If you are planning to start a new business in Delaware then there are several aspects of the business formation and operation you will have to consider. One of the most important aspects is applying for and obtaining a business license in Delaware. A business license is defined as a legal document, which will grant you the right to operate your business within a state, city or county. The rules and regulations for a business license or permit can vary from one state to another and is also different for different types of business activity. Hence, we have created this guide to provide information on how to obtain a Delaware business license along with information on annual state business licenses, business license fee etc.
Once you form a business, you have to make it operational and for that you will need to obtain a business license in Delaware. Delaware law states that every business, both Delaware and non-Delaware is required to obtain an annual state business license. You may also require additional state licenses or permits depending on the type of business activity you may have. You may also need to apply for and obtain Delaware business license if your business qualifies under any of the mentioned state regulated industries. The business licensing aspect of regulated industries is managed and licenses or permits are issued by state agencies like the Division of Public Health issues food establishment licenses and permits.
Some of the regulated industries include:
Contractors, Building, Construction
Lottery or Gaming
Apart from the state business license, you may also need to apply for and obtain Delaware business license and permits in the county or city that your business is located in. For example: If you start a business in New Castle County, Delaware and it is situated within the city limits then you will be required to obtain a City of New Castle Business License. The Delaware business license fees for operating in the City of New Castle will take into account the number of employees including the owner.
Delaware small business information
If you are planning to start a small business in Delaware then you will need to register it as well as obtain a business license in Delaware. As a startup or an entrepreneur, you will also require information and resources that will help you strengthen your business and help it to grow. Where can you get such information? One of the best places to search for informational resources is the “Business Resource Connection” of the Delaware Division of Small Business. This agency is a part of the Delaware Department of State that is focused and committed towards supporting new businesses in their path towards achieving growth and sustainability through approximately 300 business-focused programs. You can search using location, specific need, industry, business stage, and target community.
If you are looking for a comprehensive business guide that provides information and resources pertaining to Local Business Assistance, Funding Programs, Government Contracting, SBA Certification Programs etc., then the U.S. Small Business Administration (SBA) – Delaware Edition is a great place to start. You can download their resource guide as the information enclosed can be extremely helpful. The agency has dedicated “Resource Partners”who specialize in offering counseling, mentoring, and training programs to help startups and small businesses to thrive through different stages of their business life cycle. You can become a part of these programs prior to or post application for a business license in Delaware.
The Delaware Small Business Development Center is another agency that provides a wealth of information and resources that will help you to establish and grow your new business. They offer a variety of training programs including online training, on-location classes, seminars etc. The primary objective of the Delaware Small Business Development Center (DSBDC) is to develop as well as support entrepreneurship with the help of University of Delaware’s Office of Economic Innovation and Partnerships (OEIP).
Delaware annual state business license
Every business has to fulfill business licensing requirements in their state of formation as this helps to make the business legally operational. A business license in Delaware will help you to conduct your business in the state. A business license is basically a type of approval or permit that is issued by the state, regulatory bodies, state agencies, and county clerk etc., to authorize the said business to operate within the state’s boundaries. There is a Combined Registration Application (CRA) that you can submit with the Division of Revenue along with your EIN information to obtain a state license. It is also important to note that you may need to apply for and obtain licenses that are issued locally by the city council or county clerk offices. This requirement may vary from one county to another. Renewing a Delaware business license is also very important as failure to do so may lead to your business being unable to operate in the state.
The process of filling and filing a license along with Delaware business license fees can be disconcerting and complex as depending on the business activity, you may need to apply for state licenses from different regulatory agencies. This is where our comprehensive “Business License Research Report” can be extremely helpful as it contains a list of filing instructions, supporting document requirements and fees for all business licenses and permits in the state of Delaware.
Obtaining a Delaware Business License
An entrepreneur or a business entity in any state has to fulfill their business licensing needs prior to starting their business operations. A business license in Delaware is a crucial aspect of any business formation and operations and helps in protecting an entity legally while boosting credibility, which provides access to state or city wide funding. Business licensing is a state-level requirement although you may need to obtain a Delaware business license on the local or county level also. The main reasons for a business license requirement are:
Recognition of your company
Ensuring responsibility towards yours or the actions of the entity
Protecting public safety and health
Monitoring finances for tax purpose
A business in any form requires a business license in Delaware pursuant to Title 29, Chapter 103 – Business Registration and Licensing System – § 10301 to § 10308. Let’s take a look at the process for obtaining or renewing a Delaware business license.
How do I obtain a business license in Delaware?
