- Step 1. Setting Up Your LLC in Nevada
- Step 2. File Your Articles of Organization
- Step 3. Create an Operating Agreement
- Step 4. Get an EIN/Tax ID Number
- Step 5. Keeping Your LLC Running
- Nevada LLC Resources
- Nevada LLC FAQs
If you are considering starting up a new LLC in Nevada or want to convert your existing Nevada business to an LLC, you may be feeling a little confused and overwhelmed by the process. However, setting up your LLC is actually a fairly straightforward process and doesn’t have to be as stressful as you may think.
In this guide, we will help you understand every step needed in order to legally establish your LLC in Nevada. We’ll also be giving you some information about tax structures for your LLC, annual regulations you need to follow, and detailing document filing fees so you can learn how to start your LLC for only $425.
Step 1. Setting Up Your LLC in Nevada
Before you can file to establish your LLC in Nevada, you will need to get your business ready for operations. This includes appointing members, handling the legal side of operations, and preparing to file necessary documentation. We go more in-depth on this below.
Naming Your Nevada LLC
One of the most important first steps in creating your Nevada LLC is to choose a name for your business. Any name you choose must be distinct and completely distinguishable from all other businesses in the state, in addition to following some specific LLC naming rules.
Legally Required Designation
In order to adhere to Nevada LLC regulations, the name of your LLC must have the phrase “limited liability company” in it, or contain one of the following approved abbreviations:
- Limited Company
- Ltd. Co.
To ensure the name you select for your LLC is completely unique, you can search on the Nevada Secretary of State’s business name database. If you find an available name that you like, you can file a Name Reservation application with the Secretary of State; this application will reserve your chosen LLC name for up to 90 days before official establishment.
The Name Reservation form can be filed through Silverflume, Nevada’s online business registration portal, or it can be printed out and sent to the mailing address listed at the top of the form. There is a $25 filing fee associated with the form, whether filed by mail or online.
Additionally, you may want to perform a domain name search while you are looking for an available LLC name. It is a good idea to purchase a domain name ahead of time, even if you aren’t sure you want a business website immediately, as it saves future stress by reserving the name for your use.
When choosing an LLC name, keep in mind that it should not include any words that may risk confusing your business with a state or federal government entity. This can include words like “FBI,” “Treasury,” “IRS,” or “State Department.”
You should also be aware that using words such as “bank,” “chiropractor,” or “attorney” may require the presence of a properly licensed individual in your LLC. These words may also categorize your LLC as a professional LLC, meaning that you will need to file slightly different paperwork during the establishment process. You can find out more about professional Nevada LLCs here.
Using a Trade Name
You are allowed to use a trade, or “doing business as” (DBA), name for your LLC in Nevada. This type of name means that you will continue using your legally registered LLC name on all official documents (both state and federal) but use the DBA name when interacting with the public.
In order to start using a DBA name in Nevada, you will need to register it in the county where your LLC conducts its business; if your LLC will conduct business in multiple counties, you will need to register in all of them. Registrations for DBA names are handled by the County Clerk’s Office in each locality. You can find a complete list of counties and clerk contact information here.
Appoint a Registered Agent
Every LLC operating in Nevada must have a registered agent, also called an agent for service of process, appointed. The registered agent will be responsible for receiving all legal documents, government communications, tax documents and will be acting as a contact point between your LLC and federal agencies or the state of Nevada. They will also be the responsible party that is contacted in the event of a lawsuit against your LLC.
You can appoint any Nevada resident (including a member of your LLC) or a business that is authorized to conduct operations in the state as your registered agent. As long as your appointee has a valid state address, they are eligible to be your registered agent.
If you want, you can select a registered agent off of the complete list provided by the Nevada Secretary of State’s office.
Step 2. File Your Articles of Organization
In order to legally establish your LLC, you will need to file your Articles of Organization with the Nevada Secretary of State. You will need to list the basic information about your LLC on this document and will not be able to start legally conducting business in the state without it. Below, you can see a sample of the information that is required by this form.
- Your LLC’s name
- Your appointed registered agent’s name, address, and signature
- A signed Certificate of Acceptance of Appointment by Registered Agent (this is included in the Articles of Organization packet)
- Your LLC’s dissolution date, if not perpetual
- If your LLC is member-managed or manager-managed
- Your LLC’s manager or managing member’s name and address
- Your LLC’s organizer’s name, address, and signature
You will also find a form for an initial business license and an initial annual report in your Articles of Organization packet. You must fill out both forms and turn them in with your Articles of Organization, or your documentation will not be considered complete. We will discuss these items [ANCHOR TO #Keeping Your LLC Running]below[END ANCHOR LINK].
