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Compare a Nevada Corporation to an LLC
Your choice of a Nevada Corporation or a Nevada LLC is fact dependent. Use the charts below to compare the key points.
Click a button to start the process.
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Corporation |
Limited Liability Company | |
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Form a Nevada Corporation
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Form a Nevada LLC
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| When to use? | Own a business, publicly traded company, to take advantage of lower Corporate taxes compared to individual income taxes, to deduct medical expenses. | To own real estate. To hold cash for asset protection. To own stock in one's Corporations. | |
| State filing and filing fees required for creation | Articles of Incorporation must be filed with the Secretary of State and necessary filing fees paid. | Articles of Organization must be filed with the Secretary of State and necessary filing fees paid. | |
| Ongoing state filings and fees | An Annual Report is due every year. | An Annual Report is due every year. | |
| Length of existence | The entity may live forever without interruption by death of Shareholders, Directors, or officers. | May designate any period of duration. | |
| Administrative requirements and ongoing formalities | To maintain Corporate status, ongoing formalities include:
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To maintain LLC status, ongoing formalities include:
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| Who manages the business | Managed by Shareholder elected Directors and officers. | LLCs have an operating agreement that outlines the management of the business. Can be Member-managed or Manager-managed. | |
| Liability protection | Owners typically are not personally responsible for business debts and liabilities. | Owners typically are not personally responsible for business debts and liabilities. | |
| Raising capital | May borrow money, issue bonds, sell common and preferred stock, enter into investment contracts | May have any number of investors. | |
| Accounting | |||
| Taxation | Generally taxed as a C Corporation. Shareholders are subject to double taxation. No Self-Employment Tax on distributions. | Typically treated as a General Partnership or Sole Proprietorship. Subject to one level of tax. May be taxed as a C or S Corporation. Distributions may be subject to Self-Employment Tax. | |
| Self employment tax | Salary subject to Self Employment Tax. | Salary subject to Self Employment Tax. | |
| Interest transferability | The assets may be sold, transferred, pledged, or mortgaged simply by using stock | Limited transfer of interest - an investment is illiquid since all members must vote to transfer a member’s interest | |
Form a Nevada Corporation
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Form a Nevada LLC
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Got questions?
Email us at agents@nevada.org
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