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Nevada LLC Taxes

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

NEVADA LLC TAXES

A limited-liability company is a form of business entity, often considered to be a private limited company. It provides businesses with numerous benefits including limited liability, flexible management structure and no double taxation on LLC distributions. The working of an LLC in the “Silver State” is governed by the Nevada Revised Statutes and this includes annual requirements and Nevada LLC tax.

Introduction – Nevada LLC Taxes

Nevada is a popular state for business because it has virtually no “state level” Nevada LLC tax. Some of the taxes not applicable to business entities include:

  • Corporate income tax
  • Franchise tax on income
  • Personal income tax
  • Unitary tax
  • Admissions tax
  • Gift tax or estate tax

Of course, there are certain taxes that your limited-liability company may have to file in Nevada. When we talk of federal income tax, an LLC is treated as a pass-through entity. Does it mean such entities are not required to file Nevada business income tax? Yes, it does and for that we need to identify what a pass-through entity really is for tax purposes.

A pass-through entity is basically a type of business structure where the primary goal is to reduce or remove double taxation. A pass-through entity will not be required to file Nevada LLC tax at the corporate level and instead the tax will have to be filed by an individual or owners of an LLC. Thus, the income generated by a limited liability company will be taxed at an individual tax rate.

Here’s an example to help you understand how it works: A Nevada LLC named “DEF” will be a pass-through entity. When this business has to file a tax return then the Nevada LLC tax rate will be as follows:

Revenues – $2,000,000

Expenses – $1,000,000

Earnings Before Interest & Taxes (EBIT) – $500,000

Interest Paid – $200,000

Earnings Before Taxes (EBT) – $300,000

Taxes – $0

Net Income Available to Owners – $300,000

DEF has two owners named Martha and Josh and each of their ownership in the LLC is 50 percent. The LLC will send an IRS Schedule K-1 to both Martha and Josh and this schedule will report their portion of the pass-through income. So, Martha and Josh will file a Nevada LLC tax return with $150,000 as their incomes.

General Information about the Nevada LLC Taxes

Although a limited-liability company is a pass-through tax entity there are other unique aspects of Nevada business income tax as well. LLC is a type of business entity that enjoys the flexibility to choose the tax treatment it wants. It can choose to be taxed as any one of the following:

  • A Nevada LLC can elect to be taxed as an S Corporation. It will require Form 8832 and Form 2553 for the same.
  • It can choose to be taxed as a C Corporation as well using Form 8832.
  • Nevada LLC tax rate can also be defined by it choosing to be taxed as a Sole-Proprietorship and this is possible only for a single member LLC or a disregarded entity.

If a Nevada LLC chooses any of the above tax designations then it will not be able to change the tax treatment for a period of five years. There are finer aspects of Nevada LLC tax that business entities planning to register in the state need to be aware of. Some of them include:

  • If an LLC operates its business in Nevada then it will not be subject to any corporate or individual income tax but if it operates outside the state then it will be subjected to a tax treatment specific to the state it is operating in. Example: If you form an LLC in Nevada and operate your business in Nevada and New York then your business will have to file taxes in New York.
  • Nevada LLC tax has to be filed annually and this can only be filed after you register your business entity with the Secretary of State (SOS)
  • The Nevada LLC tax rate and amount to be filed will depend on the level of business activity and earnings.
  • It is also important to know that if your Nevada LLC has employees and reports gross wages to the Nevada Employment Security Division (ESD) then your limited-liability company will be subjected to modified business tax (MBT). The MBT is a type of Nevada business income tax and came into effect on July 1, 2015 through Senate Bill No. 483. MBT has to be paid to the Department of Taxation.
  • Apart from the modified business tax, Nevada now imposes Commerce Tax on gross revenue pursuant to Nevada Administrative Code, NAC 363C. This tax has to be paid to the Nevada Department of Taxation.
  • If you are a domestic business entity in Nevada but are pursuing business activity in another state then you will be treated as a foreign entity in that state and may be required to file franchise taxes. However, your LLC will not be required to pay any Nevada LLC tax like inventory or franchise taxes in the state.

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Federal Taxes for your Nevada LLC

A limited liability company (LLC) in Nevada with a default tax election means such an LLC is not considered as a tax paying entity but as a tax reporting entity by the IRS. The federal Nevada LLC tax by the Internal Revenue Service can be defined according to the number of LLC Members.

If you form a single-member limited liability company that has not been elected for treatment as a corporation, then such an LLC will be known as a “disregarded entity” for Nevada LLC tax purposes. The activities of such an LLC will be reflected on the owner’s federal tax return.

The Nevada business income tax will depend on the owner of the LLC. The activities of such LLC’s will be reflected according to the owner as:

  • If it is a single owner LLC where the owner is an individual then the Nevada LLC tax rate would be like that of a Sole Proprietorship. The individual would have to file Form 1040 Schedule C, Form 1040 Schedule E, or Form 1040 Schedule F.
  • If the owner of an LLC is another business entity like a corporation or a partnership then the Nevada LLC needs to be reflected on the federal tax return of the owner as a division of business entity (corporation or partnership).

It is important to note that a single member LLC or disregarded entity will be required to use the owner’s social security number (SSN) or employer identification number (EIN) for all federal income tax or Nevada LLC tax purposes.

Nevada State Business License for LLC

The Nevada state business license is an important aspect of Nevada LLC tax as without this license, an LLC will not become operational in the state. The business license is an annual requirement and you can apply for it along with the Articles of Organization. The business license has to be renewed each year when filing LLC annual list.

Nevada State Business Income Tax

Nevada has one of the most competitive business tax climates because there are no corporate income taxes, margin tax, or gross receipts tax. Hence, the state avoids heavy tax burdens that impair business activities and growth. The Nevada business income tax that an LLC has to file is known as the Modified Business Tax (MBT). The primary advantage of the MBT is ease of compliance and simplicity.

