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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.
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Corporation

Limited Liability Company

 
 

Form a Nevada Corporation

Get Started

Form a Nevada LLC

Get Started

 

 

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:
  • Adopt and maintain Bylaws
  • Hold and document initial and annual meetings of Directors and Shareholders
  • Issue stock
  • Record stock transfers
To maintain LLC status, ongoing formalities include:
  • Operating Agreement
  • Hold and document initial and annual meetings of Members and/or Managers
  • Issue stock
  • Record stock transfers
 
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

Get Started

Form a Nevada LLC

Get Started

 

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