If you are an entrepreneur or a new business owner then you need to apply for a business license in Delaware with the Division of Revenue. The following steps will help you to obtain a Delaware business license:
Alternatively, you can download the “Combined Registration Application (CRA) Form”
Once you complete the CRA form, you can mail it along with the required Delaware business license fees to:
Division of Revenue
P.O. Box 8750
Wilmington, DE 19899-8750
It is important to ensure the form has been filled correctly and provides accurate information as incorrect or lack of information may result in the application getting rejected.
You may need to also file multiple business licenses as well as regulated industry licenses depending on the business activity. There are several state regulated industries wherein you will be required to apply for a Delaware business license with the respective state agencies. e.g., a food establishment like a restaurant will have to fulfill regulatory requirements as specified by Delaware Health and Social Services, Delaware Division of Public Health. You will also be required to apply for renewing Delaware business licenses with the licensing state agencies.
Do you need to find out what Delaware business licenses you need?
How long does it take to receive a business license in Delaware?
A Delaware business license or permit will be issued once you have filed your licensing or permit application with the Division of Revenue along with the required Delaware business license fees. Generally, most businesses will receive or obtain a Delaware business license within a month from the date of registration with the Division of Revenue.
If you have applied online using the One Stop Business Licensing and Registration Service along with Delaware business license fees then you will have the advantage of printing a temporary license once the registration or renewal process is complete. A permanent license is normally sent within 10 working days from the date of filing the application.
Renewing Delaware business license
A business license in Delaware is issued with the annual requirement of renewal. It is normally issued for a calendar year or 1-year and expires on December 31 each year. Once it expires, you will need to apply for renewing a Delaware business license as failure to renew may hamper your business operations in the state. You will have the option to renew your license for a term of 1 year or 3 years.
There are two ways for renewing a Delaware business license and they are:
You can renew your business license online using the Online Renewal option at the Division of Revenue portal.
You can complete a business license renewal form and mail it to the office of the Division of Revenue along with the appropriate Delaware business license fees
Delaware Business License Fees
The annual Delaware business license fees will vary depending on the category of activity the business pursues. For example, the fee for Automobile Manufacturers is $75 while that of an Outdoor Music Festival Promoter is $750. However, the license fee is generally $75.00 for a first location for 1 year. In the second year, you will have the option of renewing Delaware business license for a 3-year period and the fee will be 3 times the original fee i.e., if the annual fee is $75 then a 3-year fee will be $225. Similarly, you will need to apply for a separate license for each separate business activity and multiple locations.
How does IncParadise help you?
Every business being formed in Delaware has different objectives as well as business activity and hence the requirement of a business license in Delaware will be different. You may require one license or permit or multiple licenses based primarily on the location of your company and business activity. This is where IncParadise can play a key role and provide guidance that will help you to obtain a Delaware business license or permits and ensure you are able to maintain compliance with the Delaware licensing regulations.
If you are planning to start a new business in Delaware one of the questions you may face is whether you need to file a dba in Delaware. It is important to understand that any company can register ‘doing business as’ in Delaware if it is planning to operate under a name that is different from its legal registered name. The primary objective of this guide is to help you understand what a DBA is and how you can file, renew, and change a DBA in the state of Delaware.
Delaware is one of the most favorable states for starting a new business and especially popular among first time entrepreneurs. If you are planning to start a new business in this business-friendly state then you may be required to file a dba in Delaware. It is not a mandatory requirement but is filed by several companies depending on their business identity and under what name they want to conduct their business. There are several aspects you need to consider prior to Delaware dba registration so let us begin by understanding what “Doing Business As” is and whether you require it or not.ring a Delaware registered agent, and obtaining a tax ID among others.
What is DBA in Delaware?
If you are planning to start a new business in Delaware then one of the key areas to focus on is the name of the business. The business name has to be registered or reserved with the state but there is an alternative route, which is to file dba in Delaware. The simplest way to define a DBA or “Doing Business As” is that it is the name you choose if you are planning to conduct your business under a name other than your own name. It is a name that is most often registered by companies that are sole proprietorship or partnership businesses. A DBA or doing business as in Delaware is also known as an assumed name, fictitious name, or even a trade name.
For example: An individual Jason Patrick wants to start a music retail business in Delaware. He can name the music store as Jason Patrick & Co or as “Being Musical” wherein, “Being Musical” would be considered as the DBA name. So, Jason Patrick would have to file a dba in Delaware under this name.
When do you need DBA in Delaware?
