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How to Start an LLC in Nevada (May 2024 Update)

Meow Technologies, Inc.

Meow Technologies, Inc.

Limited liability companies (LLCs) have become an increasingly popular choice for small business owners in recent years. LLCs provide business owners with personal asset protection and flexibility while avoiding some of the more complex compliance requirements of a traditional corporation.

Nevada has emerged as one of the most business-friendly states for LLC formation, thanks to its tax advantages, flexibility, and privacy protections. Forming your LLC in Nevada can help limit personal liability, allow pass-through taxation, and keep your personal information off public records. This comprehensive guide will walk you through the entire process of starting an LLC in Nevada.

Benefits of a Nevada LLC

Unlike most states, Nevada does not have a state income tax on pass-through entities like LLCs. This saves Nevada LLC owners a significant amount on potential state taxes every year. Nevada also offers strong personal asset protection, flexibility in management structure, and privacy protections that aren’t available in many other states. Business licensing fees in Nevada are lower than in neighboring states like California, making it more affordable to start and maintain your business entity.

Choosing a Name

The first step to starting your Nevada LLC is choosing an official business name. Nevada law requires that LLC names include words like “Limited Liability Company” or an abbreviation like “LLC” or “L.C.” The full list of options you can use is:

  • Limited Liability Company
  • Limited-Liability Company
  • Limited Company
  • Limited
  • Ltd.
  • L.L.C.
  • LLC
  • LC

When selecting your name, make sure it complies with Nevada’s naming guidelines and doesn’t resemble any existing business names too closely. You can check name availability using the Secretary of State’s business database. If the name you want isn’t available, consider alternatives that convey similar branding.

You also have the option to reserve your preferred LLC name with the state for up to 90 days for a $25 fee. This prevents anyone else from using your name during that period.

After settling on your official LLC name, many businesses choose to operate using a “Doing Business As” name, or DBA. Your DBA name doesn’t need to resemble your official LLC name – it’s under this name that you’ll market and promote your business. Keep in mind that DBAs need renewed every five years in Nevada.

Appointing a Registered Agent

Nevada law requires all LLCs to appoint a registered agent to accept legal communications on behalf of the business. This agent must have a physical street address in Nevada, not just a P.O. Box. The registered agent accepts lawsuit notifications and other important legal documents sent by mail.

You can choose to act as your LLC’s registered agent yourself if you meet the address requirements. However, most LLCs prefer to hire a professional registered agent service instead. These services receive and digitize documents on your behalf, scanning them directly to you via email for much faster notification. This prevents any disruption to your business operations if legal communications arrive while you’re traveling or on vacation. Using a professional registered agent service also keeps your home address private by listing their business address on public records associated with your LLC instead.

Filing Articles of Organization

To legally form your LLC with the Nevada Secretary of State, you must file Articles of Organization, which acts as the formal creation document for your business. Preparing your articles of organization before filing through the state’s electronic portal SilverFlume can help smooth the process. The articles require you to list details like your registered agent, business activities, management structure, dissolution date, and the names of your business’s managing members or managers.

This filing also establishes whether your LLC will be member-managed (by its owners) or manager-managed (by assigned managers). You must name all initial managers or managing members and provide their business addresses.

Nevada also requires new LLCs to file a separate initial list of managers or managing members. This document essentially combines the first year’s annual report and the state business license application into a single $150 filing.

If you have all required documentation in order, new Nevada LLCs can usually complete state filings within 1-3 business days.

Creating an Operating Agreement

Unlike many other states, Nevada doesn’t require LLCs to have an internal operating agreement. However, having an operating agreement is still highly recommended for all Nevada LLCs even though it doesn’t get submitted to the state. This document lays out all the rules and regulations for how your LLC will manage internal affairs.

Here are some key items to cover in your operating agreement:

  • Member contributions & percentages
  • How new members can be admitted
  • How existing members can transfer or divest ownership
  • Profit and loss distribution
  • Member voting rights & decision-making procedures
  • Rules for holding meetings
  • Management roles and structure
  • Dissolution procedures

Having documented operating rules and processes prevents disputes down the line and gives your business more legitimacy in the eyes of courts and banks if any conflicts do arise. Get your operating agreement signed by all members once it’s complete.

Obtaining an EIN

Nearly every new LLC needs its own Employer Identification Number (EIN) from the IRS to open a business bank account and handle tax reporting properly. An EIN also prevents you from using your Social Security Number, keeping your personal information more private.

Sole proprietorships can use their owner’s SSN, but for any LLC with more than one member, you must obtain a free EIN from the IRS online.

Single-member LLCs aren’t required to get an EIN, but many still choose to do so for simplicity and added privacy protection.

The EIN only takes a few minutes to obtain on the IRS website.

Additional Startup Steps

Once your LLC is legally registered and you have your EIN, here are some next steps to take for new businesses:

Open a Business Bank Account

Keep your LLC finances separate from your personal finances by opening a dedicated business bank account. Nevada LLCs need to have their own accounts to preserve their liability protections under state law. Make sure to submit your new EIN, articles of organization, and operating agreement when applying for an account.

