How to Start an LLC in Nevada (Step-by-Step Guide)

When starting a new company, choosing a business entity is the most important decision that the founders must make. For most businesses with more than one founding member, forming as an LLC is often the best option for a number of reasons.

An LLC is an uncomplicated business structure that affords business owners legal protection by separating personal assets from business debts. Moreover, LLCs often enjoy a lower tax rate than corporations. Nevertheless, creating an LLC can get complicated depending on where you are based, with the formation process, filing fees, and continuing legal obligations differing from state to state.

Forming an LLC in Nevada follows a relatively standard procedure similar to those in other states, so entrepreneurs should not experience much difficulty in creating their business in the state. However, unlike in most states, an LLC’s initial annual report and state business license application are due along with its Articles of Organization.

1. Select a name for your Nevada LLC

Follow naming requirements

There are two major guidelines to follow when naming your LLC in the state of Nevada:

1. An LLC’s name must be distinguishable from the names of existing businesses on file with the Nevada Secretary of State.
2. An LLC’s name must contain one of the following phrases or abbreviations: “Limited Liability Company”, “Limited Company”, “Limited”, “Ltd.”, “L.L.C.”,  “LLC”, or “LC.” The abbreviation “Co.” may be substituted for the word “Company.”

Need help coming up with a business name? Check out our free business name generator.

Check the name’s availability

Once you decide on an LLC name that complies with Nevada state guidelines, check that it’s available to use in the state using the Nevada Business Search.

Reserve your LLC name with the Nevada Secretary of State

You can reserve your LLC name with the Nevada Secretary of State for up to 90 days to prevent another business entity from using it before you file your Articles of Organization.

File a Name Reservation Request application online with Silverflume (the Nevada Secretary of State’s business filing portal) or by postal mail. The filing fee is $25.

2. Designate a registered agent

As in every U.S. state, forming an LLC in Nevada requires the appointment of a registered agent service to handle state and federal legal documents and service of process on the business’s behalf. The registered agent must either be a state resident or business entity with a street address in Nevada OR if the individual or business is based out-of-state, they must have a business office in Nevada.

3. File Articles of Organization

An LLC is legally formed in Nevada through the filing of Articles of Organization-Limited Liability Company with the Nevada Secretary of State.

The Articles of Organization must provide the following details:

• LLC name
• Registered agent name, address, and signature
• If the LLC is member-run or manager-run
• Each member or manager’s name and address
• LLC dissolution date (if applicable)
• LLC organizer name, address, and signature

The articles can be filed online with Silverflume or through the mail and must be accompanied by an LLC’s initial annual report (AKA annual list) and state business license application. The filing fee is $75.

4. Create an operating agreement

Although not a legally mandated step for forming an LLC in Nevada, drafting a comprehensive LLC operating agreement is strongly recommended for all nascent limited liability companies.

The operating agreement should do the following:

1. Describe the LLC’s business structure
2. Establish the individual responsibilities and obligations of LLC members
3. Detail how the LLC will be run

Without an operating agreement clarifying the specific duties of its members, an LLC may face significant legal and operational difficulties.

5. Obtain an IRS Employer Identification Number (EIN) 

All newly formed LLCs in the United States must acquire an Employer Identification Number (EIN) from the Internal Revenue Service (with the exception of single-member LLCs). The nine-digit EIN is like a social security number for a business and is necessary to pay income tax, file tax returns, open business bank accounts, and perform many other important functions.

You can apply for an EIN online on the IRS website without paying a filing fee.

6. Fulfill your legal obligations

Once an LLC is registered, its members must devote attention to fulfilling legal requirements that apply for the duration of the company’s existence.

File Annual Reports (“Annual list”)

All LLCs active in Nevada must file an annual report (known as an “annual list” in Nevada) with the Secretary of State that includes all officers, directors, and the registered agent. This includes foreign LLCs doing business in the state.

The initial annual list is due with an LLC’s Articles of Organization and the form is included with the articles. Each following annual list is due every year by the end of the anniversary month in which an LLC was formed (the month including the date its Articles of Organization became effective)

An LLC may file its annual list online or through the mail and the filing fee is $150.

Obtain a Nevada licenses

In Nevada, LLCs are subject to various licensing requirements that vary based on their specific business activities and location.

• State business license: At the state level, every LLC operating in the state must secure a state business license, which is generally processed through the Nevada Secretary of State’s office. This process is often integrated with the filing of the annual list of officers for entities categorized under Title 7, which includes LLCs.
• Occupational licenses: Additionally, depending on the industry in which your Nevada LLC operates, it may be required to obtain additional licenses from specific state agencies. For instance, restaurants are required to have licenses from the health department; contractors need construction licenses.
• Local licenses: Beyond state-level requirements, LLCs must also navigate local licensing mandates. Many cities and counties in Nevada have their own business license requirements. Additionally, businesses engaged in construction, renovation, or planning to install signage may need to obtain zoning permits from local government authorities.

Contact their local city or county clerk’s office to understand these specific requirements. Check the Nevada Secretary of State’s website to see if you need a license for your industry.

Understand state taxes

Given Nevada’s tax structure, LLCs benefit from the absence of a state income tax, meaning that there’s no direct taxation on the income generated by the LLC for residents of Nevada. However, the taxation of LLC profits is handled through pass-through taxation, where profits and losses are reported on the personal tax returns of the members. This means that members of an LLC are subject to federal income tax and, if applicable, state income tax in their state of residence, not Nevada.

