How To Start An LLC In Nevada
To start an LLC in Nevada, you must file Articles of Organization and supporting documents with the Nevada Secretary of State, pay a combined $425 in filing fees, and get an EIN from the IRS. The complete steps to forming a Nevada LLC are as follows:
- File Articles of Organization, along with your Initial List of Managers or Members and your State Business License Application
- Pay the Nevada Secretary of State $425
- Wait to receive your approved Articles and your Business License
- Get a Federal EIN tax ID for the LLC
- Create a Nevada LLC Operating Agreement
- Take these documents to the bank and get a Nevada LLC bank account
How to File Nevada LLC Articles of Organization
To form a Nevada LLC, you file Articles of Organization by following these steps:
- Choose a name for your new LLC
- Decide if you want to hire a registered agent service to minimize public disclosures
- Choose how long you’d like your LLC to exist
- Choose whether members or managers will manage your LLC
- Decide who you will list publicly as the members and managers
- File online and pay with a credit card (fastest) or mail your application packet to the Secretary of State at 202 N Carson St, Carson City NV 89701-4201 and pay with either a credit card or separate checks for each document filed
HOW LONG DOES IT TAKE TO START A NEVADA LLC?
Fastest 1 day: File online yourself and receive immediate approval of your Nevada LLC Articles of Organization.
Almost Fastest (and some might say better) 1 day: Hire Northwest, fill out a brief questionnaire, sit back and let our Corporate Guides file everything correctly the first time.
Archaic 2-3 weeks: Complete and print out the 10-page (!) packet of forms, and either write out your credit card information on the ePayment checklist page or write three separate checks for your Articles, Initial List, and Business License application. Cram all those forms in an envelope, mail it in, and wait a couple weeks until someone enters all your data into the system by hand.
WHAT IS THE COST OF A NEVADA LLC?
It costs $425 to form a Nevada LLC. That’s the combined total of three separate, mandatory filings: Articles of Organization ($75), Initial List of Managers or Members ($150) and a State Business License Application ($200).
Hire Northwest and your total, out-the-door cost is $650, including all three of the state filing fees.
How much does an LLC in Nevada cost each year?
Your Nevada LLC will cost $350 in state fees. That’s $150 for the Nevada LLC Annual List of Managers or Members and $200 to renew your Business License each year.
What is a Nevada LLC Annual List?
Nevada’s version of an annual report is called the Annual List of Managers or Members. Just like the name suggests, it’s a yearly update of the names and business addresses of either your LLC’s managers (if your LLC has managers) or your LLC’s members. The filing fee is $150, and if you miss the deadline, you’re hit with an additional $75 late fee. Worried you’ll forget? We can help—when you sign up for services at Northwest, we send you reminder notifications. Want to cross this task off your “to do” list entirely? You can hire us to submit your Annual List filing for you. We’ll even file your Business License renewal at the same time.
Does a Nevada LLC need a Business License?
Yes, Nevada LLCs are required to get a business license, and it’ll set you back $200 a year. You submit your first business license application along with your Nevada LLC Articles of Organization The license must be be renewed each year and is due at the same time as your Annual List. There’s a steep $100 penalty if you file late. Avoid problems and late fees—hire Northwest to file both your Annual List and Business License each year. That way, you can focus on running your business, not remembering filings.
What are the Nevada LLC taxes?
Nevada is one of the few states with no personal net income tax AND no corporate net income tax—yay! Before you jump for joy though, note that Nevada isn’t devoid of business taxes altogether. For example, if your LLC has employees, you must file a return for Nevada’s Modified Business Tax (MBT). The MBT is a 1.475% quarterly tax on wages (which kicks in after the first $50K of gross wages each quarter). Also, all LLCs with more than $4 million in gross revenue must pay a Commerce Tax that varies by industry.
And of course, there are sales taxes. The state sales tax in Nevada is 4.6%. However, Nevada counties can tack on their own sales taxes as well, bringing the average total sales tax to 7.763%. There’s a variety of specific products and services (mostly aimed at all the Las Vegas tourists) that have specialty tax rates as well. For example, room occupancy taxes for hotels on the Strip can hit 13%.
Property taxes are worth a note as well. Nevada sees a ton of property investment each year and not just in Las Vegas. Considering investing in property? While property taxes in places like Clark County are high, Nevada property taxes in general are relatively low, averaging 0.84%. If you decide to invest in Nevada property, your attorney will likely advise creating an LLC to protect your personal assets. At Northwest, we can form your Nevada LLC for as low as $650.
IS A NEVADA LLC REGISTERED AGENT REQUIRED?
