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Home » LLC Formation » How to Start an LLC in Nevada
Starting an LLC can be a daunting endeavor, but it’s easier when you have help, support, and knowledge right from the beginning. If you’re in Nevada, you’re in an excellent place to create an LLC. Nevada is generally very friendly to most businesses, with a reasonable tax structure and a realistic level of regulation. You need a state license in most cases, but the tax rates and other regulations and requirements aren’t nearly as complex as you might find in other locations.
Nevada has a business portal you can use to set up your registration with the state. You can get a license, reserve a name, and look at the checklist designed to help your new business stay in compliance with everything the state requires from your new company. You can even file your articles of organization online, making it easy and convenient to get your business set up and operating quickly. Before you start getting licenses and other things, you need to actually form your LLC.
While Nevada is not the least expensive state to form an LLC in—with the cost of filing articles of organization at $425—the business-friendly nature of the state overall makes it a good choice for many types of companies. It’s also a state where regulations aren’t onerous, and creating different types of companies (including LLCs) isn’t complicated, so you won’t feel like you’re jumping through a lot of hoops to get your business up and running. Here’s what you need to know to make the process easier.
The best news about forming an LLC in Nevada is that you can do it in just 6 steps. You’ll have your LLC ready to go if you follow these steps. You’ll also know a lot more about the process, including what you need to focus on for the future and the kinds of things you can expect to address regarding taxes and other requirements. It’s such a big and exciting step, forming your own company, but you can reduce any anxiety you might have by knowing how to do it the best way possible.
Here are the steps you’ll need to take in order to get your LLC in Nevada.
Below, you’ll find a detailed explanation to walk you through each step.
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So, what do you want to call your new company? Naming your Nevada LLC is the first step in getting it set up. The name you choose should be easy for your potential customers to search for and find. Be sure to consider how the name will look as a URL or web address too. Sometimes a great name doesn’t look good when it’s all run together, and it could potentially look like something inappropriate, entirely by accident.
You’ll need to be sure to follow the naming requirements for Nevada. For example, you must include either the entire phrase “limited liability company” or an abbreviation for it, which must be either L.L.C. or LLC. You also can’t use anything that might get your company confused with a government entity. That means you can’t call yourself “FBI Investigations,” for example. Be sure you stick to something not meant to be a play on anything the government’s already using.
You might need additional paperwork if you include a restricted word—such as attorney, doctor, university, bank, or something similar. That’s not always the case, though—it will generally depend on which word you’re trying to include in your LLC’s name and what type of company you’re starting. In some cases and with some words, you may need a licensed professional as part of your LLC to use the word or name you’ve chosen.
The name you choose for your LLC also has to be easily distinguished from other Nevada LLCs and companies. For example, you can’t select “XYZ Corp, LLC” if there’s already an “XYZ Corp, LLP.” The names are far too close to one another, even though they’re technically different types of companies. Ensure your LLC’s name is unique to avoid problems. The Secretary of State for Nevada provides complete naming guidelines you can read to ensure the LLC name you want to use is in compliance.
If you’re going to be using a DBA (Doing Business As), you’ll also need to file that. As an example, you might want to have a company that uses a more overarching name for itself, but it could be doing business as something that feels friendlier or more hometown based. If you create “Furniture Megacorp, LLC,” you’ll probably want your storefront to say something like “Mom-and-Pop’s Recliners.” You’ll need a DBA to do that legally.
Of course, you don’t have to use a DBA at all if you don’t want to. There’s no legal requirement for your Nevada LLC to call itself anything other than the name you file it under. Remember that you can’t operate under a different name unless you file a DBA with the state. You can always add one later if you aren’t sure about using one or you haven’t yet settled on any DBA names you might want to operate your LLC under in the future.