The Nevada Modified Business Tax (MBT) is basically a payroll tax that is levied on a limited-liability company irrespective of the number of owners. This Nevada business income tax is levied on those entities that are required to pay the unemployment insurance tax. It is collected on a quarterly basis.

This is a unique tax that exists only in Nevada and MBT has two classifications – general business and financial institutions. The Nevada LLC tax rate for general businesses is 1.475% and 2% for financial institutions on the sum of all wages taxable after deducting the cost of employee health insurance. However, the first $50,000 of gross wages of a Nevada LLC will not be taxable.

It is important to note that even if the wages are less than $50,000 and there is $0 tax due, the tax return has to be filed by the limited liability company. The Modified Nevada business income tax is paid to the Department of Taxation by the last day of the quarter.

Nevada Commerce Tax Return

On June 5, 2015, the Nevada Governor introduced the new “Commerce Tax” effective July 1, 2015 after the approval of Assembly Bill 380 and Senate Bill 483. This Nevada LLC tax also known as commerce tax will be levied on any business entity that has gross revenue of more than $4 million.

A “business entity” for this type of Nevada business income tax includes a partnership, corporation, limited liability company, sole proprietorship, and any other business entity engaged in business activity in the state. However, at the same time a limited-liability company will be excluded from the commerce tax if it derives at least 90% of their federal gross income from specific investment activities. An LLC will also be excluded from commerce tax if it is confined to business activities like owning, maintenance as well as management of intangible investments, including patents, bonds, trademarks, stocks, and trade names.

The Nevada LLC tax rate for commerce tax is based on the North American Industry Classification System (NAICS) and hence varies from 0.051% to 0.331%. Let’s look at an example:

The NAICS code for Agriculture, Fishing, Forestry, and Hunting is 11 and the Nevada LLC tax rate is 0.063%. If the business activity of an LLC focuses on Administrative and Support Services, whose NAICS code is 561 then the Nevada commerce tax rate would be 0.154%. At the same time, it is important to keep in mind that if a Nevada limited liability company is engaged in a business in more than one industry category then the tax rate would be determined by the industry category in which the gross revenue generated is higher.

Local Taxes for your LLC

Nevada has one of the most unique tax systems in the nation. Modified Business Tax exists only in Nevada and apart from commerce tax; there are some local Nevada LLC taxes that may be levied on businesses operating from this state. The different types of local taxes depending on your business activity include:

  • Sales and Use Tax
  • Live Entertainment Tax
  • Local School Support Tax
  • Basic City-County Relief Tax
  • Mines Tax
  • Liquor & Tobacco Excise Tax
  • Insurance Tax
  • Gaming Tax
  • Property Tax
  • Transportation Tax
  • Business License Tax

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Foreign LLC to Register in Nevada

Date: | Category: | Author: Martin Pouzar

FOREIGN LLC REGISTERING IN NEVADA

If you have a limited liability company in New York or any other state except Nevada but are interested in forming a business in Nevada, is it possible? Yes, it is definitely possible and all you have to do is register your existing business as a foreign LLC in Nevada. This guide is intended at providing you with in-depth information about setting up and operating a foreign limited-liability company in Nevada.

What is Foreign LLC in Nevada?

A foreign LLC Nevada is a type of business entity whose primary location of business activity is outside Nevada.

For example: if you have registered a limited-liability company in New York and are planning to sell your services or products in Nevada then you will be required to register your business entity as a Foreign LLC in this state. So basically, your entity is a domestic LLC in New York but in any other state it will be considered as a foreign entity.

There are certain parameters that define if your business is a foreign LLC in Nevada or not. The parameters include:

  • Selling any product or service
  • Having a bank account in Nevada
  • Having a mailing address in this state
  • Owning a warehouse or distribution facility
  • Owning a store
  • A Sales representative in the state

One of the important aspects to consider is that you can start a business activity in the state after approved Nevada LLC foreign qualification.

Steps to register foreign LLC qualification in Nevada

The qualification and formation of a foreign LLC in Nevada is governed by Chapter 86 of the 2017 Nevada Revised Statutes, NV Rev Stat § 86.543 – § 86.5463 (2017). There are several aspects of a foreign business entity that you will need to consider so that you are able to form your business properly. Let’s look at the process through a step-by-step guide.

1. Choose a Name for your Foreign LLC

The first and foremost step towards Nevada LLC foreign qualification is choosing a business name. A foreign limited-liability company has to register their chosen name with the Secretary of State pursuant to NV Rev Stat § 86.546 (2017). When choosing a name, it is important to consider the following:

  • The name of your foreign LLC Nevada should contain words like Limited Liability Company, Limited-Liability Company, Limited Company, or Limited or abbreviations like L.L.C., Ltd., LLC, L.C., or LC. The word Company can also be abbreviated as Co. This name requirement is governed by NV Rev Stat § 86.171 (2013).
  • The name proposed for your foreign LLC in Nevada should be distinguishable from any other name existing on the records of the Secretary of State.

You can reserve the name for a period of 90 days with the Secretary of state. You can run a name availability search to check if your chosen name is available.

2. Application for Registration

The next step is to file an “Application for Registration of Foreign LLC in Nevada” with the office of the secretary of state. This application will ensure, your foreign LLC is formed in the state and your business name is registered. According to NV Rev Stat § 86.544 (2017), the application for registration has to be signed by a manager or a member of the LLC. If the powers are not vested in a member or manager then it has to be signed by any person authorized to sign on behalf of your limited-liability company like a registered agent.

