A limited liability company is similar to a corporation as members can limit their personal liability for any lawsuit or business debt. It also has the flexibility of a sole proprietorship and partnership, making it the ideal business structure choice.
If you’re planning to put up a business in Nevada and structure it as an LLC, then read on for more information. We can help on how to get an LLC in Nevada and provide more details on how to register it in the state.
Is an LLC Operating Agreement Required in Nevada?
While having an operating agreement isn’t required in the state of Nevada, it’s highly recommended by the state. This is because having an LLC operating agreement is the most effective way to maintain control over your limited liability company, especially if there are conflicts or issues with the creditors. In addition, some of the banks in Nevada may also ask LLCs to submit an operating agreement to open a business bank account.
Nevada Operating Agreement Laws
Section 86.286 states that all LLCs in Nevada may create an operating agreement to better manage and regulate the company’s affairs. It prevents conflicts and misunderstandings among the members of the team.
Under Nevada law, your LLC must have the words ‘Limited Liability Company’, ‘Limited’, ‘Limited Company’, or any of these abbreviations, ‘Ltd’, ‘L.L.C.’, ‘LC’, or ‘LLC’. You can also consider abbreviating your company as ‘Co’.
You must also obtain a state business license from the Secretary of State in Nevada, which must be renewed every year.
How Much Does it Cost to Form an LLC in Nevada?
The filing of articles of organization would cost you $75. If you have already thought of a business name for your Nevada LLC but aren’t ready to file for your LLC, we highly recommend that you reserve that with the Nevada Secretary of State for $25.
For LLCs registered outside of the state and planning to expand in Nevada, you must select a registered agent and file an Application for Registration of Foreign Limited-Liability Company. The filing fee for this is $75.
How to Form an LLC in Nevada?
How to start an LLC in Nevada? The process is pretty straightforward. We’ve detailed it below:
Step 1 – Create a Name for your Nevada LLC
The first step to starting an LLC in Nevada is to choose a business name. When selecting a name for your Nevada LLC, please make sure you adhere to the state’s guidelines. You need to also ensure that the name can’t be associated with the government. Ideally, you should prepare at least three business names, just in case your first choice is taken. As soon as you decide on a name, consider paying to reserve that name. You will have up to six months to keep the business name until you complete the LLC registration process.
Step 2 – Appoint a Nevada Registered Agent
All Nevada LLCs must appoint a registered agent residing in the state of Nevada. This can be an individual or a business entity that will accept legal papers and other official documents on your behalf. Make sure that this agent is legally residing in Nevada and has a physical street address. You can visit Nevada’s Secretary of State website if you need a list of available registered agents.
Step 3 – File the Articles of Organization
You can create a Nevada LLC by filing your articles of organization with the Secretary of State. Ensure that they have all the details below:
- Name of the LLC
- Name, address and signature of the appointed agent
- Whether it’s run by members or managers
- Name and address of LLC’s organizer
- Name and address of managers
Step 4 – Create an LLC Operating Agreement
We highly advise creating an LLC operating agreement for your business as these documents set out the rights and responsibilities of the members and how the company is managed. Your LLC operating agreement can address any conflicts that may arise, and it can also protect your limited liability status. Without it, you will have to rely on the state LLC law on how to govern how your business operates.
Step 5 – Acquire an EIN
All LLCs in Nevada should obtain an Employer Identification Number or EIN with the Internal Revenue Service for tax purposes. You can do this online, and there’s no filing fee to acquire an EIN.
Step 6 – File your Annual Reports
All Nevada LLCs and even foreign LLCs must file an annual report with the list of the LLCs directors, officers and the registered agent. Please make sure that you don’t file your reports late as there is a fine for this. The filing fee for the annual report is $150.
Nevada LLC Operating Agreement Template
Check out our Nevada LLC operating agreement template below:
LLC Operating Agreeement