If you are planning to conduct a business in the state of Delaware then you have to identify whether you need to reserve a business name or file a dba in Delaware. It is however important to identify the circumstances in which you may be required to register for a DBA. Some of the circumstances are:
If you are planning to start a sole proprietorship or general partnership firm and want to conduct your business under an assumed name or any name other than your own name then you will need to file for Delaware dba registration.
If your said business wants to offer a product or a service that is different from the registered company name then you will be required to file a dba in Delaware. For instance, if your business has been into selling casual clothes and now you want to sell trekking equipment then you may be required to register a separate name or DBA for the trekking equipment business.
There are different types of businesses you can form and operate like an LLC or a business corporation in Delaware. You can also file DBA names for your business after conducting a Delaware dba search. Your DBA also known as a Delaware trade name should be unique and also meet the state’s trade name or doing business as in Delaware requirements. So what is the process of filing a DBA? Let’s look at the important steps in this filing process.
Delaware DBA name search
One of the first steps towards registration of a trade name or doing business as name is a Delaware dba search. This process will not only help in determining the right DBA name but also identify the availability of your DBA name. You can conduct your DBA name search and also need to ensure your chosen name fulfills Delaware dba requirements and is compliant with the applicable laws as mentioned in Title 6, Commerce and Trade, Subtitle II, Other Laws Relating to Commerce and Trade; Chapter 31: Registration of Trade Names, Partnerships and Associations.
The primary objective of the Delaware dba search is to ensure that your trade name is unique and is not similar to that of another business in the state.
Register Delaware DBA
Once you have conducted a Delaware dba search, the next step is to register the name. The process for Delaware dba registration requires you to file an application with the Prothonotary’s office at the Superior Court pursuant to Title 6 Del. C. Chapter 31 § 3101 and § 3103. The court is present in each county of Delaware to enable registration of a Business, Trade, and Fictitious Name. You need to ensure the Registration Certificate for DBA is completely filled and the information provided is accurate. The DBA Registration Certificates should highlight the date of business formation or when it was organized and need to be notarized.
You will be able to register as many DBA names as you require although you will be required to file separate applications for the same. Alternatively, we at IncParadise can help you with Delaware dba registration.
Once you file a dba in Delaware, the process doesn’t stop there as you may be required to renew it or change the existing name. There are three aspects of Delaware DBA and they include renewal, changing of the name, and canceling the dba. These aspects have to follow the rules and laws as mentioned for Delaware dba requirements.
Renew Delaware DBA – In the state of Delaware, there are no Delaware dba requirements for renewal of the name.
Change Delaware DBA – There are times when you may file a dba in Delaware and then want to change it. There could be business, branding, or personal reasons for changing it. In such a scenario, you will have to fill out a Supplemental Change Form for doing business as in Delaware and submit it with the Superior Court along with a fee of $25.
Cancel Delaware DBA – If you are planning to cancel your Delaware dba registration then you have to fill out a Termination Affidavit Form submit it with the Prothonotary’s Office at the Superior Court of the county you had originally filed your DBA with.
Need Any Assistance in Filing DBA?
The process to file a DBA in Delaware may require you to fulfill certain Delaware dba requirements as specified by the Superior Court. The process can be long and complicated but if you want to save time and ensure filing of Delaware DBA then IncParadise, as one of the top registered agents in the state, can help you with the registration process.
IncParadise can not only help you to file a DBA in Delaware but also provide a wide variety of additional services that will help you to make your business or company operational in the state. Our services include getting tax id, corporation status, dissolutions, reinstatement, and foreign qualification among others.
Do you require assistance with filing your Delaware DBA?
An individual thinking of establishing a start-up has to make extensive planning regarding business operations. It is also important to identify which state is perfect for setting up a new business. One of the top 10 states with an excellent overall business climate is Nevada. Over the last decade, forming a small business in Nevada has increased tremendously as the Silver State has a pro-business law and infrastructure at the state, city, and county level.
An Entrepreneur’s Guide to Start a Business in Nevada
We understand that the requirements for each new start-up or entrepreneurship are different and so are the procedures to form a business in Nevada. Thus, we have created this guide in the form of a detailed Nevada business checklist that will be useful to every entrepreneur and business owner. The guide will take you through the advantages and benefits for an entrepreneur to conduct business planning, entrepreneurial training, networking events and to choose the best business structure. It will also provide guidance for registering a business, funding, and marketing it.