It is important to ensure that the application for registration contains specific information like:

  • The name of the foreign LLC Nevada
  • The jurisdiction and date of its formation
  • A declaration of its existence or certificate of good standing from the jurisdiction where the foreign limited-liability company was formed
  • Name and address of the registered agent of your LLC pursuant to NRS 77.310
  • Address of the business entities office as required to be maintained in Nevada
  • The name and business address of each member or manager

Once the application has been duly filled, it can be submitted by hand or mail with the Secretary of State, 202 North Carson Street, Carson City, Nevada 89701-4201. You can even opt for an expedited service, although the fee would be higher. Alternatively, IncParadise can file it on your behalf.

3. Initial List

Once the Nevada LLC foreign qualification is complete, the business entity will be required to file a list of managers and members and this is known as the initial list. The initial list has to be filed within 30 days of filing an application for registration. You can also file it along with the application for registration.

The initial list has to be filed under the provisions of NV Rev Stat § 86.5461 to 86.5468 (2017) and should contain the name and address of residence or business of each of the managers or members of the foreign LLC in Nevada.

4. Appoint a Registered Agent

A foreign limited-liability company in the state of Nevada should designate and maintain a registered agent pursuant to NRS 77.390 and NV Rev Stat § 86.231 (2017). The primary reason for maintaining a registered agent is to ensure “service of process”. A registered agent is an important aspect of Nevada LLC foreign qualification and can also provide the LLC with an approved physical address where mails and notifications from the Secretary of State can be received.

Note: If a foreign LLC Nevada fails to maintain a registered agent then the Secretary of State can revoke their business or it can lead to dissolution of the legal status of the said business.

A foreign LLC in Nevada will have the option to change their existing agent or hire the services of some of the reputable registered agents like IncParadise. You will be required to file the “Registered Agent Acceptance” form along with the application for registration of foreign LLC.

5. Annual Report and Taxes

One of the important annual requirements post Nevada LLC foreign qualification is the filing of an Annual List or Annual Report with the Secretary of State along with a fee of $150. The filing of the annual list is governed by NV Rev Stat § 86.5461 (2017). The annual list has to be filed on or before the last day of the anniversary month after the filing of the application for registration of a foreign limited-liability company. For example: If you have filed an application for registration on Nov 1,2019 then your annual list or report will be due in November 2020 and you will have to file it prior to Nov 30, 2020.

If a foreign limited liability company fails to file an annual report by the due date then there will be a penalty. If the foreign LLC fails to file 90 days after the due date then the Secretary of State will deem the foreign LLC to be in default pursuant to Nevada Revised Statutes § 116.31155 or 116B.620. This can lead to the business entity losing its Nevada LLC foreign qualification.

In addition to the annual report, a foreign LLC Nevada will be required to pay an annual Business Privilege Tax of $200 as well as file individual income tax returns since it is a pass-through entity.

How IncParadise can help you

IncParadise is one of the most reputable registered agents in the state and has represented more than 10,000 business entities across the nation. We are in compliance with all commercial agent requirements in Nevada as well as Chapter 77 of the Nevada Model Registered Agents Act. We are authorized to receive service of process, demand, or notice as permitted or required by law to be served on your foreign LLC Nevada. We can provide assistance with the following:

  • Provide guidance and information on how to meet Nevada LLC foreign qualification requirements
  • Help with all types of filing requirements including application for registration of foreign LLC
  • Prepare and file taxes, initial and annual list on your behalf
  • Help you to obtain a business license and Tax EIN
  • Help you to obtain a certificate of good standing
  • Provide top of the line customer service for all queries related to forming a foreign LLC Nevada
  • Provide multiple additional services at an extra fee

EASY SET UP OF NEW NEVADA LLC WITH INCPARADISE

Nevada LLC – Business License

Date: | Category: | Author: Martin Pouzar

NEVADA LLC – BUSINESS LICENSE

An integral part of the process of forming a Limited Liability Company is applying for a Nevada business license. A new business whether it is into manufacturing, services, retail, or scientific innovation, the businesses can become operational only if they have the required permit or license.

Introduction – Business License for Nevada LLC

Nevada is one of the top states when it comes to providing a pro-business environment to start-ups. The state and local government have committed themselves to ensure Nevada businesses enjoy a low-regulation environment and this includes low cost start-up, and streamlined Nevada LLC business license process.

A business license is a document that confirms that a business can operate in a specific jurisdiction in Nevada or anywhere within the state. The license is a type of permission issued to a business depending on the type of business or industry. The licensing process is different for different states and there are specific organizations that do not require a Nevada business license. They are:

  • Government entities
  • Non-profit religious entities
  • Charitable organizations
  • Fraternal organizations

Apart from organizations as mentioned above, certain manufacturers will not be required to obtain a Nevada business license pursuant to NV Rev Stat § 76.103 (2017).

Do I need business licenses and permits for my Nevada LLC?

If your business doesn’t belong to any of the above category, will it require a business license? Yes. In Nevada, all Title 7 entities need to obtain a business license. A title 7 entity is any business entity that has been organized under the Nevada Revised Statutes and has filed formation or incorporation documents with the Secretary of State. Title 7 entities include domestic and foreign limited liability companies (LLC), limited partnerships (LP), corporations, limited liability partnerships (LLP), limited liability limited partnerships (LLLP) and business trusts. Nevada business license is governed by Chapter 76 of the 2015 Nevada Revised Statutes.

It is important to also understand that the business license or permit required is dependent on the type of business. The location of your LLC will also play an important role in defining the licensing needs.

Since a Nevada LLC business license is mandatory for most businesses, failure to comply with the licensing or permit requirements can lead to a penalty of $100 and payment of additional fees pursuant to NV Rev Stat § 76.110 (2017). Such an LLC can even be subjected to operational restrictions. The penalties for operating without a business license can vary from $1,000 to $10,000.

