Companies like Tesla and Zappos have made Nevada their home state in order to benefit from Nevada tax benefits, asset and privacy protection, fast registration, and favorable business laws. Here we’re going to describe the six steps necessary to set up a Limited Liability Company (LLC) in Nevada.
1. Choose a Name for Your Nevada LLC
You can reserve a name for 90 days by filing a Name Reservation Request form.The filing fee is $25. The name reservation process can be expedited for an additional fee, usually about $50. This application can be filed online using Silverflume, which is the Secretary of State’s web-based business filing portal, or by mail.
The first step is to decide on a name for your LLC. Put some thought into choosing a name. The name should reflect value and distinctiveness of your product or service.Keep in mind that under Nevada law, LLCs cannot use certain restricted words in the naming of their LLC. Some restricted words include, but are not limited to the terms: Bank, Attorney, FBI, Treasury, and University.
For a complete list of naming rules in Nevada, including a list of restricted words, refer to the Secretary of State guidelines. Your company’s name must be distinct from the names of all the other entities already on file. Nevada’s Secretary of State has a website where you can do an LLC name search.
2. Select a Nevada Registered Agent
You are required to appoint a Nevada registered agent to receive important legal documents and to serve as your official contact with the state. A registered agent is an individual or entity that has been assigned to receive important compliance information, official correspondence, and service of process notices on a Nevada LLC’s behalf. Nevada requires a registered agent be designated so that it has an official contact on file for your business.
The registered agent must be available during normal business hours and must have a physical street address in the state of Nevada. That means the use of P.O. boxes are not allowed.
Failing to have a registered agent in Nevada may result in serious adverse consequences. Your business can be administratively dissolved in the state of its formation, and this action will affect the “good standing” of your business.
If you want to learn more about how to select a registered agent, read our in-depth article on this topic.
A company failing to comply with Nevada's Registered Agent requirements can be fined as much as $500 per day, plus costs incurred by the state in enforcing the fine.
3. File Articles of Organization
To form your Nevada LLC you need to fill out this PDF, which includes four essential forms:
- The first form is the Articles of Organization. These are documents that will register your LLC with the state and establish the power, rights, liabilities, duties, and other obligations of the LLC members.
- The second form is necessary if the registered agent cannot sign the Articles of Organization directly. This being the case, the registered agent must submit a separate signed Registered Agent Acceptance form, which is one of the forms included in the PDF file.
- The third form should include the initial list of managers and is filed with the Articles of Organization. While the two typically go together, they involve separate fees ($150 for the list of managers). This form must be filed every year thereafter, for a fee of $150.
- The fourth form is your customer order instructions, which details the payment and shipping information for fees and for your Articles of Organization.
You can submit your filing via email by scanning all the required documents (including the registered agent acceptance form if needed) and sending it to firstname.lastname@example.org.
If you prefer applying online, then use Silverflume to complete your application without filing any papers. This is the easiest and fastest way to form a Nevada LLC.
We recommend you file your application online using Silverflume. Silverflume is Nevada's one-stop business portal, providing businesses with a single online location for transactions.
However, you can also file your Articles of Organization for your LLC by mail or fax. In this case, use the Articles of Organization form provided by the Nevada Secretary of State.
Mail your completed hard copies of the Articles of Organization form to the following address:
Secretary of State
New Filings Division
202 North Carson Street
Carson City, NV 89701
You must include a $75 filing fee when submitting the Articles of Organization. Your application will take about 30 business days to process. If you want the process to be completed faster, you can expedite it by paying the following fees:
- 24-hour expedited price ranges from $25 to $125.
- 2-hour expedited service fee is $500.
- 1-hour expedited service fee is $1,000.
Please note that filing fees can change, so you should check with the Secretary of State for the most current fees. Also, the expedited fees are in addition to the required $75 filing fee.
You should file the original and one copy of your papers with the Secretary of State’s office. For a fee of $30, you can request an additional copy be certified and returned to your for your records.
How Much Does a Nevada LLC Cost?
It will be $75 for filing the Articles of Organization, $150 for initial list of managers or members, and then $200 for a business license. The total cost will be $425 to form a new Nevada LLC.
To maintain the Nevada LLC you will only be required to pay the initial list of managers and the business license. It will be a total annual renewal fee of $350. The easiest way to renew is through Silverflume.
Failure to maintain registering your LLC can result in your LLC being subject to monetary penalties as well as being barred from suing anyone in that state. It also means there will be no enforcement to any contracts in that state, which means anyone owing money to the business will not be obligated to pay.
4. Get a Employer Identification Number (EIN)
Your Employer Identification Number (EIN) is also known as a Federal Tax Identification Number (FTIN) and is used to identify a business entity. It acts as your company’s social security number. Getting an EIN is free of charge, and you can apply for an EIN by following our step-by-step guide.
Your EIN is your permanent identification number and can be used immediately for most of your business needs, including:
- Opening bank accounts.
- Applying for business licenses.
- Obtaining business loans.
- Hiring employees.
- Building business credit.
- Filing tax returns.
- Forming LLCs and corporations.
Do You Need a EIN to Open a Business Bank Account?
When a company has a separate business bank account, it is much easier to prove that you are maintaining a separate legal entity and will protect your liability. LLC bank account requirements will vary from bank to bank, but they may need to see your Articles of Organization, business license, Operating Agreement, and Employer Identification Number (EIN). They will need all members who will have signing authority to be present when the account is opened. To learn how to open a business bank account you can click here.
5. Obtain a Nevada State Business License
In addition to filing your LLC you must obtain a state business license, which is issued by the Secretary of State’s office for a fee of $200. To continue doing business and maintain your business license in Nevada, you’ll pay an annual renewal fee of $200. You can also apply for business licenses and file your annual renewals on SilverFlume.
You must register your LLC with the Department of Taxation and routinely file tax reports. The Department of Taxation runs a website, Nevada Tax Center, where you can create an account to pay your taxes. The Nevada Tax Center website is designed to simplify annual filings and renewals for companies doing business in Nevada.
Additionally, Nevada doesn’t require companies to collect sales tax on the sale of digital products and services. However, if your LLC is selling physical products, then it needs to apply for a seller’s permit with the Nevada Tax Service. This permit gives the business the power to collect sales tax on taxable sales. You can go to the Sales Tax Information & FAQ’s to learn more.
The Nevada LLC tax rate is one of the lowest because there is no corporate or individual income tax in the state. While an LLC doing business in Nevada is not subject to individual or corporate income taxes, if the LLC does business outside of the state, the corporation will be subject to taxes in another state.
If you are unsure or want to know more about doing business outside of the state you can read our article When to Register a Business Out-of-State.
Why a Nevada LLC is The Right Choice
Forming an LLC in Nevada is simple and has become increasingly popular with startups. Nevada is one of seven states that doesn’t charge a state income tax. In other words, the income your Nevada LLC generates in-state is not subject to tax.
Overall, there are several advantages to setting up an LLC in Nevada. The main reasons are Nevada’s many tax benefits, strong privacy and asset protection for business owners, and a judicial system that efficiently resolves business disputes.