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Nevada LLC Asset Protection

Date: 11/12/2019 | Category: | Author: developers


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

Protecting Assets by Forming Nevada LLC

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

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

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

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

Nevada LLC – Popular for Asset Protection

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

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

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

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

Nevada Law for LLC

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

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

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

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

Protecting Personal Property

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

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

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

Want to know how Nevada LLC Asset Protection Works?


Asset Protection Trust in Nevada

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

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

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

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


Nevada Series LLC

Date: | Category: | Author: developers


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

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

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

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

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

Series LLC Benefits

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

Asset Protection

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

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

Independent Structure

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

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

Low cost of startup

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

Lower Complexity

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

Tax Return

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

Risks of Series LLC

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

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

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

Series LLC Requirements & Registration

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

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

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

Taxation for Series LLC

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

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

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

Difference between series LLC and a Restricted LLC

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

The Notable Differences

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

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

Traditional or Series LLC – We can help form either!

Nevada LLC Taxes

Date: | Category: | Author: developers


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.

Enjoy Tax Benefits of a Pass-through Entity in Nevada!


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

We provide Expert Guidance
in Nevada LLC Formation

Foreign LLC to Register in Nevada

Date: | Category: | Author: developers


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


Dissolve an LLC in Nevada

Date: 11/07/2019 | Category: | Author: developers


There are times when dissolving an LLC in Nevada becomes necessary and it can be because of numerous reasons, personal and business. The formation of a limited-liability company requires several processes and documentation but if you want to wrap up the business, is the process as exhaustive? This guide will provide valuable insight into dissolving a limited liability company in Nevada.

How do you dissolve an LLC in Nevada? How long does it take?

A limited-liability company is an independent business entity and it can continue to exist in Nevada unless it is officially or legally dissolved. If you have taken a decision to close a Nevada LLC then the process needs to be initiated as quickly as possible so that it avoids any legal issues, tax liability or penalties.

There are several reasons for dissolving an LLC in Nevada and certain events require dissolution pursuant to NV Rev Stat § 86.491 (2017). A Nevada limited-liability company can be dissolved in the following situations:

  • If a specific time of dissolution has been specified in the articles of organization
  • If a dissolution should take place due to the occurrence of a specific event as mentioned in the operating agreement
  • Dissolving Nevada LLC upon written agreement or affirmative vote from all the members of the LLC

The process to close Nevada LLC involves filing of dissolution documents with the secretary of state along with liquidating your business assets and settling any liabilities.

The process for dissolving Nevada LLC will take 7-10 business days from the day you file the proper documents. You can speed up the processing by requesting 24 hour, 2 hour or 1 hour processing although there will be a higher fee for the same. You will receive a copy of the confirmation of dissolution through the return service specified in the “Customer Order Instruction” form. Alternatively, IncParadise can assist you through the entire process right from preparing for the filing of the dissolution to ensuring you get a copy of confirmation.

What is the cost of dissolving an LLC in Nevada?

If you want to close an LLC in Nevada then you will be required to file for dissolution with the secretary of state. The filing fee for dissolution is $100, also there will be $3 fee for state payment processing fee and our processing fee $89. Apart from this, if you wish to receive a certified copy of the Nevada LLC dissolution then it will be an additional $30.00 per certification.

Steps to Dissolve an LLC in Nevada

If you plan to close a Nevada LLC then there are certain aspects of dissolution you need to be familiar with. There are times when businesses make the mistake of not focusing on certain key areas resulting in the dissolution documents not being accepted by the Secretary of State. These steps will ensure your limited liability company is dissolved in the proper way.

1. Meeting of LLC Members

The first and the foremost step towards dissolving Nevada LLC, is to arrange a meeting among LLC members or owners. There has to be a vote to dissolve the limited-liability company and everyone needs to agree on adopting a resolution to that effect. The resolution must include payment of all outstanding debts, obligations, and distribution of assets.