Types of Business License in Nevada

Most businesses registering in the state of Nevada will require a license or a permit. The Nevada LLC business license can be defined under the following categories:

State Business License (SBL)

This is a mandatory license for most start-ups and is issued by the Nevada Secretary of State (SOS). It has to be renewed annually. The Secretary of State has set certain requirements for state business license and it is governed by NRS 76.100. It states that if a business entity is required to file an initial list or annual list with the Secretary of State then it must obtain a state business license during the time of filing the list.

Federal License

There are only specific businesses that may require a Federal License or permit. The requirement of this type of Nevada LLC business license is dependent on the type of activity a business in involved in and accordingly contacts the agency responsible for issuance of such a license. Some of the business activities and their corresponding issuance agencies include:

  • Drug Manufacturing: This license is issued by the Food and Drug Administration (FDA)
  • Ground transportation: This license is issued by the Department of Transportation (DOT)
  • Investment Advising: This federal license is issued by the Securities and Exchange Commission (SEC)
  • Preparation of meat products: This federal license is issued by the Food and Drug Administration (FDA)
  • Selling alcohol, tobacco or firearms: This Nevada LLC business license is issued by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (AFT)
  • Broadcasting: This license is issued by the Federal Communications Commission (FCC)

Retail sales permit

This permit is issued by the State Department of Taxation. You will need to check with the taxation department to identify if your business requires this permit.

Local license

If you are forming a small business LLC in Nevada then you may require just a local license, which will enable your start-up to operate within the county or city where it is situated. Such licenses are issued by the county clerk office or city administration.

Note: If you are planning to operate in multiple cities or counties then you will be required to apply for a local Nevada business license in each of the counties or cities.

Special Permits

This is applicable to small businesses in cities or counties and depending on the type of business, special permits can include those issued by the Fire, Police, Health, or Building Departments.

There are other processes and requirements that need to be met in order to get your Nevada LLC business license. Let’s look at an example:

If you are planning to start a “child care” facility then prior to issuance of the Nevada LLC business license, the concerned authorities (Department of Health and Human Services Nevada Division of Public and Behavioral Health) will conduct an inspection. The inspection is there to ensure you or your facility fulfils necessary business license requirements, safety regulations, insurance and zoning requirements of the city or county it is located in.

IncParadise can guide you through the process of obtaining a Nevada business license!

RESOURCES ON BUSINESS LICENSE

Nevada Business License Application Fee

The Nevada LLC business license fee is subject to the type of license your business entity requires in the state. The fee will be different for federal, state, and city or county licenses.

IncParadise can help you obtain the state business license and the fee is $245, which includes:

  • State business license fee: $200
  • Our license processing fee: $45

We can also provide assistance with information concerning local business licenses and their applicable fees.

If I’m going to start a single-member LLC, do I need a business license?

Yes, a Nevada single member LLC (SMLLC) is a business entity that are required by NV Rev Stat § 76.100 (2017) to file an annual list with the Secretary of State and hence will have to obtain a Nevada LLC business license to conduct business in the state. The business license application is included in the Annual List of Members or Managers of a Limited Liability Company.

How IncParadise can help you with Nevada Business License?

There are different types of Nevada business license that is issued on the basis of the activities conducted and the location of a business. Your business may require:

  • A state business license (SBL)
  • A State and Federal License
  • A State and Local County License

It may look like a complicated process especially when it comes to identifying what type of license your company should ideally apply for. This is where our experience and expertise will assist you with ensuring you are able to apply for and obtain the correct Nevada LLC business license.

We help make new business filing
and submissions faster and easier!

Nevada LLC Registered Agent

Date: | Category: | Author: Martin Pouzar

NEVADA LLC REGISTERED AGENT

Nevada is one of the most popular states for new business formation because of its favorable business climate and a strong regulatory environment. It may not be an easy process to register your Limited Liability Company as there are several documents that are required to be submitted but a Nevada LLC Registered Agent like IncParadise can make it easier for you to form your business.

Introduction – Nevada LLC Registered Agent

One of the most important steps towards forming a Limited Liability Company in Nevada is appointing a registered agent. The appointment of a Nevada LLC Registered Agent is necessary because:

  • This is mandatory in Nevada according to Nevada Revised Statutes, Chapter 86 and Nevada Code – Chapter 77
  • A Registered agent will ensure “service of process”

In Simpler terms, a Nevada LLC Registered Agent is an individual or a company that accepts “service of process” or legal notices and mail on behalf of the business entity. A registered agent is considered to be a third party and in some states they are also known as a statutory agent or resident agent.

It is also important to note that Nevada Registered Agent Service can be offered by two types of agents and they are:

  • Commercial Registered Agents
  • Non-Commercial Registered Agents

The distinction between a commercial and non-commercial registered agent has been established by the Model Registered Agents Act (MoRAA). This act came into effect in 2006 with the joint effort of the International Association of Commercial Administrators (IACA) and American Bar Association (ABA). Nevada is one of the 11 states, where a commercial registered agent is responsible for business formation and service of process.

Who is a commercial registered agent?

The Model Registered Agents Act (MoRAA) states that a commercial registered agent will be considered as a Nevada LLC registered agent if such an individual or entity is featured in the registered agent listing statement with the Nevada Secretary of State. IncParadise is one of the most reputed Nevada commercial registered agents listed in the state and provides a multitude of services for new and existing businesses.

What exactly does your Nevada LLC Registered Agent do?

