nevada LLC Act – NV Rev Stat § 86.171 (2013).
  • The proposed name of your business entity should be distinguishable from any other name on the records maintained by the Secretary of State.
  • The business name should not contain words or phrases that could be confused with government agencies like state departments, treasury, department of taxation etc.
  • The Nevada LLC Law, Title 7 of the Nevada Revised Statutes, advocates that the usage of certain words in a business entity name may be restricted.

Note: If you are planning to form a professional limited liability company then the naming guidelines according to Nevada LLC Act must contain specific words and phrases. The name should contain words like Professional Limited Liability Company or abbreviations like “Prof. L.L.C.,” “P.L.L.C.,” or “PLLC”.

Name Availability Check

Once you have identified a business name that is compliant with all requirements of the Chapter 86 – Nevada LLC Act, the next step is to check if the chosen name is available so that you can reserve it with the Secretary of State.

You can use the state portal for Nevada Business Search to check the availability of your chosen business name. In order to accomplish an effective search, you will have to type the business name without any identifiers like L.L.C or LLC as mentioned in Nevada LLC Law. This search will return names that are either the same as chosen by you or similar. Let’s look at an example:

  • If you search the name “Ibiscus” and choose the option “Name Starts With” then it will show the result as -“No records found with your search criteria.”
  • If you search the name “Ibiscus” and choose the option “Name Contains” then it will show the result as – “Your Search Criteria returns 300 results”. It will show information like Name of the business entity, its status, filing date, type of entity, business ID and entity number.

It is highly recommended to conduct a detailed search using all possible parameters prior to applying for name reservation.

Articles of Organization Requirements

You can form any type of business in the state of Nevada but if you are planning to start a Limited Liability Company then Chapter 86 of the 2013 Nevada LLC Act requires a business to file specific documents related to the formation. The most important document for new business registration in Nevada is Articles of Organization, which has to be filed with the Secretary of State along with the required fee.

There are certain provisions that have been set forth by NV Rev Stat § 86.161 (2013). This chapter of the Nevada LLC Law requires a business entity to provide specific information regarding the organization. The Articles of Organization should contain the following:

  • Name of the limited-liability company
  • Name and address of the registered agent of LLC to enable service of process
  • Name and address of the owners, members or managers of LLC
  • Statement providing information of the company being managed by one or more owners, managers, and members.
  • Statement providing information setting forth the relative rights, duties, and powers of the series

You can file the Articles of Organization through mail, by hand, and online.

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Nevada LLC Members Information Requirements

There are several advantages of forming an LLC as the Nevada LLC Act does not require it to follow the same rigorous operational requirements as is the case of a corporation. At the same time, an LLC can have a single owner or multiple owners often known as members. One of the salient aspects of a Nevada LLC is that the state does not require owners or members to residents of the state.

The Nevada LLC Law also allows a Limited Liability Company to employ non-economic members. Such members will not own any portion of the LLC but will still have voting rights of economic members. There are specific Nevada requirements for LLC members governed by NV Rev Stat § 86.291 – § 86.326 (2013) that need to be met and these are:

  • Nevada LLC Act states that a Nevada Limited Liability Company should have at least one member or manager
  • All members of LLC should be 18 years of age or older
  • An LLC in Nevada will have to provide a list of LLC members within 30 days after it has been formed or registered. This list is also known as the Initial List
  • Nevada LLC Law requires names and addresses of members to be listed in the Articles of Organization
  • The members and their rights, powers, and duties need to be mentioned in the operating agreement.

Asset Protection for Nevada LLC

One of the salient benefits of forming an LLC in Nevada is their “Asset Protection law”. The Nevada LLC Act does not require businesses to list company assets hence a member will not be responsible for any liabilities of the LLC.

In the state of Nevada, a business will enjoy favourable laws related to asset protection and will be able to create an asset protection trust. Since this protection trust is under the purview of Nevada LLC law and Nevada asset protection statutes; it will protect members or the LLC assets from creditors seeking to pursue a legal case.

The Nevada asset protection trust provides protection to a wide variety of assets including personal property, family heirlooms, real estate, bonds, stocks, and cash among other assets. There is another asset protection option and it is known as the “charging order”. The strong and pro-business Nevada LLC Act provides the opportunity to single-owner and multi-owner LLC’s to use the charging order for protecting assets.

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