Why choose Nevada to start your business
Nevada is one of the few states that have a favorable tax climate, just perfect for a start-up or small business. There are several aspects of the economic and business environment that makes the Silver State such an attractive destination for entrepreneurs and business owners. If you are thinking of doing business in Nevada, it is important to know the many advantages that it offers. Some of the advantages are:
Low Cost of Living
The first thing that comes to mind when you think of Nevada is “Las Vegas!” although that is not the only attraction for businesses in this state. A new business in Nevada needs to consider the financial impact of operations including the cost of living. This low cost of living also opens the doors for businesses to hire talent from other states to work in Nevada.
Tax Laws and Benefits
Tax benefits is one of the top reasons driving business formation and if you register a business in Nevada, you won’t have to worry too much about taxes. Why? The state is considered by many as a strong tax shelter. For example, a limited liability company doesn’t have to pay any franchise tax or personal income tax. Similarly, different forms of businesses can enjoy different tax benefits.
It may be difficult to identify what is the best business to start in Nevada but one aspect you can be rest assured of is that it is the hub of a tech revolution! The tech story started with Tesla with their Gigafactory 1 in Reno and today, it is home to several tech startups. Big brand names like Apple have their businesses in Nevada, especially in the Reno Technology Park.
Steps to Start a Business in Nevada
The one thought that bothers most new entrepreneurs or start-ups is identifying the steps to start a business in Nevada. There are many aspects to consider that can drive a business to grow from a sapling stage (ideas) to becoming a huge tree (revenue generation). Let’s take a detailed perspective into the various stages of starting a business from scratch.
A business cannot succeed without proper planning and hence it should be an integral part of any Nevada business checklist. Business plans are like blueprints that provide a detail of how best to effectively operate a business based on what business objectives needs to be achieved. Some of the benefits of a strong business plan include:
Provide a focused road map to form a business in Nevada and target long-term growth and gains
Assists with research and critical strategies focusing on complex short and long-term business issues
Provides an action plan related to making a business operational in the local, statewide, or global marketplace
Help in securing operating capital through bank loans or equity financing
Provide an insight into starting an online business in Nevada
Provide a strong business plan attracts angel investors or venture capitalists
Of course, if you are a first-time entrepreneur planning to start a business in Nevada then preparing a business plan can be quite confusing as there are so many things to consider. Some of the essential tools that you can use to create a thorough plan include:
Customizable Templates: A business plan will help you to decide the best business to start in Nevada. One of the ways of going about creating such a plan is to download a complete “Business Plan Template” or specific segments of the plan like “Marketing & Sales Template” or “Financial Projections Template”.
Innovative Apps: These are innovative applications meant for those who plan to start businesses in Nevada. The applications will help you create a “Business Model Canvas” (BMC) on your computer or laptop and can be shared with the entire team. The Business Model Canvas is basically a lean startup and strategic management template that provides a visual chart with different elements including infrastructure and finance. Some of the most popular business model canvas applications include Canvanizer 2.0, Strategyzer, etc.
The customized templates for business plans along with BMC applications make writing a business plan almost a walk in the park!
2. Entrepreneurial Training/Seminars/Workshops
Modern day entrepreneurs are considered to be the driving force of society and the economy of almost every nation and a start-up business in Nevada needs the strong leadership of an entrepreneur. Why Entrepreneurial Development Programs are Important?
The success of successful businesses in Nevada lies in strong entrepreneurship skills. A promising business owner need not only enhance their existing skills but also acquire other relevant skills and abilities to spearhead their business. Entrepreneurship Development Programs (EDP) have been created solely for this purpose, which is to help business owners develop their entrepreneurial abilities. There are times when start-up owners may possess such skills related to doing business in Nevada and EDP can help them with polishing and incubation of those skills. Some of the important aspects of EDP include:
Provide insight into how best to form a business in Nevada
How to move out of the scope of the existing market
How best to improve existing or new services, products, or technology
Create a social change
Create job opportunities or increase employment
Increase innovation opportunities by promoting research and development
Ensure optimum utilization of available resources to promote economic growth
Enhance overall standard of living
This brings us to the question of whether there are any entrepreneurial development programs available for entrepreneurs planning to register businesses in Nevada. There are training programs available and the important programs include:
NxLeveL for Entrepreneurs: This is a multi- week entrepreneurial development program that has been created to provide information and guidance on how you can plan for business success. Some of the aspects of setting up a business in Nevada that have been incorporated by the program include business strategies, goal-setting, management techniques, and financial accountability.
Economic Development Authority of Western Nevada (EDAWN): This is a program that is focused on empowering entrepreneurs through inspiration towards starting an online business in Nevada, experiential learning, connectivity as well as accolades.
