Start an LLC in Nevada
04 December, 2017
Are you thinking of starting an LLC in Nevada? A Limited Liability Company (LLC) is a well-known business structure. It combines the financial security of a corporation with a higher level of flexibility for the business owner. Thinking why to start an LLC in Nevada? These are the Top Nevada LLC Benefits:
- No minimum capital required for incorporating in Nevada.
- Nevada has the most dominant asset protection law in the country to safeguard your personal assets.
- By forming a Nevada LLC, you can enjoy various tax benefits such as no franchise taxes, no tax on corporate shares, and no personal income tax.
- Less personal information is needed to start an LLC in Nevada as well as at the time of annual filings.
- It is not necessary to be a permanent resident of Nevada; you can still form a Nevada LLC.
Forming a Nevada LLC is relatively affordable and easy. As with other states, Nevada also has some specific requirements. Check out the Nevada LLC formation requirementsbelow:
1. Choose a Name for Your Nevada LLC: Under the Nevada law, the LLC you are starting must contain the following words:
- Limited Company
- Limited-Liability Company
- Limited Liability Company
Also, the company's name must be unique, and it is mandatory to check the name for availability on the Nevada Secretary of State Business Name Database.
2. Hire a Registered Agent: A registered agent is a company or a person who receives and sends legal papers on behalf of your LLC. The registered agent must be a resident of Nevada or a company authorized to transact business in Nevada. He can handle the processing of all the legal papers and state filings.
- The LLC's name and address.
- The Registered Agent's name, address, and signature.
- The LLC's dissolution date, if any.
- The name and address of each managing manager or member.
- Each Organizer's name, address, and signature.
The articles can be filed by postal mail or online at the Secretary of State's web-based business filing portal. The filing fee is $75.
4. Get an EIN (Employer Identification Number): An EIN or Federal Tax Identification Number identifies a business entity. It is primarily a social security number for the business. It is required at the time of filing state and federal taxes. Also, your bank can ask you to give the EIN for opening the business account.
You can easily get the EIN free of cost from the IRS after forming the business by either printing or mailing the form or applying online.
5. Tax Filing Requirements: After obtaining the EIN, one of the other main Nevada LLC Tax filing requirements is to register with the Nevada Department of Taxation and file regular reports. You need to register at the Nevada Tax Center and Nevada Employment Security Division (ESD). After that, you can easily manage your annual filings and renewals. Nevada doesn’t have a corporate income tax, but you have to pay $200 a year as Business License tax. There is no personal tax either. Nevada has a 6.85% tax, and the average local tax is 0.74%, which makes a total of 7.59% tax.
6. Yearly Requirements: To start a business in Nevada, you are required to submit an additional filing on or before the last day of the first month to keep your business in compliance. Nevada asks LLCs to file an Annual List of Members/Managers and Business License. The filing fee for Annual List and business registration is $150 and $200 respectively.
To start an LLC in Nevada, you will need to do a lot of work. To make your work easier, you can hire professionals who can assist you in forming an LLC in Nevada. They will handle all the work, from choosing the company's name to filing annual requirements.
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