2. Close Tax Accounts of Your LLC

The second most important step towards dissolving an LLC in Nevada, is to ensure closure of all business tax accounts. An active Nevada limited-liability company may have several tax accounts like Modified Business Tax, Commercial Tax, or Federal Taxes and each of these accounts are maintained by IRS or the State government. Hence, you need to coordinate with the IRS as well as local taxing agencies to ensure all tax dues are cleared.

Some of the common taxes that your company needs to clear before you can close Nevada LLC include:

  • Quarterly or annual employment tax return: This includes the Employee Withholding Tax and is for businesses that have or had employees. Normally businesses are required to file Forms 941 but small businesses withholding federal income taxes less than $1,000 have to file Form 944.
  • Sales & Use Tax: If your business has been selling taxable services or products in Nevada then you need to clear the dues prior to dissolving a Nevada LLC. This is a monthly or quarterly tax that has to be filed with the Nevada Department of Taxation.
  • Unemployment Insurance Tax: Each and every LLC formed in the state of Nevada has to pay unemployment insurance (UI) tax at a rate of 2.95 percent of the wages paid to each of the employees.
  • Career Enhancement Program: Apart from unemployment tax, a limited liability company will be required to pay a tax of 0.05 percent of taxable wages for the Career Enhancement Program (CEP) in order to close a Nevada LLC.
  • Commerce Tax: A limited-liability company will have to pay this tax only if their gross revenue exceeds $4,000,000 in a taxable year.
  • Make federal tax deposits: In order to close a Nevada LLC, you will be required to file the “Employer’s Quarterly Federal Tax Return” using Form 941.

It is important to enclose Employer identification number (EIN) while filing any of the taxes. See Checklist of Taxes in Nevada for dissolving Nevada LLC.

3. Filing Articles of Dissolution

The process of dissolving Nevada LLC starts by filing “Articles of Dissolution” with the Secretary of State. The Articles are to be submitted by a limited-liability company that has opted for voluntary dissolution. The articles need to contain the following information pursuant to NV Rev Stat § 86.531 (2017):

  • The name of the Nevada limited-liability company
  • That the company has already been dissolved or will be dissolved
  • The effective date and time of dissolving the Nevada LLC
  • The type of dissolution or cancellation

The Articles of Dissolution should be signed by a manager or member of the company being dissolved. The signing authority can also be a personal representative of the last remaining member.

The signed articles of dissolution should be filed with the Secretary of State pursuant to NV Rev Stat § 86.541 (2017) in order to close Nevada LLC. The “Articles of dissolution” will become effective when you file it with the Secretary of State or on a later time and date as specified in the articles. This later date should not be more than 90 days after the date on which the articles have been filed.

The filing fee for articles of dissolution is $100 and it can be mailed, faxed or emailed to the Secretary of State. If you are sending by normal or expedited mail then it can be sent to Commercial Recordings Division, 202 North Carson Street, Carson City NV 89701-4201. The secretary of state offers 24-hour, 2-hour, and 1-hour expedited services at a higher fee.

4. Notifying creditors and settling claims if any

If you are dissolving a Nevada LLC, it is important to notify your creditors about the closure of the business. This is an integral part of distribution of assets and is governed by NV Rev Stat § 86.521 (2017). You need to inform creditors about:

  • The intent to close your Nevada LLC or if you have filed the required documents for dissolution
  • If any creditor has an outstanding claim then you will need to provide the mailing address where they can send their claim
  • Provide creditors with a deadline for submitting their claim. The standard is 120 days from the date of notification of dissolving a Nevada LLC
  • Provide a statement that no claims will be entertained after the deadline

The claims made by a creditor may be accepted or rejected by the business entity prior to dissolving a Nevada LLC. If the claims have been accepted then satisfactory arrangements need to be made for repayment.

5. Distribution of Remaining LLC Assets

In order to close a Nevada LLC, the remaining assets have to be distributed amongst the members in proportion to their share of ownership or ownership interests pursuant to NV Rev Stat § 86.521 (2017).

For example: If A owns 40% of the LLC, B owns 35%, and C owns 25% then the assets will be distributed accordingly, which means A will get 40 percent of remaining assets and so on.

These distributions have to be reported to the IRS by filing Form 990, 990-EZ or e-Postcard (990-N). The form you need to file during the dissolution of a Nevada LLC will depend on the assets and gross receipt.

