Form a Limited Liability Company in Nevada
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How to Form a Nevada LLC in 10 Steps
A Limited Liability Company (LLC) is a common business structure that allows one or more persons to own a portion of a company. Profits earned by the LLC are passed through to its members, and the LLC does not file a separate tax return the way a corporation does. An LLC also reduces the owner(s) exposure to liability from company activities.
Forming a Limited Liability Company is a straightforward process, but there are several steps you'll want to follow.
1. Choose Your Company Name.
The first step is to select your company name. You have to find one that other businesses do not have the right to use, specifically and most importantly, in Nevada.
Our article Is My Business Name Available? can help you do your own name search, or SunDoc can run a name search for you. You will also need to check your preferred name for a previously registered trademark.
2. Understand the LLC Organizer Requirement.
An organizer is the person or company that drafts your LLC. By preparing on-line with us, SunDoc Filings will be your organizer. If you choose to prepare and upload your filing with SunDoc, you can name your own organizer.
3. Designate a Registered Agent.
You must designate a registered agent, either a person or a firm. This is required for the Articles of Organization form. For more information on registered agents and why your company must have one, see our article on Registered Agent Service.
4. Decide Your Ownership and Management Structure.
All LLCs must have an LLC organizer, which will be named on your Articles of Organization form. It’s common to assume that an organizer has to be a manager or member, but this isn’t necessarily true as the organizer can be anyone.
For instance, if you file your articles yourself, you'll be the organizer. Select SunDoc to prepare your filing, on the other hand, and SunDoc will file your Articles of Organization; this will also make SunDoc your organizer. You might also choose to have an attorney be your organizer.
5. Create an Operating Agreement.
Depending on what your specific and type is, you may need to file an Operating Agreement. This document is used to govern all operations of your LLC in order to help you meet your specific needs. It outlines the functional decisions and financial decisions of your business and includes things like provisions and rules, regulations, and more.
Not only does this agreement include rules and regulations, but it also outlines the management of your working capital, payouts and profits, and overall governance — not to mention crucial matters of liability, money, fiduciary constraints, and voting.
The Operating Agreement is the legal engine that drives your business, creating its governance, managing its working capital, and paying out its profits. Critical matters of money, voting, liability, and fiduciary constraints are at stake here. The SunDoc guides Member-Managed LLC and Manager-Managed LLC are a good source of information, but you may also wish to consult an attorney for advice.
6. File the Articles of Organization.
The next step in the creation of your LLC is to file your Articles of Organization. In fact, nearly all states require that all businesses have this form, which provides key company details to the state of Nevada. Once your Articles have been accepted and filed by the state of Nevada, your company has been created!
Several pieces of information are necessary for this form. While it is possible that you will need to file member names, this isn't always the case. But what you will need is your chosen company name, your new company address, who your LLC organizer is and who your registered agent is, and finally, what management method you've chosen for you and your company.
Sometimes, it can pay to get help filing your LLC’s Articles of Organization. SunDoc is a reliable and fast-working filing service, and we would be happy to handle this paperwork on your behalf.
7. Obtain an EIN and Open a Business Bank Account.
Congratulations! You now have an official LLC, registered with the State of Nevada. At this time, it’s time to get an EIN (Employer Identification Number), which can be obtained from the IRS (Internal Revenue Service). You will need this number whether or not you have employees. Ask SunDoc can file for you or file with the IRS on your own.
At this time, make an effort to organize your new company’s finances as well. This starts with using your Employer Identification Number to open a business account at your chosen bank. If you’ve used your own personal funds to pay for any business expenses up until now, you can use this account to reimburse yourself (using receipts, of course). If you like, you may hire an accountant at this point to assist with legal matters in your business.
8. Pay Nevada State Taxes.
Every year, it will be necessary for your LLC to pay the necessary taxes and fees that the state of Nevada requires. Usually, this includes the first year that your LLC operates. If you plan to sell goods in Nevada, sales tax might also need to be collected. Go to the State of Nevada’s tax web site in order to find out more about Nevada state taxes.
9. Determine Necessary Licenses and Permits.
In order to operate your business at the county and city level within your area of Nevada, you will likely need to obtain one or several business licenses or permits.
If you do not have these official permits and licenses, you may end up having to pay expensive fines. Many companies assume that they don't need these licenses and permits, but if you check the Nevada business website, you'll probably find that you have to have at least one in order to be in accordance with Nevada law.
10. File an Annual Report (Biennial Report or Initial List).
Most of the time, you must file an Annual Report, Biennial Report, or other such document soon after forming an LLC in Nevada. After that, every one or two years, you will need to update this report.
What is an Annual Report? It’s simply a form that keeps Nevada State abreast of important company information, and it is quite basic and straightforward. If you end up making changes to your company later on, it will definitely be one of the forms that you’ll need to file with the state again.
One of the most important things to remember is to file your Annual Report on time. The necessary time frame you have to file your report will depend on your state. If you file late, however, it is guaranteed that you will pay as much is 10 times the normal fee for filing.
To make things a lot easier on you and your other LLC members, allow SunDoc to reliably file your annual report on time. If you plan to file yourself, however, find all necessary forms (including the Annual Report or Biennial Report form) on the Nevada business web site.
Important Notice: It is beyond the scope of this article to discuss your potential insurance needs, or matters relating to employees. You should consult an attorney or accountant with any questions about legal or financial matters. Please note that nothing in this article can be construed as legal, tax or accounting advice.
For additional learning, please visit our LLC FAQs.
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