To start an L.L.C. in Nevada, you must first understand what an L.L.C. is. This will help you know if an L.L.C. is a viable business structure for your company. To begin with, an L.L.C. is a business structure that has a flexible organization. It is privy to tax efficiencies and provides limited liability for its members. The members may include individuals, corporations, and other L.L.C.s and foreign entities. One of the LLC Nevada advantages is that there is no maximum number of members. Furthermore, an L.L.C. is known as a Hybrid business structure in that it brings together elements of a corporation and limited liability partnerships.
We have provided some good tips to help you put together all LLC Nevada requirements to start the registration process with the Nevada Secretary of State.
- Decide On A Name For Your Business
You will be required to choose any name ending with “Limited Liability Company,” Ltd Liability Co,” or any variant of its abbreviation for instance L.L.C. or L.L.C. Ensure that you cross check with the Secretary of State Business name database to ensure that you have a unique name. You will be required to by reservation fee and file a reservation request with the Secretary of State. The filing fee is about $25; the reservation process can be expedited for with an additional payment of $50.
- Assign An Agent For Service Of Process
You can be referred to this as the resident agent; this is an individual who resides in Nevada or a business that has the appropriate certificate. This person or company is the entity entitle to receive service of process for any lawsuit naming the L.L.C. as a defendant.
- Make Sure To File The Initial List Of Managers And Members Along With The Business Permits
You must provide an updated list of Managers and members which should come with the business permit. This provides a way for L.L.C. to conduct business transactions in Nevada. In addition to this, there is a fee that has to be paid for permits to be processed.
- Getting Your Employers Identification Number (E.I.N.).
If you have two or more members in your L.L.C., you should ensure that you obtain your E.I.N. from the I.R.S. for tax purposes.
- A Limited Liability Company Operating Agreement
For cases where your L.L.C. has more than one member, you should ensure that you have a limited liability company operating agreement in place with other members. Even though, this may not be included in the filing requirements with the Nevada Secretary of State. The L.L.C. operating agreement has to be submitted when filing for your Nevada Tax License.
- Ensure That You Familiarize Yourself With The L.L.C.’S Continuing Legal Obligations.
As said, L.L.Cs. are required to file a statement of Information as one of theLLC Nevada requirements. This must maintain internal books and records which are open to inspection by the Nevada Secretary of state. It includes the L.L.C.’s operating agreement.
Filing An L.L.C. And Fees
Below are the forms and fees required when starting an L.L.C. in Nevada?
To begin with, you need to fill out the Articles of the Organization form. Ensure you don’t forget to include this information /Fees:
- The L.L.C. name that meets the state’s requirements with the L.L.C.’s address
- The name, addresses, and signatures of all the L.L.C. managers, members, and organizers
- Name, address, and trademark of the resident agent
- Dissolution date where applicable
- The payment of the necessary fees
The processing cost for the Articles of Organization is about $75which can be expedited for a cost of about $150. You should keep in mind the expedited orders are processed within 24 hours. Moreover, the fee can be paid via check, money order, credit card, or trust account. You should always check in case of any updates on the prices.
- Limited Liability Company Operating Agreement: Even though this is not a requirement in Nevada. It is highly advisable to have an L.L.C. operating agreement among members. The agreement must be kept on file by the resident agent.
In Nevada, L.L.Cs are treated as Corporations, Limited liability partnerships or single-member L.L.C.s which are subject to federal income tax classification. You can choose different taxation for your L.L.C. Here are some of the tax responsibilities
- An L.L.C. treated as a Limited liability partnership
- Here is where the L.L.C.s are required to file form 1065, U.S. return of partnership income which shows equal distribution of profits, losses, and credit on a Schedule K-1 form with the I.R.S.
- An L.L.C. treated as a C corporation for Federal tax purposes. Here is where the L.L.C.s is required to file the form 8832 first where it can opt to be taxed as a corporation. They are also required to submit the 1120 U.S. Corporate Income Tax return with the I.R.S.
- An L.L.C. treated as an S corporation. Here is where L.L.C.s must file form 1120S which is accompanied by a report from each owner expressing the equal distribution of profits, losses, and credits with the I.R.S.
- An L.L.C. treated as a sole proprietorship. Here is where the L.L.C.s are required to report all the business income and expenses via the sole proprietors income tax return.