If you're here and reading this article, you're probably brave enough to start your own business. We're impressed with your courage because it's a huge decision! If you have no experience and feel like faced with something difficult and costly, that’s generally true!
But we're here to untangle that knot and ease your plight as much as possible. After reading this article, you won't have any questions because we've described everything in as much detail as possible. We will tell you what steps the process of LLC incorporation in Nevada consists of, what you need to do, who to ask for help on this thorny path, and how to save money. We will present all of this in steps that you can literally write down and follow.
So, if the LLC process is still a dark forest for you, get to the content of the article.
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Well, it's time to start the LLC foundation process and come up with a name for your future company. This is not an easy task. In addition to your name being catchy, it also has to meet state requirements.
First, the name of the LLC must mandatorily contain the following words:
You may use the abbreviation "co" in this state.
Also, your company name has to be completely unique. This means not only that the name of your LLC must not be exactly the same as the names of existing companies in Nevada. The name should also not mislead the state and customers in the long run. For example, if there is a company with a similar name where only one letter will be different, you will be denied having that name. Let's say you want to choose "Pizza and Pasta LLC", and the state of Nevada already has a company registered with the name "Pizza and Pasta Inc.", the Secretary of State will obviously not approve such a name. But if you add literally one extra word and suggest "La Pizza and Pasta Inc." you can more easily get approval.
What else is prohibited? The use of certain words and phrases is strictly prohibited by state law. Of course, words for obscene things or illegal substances should not be in your name. But we don't think you were planning to add them to your LLC name, were you? What can be confusing, though, are some words related to the kinds of activities for which you need to get a license. It's not that you're not allowed to use them in the name at all, or rather you can only do it with a license. Such words include:
It is also important to know that you cannot imply any connection with the state in the name because you are not a state organization. It should be clear from the name of the LLC that your LLC is a private organization. This means that when thinking of your company name, you should forget about using words such as:
Check several times to see if your LLC will need a license to be allowed to use certain words.
When you've made sure that your LLC name is catchy and interesting, and there are no illegal words in it, you've done half the work. But there're still things to do: you need to check it and see if that great name hasn't already been used by someone else. How do you do that? It's very simple and, best of all, it's free.
Once you've decided on a name, go to the Nevada Secretary of State's website and find the «search for legal entities» section. You should enter and check not only the name you want but also nearby variations to make sure it's 100% unique and not like other LLC names in the state. In fact, this standard procedure will work for any state, not just Nevada.
If you want to change the name of your LLC after you register it, you can easily do so. The state offers the option of registering a DBA quite easily but not for free. In fact, a DBA is a fictitious name for your company, which you can take advantage of. What documents do you need to file with the state to register a DBA? Each individual state has a different list of documents, prices, and an overall procedure. You submit the papers and a form to the county clerk's office of the county your LLC will operate in and pay an average fee of $25 right away. Check the list of documents you need to file in the county you belong to and in which your LLC will operate. To learn more, check Nevada Revised Statutes section 602.017.
Once you've been able to choose your company name and verify it, it's time to appoint a registered agent. The services of a registered agent are required by the law, and there is no way to avoid them. It is a requirement of the state to allow you to do business in the United States under Nevada Revised Statutes section 86.231.
A Registered Agent a the liaison between your LLC and the state. This person or company, which specializes in such services, receives all procedural documentation and informs business owners right away. The Nevada Registered Agent must be on call during business hours because if you miss an important document, such as not responding to a request for a lawsuit, you may lose your case just because of that.
Anyone over the age of 18 and a U.S. citizen can be a registered agent. It could be you or even your sister or grandmother. But the disadvantage, in this case, will be that your personal address will then be listed as a business address, and dissatisfied customers can come to you or your grandmother with complaints.
Also, all the claims, complaints, or just plain spam you will receive by mail as well because your address will be common knowledge. And in general, other than saving the budget, there are no advantages to doing the job yourself.
A Registered Agent is an intermediary between you and the state through which you can communicate legally. If you have come to the conclusion that you need the help of a professional registered agent service provider, we have carefully researched many companies and their offers in the Top Registered Agent Service Providers article.
We tend to think that this is not a completely reasonable decision, and of course, we recommend ordering this service from professional companies that have been on the market for many years. They will use their office addresses for this activity. So, you can be sure that you will be provided with a quality service, and your privacy will not suffer in any way. They will screen out unnecessary mail and notify you only about the really important letters. Moreover, if your business operates in several states at once, then you certainly can't avoid turning to professional companies because there is no way you can be in several states at once. Usually, large companies providing LLC formation and registered agent services have offices in all states of the country.
On average, the services of a registered agent in the United States and, in particular, in the state of Nevada start at $90 a year and can go up to $200 and even $500 a year. By ordering the services of such companies, you don't have to worry about this aspect and go about your business and what you do best.
So, you have already decided on the name of your LLC and selected your registered agent, but what happens next? The next step is the most interesting and the most difficult one - the filing of your Articles of Organization. This is a very important step in creating an LLC and other business entities in the USA because if you miss it, you can get a really big fine of ten thousand dollars in the worst case.
