One of the most important decisions you’ll have to make for your remote business is choosing where to form your LLC. Got Nevada on your mind? You’re not alone. In 2020, over 283,333 small business owners called the state of Nevada home. That’s over 99.2% of Nevada businesses!
You might be excited to hear that Nevada has no corporate income tax. However, unless your LLC is taxed as a C-Corp, this won’t apply to you (which is the case for 99%+ of you reading this). These are the kinds of facts you need to know!
If you’re thinking about forming a Nevada LLC, here are four things you’ll want to consider before you get started.
1. Nevada Offers Your Business Strong Anonymity
Each state determines their rules and statutes regarding LLCs. Nevada is one of four states (Delaware, Nevada, New Mexico, and Wyoming) that allows you to run an anonymous LLC.
What is an Anonymous LLC?
An anonymous LLC is a limited liability company that does not require owners to disclose personal information, such as your name and address.
However, despite the LLC owner maintaining anonymity, the names and addresses of all LLC managers must be disclosed within the Articles of Organization, as well as the annual List of Officers. Both of these documents are on public records that can be obtained by searching through the Nevada Secretary of State website.
An anonymous LLC can protect you and your business from hackers, stalkers, and unwanted mass marketers. But that’s far from being the only advantage!
If you decide to form an anonymous LLC in Nevada, you’ll enjoy the following benefits:
- All of the same perks you would receive with a “regular LLC” - the difference is that you can keep your name and address private as an owner.
- No state income tax (Nevada is one of the 7 states that does not have state income tax)
- Strong corporate veil that protects individuals from liability (you’ll read more on that in section #4)
It’s important to note that forming an anonymous LLC is not a magic cure-all to all of your business privacy woes. It does not exclude your business from paying taxes, nor does it guarantee full anonymity from your bank, lawsuits, or the IRS.
Why Form an Anonymous LLC
Perhaps you work full-time and don’t want your personal name attached to your side gig. Maybe you operate out of your home or a local coworking space and don’t want solicitors (or worse… angry customers, creditors, or vendors) showing up at your workspace unannounced. Whether you’re concerned about your safety or just want to maintain your privacy for good measure, there are a number of legitimate reasons to form an anonymous LLC.
There are certain situations in which your name and address could still be made public. If you want to take your privacy one step further, signing up for a virtual mailbox can add an extra layer of anonymity to your LLC.
Make Sure Your Privacy is Protected 24/7 With a Virtual Mailbox
The best way to protect your privacy when forming your anonymous LLC is by obtaining a virtual mailbox, which provides you with a commercial business address to use for documentation. This way, you won't have to worry about your personal information being compromised in the event of a subpoena or lawsuit.
2. Nevada Allows You to Form a Series LLC
A series LLC is a unique type of limited liability company that offers business owners more flexibility than a single-member LLC. If you’re not familiar with the term, a series LLC consists of a “parent” LLC that contains multiple “series” established within the original. Each series operates as if it is a separate entity, meaning it can have its own business name, members, managers, assets, purpose, bank accounts, and records.
Pros of a Series LLC
The most notable benefits of a series LLC include:
- Paying just one filing fee – Your business will pay just one filing fee, regardless of how many series are operating under the parent LLC.
- Protection for each individual series – If one series gets sued, the others won’t be held liable for any debts, obligations, or expenses.
- More options – A series LLC offers flexibility when it comes to splitting management and financial decisions, since each series functions independently from one another.
Cons of a Series LLC
There is one major disadvantage that you may want to take into consideration when it comes to a series LLC. Paying state and federal taxes can be tricky, since there are no uniform rules or guidelines laid out. For this reason, you should seek professional tax services if you have a series LLC.
Why Form a Series LLC
One of the most common reasons business owners decide to form a series LLC is because of the liability protection it offers. It can also save you stress and money in the long run.
Picture this: you are a real estate investor who owns several individual properties. Instead of creating a new LLC for each of your assets, you decide to create a series LLC, with each property under a new series. In the event that one of your properties gets sued, your other series (i.e. properties) will not be liable, and the remainder of your assets will be shielded from any risks.
You could also form a series LLC for separate subsidiaries within one singular business. For example, you could create a new series for each department, location, product, etc.
3. You’ll Need to Submit (and Pay For) Three Documents
When you form your Nevada LLC, you’ll be responsible for submitting three documents to the Secretary of State: your Articles of Organization ($75), Initial List of Managers or Managing Members ($150), and a State Business License ($200). The total filing fee for all three is $425.
The easiest (and fastest) way to submit these documents is online.
Articles of Organization
Think of your Articles of Organization as your business’s birth certificate. This document will contain basic information related to your LLC.
Not sure where to get a registered agent in the state of Nevada? You’re in luck! VirtualPostMail (VPM) offers registered agent services free of charge with select virtual mailbox plans. This option can save you over $100 a year. Think of all the savings if you stick around for a few years!
Initial List of Managers or Managing Members
The Initial List of Managers or Managing Members should contain the name(s) and address(es) of the managers or members of the LLC. You will be required to file this document annually, and it’s due by the last day of the month following your filing of your Articles of Organization.
State Business License
Every business operating out of the state of Nevada is required to obtain a state business license. These are issued by the Secretary of State and must be renewed annually. The easiest way to apply is online, but you can also download the appropriate forms and apply by mail.
Note: You might also need to acquire 1) a local license within the city/county in which you plan to operate and 2) a business permit if you plan to operate within a regulated industry. Application processes will vary depending on your jurisdiction.
4. Don’t Use a PO Box for Your Nevada LLC
There’s one step you’ll want to skip altogether when it comes to forming your Nevada LLC: signing up for a PO box. A PO box is not an acceptable physical address when it comes to forming your LLC. In fact, your paperwork will be rejected if you attempt to use one!
What should you do if you already have a PO box? Sign up for a virtual mailbox, which gets you a U.S. based business address. Once you’ve done this, you can request to close your PO box.
Why Get a Virtual Mailbox vs. a PO Box
The #1 biggest reason to opt for a virtual mailbox over a PO box is because the latter will not be accepted when you file your paperwork for your LLC. If you don’t have a physical business address (which a PO box is not), you’ll be forced to list your home address. And that’s a major faux-pas when running a business!
Here are a few more disadvantages of using a PO box:
- You won’t have a professional business image – Listing a PO box as your business address can raise red flags for a customer. For more credibility, you’ll want an address that signifies you operate from an office or central location.
- It’s not accepted by all couriers – You’ll only be able to send and receive mail via USPS. With a virtual mailbox, you can ship and receive mail through all couriers, including FedEx, UPS, and USPS.
- It’s inconvenient – Love the idea of running your business from home? Well, with a PO box, you can say goodbye to some of that convenience, since you’ll need to travel to pick up mail and packages.
The state of Nevada requires that every Nevada LLC designates a registered agent that has a physical address in the state and will be available during regular business hours.
Wondering where to get yours? With select VPM virtual mailbox plans, you can get a registered agent free of charge. This ensures that someone will be available around-the-clock to accept service of process for your business.
Ready to Get Your Nevada LLC Up and Running?
In conclusion, a Nevada LLC can offer your remote business strong anonymity and asset protection. It’s also one of 14 states that allows you to form a series LLC. Be aware that when you form your Nevada LLC, you’ll be responsible for submitting three documents to the Secretary of State: your Articles of Organization ($75), Initial List of Managers or Managing Members ($150), and a State Business License ($200). And last but not least, you can skip signing up for PO box since you know there’s a much better option available to you: a virtual mailbox.