For more information, take a look at our article on the key benefits of business checking accounts.

File Annual State Reports

All LLCs formed in Nevada must submit an annual report each year to remain in good legal standing with the state. This combines your annual list of managers/members and state business license renewal. Reports are due at the end of your LLC’s first formation month annually. Not filing these reports on time can result in penalties or administrative dissolution of your company.

Conclusion

Starting a successful, complaint Nevada LLC does take careful planning and effort upfront, but know that the tax and liability benefits are well worth the investment. Seek help from legal and accounting professionals when needed, use professional registered agent services, and keep your business bank accounts separate.

Meow Technologies is a financial technology company, not a bank or FDIC-depository insured institution. Likewise, Meow Technologies is not an investment adviser and none of the information presented herein should be relied upon as financial advice or a recommendation to make any financial decision nor should it be considered to be tax or legal advice. The information is the opinion of Meow Technologies for educational purposes and may not be suitable for all companies. Products, like the one described herein, are offered through Meow Technologies and are not advisory services which are only offered through Meow Advisory, LLC.** The FDIC’s deposit insurance coverage only protects against the failure of an FDIC-insured bank.**

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**Disclaimer: Meow Technologies is a financial technology company, not a depository, bank or credit union, and your account at Meow is not, itself, an FDIC-insured product.

Meow currently partners with three banking providers. Banking services are provided by Third Coast Bank SSB; Member FDIC, Grasshopper Bank, N.A; Member FDIC, and FirstBank, a Tennessee corporation; Member FDIC.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by Grasshopper Bank, N.A, you deposit your funds into a deposit account at Grasshopper Bank, N.A. which sweeps those funds into deposit accounts across a network of Federal Deposit Insurance Corporation (“FDIC”)-insured banks, for up to the current standard maximum deposit insurance amount (“SMDIA”) of $250,000 per eligible depositor, per destination institution, for each ownership capacity or category, subject to applicable terms and conditions, including Grasshopper's ICS Deposit Placement Agreement. Grasshopper Bank, N.A. uses a third-party vendor and agent to help administer this sweep process. Visit https://www.intrafi.com/network-banks/ for a list of the banks and savings associations with which we/Grasshopper, N.A. have a business relationship for the placement of deposits at destination institutions, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by Grasshopper, N.A. or you). The current maximum deposit insurance amount for your funds is up to $125 million in FDIC insurance through the sweep network of Grasshopper Bank, N.A, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and restrictions and refer to the applicable rate sheets for additional information.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by Third Coast Bank SSB, you deposit your funds into a deposit account at Third Coast Bank SSB. If you also hold funds in a sweep program with Third Coast Bank SSB, Third Coast Bank SSB sweeps those funds into deposit accounts across a network of FDIC-insured banks, for up to the current SMDIA of $250,000 per eligible depositor, per receiving bank, for each ownership capacity or category, including any other balances you may hold at that receiving bank directly or indirectly through other intermediaries, including broker-dealers. Third Coast Bank SSB uses a third-party vendor and agent to help administer this sweep process. Visit Third Coast Bank SSB for a list of the banks and savings associations with which we/Third Coast Bank SSB have a business relationship for the placement of deposits at receiving banks, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by Third Coast Bank or you). The current maximum deposit insurance amount for your funds is up to $50 Million in FDIC insurance through the sweep network of Third Coast Bank, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and conditions and refer to the applicable rate sheet for additional information.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by FirstBank, a Tennessee corporation, you deposit your funds into a deposit account at FirstBank, which sweeps those funds into deposit accounts across a network of FDIC-insured banks, for up to the current SMDIA of $250,000 per eligible depositor, per destination institution, for each ownership capacity or category, subject to applicable terms and conditions, including FirstBank's ICS Deposit Placement Agreement. FirstBank uses a third-party vendor and agent to help administer this sweep process. Visit IntraFi for a list of the banks and savings associations with which FirstBank has a business relationship for the placement of deposits at destination institutions, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by FirstBank or you). The current maximum deposit insurance amount for your funds is up to $125 million in FDIC insurance through the sweep network of FirstBank, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and restrictions and refer to the applicable rate sheet for additional information.

***FDIC insurance coverage is only available to protect you against the failure of an FDIC-insured bank that holds your deposits (and does not protect you against the failure of Meow or other third party). Your account with Meow and all services provided to you are subject to the Meow Terms of Service (“Account Agreements”) and other applicable terms and no other representations or warranties, express or implied, are provided to you except as expressly set forth in those written Account Agreements. If you have any questions regarding your account, please contact team@meow.com.

FirstBank Funds Availability Notice

FirstBank’s general policy is to allow you to withdraw funds deposited in your account on the first business day after the day we receive your deposit. Funds from electronic deposits will be available on the day we receive the deposit. In some cases, we may delay your ability to withdraw funds beyond the first business day. Then, the funds will generally be available by the SECOND business day after the day of deposit.