Apart from the above program, some of the top colleges and universities in Nevada also offer entrepreneurship programs like UNLV Center for Entrepreneurship (CFE) and University of Nevada, Reno – Office of Enterprise & Innovation. get a quick Introduction to entrepreneurial development.
3. Attend Networking Events
If you are an entrepreneur planning to form Nevada business then networking will be critical towards determining the success of your business. A research “Informal Innovation: Entrepreneurship and Informal Communities” revealed that almost 78% of startups owe business success to networking. This is one of the most important aspects of any Nevada business checklist – every entrepreneur should attend networking events frequently.
Networking has always been the key to the overall business and revenue growth of start-ups. How do you actually network or how can you increase existing networks? The solution is as simple as attending networking events that focus on businesses in Nevada. These events are attended by successful entrepreneurs as well as future business owners. You can start by becoming a part of networking groups prior to or after you register your business name in Nevada.
Some of the ways that networking events can help you or your business are:
New Contacts: A networking event is a platform where you will be able to meet potential clients and also generate referrals.
Identify New Opportunities: One of the highlights of a networking event is that it will help you identify opportunities for future partnerships and expansion. It will also help you identify new markets for services and products if you are planning to form a business in Nevada.
Business Visibility: The platform will help you create high visibility for a start-up or new business. Networking events like business luncheons can raise your business and personal profile.
Knowledge Platform: One of the benefits that you can enjoy is sharing of ideas and receiving knowledge from other business owners or entrepreneurs. This knowledge and experience of others can assist in doing business in Nevada.
It is important to know that you can participate in any of the networking programs before and after you register your business in Nevada. You can also sign-up for such programs online and participate at a physical location. The networking programs are an important catalyst of starting an online business in Nevada. You can check out the following:
Small Biz NV: They provide a detailed calendar of networking and start-up business programs that you can check here. The programs have been initiated by the Department of Business and Industry, State of Nevada. This is an essential program in any Nevada business checklist.
Startup Weekend Events: The programs are particularly focused on Techstars Startups and they are held over weekends. The program provides a platform to connect with new customers and helps sharing experience. The program calendar is available here and it takes place in Reno or Elko.
4. Choose a Business Structure
One of the most important requirements to start a business in Nevada is choosing the correct business structure. Each type or form of business has its own benefit, laws, and registration requirements. In fact, there are separate laws and forms to register a business name in Nevada. The different types of business structures you can form in Nevada include:
Limited Liability Company (LLC): A Limited Liability Company is considered to be a hybrid entity, which combines the benefits of a partnership and a corporation. If you want to register a business in Nevada as an LLC then it will be governed by Chapter 86 of the 2015 Nevada Revised Statutes. You can form a domestic, foreign, and a professional Limited-Liability Company in the state. You will be required to register your business name in Nevada prior to filing formation documents.
Corporation: This type of business entity is considered to be created by an “artificial person” and is operated with the permission of the state of incorporation. The artificial person is only on paper and it should have at least one stockholder. If you form a business in Nevada and register it as a Corporation then it will be governed by Chapter 78 of the 2015 Nevada Revised Statutes. The type of tax treatment will help you decide the best business to start in Nevada.
Sole Proprietorship: A Sole Proprietorship is a type of business that any person can form and it is intended to perform a service or engage in a trade that results in profit. An entertainer, a freelance photographer, or an independent contractor are examples of a proprietorship business. It is normally a one man show. Although sole proprietorships are not required to file formation documents with the Secretary of State; you will require a State Business License to start a business in Nevada.
Partnership: A partnership business structure involves two or more owners and is governed by Chapter 87 of the 2015 Nevada Revised Statutes. You can register your business in Nevada in the form of different types of partnership like a Limited Partnership (LP), Limited-Liability Partnership (LLP), and Limited-Liability Limited Partnership (LLLP). You will be required to register the business name in Nevada and submit the Initial/Annual List of General Partners with the Secretary of State. Partnership businesses can be domestic or foreign entities.
An integral aspect of forming a new business in Nevada is name registration. Although many people think that they should not devote much time to choosing a business name, that should not be the case. Why? There is a process to register your business name in Nevada and as an entrepreneur, you should ensure all aspects of the naming process is considered. The following tips will help you choose the right business name:
Business names will have different criteria according to the chosen structure of business in Nevada e.g., the name of a limited-liability company must contain the words “Limited-Liability Company,” or abbreviations like L.L.C., and LLC among others.