You can file your Articles of Organization either by mail or online. There is a $75 filing fee for the Articles of Organization, a $150 for the initial annual report, and a $200 fee for the initial business license application. This means you need to pay a total of $425 when you first establish your LLC. You may also choose to pay the $125 expedited service fee for 24-hour processing of the Articles.
To file your Articles of Organization online, you will need to access Silverflume, the Nevada business registration portal. Once there, select the type of company you are filing for (a limited liability company) and proceed through the following instructions. You may complete the form online and will be prompted to pay all applicable fees upon submission.
If you want to file your Articles of Organization by mail, you will need to print off and complete the packet provided on the Nevada Secretary of State’s website. Use black ink for this. After the entire packet is completed, place it in a secure envelope and include a check for $425 made out to the Secretary of State. This filing cost covers all fees associated with the packet. Mail the envelope and check to the address below.
Secretary of State New Filings Division
202 North Carson Street
Carson City, NV 89701
Step 3. Create an Operating Agreement
Nevada does not require your LLC to have an operating agreement, but it is a very good idea to create one for your business anyway. The operating agreement will set guidelines for exactly how your LLC is managed, define rights for the members and managers, and give instructions on how to conduct dissolution operations. It should also specify what to do in the case of a lawsuit against your LLC.
If you are applying for financing for your LLC, you will find that most business bank accounts, loan applications, and other services will require you to send a copy of your operating agreement along with your application in order to demonstrate your LLC as a separately operating business entity.
When creating your operating agreement, you can contact a legal advisor familiar with Nevada LLC law to help you, or you can follow one of the templates offered here. If you do use a template, it is crucial to read through it carefully and make changes based on Nevada-specific regulations and how you want your business managed.
Step 4. Get an EIN/Tax ID Number
Once your Articles of Organization have been filed and processed, you will need to apply for a Tax ID number, also known as an employer identification number (EIN), through the IRS. Any LLC that has more than one member, or any single-member LLC that wants to either hire employees or be taxed as a corporation, is required to apply for an EIN.
Your EIN will be used to identify your business to the IRS on all tax documents and necessary government filings; the number acts much like a social security number for your LLC. If you want to hire employees, file federal taxes, open business bank or credit accounts or apply for business funding, you will need an EIN.
It is free to apply for your EIN with the IRS, and you can file the application online or by mailing it in. Keep in mind that if you are a foreign filer or do not have a social security number, you will need to file for your EIN through the mail.
The quickest and easiest way to apply for your EIN is online; you will receive your number once your application is completed. Visit the IRS website to apply for your EIN for free.
You will need to fill out this form when applying for your LLC by mail. If you are a foreign filer or do not have a social security number, leave section 7b blank. Then, mail the completed form to the address below.
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
You can follow up on any questions with the IRS by phone at: (267) 941-1099.
Step 5. Keeping Your LLC Running
Even after your LLC has been established and starts operating in Nevada, there are a few things that you need to keep up with if you want your business to continue running smoothly in the state.
File Annual Reports/Annual List
All LLCs that are operating in Nevada are required to turn in an annual report, also called an annual list. This document keeps the Secretary of State’s office up to date on your business’s information and carries a $150 filing fee. Your annual business license application is included in this form and carries a $200 fee.
Your initial annual list will be completed alongside your Articles of Organization. Every subsequent list is due by the end of the month in which your LLC was first formed (so if your LLC was first formed in July 2020, your annual list would be due by the end of July each following year).
Secretary of State
Commercial Recordings Division
202 North Carson Street
Carson City, NV 89701
Separate Your Business Finances
The state of Nevada does not require your LLC to possess a separate bank account, but you should consider establishing one anyway. A business credit or debit account can help keep your LLC’s finances separate from any personal ones, fully establishing your LLC as an independently operating business. This is especially helpful in the case of lawsuits or other legal issues surrounding your LLC.
When opening a debit or credit account for your LLC, you will most likely need to show your Articles of Organization, Operating Agreement, EIN, or other LLC documents.
Make sure to compare all of your banking options before choosing where to open an account; different banks will have varying minimum required balances or credit spending limits, and you want to be sure that you select something that is the best for your LLC’s needs.
Keep Up With Federal and State Taxes
It is very important to keep up with both federal and state taxation requirements when operating your LLC. Failure to meet taxation deadlines can result in major penalties and fines for your business.
Federal Tax Requirements
There are several different tax structures you can choose from for your LLC that can meet different company needs, as each tax structure comes with its own unique type of federal taxation requirements. This article can help you gain an in-depth understanding of the differences between each type of tax structure and help you decide which is best for you.
