Choosing the state in which you will open your LLC can be quite challenging and may require a lot of research.
The most important factor to consider when deciding is where you will conduct the majority of your operations.
If most of your operations will be conducted in Nevada, then continue reading.
In this article, we will show you the benefits of creating an LLC in Nevada and how you can open one.
Let’s get started.
Benefits of Opening an LLC in Nevada
1. The State Does Not Tax Corporate Profits
There is no state sales tax department in Nevada, so you don’t need to worry about taxes on your corporate profits; the state will not levy them.
Corporate actions or LLC property are also not taxed.
Lastly, there is no personal income tax or franchise tax levied in Nevada.
2. No Requirement to Hold Business Meetings
Some states require mandatory business or board meetings.
Nevada is not one of these states, which is one of its benefits.
3. Disputes Are Handled Differently
Nevada offers a business court to help manage disputes that may arise.
Written opinions are not made public, so there are no binding precedents set.
4. Greater Privacy
Owners or members and shareholders of the company are not part of the public record when forming an LLC in Nevada.
So you can remain anonymous and enjoy complete privacy.
You are also allowed to issue shares for capital, services, real estate, or personal property.
Your company’s directors determine the value of the transaction, and the state considers it a final decision.
5. Charging Orders Apply to More Situations
The option available for creditors of LLC members is a charging order.
This is an order issued by the court directing the company to send its dividends to a judge rather than a member or shareholder.
This structure is quite common in other states as well. The difference is that in Nevada, it applies to more situations.
Now, let’s see how you can open an LLC in this state.
How to Open an LLC in Nevada
1. Choose Your LLC Name
The first thing you need to do is give your company a name.
Each state may have different requirements when it comes to registering a name. Nevada’s requirements are:
- Your business name must include the phrase “Limited Liability Company” or one of its abbreviations: LLC, L.L.C., Ltd Company, Limited, Co.
- The name must be distinguishable from the names of other LLCs, corporations, or partnerships in Nevada.
- The name cannot include words that could confuse your business with a government agency (Treasury, FBI, State Department, etc).
Now that you’ve read all the requirements, you can start thinking of a unique name that sets your business apart from others.
2. Get a Registered Agent
A registered agent is the person or business entity that will represent your company when it comes to receiving government correspondence, documents, and legal reports.
Your registered agent must reside in the same state, or you can choose a commercial entity as well.
In the state of Nevada, having a Registered Agent for your LLC is mandatory.
If you need assistance with your registered agent, contact us here.
3. File the Articles of Organization for Your Nevada LLC
The third step you need to take is filing the following documents with the Nevada Secretary of State’s Office:
- Articles of Organization
- Initial List of Managers and State Business License Application.
- Certificate of Acceptance of Appointment by Registered Agent.
These documents are filed by the state of Nevada in a formation PDF package.
You can submit your application online, by mail, fax, email, or in person.
4. Create an Operating Agreement
An operating agreement is a legal document that identifies the person or people who own the business and outlines how your Nevada LLC will be managed.
This agreement ensures that the members or owners of a company are always in agreement and on the same page from the beginning, thus avoiding disagreements in the future.
Although this document is not required in the state of Nevada, we always recommend having one due to the benefits it provides.
5. Apply for Your EIN
The term EIN stands for Employer Identification Number. It is a 9-digit number assigned by the Internal Revenue Service (IRS) to identify your business similarly to a social security number.
An EIN is required for:
- Opening a bank account for your Nevada LLC.
- Employing workers in your company.
- State and federal tax purposes.
If you need assistance in applying for your EIN, remember that at Rex Legal, we can help you. Contact us here.
Are you ready to open your LLC in Nevada?
We are Rex Legal, and we are fully prepared to assist you in establishing your business in the United States.
Whether you need guidance, assistance, or want us to help you with every step, we are here for you.
If you need assistance, just contact us.
