If you are considering having a LLC formed in Nevada, there are a few steps you might want to consider before you start planing.
First things first, name your LLC. An LLC’s name must include the words:
- Limited-Liability Company,
- Limited Liability Company,
- Limited Company,
- Limited,
- or one of these abbreviations: “Ltd.,” “L.L.C.,” “LLC,” or “LC.”
- the word “Company” could also be abbreviated as “Co.”
Your LLC’s name must be distinctive from the names of any other business entities in Nevada. You can check the Nevada Secretary of State business name database in case you want to make sure the name you have chosen is available.
A name can also be reserved for 90 days by filing a Name Reservation Request form with the Nevada Secretary of State. The filing charge is $25.
You can use a fictitious business name in case you don’t want to use your LLC’s legitimate name. A fictitious business name, assumed name, “DBA” (doing business as) or trade name. must be signed up with the county clerk in whichever county in Nevada where your LLC is doing or will be doing business. Every county has its own forms and charges, so you better check it up in your specific county.
Next, file your articles of organization. A Nevada LLC is formed when the Articles of Organization are created. These documents need to be presented to the Nevada Secretary of State. The articles must include the LLC’s name; name, address, and signature of the LLC’s registered agent; the LLC’s dissolution date when there is one; if the LLC is controlled by managers or individual members; name and address of every chief or overseeing part; and name, address, and signature of the LLC’s organizer.
The articles might be filed online by postal mail. There is a filing fee of $75 USD.
Then, you have to select a registered agent. In Nevada, you are required by law to hire a registered agent for your LLC. A registered agent is a private individual or business, with a physical residence in the state that agrees to accept important tax forms, legal documents, notice of lawsuits, and official government correspondence on behalf of your business.
Don’t forget to set up an operating agreement. A LLC operating agreement is not mandatory in Nevada, yet we recommend elaborating one. An operating agreement his is an inside document that establishes how your LLC will be run. It sets out the rights and duties of the individuals and supervisors, including how the LLC will be managed. It can also help safeguard your limited liability by indicating that your LLC is genuinely a separate business entity. Without an operating agreement, state LLC law will administer how your LLC works.
Extra tax and administrative prerequisites may apply to your LLC. For example, you might need a license to operate. As a rule, most businesses in Nevada have to get a state business license from the Nevada Secretary of State. This license needs to be renewed every year. The initial business license application must be attached to the initial annual report and within the Articles of Organization.
Sometimes, for instance in the event that you have employees, you’ll have to enroll with the Nevada Department of Taxation (DOT) and the Nevada Employment Security Division (ESD).
If your LLC has more than one member then it must have its own IRS Employer Identification Number, EIN, regardless of whether if it has employees or it doesn’t. When you form a one-member LLC, you must get an EIN for it only if you will have employees or you choose to have it taxed as a corporation rather than a sole proprietorship. For getting an EIC you need to complete an online EIN application which is available on the IRS website. There is no filing fee.
Do I need to file an annual report? All Nevada LLCs and foreign LLCs authorized to do business in the state must file a yearly report in which they acknowledge their registered agent, officials and directors. The first year list is required to be documented with the articles of organization. The filing fee is $150. The report may be filed online or you can download the form and file it via postal mail.
Finally if you are a foreign LLC doing business in Nevada you have to be registered with the Nevada Secretary of State. Foreign LLCs must hire a registered agent physically located in Nevada for service of process. The filing fee is $75. The application must be joined by the initial annual report (and $150 charge). The application might be filed online or via mail.