Forming your own limited liability company (LLC) is not all fun and games. There are things you need to consider and the responsibilities you need to handle. However, you can successfully go through the process with proper knowledge and information. Here are ten simple steps on how to form an LLC in Nevada:
1. Choose a company name.
The first thing you should do is to come up with a name for your LLC. Your company’s name will be its identity. It is how your consumers or clients will remember you. Thus, choose wisely. Additionally, you should also keep in mind Nevada’s naming requirements for LLCs.
- Include limited liability company, limited-liability company, limited company, limited, Ltd., L.L.C., LLC, or LC. You can also abbreviate the term company to Co.
- Do not include words that may confuse your company with a government agency.
- You cannot use the word bank, attorney, university, and other restricted words. If you want to use any of these words, you will have to file additional paperwork.
- Your company name should not already be in use by another LLC in Nevada.
2. Check name availability.
To make sure the name you choose is available, you can check it using the business name database of the Secretary of State. You can also reserve a name using the Name Reservation Request Form, which you can submit online or by mail.
3. Nominate your LLC’s registered agent.
Your LLC should have a registered agent, also known as an agent for service of process in the state. You can choose a qualified individual or business entity. The role of the registered agent is to act as your company’s point of contact with the state of Nevada. They will receive tax forms, legal documents, and official government correspondence on behalf of your company.
The registered agent should reside in Nevada or a company that is authorized to do business within the state. You can also select a member of your LLC.
4. File your company’s Articles of Organization.
To create an LLC in Nevada, you should file the Articles of Organization with the Secretary of State. You can submit your application online or by mail. Nevada requires you to provide information about your business in the Articles of Organization. The necessary information includes your LLC’s name, name and address of the registered agent, the date your company will start doing business, among others.
5. Pay for the filing fee.
Along with the document, you should pay for the state filing fee worth $75.
6. Create your LLC’s Operating Agreement.
Nevada does not require LLCs to have operating agreements. However, this internal document outlines the ownership as well as the operating procedures of your company. It also reduces the risk of having conflict in the future.
7. Obtain an EIN.
The Internal Revenue Service (IRS) issues the Employer Identification Number (EIN). It is a nine-digit number that the agency uses to identify business entities. It also uses it to track the company’s tax reporting. You can use the EIN to open a separate bank account for your company. You can also use it for federal and state tax purposes. You may also need it if you decide to hire employees. You can get your EIN from the IRS by applying online or by mail.
8. Handle other taxes and regulatory requirements.
Nevada requires all businesses that operate within the state to obtain a state business license. You can get it from the Nevada Secretary of State. You should file the initial business license application with the initial annual report and the Articles of Organization. The filing fee for both is $350 – $150 for the annual report and $200 for the business license. After that, you can combine annual licenses with the filing of your company’s annual report.
Your annual report, which is also called an annual list, should include the names and addresses of the managers or managing members of the LLC. You should submit the initial list on or before the last day of the month after you filed the Articles of Organization. For the following years, you can submit the annual list on the last day of the month of the anniversary of your LLC’s formation. If you fail to file on time, there will be penalties of $75 for the annual list and $100 for the business license.
If you decide that your LLC will have employees, then you may have to pay for state employer taxes. Register with the Employment Security Division (ESD). The state has also come up with a modified business tax wherein companies pay a quarterly payroll tax to the Department of Taxation (DOT). Additionally, registration with the ESD relates to the payment of state unemployment compensation taxes. To learn more about state taxes in Nevada, you can check out the websites of the ESD and the DOT.
9. Open a bank account for your company.
Having a separate bank account for your LLC will help you monitor the finances of your company. It also separates your assets from those of the company. It also helps make the accounting and tax filing easier for you since you can easily check your company’s cash flow.
10. Get insurance.
LLCs offer protection and limit personal liability. However, it would be better to have additional protection. This way, you can also have protection for your business assets. In case your company faces legal problems, you have got it covered. There are various insurance policies available for businesses. Discuss your options with your insurance agent and choose the one that offers wide coverage and is suitable for your company’s needs.
Creating your own company does not have to be stressful. Follow the steps on how to form an LLC in Nevada successfully. However, if you think you cannot handle all the responsibilities on your own, you can turn to an experienced company that aims to help business owners make sure that their business can transact legally. Contact DoMyLLC now and find out more.