Another thing you may want to do with your LLC’s name is trademark it. However, it’s important to remember that you can’t always trademark names. Some are easier than others, and they generally need to be a unique or made-up kind of name. For example, it’s easier to trademark something like “Xerox.” On the other hand, it’s impossible to trademark your own name (other people likely share the same name) or something too generic (such as “Bob’s Bank” or “Jane’s Jams and Jellies”).
If you want to register your LLC name for a trademark in Nevada, you’ll need to be sure it’s a name you have a good chance of trademarking. That’s still not a guarantee, but it can help make the process less stressful and more likely to be successful. Don’t use your personal name or a generic name, word, or phrase. Instead, consider an LLC name that’s completely unique. You may want to look for an abbreviation you can turn into a word or create a new word like “Kleenex” or “Xerox.”
Once you’ve secured your Nevada LLC’s name, the next step is to file your articles of organization. These are part of the formal legal documents you need to establish your LLC with the state legally. They help establish the rights and responsibilities of every member of your LLC, along with the powers, duties, and liabilities they have to one another and your customers. You can use a template to create these articles, and you’ll need to pay a fee to file them.
The fee for filing your LLC information in Nevada is $425. That’s $75 for the articles of organization, $200 for the business license application, and $150 for the initial list of members and/or managers of your LLC. While these fees are not the least expensive among states, they’re pretty standard based on how much most states charge for creating an LLC. By knowing how much you’ll be asked to pay, you can be prepared to file your articles of organization and other LLC information more easily.
There are specific pieces of information that must be included in your articles of organization. These include your LLC’s name and physical address, along with information about its members, such as their names and physical addresses. The names and addresses of the managers, directors, organizers, and registered agent all need to be included in the document. A statement of the business’s purpose will also be required, so you’ll need to be clear about what your LLC is actually going to do.
One of the best ways to understand what the articles of organization really offer and why they’re so important is to think of the articles as a charter. They typically act as the overarching agreement for the LLC, along with information regarding the company’s purpose and how it intends to operate within the state. Having information on the people operating the business gives the state of Nevada the knowledge needed to reach out to the right people if there are legal or ethical concerns.
You can file your articles of organization and other LLC documents online. If that doesn’t work for you, there are plenty of alternatives. You can file them by fax, email, standard postal mail, or even in person by downloading and filling out the required forms. That makes it very convenient for you to create an LLC in Nevada and ensure the information the state needs is sent to them quickly and efficiently. The sooner you get your LLC approved, the sooner you can officially open for business.
A registered agent (sometimes called a resident agent or related term) is required to create an LLC in all 50 states. While some locations use different terms, Nevada does call this position a registered agent. There are 3 main features of a resident agent, which are:
You can designate a registered agent on your own or with our registered agent services. Depending on your exact role with the company and how much of the day-to-day specifics you’re involved with, you may want to choose a registered agent service to have one less thing to worry about. You’ll still be advised of anything you need to address or concerns your LLC may face, but you won’t be the initial point of contact for receiving and keeping track of a lot of paperwork and forms.
The fourth step in forming a Nevada LLC is the creation of the operating agreement. This agreement outlines the operating procedures and ownership of your LLC. It’s a legal document that helps ensure all the business owners are on the same page about the LLC’s direction and purpose. That won’t guarantee a lack of conflict in the future, but it can go a very long way toward reducing disputes. A lack of conflict can mean a healthier, more robust company for the long term.
Creating an operating agreement that covers everything is especially crucial if you’re a multi-member LLC. Not only will you and your business partners have more peace of mind, but you can also point to any discrepancies or concerns in ways that let you legally address them correctly. In short, the operating agreement is a way to protect yourself, your company, and any partners you have from misunderstandings and issues that could come up later.
Technically, you don’t have to create an operating agreement for your Nevada-based LLC. So, why did we include it as one of the steps? It’s vital to create legal protection for yourself, your business partners, and your company overall. You don’t need to file the operating agreement with the state—just be sure it’s complete, legally binding, and updated. Then you can keep it with your company’s documents in case you ever need it. It’s better to be safe than sorry.