The Nevada Articles of Organization is probably the most important and weighty document. By signing it, the state literally recognizes you as a company and allows you to operate in its territory. You generally can't do any paperwork on behalf of the company or sign any contracts until the state approves the Articles of Organization that you file. Without it, your company simply does not exist.
To file Articles of Organization, you have to submit it to the Secretary of State. Along with this, you should pay a fee for processing the document.
Don't forget that you can always turn to the professionals who provide LLC formation services. Go to our “Best LLC services” article, and you can choose the best contractor!
Articles of Organization is a formal document, but there is nothing complicated about creating it. What you need to remember to include in the Articles of Organization:
You can even submit this document online. You can find a ready-made PDF form online, which you can easily fill out by following all the previous steps.
In total, you will need to pay about $425, including a business license of $200.
On average, you will not wait for weeks or months for a decision to be approved but only 5-8 business days. That's pretty fast. But if such a short period still seems long to you, it can be reduced to 1 business day by ordering expedited services. It's worth quite a bit, namely $125.
And if you need your LLC to be registered right here and now, the Secretary of State can arrange it while you have time for a cup of coffee, for one hour. It will cost you, of course, like a year's supply of coffee - $1000. Keep in mind that this is the cost of each document you want to expedite. We don't know if you'll need this service but think carefully because the total amount can be very high.
The operating agreement is not a legally required document. This means that you can avoid having it drawn up. Anyway, we and qualified lawyers always strongly recommend having this paper. Why? That is all because business is not a smooth silk path, and you need to be prepared to protect yourself and your LLC through the twists and turns. An operating agreement can be a safety cushion in this case.
What is this? It is a document that regulates the relationship between the co-founders of an LLC. As you understand, it is an internal document, and therefore, it is not of much interest to the authorities. Such a document is drafted in relatively free form (templates can be found online) and certified by a lawyer. In this paper, you describe the roles and responsibilities of LLC participants, internal company rules, and so on. Moreover, the document should contain information regarding the breach of agreements and the consequences of that. What else can be described in an operating agreement:
In short, all the internal organizational aspects of your business entity can be described in this paper. So, you will always have a document that resolves controversial points related to your Nevada LLC working processes. It does not need to be filed with the state because this document concerns only you and your company.
You will most likely need to obtain an EIN in order to operate your LLC in the state of Nevada. An EIN is an identification number needed to pay taxes. In fact, not every business needs an EIN, but if it has employees, more than one member, or if your business entity is taxed as a C Corp or S Corp, you will definitely need it.
Furthermore, when you open a bank account for your business, they will probably ask you to file an EIN as part of the documentation package needed.
This document is quite easy to obtain. In general, it will take you no more than 5 minutes to apply. On the IRS website, you can apply for the IRS SS-4 form right from home online. The form is simple, and it won't be difficult to fill out.
That's it! You've started an LLC in the state of Nevada! As you can see, there are a lot of little things in the process that are easy to miss. And overall, filing and collecting all of these documents is not an easy task. But if you follow a clear plan, you will succeed!
If you need some help with the paperwork and want to save yourself a lot of time, you can turn to an attorney who can provide you with professional assistance on all the points. The services of a lawyer are not cheap, and there is a less expensive but no less qualitative option.
There are many companies that are willing to provide LLC formation services much cheaper than lawyers do. You can find services on the market in quite a wide range and find an option that suits your budget. Usually, the formation package includes all the basic services that you will generally need in order to achieve your goal.
Compare the conditions for opening an LLC in Nevada with other states:
But that's not all. Once your LLC is established, you will need to ensure that it runs smoothly. This will require you to do a few more things right after starting a company in Nevada.
Opening a bank account is a crucial step that will prove useful in many ways.
That is why we advise you to contact the bank as soon as possible and get a bank account for your Nevada LLC.
Registration of insurance is the next important step. Business is always a massive undertaking, and you never know what bumps you'll hit along the way. To protect yourself and your future LLC from that, we recommend registering insurance right away.
There are many types of insurance, and we insist that you take a consultation with an insurance agent. Depending on your company's line of business, you may need:
Get peace of mind for the future by getting your LLC insurance now!
So, when you're all set, you can breathe a sigh of relief, but not for long. Your LLC will need to maintain its status at all times. Every year, you will have to renew your operating license and pay the aforementioned $200 fee. Moreover, you will also need to renew licenses obtained for certain activities in each county where you do business.
Now you are ready to focus on making your business the best it can be. In the process, however, keep in mind that you will have an ongoing commitment.
There is no income tax in the state of Nevada. But you are required to pay tax as an employer on behalf of your employees. If you sell anything, you will also pay sales tax. You can find out more about taxes in Nevada by contacting the state Nevada Department of Taxation. How do you file your taxes with the state? You will have to record all LLC losses and gains on a Schedule C for your personal tax return.
The Nevada LLC Annual Report is a required procedure that you should do every year (according to Nevada Revised Statutes section 86.5461). It has to contain information about the company and its management. The cost to process an annual report in the state of Nevada is $150. Pay special attention to the truthfulness of the data you include. If there are significant discrepancies in an Annual Report, you may well be prosecuted, as it is punishable in Nevada.
A limited liability company is a welcoming legal structure for many businesses. Start an LLC is easy. Select your state to start.