Nevada has a lot more to offer than just the bright lights and casinos of Las Vegas and Reno, respectively. For entrepreneurs, Nevada is increasingly popular, as this state is proving to be a business-friendly haven for aspiring business owners. If you are setting out to launch your business in Silver State, you have settled on a fairly ideal location. Of course, before you can open your doors for business, you will have your work cut out for you. You will need to identify your market and get a sense of who your customers are. You will need to purchase a retail front or sign a lease on office space for your organization. You will also need to make important hiring decisions–any entrepreneur will tell you this is the toughest part of the job, and it is a must that you surround yourself with a rockstar team. You may also want to consider how you are going to legally structure your business. If a limited liability company (LLC) seems like a good fit for you, you are going to want to learn a bit about forming an LLC in Nevada and how you can do it online.
So, what is it that makes Nevada so appealing for business owners? Well, the primary driver for this has to do with taxes. Specifically, Nevada does not impose corporate, franchise, or personal income taxes. As you can likely imagine, this can be a major boost to your bottom line, and it can help your company attract top-level talent. While Nevada does have annual license fees for businesses, that drawback is offset by the fact that they do not have an information-sharing agreement with the Internal Revenue Service (IRS). Nevada is also second to none when it comes to privacy, and you can create your LLC with complete anonymity from the public.
What is a Limited Liability Company?
Before you begin the process of forming an LLC in Nevada, you are going to want to gain a thorough understanding of just what a limited liability company is. In short, an LLC separates your business as its own legal entity which is operated by its members (a.k.a., owners). LLCs are common for a number of reasons. For one, they are relatively painless to set up and do not typically require much in the way of maintenance. For instance, Nevada does not require LLCs to hold annual meetings or submit operating agreements.
An LLC also affords its members the concept of limited liability protection. What this means is that in the event your organization is faced with costly lawsuits, or if it must declare bankruptcy, the members of the LLC will be able to protect their personal assets. To put it in simpler terms, if your business goes bust, you do not necessarily need to fret about losing your house or your retirement accounts.
An LLC is also treated as a “pass-through” entity by the IRS, which can be appealing to business owners of all stripes. This means that profits generated by your LLC are not subject to taxation until they pass through to the members, who will then pay income taxes on their salaries. This is notably different from certain corporate structures, which can find themselves effectively taxed “twice”.
Forming an LLC in Nevada: Getting Started
If you are ready to get your LLC up and running, there is a process that you will need to follow in Nevada. First, you will need to select a name for your business. Per Nevada state law, your name must be unique from other businesses registered with the Secretary of State. The name of your business must also include the words: “Limited Liability Company,” “Limited Company,” “Limited,” or a suitable abbreviation.
You will also need to assign a registered agent. The role of the registered agent is to receive all legal correspondence on behalf of your business. They can also handle government and tax correspondence as well. This effectively creates a partition between these issues and your day-to-day operations, which can be helpful from a management perspective.
Next, it is time to draft your articles of organization. Submitted to the Nevada Secretary of State, this document will formalize your business. This form should include some basic details about your business and its members, as well as the contact information for your registered agent. By working with us at Corporation Center, you can submit your articles of organization online with our simplified web form.
We Have the Forms You Need
Whether you need to form an LLP, LLC, or a corporation in the state of Nevada, we can help. In fact, we have easy-to-fill web forms for business structure matters in all 50 states. To learn more, take a moment to browse our website.