How to form a Nevada LLC?
A Nevada Limited Liability Company (LLC) is the one of the most popular type of business structure especially amongst small businesses or start-ups. The popularity is because of the several advantages it offers to the owner like tax flexibility, limited liability protection, prohibition of personal income tax in Nevada, and high privacy standards to name a few.
What are the requirements to form an LLC in Nevada? Is the process complex? This guide will provide you with all the information in a step-by-step approach starting from naming your company to Nevada LLC search and even LLC laws in the state. The different steps towards formation of LLC in this state are:
1. Check Name Availability
Even before you can register Nevada LLC, you will have to conduct a Nevada LLC search for business name and reserve it for your LLC. You will have to check for name availability and ensure the name contains “Limited-Liability Company,” “Limited Liability Company,” or abbreviations like “L.L.C.,” “LLC”. There are certain rules applicable as well as restrictions regarding the naming of an LLC in Nevada. Click here for an Overview of LLC Name in Nevada.
NOTE: According to NV Rev Stat § 86.176 (2013), you can reserve a business name for a period of 90 days with the Secretary of State.
2. Appoint a Nevada Registered Agent
In order to start Nevada LLC, you will have to appoint and maintain a Nevada LLC Registered Agent pursuant to NV Rev Stat § 86.231-§ 86.261 (2013). Apart from business registration, IncParadise, one of the top business formation service providers offering several additional services including Nevada address and mail forwarding.
3. File Nevada Articles of Organization
You will have to file the “Articles of organization” with the Secretary of State to form Nevada LLC governed by NV Rev Stat § 86.161 (2013).
4. File Nevada Initial Report
According to Nevada LLC Law NV Rev Stat § 86.176 (2013), all limited liability companies formed in the state will have to file an Initial List or Annual Report with the Secretary of State.
5. Establish Company Records
Each LLC in Nevada has to maintain its official records to ensure they are organized and secure. Nevada LLC Article of Organisation is one such document that can be kept secure using an LLC kit. The LLC kit offered by us includes binder, certificates, by laws, embossing seal, operating agreement, sample forms, and transfer ledger.
6. Create the Operating Agreement
Having an operating can be extremely beneficial towards operations of your Nevada Limited Liability Company as it defines the overall structure of the business and contains ownership information. Looking for more information on Nevada Operating agreement?
7. Hold the Organizational Meeting
After you form Nevada LLC, the first meeting held with the members of the company is known as the organizational meeting. You will require the operating agreement and Nevada LLC Article of Organisation to conduct this meeting and the minutes will be stored in the corporate record book provided by IncParadise.
8. Get a Federal Employer Identification Number (EIN)
If your Nevada Limited Liability Company hires employees or has multiple members, then you will have to apply for and obtain an Employer Identification Number (EIN). This Federal Tax ID is issued by the Internal Revenue Service (IRS) and there is no Nevada LLC fees for application of EIN.
You can benefit from our EIN service using the IncParadise order form for setting up an LLC in Nevada.
9. Get Nevada State Tax Identification Numbers
Once you have decided to register Nevada LLC, you will have to apply for the state tax identification number also known as Taxpayer ID or TID. It is a 10-digit number assigned to a business entity by the Nevada Department of Taxation. The TID application has to be filed along with the Nevada LLC Article of Organisation.
10. Choose Electing S-Corp or C-Corp Taxation
If you form Nevada LLC, it will be a pass-through taxation entity but you can always elect S-Corp or C-Corp Taxation. If you elect S-Corp then one of the Nevada LLC benefits is high savings on self-employment taxes. If you elect for C-Corp then you will benefit from a low tax rate on the retained earnings.
11. Get Business Licenses & Permits
Once you have filed appropriate documents for LLC registration in the state of Nevada, you will have to apply for and obtain business licenses and permits. You can visit our Nevada Business License page to identify whether you require a license, permit, or both. A business license or permit ensures you are able to operate in specific industries and regions throughout the state.
Form a Nevada Limited Liability Company