Incorporating a business or forming an LLC (limited liability company) in Nevada is historically popular because Nevada's economic conditions are ripe for transacting business. Nevada imposes no corporate income tax, no taxes on corporate shares, no franchise tax, no equity transfer tax and no personal income tax. Nevada's aggressive asset protection and privacy legislation are just some of the factors that draw small business owners to Nevada when they are starting a business. Learn more about incorporating in Nevada by reading on.
Steps to take when incorporating your business in Nevada
- Choose a name for your business. Make sure you select a business name that parallels your message, product and service. It's also important that your customers can easily locate your business. Additionally, conducting a state name check lets you know if your desired name is already taken in the preferred state of incorporation. Consult our Nevada State Guide to find out more about naming requirements for LLCs and corporations.
- Recruit and/or appoint members/managers (LLCs) or directors (corporations).
Nevada Corporation requirements
- Nevada requires a corporation to have one or more directors.
- Nevada requires directors to be at least 18 years old.
- Nevada does not specify where directors must reside.
- Nevada requires director names and addresses to be listed in the Articles of Incorporation. Nevada does not require officer names and addresses to be listed in the Articles of Incorporation.
Nevada LLC requirements
- Nevada requires LLCs to have one or more members/managers.
- Nevada requires members/managers to be at least 18 years old.
- Nevada does not specify where members/managers must reside.
- Nevada requires member/manager names and addresses to be listed in the Articles of Organization.
- File your incorporation paperwork. Articles of Incorporation for corporations or Articles of Organization for LLCs need to be filed with the Nevada Secretary of State.
- Annual report and business license requirement. Nevada corporations are required to file an Annual List of Officers/Directors and Business License at the time of filing its Articles of Incorporation. For corporations the filing fee is $150 for the Annual List and $500 for the business license registration. For LLCs the filing fee is $150 for the Annual List and $200 for the business license registration. Nevada LLCs are required to file an Annual List of Members/Managers and Business License. The due date and the filing fees noted above for corporations are applicable to LLCs as well.
- Obtain any required business licenses/permits. In addition to fulfilling the business license registration requirement as part of the initial and annual report filing in Nevada, other permits and/or business licenses may be necessary.
- Determine other regulatory obligations and registrations. Additional tax and regulatory obligations you should consider for your corporation or LLC include obtaining a Federal tax identification number (EIN). For complete details on state filing fees and taxes on income and sales for Nevada LLCs and corporations, reference Business Owner's Toolkit.
- Open a bank account for your business. Keeping your business' finances separate from your personal accounts is not only a practical idea but is required to show that you are keeping the assets of your business separate from your personal assets. To apply this practice early on, open a bank account for your LLC or corporation. You will most likely need an EIN and your incorporation paperwork to complete the process.
- Additional considerations. Depending on the structure of your business and the decisions made by the owners and/or management, incorporating your business in Nevada may also include these variables to satisfy state requirements:
- An office in Nevada in a physical location with mailing address
- Company employees working in the State of Nevada
- Business phone number
- Brokerage or bank account
It is important to note that if you are not a Nevada resident, you can still incorporate your business in Nevada provided that you register your business in your home state or any other states where you are transacting business. Learn more about transacting business in another state by referencing our information on foreign qualification.
Remember not all companies are designed to maximize the advantages of incorporating in Nevada. You may choose to consult with your accountant or attorney to make the most educated decision in terms of choosing the right state for your small business or entrepreneurial venture.