How to form an LLC in Nevada in 6 easy steps
Entrepreneurs starting a small business in Nevada may want to structure the venture as a Limited Liability Company (LLC). Small business owners gravitate toward the LLC legal structure because it’s straightforward—it maintains the relatively simple tax structure while offering personal asset protection.
Overall, an LLC is a business entity with fewer headaches and less paperwork than other options such as a business incorporation. It only takes a few simple steps to launch your small business LLC in Nevada.
1) Check if your business name is available
Your LLC name distinguishes you from your competition and creates a brand. So, get creative! The Small Business Administration (SBA) suggests a few pitfalls to avoid when naming your business:
- Stay away from initials and choose a name that reflects the services or product you offer.
- Don’t be too informal—it can work against you when trying to market your company to customers.
- Be careful with street names. If your business relocates, the name can become misleading.
- Watch out for names that limit growth. If you name your company “Tea Time” and later want to expand into offering coffee and other beverages, your customers might not know you offer products other than tea.
Nevada LLC naming rules
You must also make sure to choose a name that isn’t being used by another business. To check other Nevada business names, head over to the Nevada business portal, SilverFlume. You can search to see if your desired name is available or already taken.
Make sure to abide by Nevada’s naming regulations:
- Include the abbreviation LLC, L.L.C., Limited Liability Company, LTD, Ltd Liability Co, or Limited in the name
- Avoid phrases that one can mistake for government entities
- Obtain prior permission when using restricted words such as bank, trustee, financial, engineer, real estate, or accountant—see Nevada Secretary of State for the complete list of restricted words
Reserve your company name
Once you’ve narrowed down your initial list of choices, you can reserve your preferred name by completing a Name Reservation Request form with the Nevada Secretary of State. For same-day processing at no additional charge, set up an account with SilverFlume to manage all of your business dealings with the state.
The name reservation filing fee is $25. For a 24-hour turnaround, an additional $50 fee is required. Filing the name reservation form will hold your name for 90 days while you get your Nevada LLC Articles of Organization in place.
LLC trade name
Nevada permits you to set up a fictitious business name, also called a DBA (“doing business as”) or a trade name. It isn’t a requirement for your business, and sole proprietors can also take advantage of this option.
However, a trade name can make sense if your registered Nevada limited liability company name doesn’t reflect your business dealings down the road.
For example, suppose you complete your LLC formation using the name Ski Shop LLC. After two years, you want to expand your store to include summer sports—a name like Ski Shop doesn’t necessarily invite summer sports lovers. You can set up a DBA to make it easy to rebrand (rather than creating a new LLC).
Establish your online presence
When setting up your business name, a final step is to see if it’s available as a domain name. A domain name is the web address (or URL) used to locate your site online. For example, if your business name was Ski Shop LLC, you might see if www.SkiShop.com was available.
2) Claim your name
Now that you know your chosen business name is available, you’ll file your Articles of Organization to establish your small business LLC in Nevada officially.
File Articles of Organization
You will use the Nevada SilverFlume business portal to register your Articles of Organization and get a state business license. The application requests your business name, contact information, and whether the LLC will be managed by one member or a group of members. There is a $50 filing fee, payable by credit or debit card.
Nevada is made up of several different licensing jurisdictions (systems of law). You may need to register your business with each Nevada city or county where it will operate. For example, if you’re starting your business in southern Nevada, search the Southern Nevada Regional Business License Launch Page to determine where you must file for a business license.
Choose a registered agent
Registering your Articles of Organization requires you to name a registered agent. A registered agent is a legal point-of-contact for legal service of process. For example, your registered agent would accept court filings on behalf of your business if someone sues your company.
You can be your own registered agent, but your street address will become public record. To keep your address confidential, you may prefer to hire a professional service to act as a Nevada registered agent.
3) Write your operating agreement
An operating agreement is a key legal document for an LLC business formation. It spells out your plans for governing the business and typically includes:
- The LLC’s creation date
- The names and authority of members and/or managers
- Voting rights and responsibilities
- Distributions and how owners will share profits and losses
- Buyout and buy-sell rules for adding or removing owners
The state of Nevada does not require you to write or submit an LLC operating agreement. However, creating one is a smart move if you’re working with other business members—the agreement can protect everyone’s financial interests. It also sets the foundation for resolving disputes such as over voting rights or management changes.
An operating agreement can come in handy even if you’re the only member of the single-member LLC.
Without an official operating agreement, state laws generally govern LLCs—your company could be subject to the state laws regardless of how much you invest while launching the business. Typically, it’s better to establish an operating agreement rather than letting the state make decisions about your business.
