Nevada is an incredibly business-friendly state to form an LLC. With straightforward requirements and no income tax for corporations or individuals, it's a great place for new or expanding entrepreneurs.
While forming an LLC may seem daunting, it doesn’t have to be! If you’re ready to take advantage of all that the Silver State has to offer, follow these 6 steps to start your LLC.
6 Steps to Start an LLC in Nevada
The process of forming an LLC in Nevada can be completed online through Nevada’s business portal – SilverFlume. We’ll walk you through the steps below. Additionally, the Nevada Secretary of State’s office offers a ton of supplementary support for small business owners.
1. Pick Your Business Name
When forming an LLC in Nevada, it's important to choose a unique business name that hasn't been taken by another business already operating in the state. It's also a good idea to check if the corresponding domain name and social media handles are available.
Once you've chosen a name, it's important to make sure it follows Nevada’s naming rules, including:
- Names must contain LLC, L.L.C, Ltd., Limited Liability Company, or Limited Company
- Names cannot include words that suggest professional or financial institutions without prior approval from the associated government agency. This includes words like “bank,” “insurance,” “engineer,” “university,” and “architect,” among many others.
- Names cannot use terms or phrases commonly associated with government agencies (FBI, DEA, State Department, etc.)
You can check the availability of your preferred name using the “Nevada Business Search” in the SilverFlume portal. If your name is available, but you aren’t quite ready to file the paperwork, you can choose to reserve it for up to 90 days. To do so, you’ll need to file the Name Reservation Request in the SilverFlume portal or by mail. The cost for this service is $25.
Nevada also allows you to work under a name different from registered LLC name. To do so, you must file a Fictitious Firm Name Form, also known as “doing business as (DBA)” form. The exact requirements vary depending on the county you operate in. Check with the county clerk’s office for more information.
2. Decide on a Registered Agent
All LLCs in Nevada must have a registered agent on file. A registered agent is a designated person or company that accepts official correspondence – including government and legal paperwork – on behalf of the LLC. The only requirement is that the registered agent must have a physical address in Nevada and can accept mail during normal business hours.
In Nevada, you can choose to be your own registered agent, which is the easiest option if you plan to physically be in the state. You can also choose to hire a professional registered agent service instead. This option is best for business owners that may not physically be present in Nevada or who frequently travel between locations.
3. Prepare the Articles of Organization
To officially become an LLC in Nevada, you must file an Articles of Organization document with the Secretary of State. The form is available to submit online through SilverFlume. You’ll need to provide:
- The company name and address
- The name and address of the registered agent
- Who the members or managers of the LLC are
- The dissolution date (if applicable)
- The type of business (if it’s a professional LLC)
- The organizer’s name and signature
If you already have an LLC in another state, you’ll be classified as a foreign LLC. In this case, you’ll need to provide additional information about your LLC, including date formed and the original jurisdiction of formation. You may also want to provide a certification of good standing from your home state.
The cost for filing is $75 which can be paid using credit card, check, or a trust account. You can also choose to have it expedited in 24 hours for an additional $125.
4. Complete the Initial List and State License Application
In addition to the Articles of Organization, you’ll also need to complete the “Initial List and State License Application.” An updated version of this form must be filed yearly in order to stay legally registered as an LLC.
The first part asks you to list out all members or managers of your LLC, their address, and to provide their signatures. This part is the “Initial List of Managers and Members” which costs $150 to file.
Additionally, the form asks if you are exempt from holding a state business license. Companies are only exempt if they are non-profits, religious, or governmental institutes. In all other cases, this form will act as your state license application. The licensing fee is $200 (in addition to the $150 above) and must be paid annually.
5. Prepare an Operating Agreement
While Nevada does not require an operating agreement to form an LLC, is it still highly advisable to prepare one. An operating agreement is a legally binding document that lays out how the company will run.
Generally, LLC operating agreements include the following information:
- The name and business address of the LLC
- The type of business and purpose of the LLC
- A copy of the Articles of Organization
- How the LLC is managed (member-member or manager-member)
- The plan for dividing profits and losses among members
- Member contributions (financially and operationally) to the LLC
- The voting protocol for adding and removing LLC members
- Liability and indemnification language
Creating this document allows you more control over the LLC. It can help you in the case of disagreements, dissolvements, or other legal issues, if they happen. Without one, LLC are managed according to the default state laws.
6. Determine If You Need Additional Permits or Licenses
In addition to the yearly state business license, you may need additional permits or professional licenses in order to operate in Nevada. These will generally fall into one of three categories:
- Professional Licenses: required for businesses offering professional services like accounting, medical care, architecture, etc.
- Environmental Permits: required for businesses that produce air emissions, wastewater, hazardous materials, etc.
- Public Health Permits: required for businesses offering child care, tattooing/piercings, aquatics, food service, etc.
Some counties within the state also require separate county business licenses to operate. Check with the county directly to see if your business needs an additional license.
The Next Steps After Forming an LLC in Nevada
1. Get an EIN
An Employee Identification Number (EIN) is a nine-digit number that is assigned by the Internal Revenue Service (IRS). While EINs aren’t necessary for sole-member LLCs, they are generally good to get anyway.
An EIN allows you to hire employees, open a business bank account, and more easily manage your taxes. Additionally, an EIN helps to separate your personal and business finances, making it easier to manage your finances while preserving your limited liability.
It’s easy and free to get an EIN – simply apply through the IRS website or by mail.
2. Open a Business Bank Account
Whether you’re operating as a sole-member LLC or not, it’s important to keep your business finances separate. You can do that by opening a business bank account. A business bank account can simplify your tax process and protect your personal assets in case of an audit or lawsuit.
Additionally, opening a business bank account makes it easy to apply for a loan or a credit card. The process will vary bank to bank, but it’s generally a simple process. Many banks even offer the option to sign up online.
3. Set Up a Payment System
Pay.com makes it easy for you to accept payments. We provide a comprehensive payment system, with a simple, straightforward onboarding process.
Once set up, you can create a custom checkout page for your website, using either our no-code options or API solutions. If you don’t have a website, Pay.com offers an alternative with Pay Links. These allow you to send direct payment requests to your customer by email or SMS.
With a range of payment options you can offer, your customers can pay the way that’s convenient for them.
4. Get Business Insurance
Securing business insurance is an essential part of preparing to open your business. For certain businesses, it may even be mandatory. In Nevada, Workers Compensation Coverage is required if you have one or more employees. Additionally, all business-owned vehicles must have liability auto insurance.
Most LLCs also benefit from some type of general liability insurance, though it’s not required. You may even want to explore more robust policies. Depending on your specific needs this could include coverage for commercial property, business income, or health insurance.
The Bottom Line
Nevada is a great option for business owners looking to set up an LLC. Though the initial and yearly fees are higher than some other states, you’ll benefit from no income tax and straightforward requirements. By using the SilverFlume business portal and following our six steps, your LLC will be ready to go in no time.
Pay.com is the best way for your LLC to accept payments – no matter what you sell. With the highest level of PCI DSS compliance and 3D Secure 2.0 authentication, Pay.com is a stress-free way to get paid.