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Nevada LLC Guide | A Comprehensive Write-up For Beginners

Filed in Business by on May 4, 2020 0 Comments

When talking about LLC, what really comes to your mind? You might have heard about LLC but you don’t really understand the concept of how it’s been operated.

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A limited liability company (LLC) is a business entity that offers certain legal protections and rights to its owners. An LLC is either a corporation or a sole proprietorship/partnership.

Do you know that forming an LLC is the simplest way of structuring your business to protect your personal assets in case your business is sued?

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Nevada LLC Guide

An LLC can be owned by one or more people, who are known as LLC “members”. An LLC with one owner is known as a single-member LLC, and an LLC with more than one owner is known as a multi-member LLC.

Nevada LLC Information

Forming LLCs in Nevada is affordable and easy. Unlike other states, the State of Nevada has some unique LLC requirements.

Interested parties must register with the Nevada Secretary of State by filing the necessary forms, paying the necessary fees, and meeting all naming and formation requirements.

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The specifications required of a Nevada LLC are:

1. Name Your Nevada LLC

Choosing a company name is the first and most important step of starting an LLC in Nevada. Be sure to choose a name that complies with Nevada LLC naming requirements and is easily searchable by potential clients.

Follow The Naming Guidelines:

  • Your name must include the phrase “limited liability company” or one of its abbreviations (LLC or L.L.C.).
  • Your name cannot include words that could confuse your LLC with a government agency (FBI, Treasury, State Department, etc.).
  • Restricted words (e.g. Bank, Attorney, University) may require additional paperwork and a licensed individual, such as a doctor or lawyer, to be part of your LLC.
  • Your name must be distinguishable from any other Nevada limited liability company (LLC), corporation, limited liability partnership (LLP), limited partnership (LP), or limited liability limited partnership (LLLP).

For a complete list of naming rules in Nevada, you can read the Secretary of State’s guidelines.

2. Choose A Registered Agent In Nevada

You are required to nominate a Nevada registered agent for your LLC.

What Is A Registered Agent?

A registered agent is an individual or business entity responsible for receiving important tax forms, legal documents, a notice of lawsuits, and official government correspondence on behalf of your business. Think of your registered agent as your business’s point of contact with the state.

Who Can Be A Registered Agent?

A registered agent must be a resident of Nevada or a corporation, such as a registered agent service, authorized to transact business in Nevada. You may elect an individual within the company including yourself.

FAQ: Nominating A Nevada Registered Agent

Can I Be My Own Registered Agent In Nevada?

Yes. You or anyone else in your company can serve as the registered agent for your Nevada LLC.

Is A Registered Agent Service Worth It?

Using a professional registered agent service is an affordable way to manage government filings for your Nevada LLC. For most businesses, the advantages of using a professional service significantly outweigh the annual costs.

3. File The Nevada LLC Articles Of Organization

To register your Nevada LLC, you will need to file the Articles of Organization with the Secretary of State. You can apply online or by mail. Some states refer to the Articles of Organization as the Certificate of Formation or Certificate of Organization.

The Nevada Articles of Organization for an LLC (Limited Liability Company) is a legal document to officially form your business. You’ll be expected to provide the name of the LLC, the name and address of the registered agent, your starting date, and the state filing fee.  After you file the Articles of Organization, we recommend you obtain an Employer Identification Number (EIN) if you plan to hire employees and open a business bank account.

FAQ: Filing Nevada LLC Documents

How Long Does It Take To Form An LLC In Nevada?

Filing the Articles of Organization can take about two business days online or up to two weeks by mail.

What Is The Difference Between A Domestic LLC And Foreign LLC?

An LLC is referred to as a “domestic LLC” when it conducts business in the state where it was formed. Normally when we refer to an LLC we are actually referring to a domestic LLC. A foreign LLC must be formed when an existing LLC wishes to expand its business to another state.

4. Create A Nevada LLC Operating Agreement

A Nevada LLC is not required to have an operating agreement, but it’s a good practice to have one.

What Is An Operating Agreement?

An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.

Why Are Operating Agreements Important?

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A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.

FAQ: Creating A Nevada LLC Operating Agreement

Do I Need To File My Operating Agreement With The State Of Nevada?

No. The operating agreement is an internal document that you should keep on file for future reference. However, many states do legally require LLCs to have an operating agreement in place.

5. Get A Nevada LLC EIN

What Is An EIN?

The Employer Identification Number (EIN), Federal Employer Identification Number (FEIN), or Federal Tax Identification Number (FTIN), is a nine-digit number issued by the Internal Revenue System (IRS); an Employer ID Number is used to identify a business entity and keep track of a business’s tax reporting. It is essentially a social security number (SSN) for the company.

Why Do I Need An EIN?

An EIN is required for the following:

  • To open a business bank account for the company
  • For Federal and State tax purposes
  • To hire employees for the company

Where Do I Get An EIN?

An EIN is obtained from the IRS (free of charge) by the business owner after forming the company. This can be done online or by mail.

NOTE

FOR INTERNATIONAL APPLICANTS: You do not need an SSN to obtain an EIN.

FAQ: Getting A Nevada LLC EIN

How Do I Get An EIN If I Don’t Have A Social Security Number?

An SSN is not required to get an EIN. You can simply fill out IRS Form SS-4 and leave section 7b blank. Then call the IRS at (267) 941-1099 to complete your application.

What Tax Structure Should I Choose For My Nevada LLC?

When you get an EIN, you will be informed of the different tax classification options that are available. Most LLCs elect the default tax status.

However, some LLCs can reduce their federal tax obligation by choosing the S corporation (S corp) status. We recommend consulting with a local accountant to find out which option is best for you.

6. Cost To Form An LLC In Nevada

To form an LLC in Nevada you will need to file the Articles of Organization with the Nevada Secretary of State, which costs $75. You can apply online or by mail. The Articles of Organization is the legal document that officially creates your Nevada Limited Liability Company.

7. Nevada LLC Annual Fee

The annual manager list filing fee is $150 and provides the Nevada Secretary of State with an up-to-date list of the LLC’s managers. The annual business license fee is $200 and must be filed so an LLC can maintain its good standing with the Nevada Secretary of State. The total cost is $350.

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