We can file Articles of Dissolution on your Behalf!


How IncParadise helps you

Whether your company is a single-member LLC or has multiple members, dissolving an LLC in Nevada or an active business comes with its own set of problems and documentation including setting of taxes or claims. Apart from this, you also have to ensure that the dissolution is in accordance to the Nevada Revised Statutes § 86.505 – § 86.541 (2017). You will also have to be quite thorough when it comes to filing the articles of dissolution, especially ensuring the required provisions as mentioned in NRS 86.531 have been complied with. Sounds exhaustive?

This is exactly what IncParadise as one of the top registered agents in Nevada can help you with. We have a team of in-house experts who can provide guidance and customized dissolution services to ensure you can close your Nevada LLC with ease.

Order your Nevada LLC dissolution today!

How to Form an LLC in Nevada

Date: 10/14/2019 | Category: | Author: developers


Nevada is one of the most favoured states to register an LLC and this is more so because the tax climate in this state is considered to be the least burdensome in the nation. This low tax environment along with favourable business laws, a strong infrastructure, and growing economy are some of the Nevada LLC benefits that businesses can leverage.

The Definitive Guide to forming an LLC in Nevada

The Definitive Guide to forming Nevada LLC
We are living in the technological age where technology is assisting businesses to achieve higher growth through help in maximising opportunities and executing desired results. There was a time when forming a new business was a time consuming, costly, and relatively inconvenient experience but the times are changing.

Today, you can form a Nevada Limited Liability Company in the fastest possible time, with low business formation cost, and can also benefit from customized business formation services. This is possible because we use technology enabled automated processes to streamline business formation thus catering to exclusive business requirements.

Yes, technology is an integral part of Nevada LLC business formation but at the same time, it is important that you make a well informed decision. There are many aspects to consider like how a Limited Liability Company is formed, the procedures, benefits offered by the state, the need for a Nevada LLC registered agent, documents to be filed to start a business, the fee and annual requirements, and LLC tax. Where will you find this information?

You will find most of the information required to start Nevada LLC over the World Wide Web but the information is vast and spread over multiple sources. We have conducted extensive research to create a Comprehensive LLC Information Guide, which is targeted at helping start-ups, medium businesses, foreign companies, and entrepreneurs in making a decisive choice.

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


Nevada LLC Benefits

Every state offers a range of advantages to business entities being formed in that state. So, if you are setting up a business in “The Silver State” then there will be several Nevada LLC benefits that your business can leverage. The top 5 benefits include:

  • Tax Shelter: One of the foremost benefits for registering a Nevada Limited Liability Company is that the state is a tax shelter. There is no state income, franchise, or corporate taxes and taxes are not levied on corporate profits or shares.
  • High Privacy Standards: If you start Nevada LLC then you will be able to benefit from high privacy levels including the fact that a Limited Liability Company is not required to list their owners or members in the state. According to the Nevada LLC Law, an investor in your business will enjoy anonymity.
  • Information Sharing Agreement: If you form a Nevada LLC, you can be certain of the fact that formal information-sharing agreement with the IRS is not applicable in this state.
  • Business Registration: One of the salient aspects of forming an LLC in Nevada is that the process for registration of a business entity is efficient and fast.
  • Unlimited Owners: An LLC in Nevada can have multiple owners as well as investors and they are not required to be residents of the state.

How can you or your business draw greater value from the various Nevada LLC benefits offered by the state programs? IncParadise, as your chosen agent in Nevada not only provides you with services that ensure your benefits are maximized, but also ensures you are well-informed regarding the various state programs that are directed at tax benefits, and financial assistance.

Nevada LLC Registered Agent

Have you been thinking of registering your business entity in Nevada? Are you wondering if the process to form Nevada LLC is complex? This is where the role of a Nevada LLC Registered Agent comes into play. Your chosen registered agent will not only provide business formation services but also guide you through each process.

What is Nevada LLC Registered Agent?