The business name should provide an idea of your business activity e.g., if you plan on starting an online business in Nevada then your business name can be “Lime Kart LLC”.
The chosen name to form Nevada business should be easy to pronounce and should sound positive
The name should be available for “domain name” so that you can target your prospective customers quickly
In order to register your business in Nevada, you need to find an appropriate business name. There are several online resources that can assist you with various aspects of a business name. For instance:
Business Name Generators: These are software or online applications that you can use to find a suitable name. Some of the popular name generators include Novanym, Namelix, Anadea, and Wordlab among others.
Business Name Ideas: You can find business names based on type of product, service, or industry. One of the websites offering ideas to find an appropriate name for your business in Nevada is Squadhelp.
Domain Name: You can book a domain name before you register your business name in Nevada so that you are one step ahead of the competition. Some domain operators you can use include Lean Domain Search, godaddy, and hostgator among others.
The location to form a Nevada business is critical to the operation and growth of the entity. In fact, the best business to start in Nevada is also dependent on the location. Fr example, those focusing on export should be located closer to a major transportation hub (Las Vegas) or a Foreign Trade Zone (Clark County). Similarly, there are several other factors to be taken into consideration like:
Reduced excise taxes
Business Insurance Rates
Industrial park or center
Minimum Wage laws
Government licenses and fees
State and Local Taxes
State and Local Business Incentives
If you are searching for a location to register your business in Nevada then there are sixteen counties and 1 independent city (Carson City) to choose from. The counties are:
White Pine County
It is important to understand that you can start a business in Nevada in each of the above counties but the jurisdiction and licensing requirements will be different for each county. The Code, Ordinances, laws related to regulated businesses and administrative services will vary from one county to another.
7. Register Your Business with the NV SOS
Once you have chosen the right business structure, business name, and location for your business in Nevada, it is time to take the first step towards establishing your business. The best way to doing business in Nevada is by registering it with the Secretary of State (SOS).
Some of the important resources that will assist you to register your business in Nevada with ease include:
EIN Number or the Employer Identification Number is a Tax ID number that is issued by the IRS to those doing business in Nevada. It is similar to a social security number except that it is applicable only to businesses. You can apply for an EIN only if you are planning to form a business in Nevada. You can apply for it with the IRS through mail, fax, and online. Some of the important resources that will help you with obtaining the Nevada Tax ID are:
Department of Taxation FAQs: This is a page focused on helping you obtain EIN to start a business in Nevada. You can download or read through their EIN guide.
Nevada Tax: If you are unaware of the various applicable taxes for starting an online business in Nevada then visit the Nevada Tax Center. It provides an insight into business taxes and how to manage business tax filings.
An important financial aspect of any business is working capital and a bank account is what keeps the capital safe. A bank account is required if you plan to register your business in Nevada. It is easier to open a bank account once you have your Employer Identification Number (EIN).
Opening a bank account has its own benefits and hence is an important part of any Nevada business checklist. Some of the benefits are:
It will make recordkeeping of business finances easier
It will help demarcate business from personal finances
You will be able to calculate your taxes properly and make necessary payment
When you start a business in Nevada there are several requirements that the state requires you to fulfill and one such requirement is that of a business license. Every entrepreneur starting a new business needs to know whether their business requires a license, permit, or both. This is an integral part of your Nevada business checklist and you can apply for one along with your business formation documents. Here are some facts:
A business license or permit can be issued by the Secretary of State or County Clerk
You may require a single or multiple licenses depending on business activity or industry
Apart from the state business license, you may also require city or county specific licenses
In order to learn about how you can apply for a business license, check our Nevada Business License information page.
11. Register with Nevada Department of Taxation
Once you register a business in Nevada the next step is to register with the Nevada Department of Taxation. You can register online and there are no filing fees for same. This registration will help you file your returns annually. You may have to register for the following:
Sales tax: If you are starting an online business in Nevada that will be concentrating on selling or transferring of tangible personal property then you will be required to collect sales tax from the buyers. This tax has to be filed with the Nevada Department of Taxation.
Other taxes: Once you register your business in Nevada, depending on the type of business or business activity or revenue generated, you may have to file different taxes like the Commerce Tax and Modified Business Tax.
If you are unsure of how to file taxes or the type of tax you would have to file then the following resources will be useful:
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.
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.
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:
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:
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.
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
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.
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:
Name Availability Check
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.
Form your LLC hassle Free with Our LLC formation Services!
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.
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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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.
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:
Non-profit religious entities
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.
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.
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.
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!
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. 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!