A registered agent also known as a commercial registered agent in the state of Nevada provides assistance towards new business entity formation and ensures proper maintenance of business records and timely renewals and submission of documents of existing businesses. The Nevada registered agent service is multi-faceted but some of the most important benefits to business entities include:

  • Service of process on business entities: This is the most important Nevada registered agent service and it is governed by NV Rev Stat § 77.390 (2015). The responsibility of the chosen registered agent according to NV Rev Stat § 86.261 (2015) is to receive the service of any process or notice or demand as permitted or required under law, on behalf of the limited-liability company.
  • Duties under Model Registered Agents Act: There are specific duties as specified under NV Rev Stat § 77.400 (2015) that your chosen registered agent is required to fulfil. For example, send notices or demand to the address recently provided by you. This ensures you are always in communication with the office of the Nevada Secretary of State.
  • Point of Contact: One of the salient highlights of the Nevada registered agent service is to act as “single point of contact” so that the office of the Secretary of State is able to communicate effortlessly with the business entity.
  • Provide Privacy: Privacy is important to any business especially when they are served notices by government or state departments. One of the finer aspects of Nevada registered agent service for a Limited Liability Company is to receive state department officials like sheriffs on behalf of the entity and thus help businesses maintain high levels of privacy.
  • Business Formation: What type of documents do you have to submit with the Secretary of State to form your Limited-Liability Company in Nevada? Can the formation processes with expedited? Where do you need to file the formation documents? What information is required to be submitted? These are some of the questions that you may be worried about and this is where a reputed Nevada LLC registered agent like IncParadise will provide valuable assistance to ensure the new business formation processes are not disrupted.
  • Business Documents: Once a Limited Liability Company is formed in Nevada, there are several other requirements that it may have to fulfill to remain active in the state. A business entity will have to file for EIN, submit initial list & annual report, apply for a business license etc. An integral part of the Nevada registered agent service includes receiving business and tax related documents as well as notifications and also assist with filing of appropriate documents within the stipulated time or due date.

A Specific service or multiple services, IncParadise provides all!

ADDITIONAL SERVICES IN NEVADA

Can I be my own Registered Agent for my Nevada LLC & its Limitation?

Yes, you can be your own Nevada LLC registered agent. Normally, this is an area that is seen as a valid option by single owner LLCs although multiple owner or member LLCs can also opt for it. The primary requirement is that you should have a street address in the state. It doesn’t matter whether you are a resident of Nevada or from another state as long as you have a Nevada address but a post office box address in the state will not be accepted.

A local address is required specifically for “service of process” so that any business notifications or mails sent by the office of the secretary of state can be received by the business or the agent. When you act as an individual agent, you will have to provide Nevada registered agent service like being available during business hours through the week as government officials or representatives from the sheriff department can visit the physical address provided.

Limitations

Are there any limitations of being your own registered agent? Yes, there are some limitations, which are as follows:

  • Public Record: An LLC has to submit information pertaining to the owners, managers, or members, and Nevada LLC registered agent with the Secretary of State. As a result, your address will get listed on the public records and will be accessible to anyone. This could lead to lack of privacy.
  • Home Address: Since you can use your home address as the address for “service of process”, this can open the doors of your home to litigants and those planning to sue the LLC. This will also affect your privacy.
  • High personal costs: If you choose to be your own registered agent then this may have a high personal cost as you will have to be readily available for any Nevada registered agent service required by the company. This may interfere with your business time like cancelling a business or offsite meeting as you have to remain at the office to receive documents.
  • Organized and knowledgeable: You need to possess information right from the duties of a registered agent to formation and handling of various processes related to the business like filing annual list or applying for EIN. Simultaneously, you will have to be organized so that you don’t miss out on annual filing due dates and also keep all business documents secure. Missing deadlines for a subpoena or legal request will have a negative impact on your business.

Why choose IncParadise as your Nevada LLC Registered Agent?

It is not just Nevada registered agent service that IncParadise provides but also has expertise in providing customized services based on specific requirements of a business entity. A business entity planning to form in Nevada will have to go through several processes and extensive documentation. Our services are focused at making the entire process of business formation easy and smooth.

IncParadise is in compliance with the Nevada Revised Statutes and Administrative Codes NRS 77.390, NRS 78.090, and NAC 77.015, and NV Rev Stat § 86.231 (2013) including having a physical address in Nevada. When it comes to Nevada registered agent service, we offer a range of services that a start-up as well as an existing business can benefit from by paying a small additional fee. Some of the salient features include:

IncParadise, a reputable Nevada LLC registered agent and as a listed commercial agent is responsible towards formation of more than 10,000 business entities.

Nevada LLC Formation will be a breeze
with IncParadise!

How much does it cost to form an LLC in Nevada?

Date: | Category: | Author: Martin Pouzar

HOW MUCH DOES IT COST TO FORM AN LLC IN NEVADA

Nevada is quite a popular state for start-ups and is home to 270,079 small businesses, which has created 19,397 net new jobs. The economy grew at an annual rate of 4.1% in the 3rd quarter of 2018, which is faster than the US growth rate at 3.4%. In the last few years, the Nevada Legislature has undergone deliberate changes that makes the Nevada of today an extremely business friendly state. This is one of the many reasons why people are forming Limited Liability Companies in this state but what is the overall Nevada LLC cost of doing business?

Filing the Articles of Organization

If you are planning to form a Limited-Liability Company in Nevada then its formation will be governed by Chapter 86 of the 2017 Nevada Revised Statutes. There is a Nevada LLC forming fees of $75 (state fee). In order to form an LLC, you will be required to file the Articles of Organization and the state fee with the Secretary of State at 202 North Carson Street, Carson City, NV 89701-4201.

