Last Updated on October 5, 2022 by Fair Punishment Team
Are you thinking about starting your very own business in Nevada? One of the most popular and simplest ways that you can do this is by starting your very own LLC, which is a type of company that offers tax advantages and liability protection that is well suited to startups and small businesses.
Still, despite the fact that starting an LLC in Nevada is a relatively easy thing to do, we are going to be showing you how you can successfully start up your very own Limited Liability Company without experiencing any obstacles or problems along the way.
In this helpful guide, we are going to be showing you how you can easily set up your very own LLC in Nevada in just six simple steps. So, without further ado, just keep reading to learn how to start your own LLC in Nevada today!
1. Name Your Nevada LLC
First things first, you are going to need to give your LLC a name! This is one of the most important things that you’ll need to do when setting up your own Limited Liability Company, so it only makes sense that it should be the first thing that you do.
Even though you have creative control over what you choose to name your Limited Liability Company, it is important to make sure that you are choosing a name that is clear and catchy, while also serving as a way to clearly communicate with your potential customers what it is that your Limited Liability Company is going to offer them.
Along with this, you should also take into account the following requirements set out by Nevada:
- Your chosen business name for your LLC will need to contain either the words LLC, L.L.C, or Limited Liability Company. Even though this is a legal requirement of Nevada, you will have the ability to be able to choose how the chosen term appears in the name of your company, although the majority of LLC owners often opt to include their chosen required term at the end of the name of the company.
- Along with making sure that you are including the required terms in the title of your LLC, you must also ensure that the name that you choose to use for your LLC does not copy the name of an LLC in Nevada (or any other state) that is already registered or in use.
- Last but certainly not least, the final requirement that you will need to make sure that you meet when selecting the name for your LLC is that you aren’t using any restricted words. Generally speaking, the most common restricted words are relevant to every state across the USA, and typically include restricted words such as lawyer, attorney, and bank. However, we strongly recommend that you check for the full list of words that have been restricted by the state of Nevada so that you do not accidentally use any. If you would like to view Nevada’s official restricted word list, please click here.
2. Choose A Registered Agent
After you have chosen the name of your LLC, the next thing that you will need to do is to appoint your LLC with a registered agent.
At the time of writing, it is currently required by law for all LLC owners to assign their company with a registered agent, as well as to ensure that there is always a registered agent appointed to the LLC for the duration of its existence.
If you’re not too sure of what a registered agent does, it is typically a professional (although it can sometimes be a business) that will be able to receive all of the important business mail that your LLC will receive, including any important legal documents.
With this being said, a registered agent will essentially act as the first point of contact for your business, and will handle all of the important paperwork so you don’t have to, including tax forms, government correspondence letters, any official disputes or lawsuits, as well as sometimes even payroll.
In addition to all of the above, it is also important to keep in mind that while appointing a registered agent for your LLC, there are a few requirements outlined by Nevada that you are going to need to make sure that you meet.
To make this selection process as easy as possibly can be, here is a breakdown of the requirements for registered agents in Nevada:
- The appointed registered agent will need to be able to accept legal notices, general business mail and government correspondence at the standard working hours in Nevada.
- The appointed registered agent will need to be located in Nevada and have a registered address where they work from and/or be on-site for regular business hours.
- The appointed registered agent will need to be maintained for the duration of the LLC. If this is unable to be achieved, a suitable replacement must be found.
You can always go check out some of the Nevada Registered Agent options if you want to find more information.
3. File The Articles Of Incorporation
Starting up an LLC in Nevada is also going to require you to file the Articles of Incorporation, which are required for you to be able to begin legally operating your Limited Liability Company within Nevada.
If you’re not already aware of what the Articles of Incorporation are, the good news is that they are relatively easy to understand.
Essentially, the Articles of Incorporation are designed to be able to establish your LLC within Nevada so that you can begin legally operating your business within the state.
Here is a helpful breakdown of what your Articles of Incorporation are going to need to contain:
- Your articles will need to contain the name of your LLC, as well as the address that your company has been registered to during the setup process.
- Along with making sure that you have included the name and address of your LLC, your articles will also need to contain the contact information of the registered agent you have appointed for your LLC.
- The addresses and names of all the members of your LLC will need to be included and clearly outlined.
- The duration of your LLC will need to be outlined. Usually, the most common term used for this is “indefinite” which means that the duration of your LLC is going to be ongoing, with no set expiration date.
- There will also need to be a declaration that states whether or not the members of your LLC are going to be held liable for the debts and obligations that may be inferred by your Limited Liability Company.
