HOW TO START AN LLC IN NEVADA
Nevada allows businesses – both in the state and from without – to register an LLC in the state. The process is usually simple and straightforward. By submitting the right documentation, adhering to state rules and paying the filing fee, a company can become a Nevada LLC in a relatively short period of time.
Naming the LLC
- Naming an LLC in Nevada only requires adhering to a few rules and requirements. First, the name must have the words “Limited Liability Company” or an abbreviation with the same meaning, such as LLC. Second, the name cannot contain words that would cause confusion with existing federal or state agencies, such as FBI or EPA. The last requirement is that the name cannot be the same as another LLC operating in the state – a free search tool is available to verify the availability of business names.
- Some business names may require additional paperwork and/or licenses to use, such as Bank, Banc or Banque.
- It can be useful to consider website URLs when thinking about business names. Some domains are already taken, or are much more expensive than others. Sites like GoDaddy allow users to search for available domain names and to purchase domains.
Select a Registered/ Statutory Agent
- A registered agent is required to have an LLC in Nevada. The registered agent, which must be a resident of the state or a corporation authorized to do business in the state, needs to have a physical Nevada address. The registered agent is the individual or organization that will receive legal documents for the LLC – like in the event of a lawsuit.
- Either one of the founders of the LLC or an employee can be the registered agent, or the LLC can employ the services of a registered agent. Incfile offers FREE Registered Agent service for the first year with every package or as a $0 standalone service.
Filing Articles of Organization
- The Articles of Organization Limited-Liability Company must be filed with the Nevada Secretary of State. The cost is $75, or an additional $125 for expedited service.
- The articles need to include all the necessary information about the LLC, including its address and name, the address and name of its registered agent and the way the LLC will be managed.
Create Operating Agreement
- Nevada does not require LLCs to have an operating agreement. However, creating an operating agreement – whether written or verbal – is still recommended for all LLCs. Even a basic outline of how the organization will operate can provide clarity as the business moves forward, grows and encounters obstacles.
RUNNING YOUR BUSINESS
Getting Your EIN
- An EIN is an employee identification number, issued by the Internal Revenue service. Sometimes it is also called a Federal Tax Identification Number. It’s a unique number issued to each business. You’ll need an EIN to open a business bank account; file Federal and State Taxes; and hire employees.
- Before you get your EIN make sure your new business has been properly formed before applying and be wary of paid sites. EINs are free direct from the IRS.
- The easiest way is to apply online for an EIN. Note, the IRS website has office hours, and is only available Monday through Friday, 7am to 10pm. Yes, we also agree this is one of the most ridiculous things we’ve ever seen. You can call 1-800-829-4933, between 7am to 7pm of your time zone, Monday to Friday. Snail mail: You can download the form and mail it in.
Keeping Business and Personal Accounts Separate
- Get a business bank account for your business. This will help you protect your personal assets from potential creditors and lawsuits, and will also make life a lot easier come tax time.
- Get a business credit or debit card. This will help you keep your expenses separate and easier to track.
- No matter what business you run, accounting software and processes is a must for any small business. If you have an accountant, ask them which software they work with and recommend. A good accounting system is necessary to track income and expenses, so you can easily see if you’re making money and make filing income taxes so much easier.
- Always try and find something that will: sync with all of your bank and credit card accounts automatically – not just downloads, but auto sync; auto-match vendors, customers and other accounts; and let you accept credit cards and ACH drafts with ease. This can be applied for online, as can unemployment.
Setting Up for Taxes in Nevada
Registering for State Tax
- Businesses with employees in the state need to register for unemployment insurance tax. LLCs can also learn more about Nevada taxes for businesses, including the Nevada modified business tax, by visiting the Nevada Tax Center.
- For businesses that sell taxable goods, paying the Nevada sales tax is required.
- Annual gaming control taxes are required from any business operating games like slot machines in the state. There is also a live entertainment taxfor businesses operating gaming establishments.
Licenses & Permits
- While licenses and permits are not required for all businesses operating in Nevada, there are some types of businesses that must get proper certification and documentation to operate. Businesses must register for applicable federal, state and local permits – such as health permits.
- Businesses must register for workers’ compensation insurance.
KEEPING YOUR LLC COMPLIANT
- All LLCs operating in Nevada are required to file an Annual Report with the Secretary of State, due on the last day of the month in which the LLC was formed. The Annual Report includes a fee for the report ($125) as well as a renewal of the business license ($200).
Certificate of Good Standing
- An LLC can obtain a Certificate of Good Standing from Nevada’s business site, SilverFlume. The certificate verifies that the LLC was formed legally and that the LLC is currently in good standing with the state.
- To order the certificate, the business must be registered with the SilverFlume site. On the home page, under Manage Your Business, there is an option for Order a Certificate of Good Standing.
FILING A FOREIGN LLC IN NEVADA
- A business that is outside of the state of Nevada can still file an LLC. The form for filing a foreign LLC is more detailed than the domestic form, and costs slightly more to file ($120).
ABOUT HOW TO START AN LLC
I'm an entrepreneur myself. When talking to others who want to start their own business, they often get wrapped up in the nitty gritty of paperwork and forming the company. They forget that what really matters is customers, sales, and profit. That's why I created How to Start an LLC.org: a simple resource and guide so you can spend less time on forming your company, and more time on building it.
My lawyers want me to remind you that I'm not a lawyer and that I'm completely unqualified to offer legal advice. This site is meant to serve as a reference for you on your journey. If you have questions or concerns, please contact a qualified lawyer (or accountant) to help you. Also, as a general rule, never take random legal advice on the internet.