The primary objective and function of a Nevada LLC Registered Agent like IncParadise is to enable service of process and accept any official mail on behalf of the LLC being represented. The added advantage is that a registered agent can assist your business with several other types of services including customized services that are essential for a Nevada LLC to exist and operate within the state.

Why Do I Need A Registered Agent In Nevada?

Nevada is considered as a state that offers pro-business climate and an environment that encourages business growth. Businesses being formed in Nevada are required by the Limited Liability Act to have a registered agent. Even if it was not mandatory, having a Nevada LLC Registered Agent like IncParadise would be beneficial for business entities as certain objectives would be accomplished. Some of the objectives include:

  • Service of Process: One of the primary objectives of a Nevada LLC is to ensure service of process. It refers to a legal process through which a business entity is notified that legal action is being taken against the said business.
  • Business Documentation: The process to register Nevada LLC can be quite discomfiting since it requires several other sub processes like name search, name registration, providing detailed information for Nevada LLC Article of Organisation etc. A registered agent in Nevada like IncParadise can make the entire process methodical as we have a back office storage system for keeping business documents secure.
  • Document Delivery Address: Whether your business entity is from another state or you are planning to form a domestic Nevada LLC, hiring a Nevada LLC Registered Agent like IncParadise will ensure there is a valid physical address or principal place of business so that business documents sent by the state are delivered and maintained.

How Registered Agent helps my LLC in Nevada?

A Nevada LLC Registered Agent like IncParadise will provide a diverse range of services to any business entity – foreign or domestic. A Nevada LLC will receive the following assistance:

  • The appointed registered agent will receive legal notices from the state on behalf of your LLC
  • Protect your business interests
  • Receive a wide variety of business notices from the office of the secretary of the state
  • Help a business entity to comply with annual requirements as a part of additional services, which is filing of the Nevada Annual Report within the due date to avoid penalties and keep business active
  • Provide a multitude of additional services to Nevada LLC like Amendments of Articles, Certificate of Good Standing, Apostille, help obtain Tax ID etc.

Know more about Registered Agent Services in Nevada!


Nevada LLC Fees – Nevada Forming Fees and Yearly Requirements

There is a process to register Nevada LLC and for filing of any documentation related to the formation. This will require you to pay a fee to the Secretary of State. The question is whether forming an LLC is expensive or not. As a matter of fact Nevada LLC fees are not just dependent on the document being filed but also on the requirement of the process filing to be expedited.

Nevada Limited Liability Company formation will be followed by annual requirements for business entities specific to Nevada State. This will include renewal of business license and filing of Initial List or Annual List of Managers or Members. You will be required to pay Nevada LLC fees during filing of annual lists.

Adding Members to Nevada LLC

Your Nevada LLC Registered Agent can file LLC formation paperwork in the state. Although, owners of LLC’s may feel that having a registered agent file their Nevada LLC formation paperwork ensures keeping the name and address of members from becoming public record; it is not true for the state of Nevada. Every LLC in Nevada requires submitting an annual list of managers and members to the Secretary of State.

You can start Nevada LLC with a single owner or multiple owners. Most states including Nevada allows an owner of a Limited Liability Company to choose managers or members or both to manage the LLC. One of the Nevada LLC benefits is that the owner of an LLC has the power to change the management structure of the entity from members to managers or they can add more members or managers. Once you add members, you will be required to file amended articles of the organization.

Note: An owner of an LLC can add members or managers only if it is mentioned in the initial operating agreement submitted by the business entity. Hence, the management structure can be changed to add more members according to the rules of this operating agreement.

Why You Add New Members and How to Add New Members to LLC

You can start Nevada LLC with a single member but sometimes adding new members can provide the business with a distinct advantage. Single member LLC’s are easy to set up but in the long-term, a business needs to be managed in a manner that the business itself benefits. A growing business will have requirements that may be difficult for a single member to handle and hence adding extra members will enable better management of the entity. When you add members to your LLC, some of the important Nevada LLC benefits are that the new members will also enjoy the same privileges like tax advantages and limited liability.