As a side note, in order to be able to file for the Articles of Incorporation, you will need to make an investment of $425.
However, as soon as you have filed for the Articles of Incorporation and paid the fee, you will then be able to begin operating your business in Nevada legally. As a side note, you should also keep in mind that you will also need to sign off each page of the Articles of Incorporation with your signature.
4. Create An Operating Agreement
Aside from making sure that you have filed for your Articles of Incorporation, you are also going to need to think about whether or not you wish to create an operating agreement.
Now, unlike the Articles of Incorporation, it should be noted that an operating agreement documentation is not actually required by law in Nevada. Nevertheless, it is strongly recommended by the state that all LLCs have one in place.
Why? Well, by making sure that each LLC has its own operating agreement in place, it means that there will be a clear outline of how an LLC is run.
In addition to this, having an operating agreement in place also serves as a way to give an LLC legal credibility by the state, so it’s highly recommended that you file for one for your LLC.
As we have already mentioned, operating agreements are not a legal requirement, so you don’t technically have to get one if you do not want to.
However, please keep in mind that if you do not get an operating agreement for your Nevada LLC, any legal disputes or misunderstandings both externally and internally will be handled by Nevada’s legal system, and that might not always end in a resolution that will be in the best interest of your business.
With that being said, by opting to make an operating agreement for your LLC, it will be able to serve as an internal document that will be able to clearly outline and define important managerial rules and procedures for your LLC, clearly list mutually agreed terms for everyone involved in the LLC, as well as a way to provide your LLC will longevity and credibility.
If you would like to create an operating agreement for your LLC, just click here for a template made by Nevada’s Secretary of State!
5. Get An EIN Number
Along with making sure that you are filing your Articles of Incorporation as well as outlining your operating agreement, you are also going to need to make sure that you are filing for your LLCs EIN, which stands for Employer Identification Number!
This unique type of identification number will be used by the state of Nevada to be able to assign your LLC with the relevant tax requirements.
Along with this, having an Employer Identification number will also help to make sure that you are able to easily file and manage all of your taxes (both state and federal) , have the ability to hire employees if needed, as well as have the ability to also easily open up a business bank account.
In Nevada, the EIN number is commonly referred to as FEIN, which stands for Federal Employer Identification Number. If you have yet to give your LLC its unique identification number for the IRS to be able to adequately tax your business, please click here.
6. Decide If You Need A Bin
After you have done all of the above, your LLC is going to be almost ready for you to begin operating!
However, before you go ahead and do that, the last thing that you are going to need to do is consider whether or not you are going to need to acquire a BIN for your Limited Liability company, which is otherwise referred to as a Business Identification Number.
Unlike the Employer Identification Number which is a legal requirement for all LLCs throughout the country, a Business Identification Number might not always be necessary.
For this reason, it is going to be up to you to decide whether or not your company is going to need to be assigned its very own Business Identification Number.
Generally speaking, the only instance in which a Limited Liability Company will be required to have a BIN is if the company is going to be hiring a team of employees.
This is because the Business Identification Number allows Nevada’s Internal Revenue Service to be able to file the appropriate tax requirements according to the payroll of the LLC.
So, with that being said, if you are going to be the sole proprietor of your LLC, then filing for a Business Identification Number will not be necessary.
However, if you are going to be hiring employees, or you are even going to be starting up your LLC with a team of employees, then you will need to file for a BIN.
Please keep in mind that if you are going to be hiring employees for your LLC and you fail to assign our company with a BIN, then you will likely be given a hefty fine by Nevada for failing to comply with their rules and regulations, and may even be given a bar on operating within the state.
Frequently Asked Questions
Do I Need A Business License?
Along with all of the above, you might also be wondering whether or not you are going to need to get a business license for your Limited Liability Company. As you might already be well aware, the rules and regulations for LLCs will often vary depending on the state that the LLC is being set up in.
For that reason, while one state might require a business license for an LLC, another state might not.
With that being said, it’s worth keeping in mind that in Nevada currently, it is mandatory for all types of LLCs to have a business license in order to be able to operate, and that also goes for sole proprietors.
What Are The Tax Requirements In Nevada?
Nevada is one of the most popular states to locate an LLC in because it offers a range of tax advantages that some other states across the USA do not offer. In Nevada, for the majority of LLCs that are started and set up there, no state income taxes will ever be taken.
In addition to this, it should also be noted that Nevada does not take any personal income tax, so many LLC members will never owe any state tax on the overall income that they make from their LLC that they are in Nevada.