Fortunately, SilverFlume, Nevada’s Business Portal, has a digital operating agreement tool. It automates the creation of your agreement. However, an operating agreement is a legal document—get legal advice if you aren’t sure how it could affect you or your business.
4) File your Statement of Information
A Statement of Information is a fancy way to describe a company’s annual report. Most states require state filing of an annual report every year, and Nevada is no exception—you file your information with the Secretary of State.
The state’s SilverFlume website makes filing a breeze:
- Visit Nevada’s Business Portal
- Under the heading “Existing Business,” select “File Annual or Amended List”
- Log in, or register to create an account if you don’t already have one
Alternatively, if you use a registered agent service, they may automatically file your annual report for you. The service can handle legal correspondence, maintain annual reports and listings, and digitally organize documents for your business.
5) Pay your taxes
Many small business owners cringe at the mere mention of taxes. But don’t worry—it’s unlikely your business would have tax obligations on day one. You can get a step ahead by taking the time now to prepare your business for when the time comes.
Register with the IRS
To start, you’ll need to set up a way for the Internal Revenue Service (IRS) to track and monitor the taxes you file. If you have a sole proprietorship or create a single-member LLC with no employees, you typically won’t need a separate ID number—your Social Security Number is usually enough.
However, you may want to request an Employer Identification Number (EIN) from the IRS as soon as you form your Nevada LLC. The EIN acts as a federal tax ID number to facilitate filing taxes, hiring employees, and setting up financial accounts (bank accounts, business loans, and credit cards).
Prepare for income taxes
Nevada is one of nine U.S. states that doesn’t have an income tax on personal, business, or corporate income. However, your business is still responsible for federal income taxes. Typically, the income passes through to the business owners’ tax returns. Contact an accountant or visit IRS.gov to discover how your LLC should manage and pay federal taxes.
6) Wrap up other regulation and sales tax requirements
On the whole, forming an LLC in Nevada is straightforward. The state’s SilverFlume website has resources available and walks you through many steps when applying online.
However, you may have additional regulations and tax requirements to consider.
Get Nevada business licensing
Now that your small business LLC in Nevada has been set up, you may need to apply for licenses. All businesses must have licenses issued by the Secretary of State, according to Nevada filing requirements. Your local city or county may also mandate licensing. You can file for your state business license application online through SilverFlume. SilverFlume also offers one-stop applications for many municipalities (cities or towns), including Las Vegas.
Depending on your type of business, Nevada may also require that you apply for additional permits and professional licenses. For example, suppose you are starting a construction business. In that case, you will need a contractor’s license and specific permits to conduct transactions.
Request a Certificate of Good Standing
If you plan to seek funding from bank loans or obtain specific business permits, request a Nevada LLC Certificate of Good Standing. The certificate validates your LLC’s legal formation and proper maintenance.
You can request the Certificate of Good Standing from SilverFlume for a $50 state fee.
Find business insurance to protect your LLC
Now that you have invested countless hours into forming your LLC in Nevada, protect your interests with small business LLC insurance. Every small business can benefit from having business owner’s insurance.
In addition, Nevada requires all private employers to have workers’ compensation insurance if they have at least one employee. A policy can cover your injured or ill workers’ medical expenses and lost wages for work-related accidents.
Manage Nevada sales tax
Your business may need to register for and pay sales tax. In Nevada, physical property like furniture, clothing, and appliances are subject to this state tax.
The Nevada Tax Center makes it easy to manage your business tax filings. Create an account with the Nevada Department of Taxation to get started.
At this point, consider hiring an accountant and marketing agency to help you manage the business. The more peripheral tasks you can delegate to other entities, the more time you can focus on the growth and sales of your business.
Get LLC insurance in minutes by following these steps
- Head to Huckleberry.com and click the “Instant Estimate” button. In a matter of minutes, you’ll get quotes for several insurance coverage types that suit your business needs.
- Choose your industry. That way, Huckleberry knows precisely which insurance options will best help you and your company.
- Respond to a few simple questions about your new Nevada LLC, including revenue projections, payroll estimates, and more. We promise it’s easy (no lengthy forms or calculations!).
- In less time than it takes to finish a hand of blackjack at the Bellagio, Huckleberry offers you quotes for several small business insurance options.
- In a rush? Huckleberry has you covered with our quick estimator tool. And if you only need workers’ comp coverage, use Huckleberry’s calculator to find out how much it costs.
As you can see, getting your Nevada LLC is straightforward. However, it requires your patience and commitment as you get your ducks in a row to complete the process. Keep track of the forms and fees necessary for your LLC in Nevada, and save copies for your records.
Since LLCs offer limited liability protection, you can enhance your security with small business insurance. Whether you need a workers’ compensation policy or a general liability plan, Huckleberry can take care of your Nevada business.