There is a certain degree of simplicity related to a member-managed entity and this is perfect for small businesses as it will not have a complicated organizational structure. The Nevada LLC benefits of adding more members will enable the organization to handle several departments as well as multitude of employees. A Nevada Limited Liability Company with multiple members or managers will bring in more cohesiveness between employees and departments leading to higher performance and productivity.

If you form a Nevada LLC initially with a single member and if there is a clause in your operating agreement stating that additional members or managers can be added. The process for adding members is as follows:

  • Review the LLC Operating Agreement
  • Study and approve the change in ownership percentage with existing and new LLC members
  • Prepare an amendment to the Articles of Organization or the Operating Agreement
  • Formal voting on the amendment in accordance with the rules of the operating agreement
  • File Amended Nevada LLC Article of Organisation
  • A multi-member LLC will require a federal employer identification number (EIN)


Nevada LLC Law

Is the Nevada LLC Law pro-business? If you are planning to start Nevada LLC or are a foreign LLC transferring to this state then you will be happy to know that the LLC Act makes Nevada a desirable destination for new business formation. What information does the LLC Act in Nevada offer?

The Nevada LLC Law provides information related to the filing requirements necessary to register Nevada LLC with the Secretary of State. The LLC Act refers to 2013 Nevada Revised Statutes, Chapter 86 – Limited-Liability Companies. The laws focus on the following areas:

  • Formation of a Limited Liability Company in Nevada
  • Filing of Nevada LLC Article of Organisation
  • Information pertaining to the formation and operations of a Foreign Limited Liability Company
  • Information pertaining to Managers, Members, Non-Economic Member, and Member interest
  • Registered Agent and Registered Office
  • Annual List
  • Operating agreement and Operations
  • Information related to Defaulting Companies and Reinstatement
  • Liability, Indemnification and Insurance
  • Dissolution of Nevada LLC

Apart from the above key areas defined by the Nevada LLC Law, it also contains Miscellaneous Provisions like information pertaining to issuance of occupational or professional license, renewal or revival of charter, waiver of notice etc.

Nevada LLC Asset Protection

According to Forbes, Nevada has been ranked #21 in the list of “Best States for Business” and ranked #9 in Business Costs. The economic climate along with benefit programs for small businesses provides the perfect platform to form Nevada LLC. Among many salient aspects of forming a Limited-Liability Company in Nevada is the asset protection policy that businesses enjoy. You will be surprised to know that Nevada LLC Asset Protection law is considered to be the strongest laws in the nation.

Here is a fact: Forbes Magazine has given asset protection trusts in Nevada an A+ rating. The important aspect is to ensure your asset protection trust is created well in advance as asset protection will work only if your assets have been held in the trust for at least two years.

You can create an “Asset Protection Trust” and combine it with your Nevada Limited Liability Company. This asset protection trust will prevent any creditors of the company or members from seeking any of the assets being held by this trust. Hence, your assets will be completely protected. Although the Nevada LLC law related to forming an asset protection trust became effective on October 1, 1999, many business entities have not been able to utilize it for their asset protection.

Nevada LLC tax

One of the primary reasons to register Nevada LLC is that businesses will be able to leverage the fact that there is no business tax or personal income tax in the state. The tax rate for Nevada LLC’s is also one of the lowest in the nation. It is also important to note that LLCs in this state are considered by IRS as “tax reporting entities” and not tax-paying entities.

The tax rate of a Nevada Limited Liability Company is dependent on the type of business entity it is like:

  • An LLC that has a single member will be taxed as a disregarded entity. This translates into the fact that the IRS treats the owner and the LLC as the same entity or person.
  • The Nevada LLC is taxed just like a Sole Proprietorship. This refers to the fact that the owner of such a business entity will have to report and pay tax using Form 1040 – personal income tax return.
  • If you form a Nevada LLC with 2 or more members then it will be taxed as a Partnership. In such a scenario, the LLC will have to file Form 1065 for federal information return and issue K-1 to each of the member for reporting their share of the profit.

These are considered to be default tax elections in Nevada. You can also opt for S-Corp election so that your Nevada Limited Liability Company is taxed as an S-Corp. There are several Nevada LLC benefits for electing to be taxed as an S-Corp.


Form a Nevada Limited Liability Company