In general, most LLCs are taxed as sole proprietorships or partnerships. This means that you will be expected to file Schedule C and your individual income tax return to declare any income you receive through your LLC (your LLC is acting as a pass-through entity in this situation).
When using this tax structure, you should keep in mind that you will most likely need to pay self-employment tax (which has a rate of 15.3%), in addition to any income tax. You may also need to make quarterly estimated tax payments to avoid IRS fines; the IRS website gives more details on this.
If you want, you can choose to have your LLC taxed as a corporation, like an S Corporation or a C Corporation. You will need to fill out IRS Form 8832 and IRS Form 2553 to declare this. After these forms have been processed, your LLC will be treated as a corporation and expected to file a separate corporate tax return with the IRS.
Nevada Business Taxes
In Nevada, there are no general business or corporate income taxes that your LLC may be subjected to. The state also does not have any individual income tax requirements, which means that no matter how your LLC is taxed (either as a sole proprietorship, a partnership, or a corporation), you will not be subjected to extra state taxes on your business’s income.
That being said, Nevada does have something called the Modified Business Tax (MBT). This is a tax that is only applicable to those LLCs with employees; the tax requires a certain amount of withholding on eligible, taxable wages. You can read more about this tax and who is liable to pay it on the Nevada Department of Taxation website.
Your LLC may also be liable to pay excise taxes and sales, and use taxes, depending on the type of business offered and whether or not your LLC is selling certain goods or services. These taxes are both registered and paid for through the Nevada Department of Taxation.
State Employer Taxes
In addition to the MBT, your LLC may be required to pay unemployment insurance taxes. These taxes are registered and paid for through the Nevada Unemployment Insurance division. You can also find information about calculating your taxes and how often you should be making unemployment insurance tax payments on their website.
Acquire Necessary Permits and Licenses
As we briefly discussed [ANCHOR TO #File Articles of Organization]above[END ANCHOR LINK], all LLCs in Nevada must apply for a general business license. Your initial application is included with your Articles of Organization packet, and you must renew this license yearly. Each renewal is included with your annual report/annual list filing and will be due on the same deadline. There is a $200 filing fee required each time you submit your business license application.
If you are offering professional services with your LLC, you may also need to obtain separate licensing or permits. This is typically administered on a local level, and there are specific rules depending on the county in which your LLC is operating. You can find more information on which licenses may be required by searching the licensing page on the Nevada Department of Business and Industry website.
Additionally, your LLC may need to obtain permits or licenses on a federal level, though whether this is required or not depends on the type of business you are running. For help determining if you need to meet additional federal requirements, you can use the licensing directory on the U.S. Small Business Administration’s website.
Nevada LLC Resources
The below list of resources can help guide you through every step of the way in setting up your new LLC in Nevada.
- Available LLC name search
- Reserve an LLC name
- Available domain name search
- List of Nevada County Clerks
- Nevada registered agents
- Articles of Organization packet
- Nevada Silverflume business registration website
- IRS EIN online application
- Annual list filing packet
- List of Nevada business forms
- Nevada Department of Taxation
- Nevada Unemployment Insurance division
- Nevada business licensing information
- U.S. Small Business Administration
Nevada LLC FAQs
The answers to these frequently asked questions about setting up an LLC in Nevada can help you put any remaining worries to rest.
In Nevada, it will cost you $75 to file your Articles of Organization, $150 for your initial annual list, and $200 for an initial business license. This comes to a total of $425 to file. You may also need to pay separate fees for reserving an LLC name ($25), registering a DBA name, or electing to pay expedited processing fees ($125 for 24-hour processing).
The cheapest way to start your LLC in Nevada is to file your Articles of Organization without reserving an LLC name ahead of time, registering a DBA name, or paying for any expedited service fees. Doing it this way will only cost you $425 to get started.
How much your Nevada LLC pays in taxes depends on the individual tax structure you have set up. In addition to federal taxes, you may also be required to pay Nevada’s MBT tax, excise tax, or state employer taxes. However, there is no general business tax or individual income tax in Nevada.
You will need to file a report/list annually in Nevada. There is a $150 filing fee for this form, and the form also includes the business license renewal application (this carries a $200 filing fee).
Your annual list will need to be filed yearly by the end of the month in which your LLC was first established. Failure to file your annual forms with the Secretary of State may result in penalties or involuntary dissolution of your LLC.
If you are finished operating your LLC in Nevada, you will need to file a Certificate of Dissolution with the state. This form carries a fee of $100 to file and can be filed either online or through the mail.
You will also need to check your operating agreement, if you have one, and adhere to any established terms for the closing down and conclusion of your LLC’s business.