Most entrepreneurs choose to organize their business as a Nevada LLC. This is because it combines personal liability protection, simple reporting requirements, and tax benefits that appeal to small business owners.
Sold? Well, if you want to learn how to form an LLC in Nevada, this is the article for you.
This guide has everything you need to form your Nevada LLC, including a step-by-step rundown and links to important state resources. Read on to learn more!
Choose a Name for Your Nevada LLC
The first thing to do when forming your Nevada LLC is to choose an ideal business name. Be sure to choose a name that relates to your business activities in Nevada. It should also be easy to remember and pronounce.
Your chosen Nevada LLC name must comply with the Nevada LLC naming guidelines and requirements, including the following:
- Your Nevada LLC name should be distinguishable and unique.
- Restricted words (like Bank, University, Attorney, etc.) will need additional paperwork and a licensed individual, a doctor or lawyer, to be part of your Nevada LLC.
- Your Nevada LLC name must not confuse your business entity with government agencies, including the FBI, State Department, Treasury, etc.
- Your Nevada LLC name should have the phrase; “limited liability company” or its abbreviations (“L.L.C.” or “LLC”) at the end.
You can find more details about the naming rules and requirements for Nevada LLCs by reading the Secretary of State’s naming guidelines.
It is also essential to do a Nevada Business Name Search to ensure that your chosen LLC name is available in Nevada and that no other business has taken it.
If you want to build a solid online presence, you should also check whether your LLC name is available as a web domain using a registrar like Namecheap. If it is, purchase the URL immediately to prevent other business owners from acquiring and using it.
Hire a Registered Agent
All LLCs are required by the Nevada Secretary of State to appoint a registered agent.
A Nevada registered agent is a service provider or individual assigned to receive office notices, legal documents, tax forms, and any other correspondence or document from the government on behalf of your LLC.
This person can be yourself, a family member or friend, another member of your LLC, or a hired registered agent service provider. However, the appointed registered agent must meet the following requirements:
- Must have a permanent street address in Nevada (not a P.O. box address).
- Must be available to accept official and legal documents at all regular business hours in Nevada.
Nevada Registered Agent
If you are just starting out and would like to save some money or your budget is a concern, consider hiring Nevada Registered Agent for your LLC. It is an affordable registered agent service provider that offers you access to the following registered agent services.
- Renewal emails
- An online account
- Pre-signed and pre-filled documents
- Annual report reminders
They will also upload legal and official documents on your behalf. You will get all these tools and features for just $35 per year.
Another good thing about the Nevada Registered Agent is that they provide a change of registered agent services.
You can find their Nevada offices in Reno.
Northwest is another top registered agent service provider that has helped more than 3 million entrepreneurs establish and grow their LLCs. They will give you everything you require from a registered agent, including incredible customer support and compliance tools.
Their Corporate Guides include knowledgeable customer support in all things related to compliance and registered agents. They are always available to help you with any registered agent issue.
Northwest charges $125 per year for its services. However, you can get a discounted yearly fee of $100 if you use Northwest in five or more states.
You can find their Nevada office in Reno.
Rated #1 on Forbes and Investopedia, ZenBusiness has built a solid reputation for offering astonishing registered agent services. Since its formation, ZenBusiness has assisted more than 300,000 LLCs to remain compliant.
ZenBusiness charges $199 per year for its registered agent service. You can also upgrade to access more perks, such as submitted documents on your behalf, two free filing amendments per year, and annual support reminders.
They also have an outstanding Grant Program that supports business owners and offers them funding of up to $5,000.
File Articles of Organization
Once you have a business name and a registered agent, you must register your Nevada business.
The simplest way to register your business is by filing an Article of Organization online with the Nevada Secretary of State. The first thing to do is to create an account using your chosen Nevada LLC name and an active email address. You will also need a credit card to pay the state filing fee of $75.
Together with your Article of Organization, you will be required to upload or submit a state business license application, the list of the initial managers, and a certificate of acceptance of appointment by your hired registered agent.
If you do not want to use the online system, you can file your Article of Organization by mail. To do this, you will need to download and accurately fill out the Nevada Articles of Organization Form. Then, mail the filled form together with a check or money order for the Article of Organization filing fee of $75 to the following address:
Secretary of State New Filings Division
202 North Carson Street
Carson City, NV 89701
Create an Operating Agreement
An Operating Agreement is a legally binding agreement drafted to guide the operation of your Nevada LLC. It covers vital details.
While Nevada does not require business owners to have a written Operating Agreement, we recommend creating one, as it offers many advantages. For instance, it takes the guesswork of running your LLC. It also outlines the important governing standards and rules of your LLC.