The Nevada LLC cost for registration will increase if you opt for any of the following additional services of the Secretary of State:

  • 24-Hour expedited filing – $125
  • 2-Hour expedited filing – $500
  • 1-Hour expedited filing – $1,000
  • Additional certified copy – $30
  • Ceremonial (colored) charters – $100

The Nevada LLC forming fees along with expedited filing can take the cost to $330 or more depending on the type of expedited filing opted for. IncParadise can help you with the process of LLC formation at just $194. The breakdown is as follows:

  • Nevada State fee for Articles of Organization – $75
  • File stamped copy of Articles of Organization – $30
  • Our service fee – $89
  • Expedited filing – Free

Nevada Initial List

Normally, when you are forming an LLC, all you have to file with the state authority is the Articles or Certificate of Organization along with a certificate of good standing. In some states like Nevada, you will be required to file an Initial List of Managers or Members, Registered Agent Acceptance/Statement of Change, and State Business License along with the Articles of Organization. The filing of the initial list hence becomes a part of the Nevada LLC forming fees and it has to be filed with the Secretary of State pursuant to NV Rev Stat § 86.176 (2013). The initial list contains:

  • Name and address of each member of the LLC
  • Name and address of each manager of the LLC

The breakdown of Nevada LLC cost for filing the initial list along with the articles is:

  • Articles of Organization: $75
  • Nevada Initial List: $150
  • State Business License: $200

The above fee along with expedited delivery and additional documents can take the Nevada LLC forming fees to $680. IncParadise offers you the filing of initial list along with LLC formation documents for $589 and this includes:

  • LLC formation fee: $194
  • Filing of Initial List: $150
  • Filing of State Business License: $200
  • Processing charges: $45

Other Costs

There are different types of costs including Nevada LLC annual fees that your business will incur during and post registration. The costs will vary from one business to another depending on specific requirements of the LLC being formed. Some of the documents that your business may require include Certificate of Amendment, Name Reservation, Certificate of Correction, Merger, and Articles of Conversion among others. Let us take a quick look at some of the other costs that you may incur in Nevada.

Nevada LLC Annual Costs

There are certain annual requirements for businesses being formed in the state of Nevada. The annual requirement varies according to the type of business like a Limited Liability Company is required to submit an Annual List also known as the Annual Report and also renew their business license. The Nevada LLC annual fees are $350, which constitutes $150 for filing of annual list and $200 for business license renewal.

Quick and Easy LLC Formation in Nevada!

SETUP LLC IN NEVADA

Nevada LLC Registered Agent

The Nevada law NRS 77.390 and NV Rev Stat § 86.231 (2013) requires domestic and foreign entities to designate and maintain a Nevada LLC registered agent. The primary duty of a registered agent is to enable service of process but an agent can also provide several other services like business formation, name reservation, annual list submission prior to due date, and also customize services according to business need. The Nevada LLC cost of maintaining a registered agent varies on whom they choose.

IncParadise is one of the most established registered agent services in Nevada and offers a cluster of services and information to new and existing businesses. We also provide services specific to your needs as well as store your documents on a secure online platform. The Nevada LLC annual fees for maintaining a registered agent is determined by the following:

  • Client Registered Agent: Free
  • Choosing IncParadise as NV Registered Agent: $89
  • Nevada filing fee for Registered Agent change: $65

Top of the line Registered Agent Services in Nevada!

FOR NEW COMPANYCHANGE OF AGENT

Additional services in Nevada

A business entity or start-up can take advantage of the Nevada business climate and incentives by registering in the state. We take pride in helping businesses form and operate in the state by taking care of documentation and filings. There are several additional services that we provide and the cost is not included in the basic Nevada LLC forming fees.

Nevada address and mail forwarding

A start-up planning to register their business in Nevada needs to have a physical address pursuant to the 2015 Nevada Revised Statutes: Chapter 86. You might not have a physical address in Nevada but that should not discourage you from registering in the state. IncParadise help you obtain a physical address so that you can conduct your business with ease and the Nevada LLC annual fees for the same will be quite nominal.

Mail forwarding is a special service through which a business or an individual residing outside Nevada can access their business mails effortlessly.

EIN Assistance

Although Nevada does not have any corporate income tax, your business may be required to file a Nevada business tax like sales and use tax, Modified business tax (MBT), or the Commerce Tax. As a start-up LLC, you will be required to apply for the 9-digit unique Employee Identification Number (EIN). This number is assigned to every business in Nevada and across the country by the Internal Revenue Service (IRS). The application and cost of applying for EIN is a one-time payment Nevada LLC cost. Our team of experts will not only provide information specific to the EIN but will also obtain this Tax ID from IRS on your behalf at just $45.

Nevada Certificate of Good Standing

The Nevada certificate of good standing is a document certifying the existence of your limited liability company legally. This certificate is issued by the Secretary of State if a business entity meets all requirements including those prescribed in NRS 78.152 or NRS 86.274. This certificate is also known as a “Tax Status Compliance Certificate” and the cost of applying for a certificate of good standing is a one-time Nevada LLC cost. IncParadise can obtain this certificate on your behalf.

Nevada Apostille

The Nevada Apostille is a specialized certificate, which is issued to a business entity or LLC by the Nevada Secretary of State. This certificate is issued to authenticate original business documents. The documents that can be legitimized using the Apostille include Articles of Organization, Certificates of Amendment, and Certificate of Good Standing among others. There is a one-time Nevada LLC forming fees of $94 for applying for an Apostille.

LLC kit

The LLC Kit is a type of high quality binder, which will help you to store all your business documents in a single place. The LLC kit has been designed to keep your essential documents organized and secure, so that they are easily accessible when you need them. The Nevada LLC cost for this kit is $68 and you can order it as a part of the LLC formation services.