Specifically, single-member LLCs are treated as sole proprietorships for business tax purposes, while multi-member LLCs are taxed as partnerships, with each member responsible for personal income tax on their share of the LLC’s profits.

Commerce tax: Additionally, Nevada imposes a commerce tax on businesses that exceed $4 million in gross revenue within a taxable year. The rate of this tax varies by industry, ranging from 0.051% to 0.331%, which requires businesses in certain sectors to pay more attention to their revenue levels and applicable tax rates.

Sales tax: You will also need to be conscious of state sales taxes. For any business that sells taxable goods and services, you will need to collect and remit the sales tax to the state of Nevada. Before you can do this, you need to obtain a sales tax permit or a sales and use tax number. You can do this online or by mail for $15 per location.

Register with the Nevada Department of Taxation: Some LLCs active in Nevada must register with the Nevada Department of Taxation in order to fulfill state tax obligations. This includes LLCs that collect sales tax on retail goods and LLCs that have employees (which must also register with the Nevada Employment Security Division).

Understand BOI reporting

The Beneficial Ownership Information Reporting Rule, which came into effect on January 1, 2024, is a significant regulation under the Corporate Transparency Act (CTA) of 2021. It mandates that specific U.S. businesses, including corporations, LLCs, limited partnerships, and other comparable entities either created or registered to conduct business in the U.S., must submit details about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN).

Deadlines to file: The rule has deadlines for compliance based on when a company was established or registered.

• Entities formed or registered before January 1, 2024, are given until January 1, 2025, to submit their initial report.
• For companies established or registered during the year 2024, there is a requirement to file within 90 calendar days following their notice of creation.
• This timeframe changes in 2025, where the filing must be completed within 30 days.

Post LLC tasks

Set up business bank accounts

An LLC should always have a business bank account to effectively manage its finances effectively, ensuring a clear separation between the personal assets of its members and the business’s assets. This separation is crucial for maintaining the legal protection offered by the LLC structure, such as limited liability for its members.

Additionally, a dedicated business account simplifies accounting practices, tax preparation, and financial management by consolidating all business transactions in one place.

Banks to consider: When choosing a business bank account, LLCs have a variety of options, each with its own set of features designed to meet different business needs. Some banks designed specifically for small businesses include:

• Found: tax-saving features and integrated accounting services.
• Relay: robust online banking solutions with features like multiple checking accounts and debit cards.
• Mercury: no-fee checking accounts and tools tailored for startups and tech companies.

Obtain a Certificate of Good Standing

Nevada offers a Certificate of Good Standing for businesses, which is an official document from the Nevada Secretary of State. This certificate validates that a business legally exists within the state and is compliant with all necessary filings and state fees required by state law.

There are two distinct types of certificates available to businesses in Nevada: Commercial Record and Ceremonial Charter.

• Commercial Record: The first is the Commercial Record, a basic form of the certificate that affirms the business’s legal existence and its good standing status. Businesses can obtain this certificate either online through the SilverFlume business portal or via mail at a cost of $50.
• Ceremonial Charter: The second type is the Ceremonial Charter, which is a more detailed and decorative version of the certificate. It includes additional information such as the business’s name, the date it was formed, and its principal place of business. Due to its detailed nature, it is often utilized for ceremonial purposes and is available at a higher price of $100.

Build a website

In the modern digital landscape, where the internet serves as a primary source of information and services for many people, having an accessible online presence is essential for reaching a wider audience. Having a website significantly boosts a business’s visibility and online presence, enabling potential customers to discover the business on the internet, understand its offerings, and engage with it.

While every LLC owner knows a website is necessary, you might not know where to start. Follow these steps to get started:

1. Search for and purchase a domain name.
2. Sign up for web hosting.
3. Pick a web builder like Domain.com or GoDaddy to create a site with no coding experience necessary.
4. Tailor your site to your customers, adding appropriate pages, content, and images.
5. If you’re selling goods, add an e-commerce section to your site.
6. Review, test, and publish your site.

Cost to set up an LLC in Nevada

Average cost to set up an LLC in Nevada: $775-$975

As a budding entrepreneur, you need to manage a handful of set-up fees. To get a Nevada LLC started, here’s what you’ll need to pay:

• Incorporation fees: When starting an LLC, you must cover the cost of filing the Articles of Organization, which is $75, and the state business license fee of $200, included in the filing for the Articles of Organization. Additionally, there’s a $150 fee for the initial list of managers or members. The total to file is $425. For expedited processing of these documents, fees range from $75 to $125 for 24-hour processing, $500 for 2-hour processing, and up to $1,000 for 1-hour processing.
• Report and renewal fees: Beyond the initial setup, LLCs in Nevada face ongoing expenses. These include a $150 annual report fee and a $200 state business license renewal fee, both due yearly.
• Registered agent service filing fee: The cost for a registered agent service, which is optional, varies based on the selected service and its features. Typically, if you choose to hire a registered agent to accept official documents on behalf of your company, you’ll pay between $50 and $200 annually.

Foreign LLC registration

An LLC formed in a state other than Nevada that intends to do business in the state must register with the Nevada Secretary of State.

Follow these steps to do business in Nevada as a foreign LLC:

1. Comply with Nevada LLC naming guidelines and confirm that your LLC’s name is available for use in the state using the Nevada Business Search.
2. Appoint a Nevada registered agent.
3. File an Application for Registration of Foreign Limited-Liability Company with the Nevada Secretary of State online or by postal mail. The filing fee is $75.  The application must be accompanied by your LLC’s first annual report and the associated $150 fee.