Since Nevada doesn’t require an operating agreement, there aren’t any state requirements about what you need to put into one. However, if you’re looking for general information on this kind of agreement, consider including information on the organization as a whole: When it was created, who has ownership, and who the members are can all be essential pieces of knowledge. The ownership structure may be equal, but it could just as easily be skewed toward one or more members.
You should also talk about capital contributions, management issues, and voting rights and responsibilities if you choose to create an operating agreement. When there are multiple owners or partners of a business, they often all get a vote. Understanding how those votes will be handled and who will be managing the LLC can help you and others who are a part of your company avoid conflicts, confusion, and frustration. In some cases, some members may have stronger voting power than others.
Other important considerations for your operating agreement should address how you’ll all handle any changes to the membership structure or any future dissolution of the company. You should also talk about distributions—who gets them, when they get them, how they get them, and any factors that could affect those things. Naturally, your company’s goal is to make a profit, and if you’re distributing some of that profit to other members, everyone must understand how that will work.
Having an EIN (employer identification number) is an IRS requirement, so it’s definitely not something to ignore. An EIN is something your LLC needs, so it can pay its employees. It’s 9 digits, and the IRS will assign it to you when you file for it. Think of it like a social security number, except for a business instead of an individual. You’ll need to use your EIN to open bank accounts for your LLC, hire and pay your employees, and manage and file your state and federal taxes too.
Getting an EIN is a service we provide, so you don’t have to worry about handling it if you have questions or concerns. However, it’s also something you can file for on your own if you’d prefer to do it that way. One of the best things about an EIN is that it’s absolutely free. It’s also pretty easy to get as long as you fill out the correct form with the right information. You can get your EIN online or by mail, whichever is more convenient for you and your needs.
Taxes aren’t most people’s favorite subject, but they’re a significant part of having an LLC in Nevada. You should be sure you understand and comply with the tax laws, so you don’t end up with fines and penalties you could have avoided. Give your LLC the very best chance to thrive by following applicable laws and reducing the risk of problems. To do that, you need to know what taxes you’ll have to pay and how they’ll be calculated.
Your LLC won’t be taxed in Nevada the same way it might be in many other states because an LLC is what’s called a pass-through entity. That means the money it makes will be passed on to the people profiting from it, such as the owners. Another critical thing to note about LLCs in Nevada is that the state doesn’t have corporate income tax or personal income tax, and not having those particular types of state taxes means your LLC and its members won’t have taxes owed.
You’ll need to pay federal income tax from the income you earn through your LLC. As for paying taxes specific to Nevada, the state doesn’t have an income tax. Whatever you make through the operation of your LLC generally won’t be taxed. Since the LLC itself is also not taxed, you can see why many people like to start their LLCs in the state. They’re getting significant tax breaks that they may not be able to enjoy in other locations. Most states tax LLCs, personal income, or both.
For any LLC selling goods (as opposed to offering services) in Nevada, sales tax must be collected from customers and paid to the state. You can register with the Department of Taxation for that purpose. That’s easy to do online, or you can download and fill out a form to mail to the department instead. After you complete your registration, the department will send you a permit for collecting sales tax. You’ll get one for each of your business locations if you have more than one.
Even though you don’t have LLC tax or personal income tax in Nevada, you do have self-employment tax. The rate for this tax is just over 15%, and you’ll need to file a form and pay the tax on the personal profits from the business. In other words, the LLC isn’t paying the self-employment tax. As an owner of the LLC, you’re considered self-employed. That means you’ll be responsible for paying self-employment tax to the state. How much you’ll owe depends on how much you profited from your LLC.
If you have employees working for you, your LLC will inevitably need to pay taxes on your payroll. Much of your LLC’s payroll tax goes to the federal government. Nevada has a quarterly payroll tax called the modified business tax (MBT). In any calendar quarter (3-month period) your LLC pays out over $62,500 in wages, you’ll likely owe this tax. However, the tax rate is only 1.17%, so it’s one of the lower amounts of tax you may be required to pay to keep your LLC compliant.