Choose IncParadise to form your Nevada LLC

IncParadise is one of the highly esteemed Nevada registered agents that are committed towards ensuring start-ups and mid-size enterprises derive maximum benefit from our tailored and wide variety of business formation services. Our specialized services provide value for money because of salient features like:

  • Experts in Business Formation: We have a team of business formation or incorporation experts with experience spanning over several years and over 10,000 new business registrations.
  • Within your Budget: Most businesses may feel that Nevada LLC forming fees are probably high and this may affect their costing initially but with IncParadise it is quite the opposite. We offer our business formation services within a reasonable price range so that it doesn’t overburden your budget.
  • Unique back-office system: We understand the changing needs of businesses in the internet age and hence we offer a new client system that is unique in many ways. The system allows businesses the option of mail forwarding, order placing for any of our services, and storing and managing the business documents. This state of the art solution is known as the Entity Management Software and it has several features that help in streamlining requirements and document storage for businesses.

Establish your Start-up faster
with our Specialized Solutions!

How to Set Up LLC in Nevada

Date: | Category: | Author: Martin Pouzar

HOW TO SET UP AN LLC IN NEVADA

Nevada is considered amongst the top 10 states with good business climate, which is dependent on several factors. The fact that the state offers a competitive cost of doing business is the reason why more and more entrepreneurs are planning to set up LLCs in Nevada. Today, the economy of northern Nevada is known to be a prolific economy in the nation.

Why set up an LLC in Nevada?

In an economically strong state like Nevada, new and existing businesses will be able to enjoy growth and long-term stability. This is possible due to several factors that have a positive impact on the overall business climate as well as businesses. If you are planning to set up an LLC in Nevada then some of the factors acting as a stimulant to growth includes strong infrastructural support in the form of airports, interstate, and railroad.

A positive and strong economy is also another factor enabling people to form or register Nevada LLC. In 2018, the Real Gross Domestic Product (GDP) of Nevada was $146.22 billion as compared to $128.83 billion in 2010. The economy grew at an annual rate of 3.3% in 2018.

There are several other factors, benefits, and advantages of forming a new business in the state of Nevada.

Advantages of registering LLC in Nevada

Why would you start Nevada LLC if the state did not offer any advantages or benefits for businesses? Indeed, businesses can discover several advantages including state supported programs that have been created to ensure a business can derive maximum benefit. Some of the primary advantages include:

  • Tax Benefits: When you incorporate a Nevada LLC, your business will be able to benefit from the fact that there are almost “no state level taxes”. The state doesn’t levy any corporate income tax, personal income tax, admissions tax, unitary tax, gift tax, and franchise tax.
  • Asset Protection: A start-up or small business in Nevada has the advantage of the Significant Asset Protection Policies the state and business laws provide.
  • Incentive Programs: There are several programs implemented by the state and a business can qualify after you register Nevada LLC. These programs offer loans, grants, tax abatement, tax credits, and employee hiring incentives.

How long does it take to incorporate an LLC in Nevada?

In order to set up an LLC in Nevada, you will be required to file LLC formation documents, which are separate for domestic and foreign business entities. Once filed with the Nevada Secretary of State, the processing time for Nevada LLC or corporation can vary from 10 to 30 business days.

If time is of essence to you then you can consider expedited processing options, which will help to reduce substantially the overall time taken to incorporate a Nevada LLC. The office of the Secretary of State offers a 24-hour expedited service, 2-hour expedite service, and 1-hour expedite service but there will be an extra fee for the same.

Nevada LLC Forms and Fees for registration

If you are planning to start a Nevada LLC and are wondering whether the entire process be expensive then we have just the right plan for you!

If you are a domestic business entity then you will be required to file “Articles of Organization Form” with the Secretary of State pursuant to NV Rev Stat § 86.151 (2013). The form needs to be carefully filled as the information pertaining to your LLC will include details about owners, members, agent, and the business entity. This is where our team of experts can provide guidance and answer your queries.

If you are forming an LLC in Nevada then the cost would be as follows:

  • State fee for Articles of Organization: $75
  • State fee for a stamped copy of Articles of Organization: $30
  • Our Service Fee: $89

IncParadise LLC fee includes services like:

  • Checking name availability
  • Preparing state-approved Articles
  • Filing Articles with state
  • Sending Articles or Certificate of formation to you

Initial list & Business license

The initial list has to be submitted along with the articles of organization. Our fee is $395, which includes:

  • State Fee for Nevada LLC Initial List of Members-Managers: $150
  • State Fee for Nevada LLC Business License: $200
  • Our Processing fee: $45

Delivery of Articles

You can start Nevada LLC or make it operational once you receive the articles of organization. The articles can be delivered in the following ways:

  • USPS: Free
  • Email Shipping: Free
  • USPS Express Overnight: $30.50
  • USPS Express International: $74.25

Certificate of Good Standing

In order to start Nevada LLC, you will require a certificate of good standing also known as a certificate of existence and it is issued by the Nevada Secretary of State.

  • IncParadise fee for Certificate of Good Standing: $70
  • Fee for Expedited Certificate of Good Standing: $150

Other formation documents and services

We understand that it is never easy to incorporate an LLC in Nevada or set up a new business and hence, we are here to provide all the necessary support and services. Some of the other document filings and services offered by us include:

  • Nevada Apostille Regular: $94 (This filing takes 2-4 weeks)
  • Nevada Apostille Expedited: $294 (Filing takes 1-2 business days)
  • LLC Organizational Meeting/Company Minutes: $20
  • LLC Kit with Shipping: $98

Nevada Address and Mail Forwarding

We have several plans to choose from depending on specific business requirements. The plans are:

  • Basic Mail Forwarding Plan: $129
  • Moderate-use Mail Forwarding Plan: $180
  • High-use Mail Forwarding Plan: $280
  • Monthly Virtual Office Plan: $105
  • Monthly Virtual Office Plan with Shared Desk: $180
  • Annual Virtual Office Plan: $570

Which Plan would you choose for Your LLC in Nevada?