Yes, your Nevada LLC is required to have and maintain a Nevada registered agent. Some people try to save a few bucks by being their own registered agent. Being your own registered agent, however, has its own costs. The Nevada address you’re required to list becomes part of the permanent public record (and a prime target for data sellers who will fill your mailbox with junk). You also have to be available at the address you list during business hours—and who can afford to be tied to their desk when they have a business to run? Meetings don’t attend themselves. And if you decide to change your office or agent? You’ll have to shell out $60 each time to file a Statement of Change form with the state.
Instead, consider hiring a commercial registered agent like Northwest. Our address will go on your public documents—no worries about junk mail or unwanted visitors on your doorstep. Our address will also stay consistent even as your business grows and changes. We’ll be ready and waiting at our office to accept your legal notifications—we even scan and send them to you the same day.
DO I NEED A TAX ID NUMBER (EIN) FOR A NEVADA LLC?
If your Nevada LLC has employees or files certain federal excise taxes (like Alcohol/Tobacco/Firearms returns), you’ll need a federal tax ID. Want to open a business bank account? Your bank will ask to see your EIN. Want to establish credit with a vendor? They’ll almost certainly request your EIN. Just to file many local tax forms, you’ll need your EIN. In some of these cases, you can use your personal social security number instead, but who wants to risk that? Especially when an EIN is free from the IRS. Can’t bring yourself to fill out even one more form? Hire Northwest to apply for your EIN on your behalf.
NEVADA LLC VERSUS NEVADA CORPORATION:
There’s a big difference in costs when it comes to Nevada Business Licenses for LLCs and corporations: the license fee is $500 a year for corporations versus the paltry-in-comparison $200 for LLCs.
Other state fees are mostly neck-and-neck. LLCs and corporations each pay $150 a year for their Annual List. The filing fee for Articles starts at $75 for both LLCs and corporations (although the fee increases if corporations have more than $75K in authorized stock). The type of business you choose doesn’t necessarily have significant tax advantages either. Not only can LLCs and corporations choose different tax elections, but the business taxes in Nevada are more dependent on gross income and employee wages than anything else.
If you’re looking to save money on state fees, an LLC may be your best bet. Many small businesses also go for LLCs because they’re easier to manage—no need to appoint directors and officers, authorize stock or hold annual meetings. Corporations aren’t without merit though and are common choices for businesses that hope to scale fast. Considering a corporation in the Silver State? Here is information on Nevada incorporation.
DOES A NEVADA LLC NEED AN OPERATING AGREEMENT?
If it’s important, you should put it in writing—and what’s more important than how your business operates? Sure, the state won’t come after you if you don’t have one, but your operating agreement is the most critical internal document of your Nevada LLC. Your operating agreement spells out how your business really functions—how much each person invested, how profits and losses are allocated, and what happens if the whole thing crashes and burns. And your operating agreement isn’t just important for the people within your LLC. You’ll almost certainly need your agreement to open a bank account. Potential lenders, investors, and partners will want to see it too. For many people, starting a business is the single biggest endeavor—and biggest financial gamble—of their entire lives. It’s not the time to cut corners.
Not sure where to begin? Northwest can help you start out on the right foot. When you hire us to form your Nevada LLC, we’ll give you a free operating agreement, specific to your management style. We’ll give you loads of other free forms too, from resolutions to membership certificates. We hope to keep working with your business for years to come, so we work hard to make sure you thrive. That’s why we were the first website to hand out free LLC forms. While imitators have since flooded the web with cheap-o forms, we’ve spent years refining and improving our forms. We’re proud to say that over a million LLCs have used our free LLC forms.
WHAT IS THE NEVADA LLC STATUTE?
NEVADA LLC ARTICLES OF ORGANIZATION REQUIREMENTS:
- Company Name: Your name must include “Limited-Liability Company,” “Limited Company,” or an abbreviation. Most companies keep it short and sweet with “LLC.”
- Registered Agent: You can choose either a noncommercial or a commercial registered agent. For a noncommercial agent (such as yourself), you’ll have to include their Nevada street address, which becomes a part of the permanent public record of the LLC. For commercial agents (like yours truly, Northwest Registered Agent), you just need a name and signature, which we’re happy to provide.
- Dissolution Date: If you want a self-destruct timer on your LLC, you can include an end date in your Articles of Organization. Skip this section if you want your company to continue indefinitely. Tip: Most LLCs skip this section.
- LLC Management: You’ll need to note whether your company is managed by its members or by managers. Most LLCs are managed by members, but if you don’t plan to oversee the day-to-day operations, you can turn over decision-making powers to one or more managers. You’ll also need to include the name and business address of each member or manager.
- Nevada LLC Organizer: “Organizer” is just a fancy title for the person who signs and submits your Articles of Organization. Your organizer doesn’t have to be anyone in your LLC. When you hire Northwest, we’ll be your organizer.