Creating an Operating Agreement is easy as the Nevada Secretary of State provides a free Digital Operating Agreement on the SilverFlume website. You may want to include the following information in your Operating Agreement:
- Rules for allocating losses and profits
- The LLC management structure
- Process of releasing and admitting members and transferring interests
- Voting rules
- Roles and responsibilities of each member
- The LLC ownership details
- Indemnity and liability clauses
- LLC dissolution process
Obtain all Licenses and Permits
Every business entity or person, with some exceptions, conducting business activities in Nevada must obtain a state business license and permit from the Secretary of State. Home-based businesses, individual landlords with less than five rental units, and nonprofit businesses may be exempted from obtaining licenses and permits. However, these business entities must file paperwork stating their exemptions.
Other than the State of Nevada Business License, you may also need to acquire licensing in the county or city where your business operates.
Most business entities in Nevada will also need a seller’s permit if they are leasing or selling taxable goods and services. You can obtain this by electronically submitting or mailing in a Nevada Business License and Permit Registration Form.
Once these licenses and permits are in place, your LLC can pay and collect sales tax.
Acquire Federal and State Tax IDs
Every Nevada business must acquire a Federal and State Tax ID. A Federal and State Tax ID is essentially a Social Security Number (SSN) or Employer Identification Number (EIN) for your LLC.
The IRS assigns you a Federal and State Tax ID, which allows you to track your business taxes. You will also need a Federal and State Tax ID to perform various functions of your LLC, including the following:
- Opening a business bank and credit account
- Hiring employees
- Further separating your personal identity from your LLC.
Applying for a Federal and State Tax ID is free and straightforward. Visit the IRS website, and you will have your Federal and State Tax in no time!
You can also apply for your LLC’s Federal and State Tax ID via mail or fax using Form SS-4.
Open Business Bank and Credit Accounts
From the start of your business operation, you must be cautious of any mingling of personal and business finances. The personal asset protection an LLC provides assumes you won’t mix business and personal finances. Otherwise, you could become liable for the LLC’s obligations. The best way to avoid this problem is to open a separate business bank and credit account.
The most important business bank account to open is the checking account. It will allow you to separate expenses and income for easy tracking. It will also show that your business is operating independently of your personal finances.
Savings bank accounts are also available in Nevada.
Opening a business bank and credit account in Nevada is a straightforward process, and you only need the following:
- Operating Agreement
- Federal and State Tax ID
- Article of Organization
There are several Nevada banks to choose from, including:
Purchase Nevada Business Insurance
In Nevada, the only insurance policy you need for most LLCs is workers’ compensation insurance. Any business entity with one or more employees must purchase this policy to cover for death, injuries, or injuries associated with work.
Most LLCs in Nevada will also need to purchase general liability insurance.
An LLC does offer liability protection, meaning your personal assets, such as your bank account, car, home, etc., won’t be used to cover LLC debts. However, purchasing general liability insurance will protect your LLC against lawsuits related to personal injury, property damage, and other other issues related to the LLC’s operations.
If your LLC offers professional services, such as accounting, you will need to purchase professional liability insurance to protect against claims of business errors and malpractices.
Buy an LLC Formation Package to Speed Up the Process
Forming an LLC in Nevada can be a long and tedious process for some people. Fortunately, if these steps seem challenging and time-consuming, you can always purchase an LLC formation package to streamline and expedite the process.
One of our top LLC formation service provider recommendations is ZenBusiness. Their Basic package is entirely free of charge. You only need to pay the state filing fee. With this LLC formation package, your Nevada LLC will be formed in 2-3 weeks.
If you have a budget for it, we recommend purchasing ZenBusiness’ premium packages. For example, their Pro package costs only $199 annually, and your LLC will be ready in 4-6 business days. Likewise, their Premium package costs $299 per year, and your LLC will be ready in 1-2 working days.
You may also want to consider LegalZoom. They also have a completely free LLC formation package (Basic package). You can get more perks plus expedited processing times with their Pro package ($249 per year) or Premium package ($299 per year).
FAQs About Forming an LLC in Nevada (200 Words)
How Long Will It Take to Form My Nevada LLC?
You can expect your Nevada LLC to be formed in one business day if you file your Article of Organization online and 5-6 weeks if you file the Article of Organization by mail. If you need your LLC in Nevada formed faster, you can pay for expedited filing.
How Much Does It Cost to Set Up an LLC in Nevada?
The cost of forming an LLC in Nevada is $425. This includes a one-time Article of Organization fee of $75, an initial list of members or managers filing fee of $150, and a $200 fee for the State Business License.
Can I Act as my Own Registered Agent in Nevada?
Yes. You can pick yourself to act as a registered agent for your Nevada LLC. However, you must meet the requirements for being a registered agent in Nevada. This includes:
- Be at least 18 years old and a resident of Nevada
- Have a permanent street address in Nevada
- Be available to receive legal and state correspondence documents during regular working hours in Nevada.
Can I Start a Single-Member LLC in Nevada?
Yes. You can form a single-member LLC in Nevada by following the steps outlined in this article. You must also follow all the requirements for starting an LLC in Nevada.
Forming an LLC in Nevada may seem scary at first blush, but it’s actually pretty simple. With the proper research, you can easily complete the process on your own. But you don’t have to go it alone. If you need assistance at any step of the process, we recommend hiring an LLC formation company.