ORDER NEVADA LLC

Forming an LLC in Nevada

Once you have taken the decision to set up an LLC in Nevada, there are certain aspects of a Limited Liability Company formation that you need to consider as well. It is a process that will take into account these aspects. Let’s look at all that is required for an LLC formation through a step-by-step approach:

1. Check Your Nevada LLC Name Availability

It is possible to incorporate a Nevada LLC or submit an application only if you have reserved a business name pursuant to NV Rev Stat § 86.171 and § 86.176 (2013). It is important to ensure that the desired business name is available and should be distinguishable from any other name on file with the Secretary of State. Conduct a business name availability check right now!

2. Choose Your Nevada LLC Registered Agent

In order to start Nevada LLC, a business is required to designate and maintain a Nevada Registered Agent like IncParadise pursuant to NV Rev Stat § 86.231 and § 86.241 (2013). There are two options to choose from:

  • Hire a new agent for LLC Nevada
  • Change of Nevada registered agent

In order to designate a Registered Agent, you will have to file the “New Company Order Form” if it is a start-up business and the “Change Order Form” if the business is changing their agent.

Note: You will be required to file the Registered Agent Acceptance/Statement of Change form along with the Articles of Organization

3. Create and File Your Article of Organization

One of the primary steps to register a Nevada LLC is by creating and filing Articles of Organization pursuant to NV Rev Stat § 86.151 (2013). The articles have to be filed with the Secretary of State along with the required filing fees. The articles contains important information including name of the limited liability company, name and address of managers or members, registered agent information, and powers enumerated in NV Rev Stat § 86.161 (2013).

4. Nevada LLC Operating Agreement

It is always recommended to set up an LLC in Nevada by creating and filing an Operating Agreement. It is important to note that an operating agreement can only be adopted if there is unanimous vote or un-unanimous written consent of the members as stated in NV Rev Stat § 86.286 (2013). This agreement provides the rights and powers of an LLC and its owner, members, or managers.

Confused about how to create an LLC Operating Agreement? Let the experts take care of your business requirements.

5. Your Nevada LLC Tax Requirements

Yes, Nevada doesn’t have any state business taxes and since you are planning to incorporate Nevada LLC, it will be a pass-through tax entity. This simply means that the burden of paying federal income taxes will shift from the LLC to the individual members. Does a Limited Liability Company pay any taxes in Nevada?

  • An LLC will be required to pay employer taxes, if it has employees. It will be paid to the IRS and you will have to obtain a federal employer identification number (EIN) to facilitate the payment of taxes.
  • If you start Nevada LLC that is focusing on selling goods in the state then you will be required to collect as well as pay sales tax. You will have to register with the Department of Taxation for same.
  • You may have to file Commerce Tax return with the Nevada Department of Taxation if the gross revenue exceeds $4,000,000 during the taxable year.

6. Get Your Nevada LLC Business License

While planning to register Nevada LLC, it is important to also focus on getting your business license. The type of license required is dependent on the type of business and the licenses issued by the state including General Licenses, Privileged Licenses, and Regulated Licenses. Apart from this, licenses are also issued by Nevada counties. It is important to note that if your business is operating from multiple jurisdictions within a specific county then you may be required to obtain a city business license from each of the jurisdictions. You can apply for business license along with the articles of organization.

7. File Your Annual Report

In the process to set up an LLC in Nevada, one of the important documents that has to be filed is the Annual List also known as the Annual Report. It contains information pertaining to the limited-liability company and is governed by Nevada Revised Statutes § 86.263. This annual list has to be filed with the Secretary of State by the end of the LLC registration anniversary month.

Note: If a Limited Liability Company fails to file the Annual Report or List then the Secretary of State may deem the LLC to be in default pursuant to Nevada Revised Statutes § 116.31155 or 116B.620.

How IncParadise helps you to start an LLC in Nevada?

You can form a small start-up, incorporate it as an LLC in Nevada, register a foreign entity or convert your existing business in another state to a Nevada entity. All this is possible with proper guidance and assistance provided by IncParadise towards filing relevant forms with the Secretary of State and Department of Taxation.

We at IncParadise are one of the respected registered agents in Nevada and have been responsible for providing the necessary support required to start Nevada LLC in the quickest possible time and without any hassles. IncParadise will help you with LLC formation by:

  • Helping you choose a business name pursuant to NV Rev Stat § 86.171 (2013)
  • Providing assistance in reserving business name for 90 days
  • Providing information related to required and optional provisions and information for filing of Articles of organization pursuant to NV Rev Stat § 86.161 (2013)
  • Ensuring all filing requirements as specified by NV Rev Stat § 86.151 (2013) are met in order to register Nevada LLC
  • Aiding in filing and processing of all applications including Registered Agent Order Form and Operating Agreement
  • Providing information pertaining to taxes to be paid in the state and if required, assist with filing application for tax identification number.
  • Helping you to identify the type of business and ensure you obtain the correct business license.

One of the greatest benefits IncParadise provides to businesses planning to register in the state is access to the Entity Management Software. In order to set up an LLC in Nevada successfully, you will be required to file different documents and ensure all your certificates and documents are accessible. This is exactly what the Entity Management Software will help you to do. It will:

  • Help you to stay updated with the operations of your company
  • Aid with renewal of any services like business license online using the Client Zone
  • Ensure you are able to check and verify the status of your existing orders
  • Provide important alerts and notifications related to business requirements like annual list filing
  • Provide access to a secure mail forwarding service

ARE YOU READY TO REGISTER NEVADA LLC?