How to Incorporate in Nevada (May 2024 Update)

Nevada has become one of the most popular states in which to incorporate a business. With favorable corporate tax laws, low costs, and a business-friendly legal environment, entrepreneurs are flocking to form their companies in the Silver State. In this comprehensive guide, we’ll walk through the key steps and requirements for incorporating in Nevada so you can launch your business the right way.

Choosing a Business Name

The first step when incorporating in Nevada or any other state is to select your corporation’s official business name. Nevada law has a few key regulations regarding business names that you need to keep in mind:

• Your name must include a corporate designation like "Incorporated," "Inc.," "Corporation," or "Corp." at the end. If your business name appears to be that of an individual person, you must include one of these terms.
• You cannot use a name that is confusingly similar to an existing business name. Check the Secretary of State’s records to make sure your name is distinguishable from others in Nevada.
• You can reserve a name for 90 days by submitting a name reservation form and fee to the Secretary of State while you complete other steps.

Make sure to also check if the domain name is available if you want to use your business name online.

While reserving a name is not required, it helps avoid any future legal disputes over the right to use the name you’ve chosen.

Appointing a Registered Agent

Nevada law requires that every corporation designate a registered agent - an individual or business entity that is authorized to accept service of process and official government documents on behalf of the corporation. This is an important compliance requirement.

• The registered agent must meet these criteria per Nevada law:
• They must be age 18 or older.
• They must have a physical street address in Nevada, not just a P.O. Box.
• They must be available during normal business hours to accept legal documents in person on behalf of your corporation.

Many businesses choose to work with a third party registered agent service that takes care of this compliance obligation for an annual fee. The agent must officially consent in writing to acting as your registered agent.

Preparing and Filing the Articles of Incorporation

To legally form your Nevada corporation, you must file Articles of Incorporation with the Secretary of State. This document must include:

• The exact business name and principal office address
• Name, street address, and signature of the registered agent
• Names and addresses of all incorporators
• Number of stock shares the corporation is authorized to issue

The Articles establish key provisions for how your corporation will function. There is a minimum $75 filing fee due when you register this document, although fees increase depending on the number of stock shares.

Completing Initial Nevada Compliance Requirements

Within the first 30 days after formally incorporating your business, you must complete additional state compliance steps including:

• File the Initial List of Officers and Directors – There is a $150 fee to file this list containing names and addresses of your corporate leadership team.
• Obtain your Nevada business license by registering and paying the $500 business license fee. Some professional services companies may be exempt.
• File for your Federal Employer Identification Number (EIN) from the IRS if you plan to hire employees. This number is required to open a business bank account and pay taxes properly.

You may also need to register for additional local business licenses depending on where you operate and the industry you are in. Our agents can help you identify any other Nevada or local licenses needed to remain compliant.

Maintaining Your Nevada Corporation

Even once your business is successfully incorporated, there are still ongoing compliance tasks you must complete to remain in good legal standing:

• File an Annual List of Officers and pay renewal fees by the anniversary date when you originally filed. The annual list reconfirms your leadership team and there is a $150 state fee.
• All Nevada corporations must also pay a $500 annual business privilege tax to the state. Some professional services companies may be exempt.
• Consider getting business insurance, opening a business bank account, and taking other steps to maintain separation between your corporate and personal finances and assets. For more information, take a look at our article on the key benefits of business checking accounts.
• Record keeping – Maintain detailed company records such as stock ledgers, corporate bylaws, and annual meeting minutes. Though not legally required, this helps prove you are complying with corporate formalities.

Why Form a Nevada Corporation? Benefits to Understand

Now that we’ve explored the basics of how to form and maintain a Nevada corporation, understanding the benefits of a Nevada incorporation may help motivate you to take the next steps:

Minimal Taxes and Fees

Nevada has no corporate income tax and no taxes on corporate shares. The state also has no personal income tax. When combined with low incorporation fees and maintenance costs, this makes Nevada one of the most tax-advantaged states for starting and running a business.

Strong Corporate Privacy Laws

Compared to states like Delaware, Nevada offers stronger privacy protections for business owners, shareholders, and directors. Public access to private company details is restricted and rigorously protected under Nevada law.

Favorable Liability Shields

The laws regarding “piercing the corporate veil” are strict - creditors and plaintiffs usually cannot go after the personal assets of business owners or shareholders except in cases of serious fraud or illegal activity. This provides an extra liability shield between your business and your personal finances.

Flexible Corporate Management Structure

Nevada offers owners and directors more flexibility in how they structure management and decision making processes. The interests of shareholders, community stakeholders, employees and other partners can be taken into account more holistically.

Streamlined Conflict Resolution

Specialized “Business Courts” handle corporate and commercial disputes as an alternative to traditional litigation. They aim to save money and time for businesses forced to resolve internal conflicts and disputes in court.

Conclusion

We’ve explored the key steps for how to form a corporation in Nevada along with some of the advantages of incorporating in the state. Nevada offers business owners an attractive environment for starting and growing companies while protecting personal assets. With a little help from legal and accounting professionals, handling compliance requirements for a Nevada corporation is very straightforward.