You’re fortunate to create an LLC in Nevada because it’s not a tax-heavy state. In other words, your LLC won’t end up with many unexpected taxes and fees to stay in operation. When it comes to making a profit, Nevada is one of the best choices for LLC creation and operation due to low rates and fewer taxes compared to many other states. That’s good news for LLC owners there and worth considering if you’re unsure what state to start an LLC in.
After you’ve followed all the steps and filled out (and filed) all the forms, you can congratulate yourself on the successful formation of a Nevada-based LLC. It’s a great feeling to know that you’re getting your business off the ground. However, the creation of your LLC is only the beginning. There are still quite a few things you’ll want or need to do in the coming months. To enjoy the highest level of success with your new company, you should ensure you’re handling it in a way that works best.
Financial and legal considerations—as well as employee-based issues—are often among the biggest and most significant problems for LLCs. You may not be able to control every issue or stop every problem from occurring, but there are ways you can reduce the chances of having difficulties. When you set up your LLC’s financial needs correctly and work with professionals who can help you along the way, you considerably lower your risks. That provides security and peace of mind, both of which can be very important.
After you’ve followed all the steps and filled out (and filed) all the forms, you can congratulate yourself on the successful formation of a Nevada-based LLC. It’s a great feeling to know that you’re getting your business off the ground. However, the creation of your LLC is only the beginning. There are still quite a few things you’ll want or need to do in the coming months. To enjoy the highest level of success with your new company, you should ensure you’re handling it in a way that works best.
Financial and legal considerations—as well as employee-based issues—are often among the biggest and most significant problems for LLCs. You may not be able to control every issue or stop every problem from occurring, but there are ways you can reduce the chances of having difficulties. When you set up your LLC’s financial needs correctly and work with professionals who can help you along the way, you considerably lower your risks. That provides security and peace of mind, both of which can be very important.
The fees you pay for an LLC aren’t just costs you can pay one time and then forget. You’ll have ongoing fees as well. Your business license should be renewed annually, with a $200 fee. You’ll also have your annual list (annual report) fee, which is $125. You need to be sure it gets filed by the due date, or you can expect to pay penalties for a late filing. While the state is tax and business friendly, it does have requirements it is particular about. Following them makes it easier for your LLC to operate.
Depending on the goods or services you’re offering, you may have other fees you need to pay annually. When you apply for a business license and set up your LLC, you’ll be given the information you need to plan for your annual fees and taxes. That way, you can reduce any chances of falling behind or forgetting to pay something that could get you penalized. Any fines or penalties you have to pay cut into profits, and those amounts can really add up in some cases.
The finances of your LLC—and who handles them for you—have the potential to make or break your LLC’s level of success. To give your business the best chance of success, you should consider working with professionals to set up the finances. Accountants, attorneys, and others who handle the financial aspects of your LLC should all be vetted. It’s not a good idea to try to handle everything yourself when you could turn a lot of the necessary work over to others.
Even if you have professional education or experience in certain areas of finance, you’ll likely have a lot of other things to do to keep your LLC running well. You shouldn’t take on too much, or everything you’re doing could end up suffering. By setting up your finances with people who can help you properly, you’ll free up more time to devote to other aspects and areas of your business. You can often get the most significant tax benefits from working with financial professionals.
In addition to a state business license, you may need other licenses or permits. That’s often the case with an LLC doing business in a highly regulated field such as medicine, law, or education. Before starting your business and making yourself available to potential clients, you ought to look into whether your LLC meets any criteria for needing additional permits or licenses from the state. Like many states, Nevada is careful about regulating businesses that have the potential for significant harm.
As you work your way through the process of establishing your Nevada LLC, you’ll likely have questions. By working with professionals who can support your goals and plans, you have the best opportunity to turn your fledgling LLC into a thriving, profitable business.
This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness.
