Form an LLC

Why form a Limited Liability Company (LLC)?

Limited liability for owners and pass-through taxation.

LLCs provide limited liability protection to their owners (called members). Typically, owners are not personally responsible for business debts and liabilities of the company so creditors cannot pursue owners’ personal assets to pay business debts.

Advantages of an LLC

Business owners stand to gain many benefits when they register a company as an LLC. These benefits are, in many cases, unavailable to sole proprietorships and general partnerships. Creating an LLC typically provides the business owner with the following advantages:

• Limited liability protection. Owners are not held personally responsible for business debts and liabilities.
• Pass-through taxation. Typically LLCs do not pay taxes at the business level. Income/loss is reported on the owners’ personal tax returns and any tax due is paid at the individual level.
• No ownership restrictions. LLCs do not face restrictions on the number or type of owners.
  Flexible management. Owners have flexibility in structuring company management.
• Fewer ongoing formalities. LLCs have less annual paperwork than, and do not face the meeting requirements imposed on C corporations and S corporations.
• Credibility.

LLCs may be perceived as a more legitimate business than a sole proprietorship or general partnership.

• Consent to add owners. Written consent of LLC members must be obtained prior to increasing ownership in the company or adding new owners.

How do you form an LLC?

To form an LLC, Articles of Organization must be filed with the state and the applicable filing fees paid. With our incorporation service packages, Resident Agents of Neada, Inc. handles the whole process for you.

Key benefits

LLCs provide limited liability protection to their owners, like corporations, so owners are typically not personally responsible for business debts and liabilities. They also provide pass-through taxation, like partnerships, LLC income is reported on the owners’ personal tax returns and any tax due is paid at the individual level.

Some things to keep in mind

LLCs are subject to ongoing requirements in the state of incorporation, such as filing annual reports and paying the applicable annual report fees.

Form an LLC in Nevada

You can choose any state to form an LLC in, Why not Nevada?

Nevada specifics for LLCs

Here are some key facts you should know as you consider forming an LLC in Nevada. At the time of formation, Nevada requires you to take the following additional steps:

• Nevada has an initial report or publication requirement known as “Initial List of Managers and Managing Members”.

Nevada also has the following ongoing requirements:

• Annual report. Nevada requires LLCs to file an annual report on or before the first day of the anniversary month of the LLC’s incorporation.
• Recordkeeping requirement. Nevada requires LLCs to keep on record with the registered agent the name, address and phone number of the person who is authorized to receive communications from the registered agent and the names and addresses of current members and managers, if the LLC is manager-managed.

Nevada continues to be the best place to form your Limited Liability Company (LLC) for the following reasons:

• Less paperwork than a corporation There is less paperwork required to keep an LLC current. Formal requirements of board of director meetings and shareholder meetings are not required for Nevada LLCs.
• Limitation of liability The officers and directors of a Nevada corporation are protected by statute and case law from the debts and actions of the corporation.
• Information privacy Nevada does not share taxpayer information with the Internal Revenue Service (IRS).
• Complete anonymity is possible Annual reports require the name of only one person and report only the assets located in Nevada.
• Single member LLCs Are allowed One person is all you need to create and manage a Nevada LLC. Single-member LLCs are disregarded entities by the IRS because profits and losses are passed directly onto the sole Member’s federal tax return (eg., Form 1040). Though they are allowed, keep in mind that LLCs are intended to function as a partnership and some corporate protections have been successfully challeneged in courts for single-member LLCs.
• Low regulations As a rule, Nevada does not have the bureaucratic regulations of many states.

Ready to Get Started?

Resident Agents of Nevada Inc is your best resource to start your limited liability company online or by phone today. We provide a user-friendly service with great customer support to help you create an LLC in three easy steps. Protect your business and personal assets and organize your business with the help of experienced business formation experts.

When you form your Nevada LLC, with Resident Agents of Nevada Inc, we first conduct a name search for your Nevada LLC. We file your articles of organization with the Nevada Secretary of State and can also obtain your Federal Tax ID Number (EIN), as well as provide other customized services for your Nevada LLC.

Got questions?

Email us at agents@nevada.org or call toll free today (888) 463-8462