Business requirements vary across state borders and therefore, the cost of setting up a business entity and maintaining it varies across the states. For that reason, knowing the cost to form an LLC in every state is an important step to taking your business in the right direction.
We’ll discuss the cost of forming a limited liability company (LLC) in every state starting with Nevada. Our NV LLC fees review offers more than just Nevada LLC cost-we also walk you through step by step Nevada LLC formation.
Filing Requirements & Overall Nevada LLC Costs
Nevada LLC formation presents some unique filing requirements. In most states, you simply file articles of organization with the secretary of state and you are good to go. There are mandatory extra documents that you have to file along with articles of the organization when forming a Nevada LLC. We considered all these plus other costs associated with Nevada LLC.
Nevada LLC Filing Fees
In addition to filing articles of organization, a Nevada LLC needs to file an initial list of managers and state business licenses. These raise Nevada LLC filing fees to $425. Nevada filing fees can be broken down as follows:
- $75 for filing articles of organization
- $200 for state business license
- $150 for an initial list of managers/managing members.
In addition, if your business requires a Nevada certificate of good standing, you can order through the secretary of state during which you will have to pay a $50 fee.
Nevada LLC Annual Report
The state business license and annual list of managers charges are not one-time fees. You will submit $150 for an initial list of managers when forming your LLC, followed by a subsequent annual list of $150. Besides, the business license must also be renewed at $200 annually. The business license and annual list total up to $350.
Registered Agent Fee
A Nevada LLC must have registered agents that will collect important documents on behalf of the company. While you can be your own registered agent, hiring a commercial registered agent is a good idea if you want to keep your business record off the books. Hiring a commercial registered agent in the state of Nevada will cost you around $250 per year.
Application for Withdrawal (Foreign LLC)
Normally, you will have to pay $100 to file the article of dissolution and have your application processed within a week. However, Nevada offers expedited filing for this service and this comes at additional charges.
Nevada LLCs are required to file state business licenses in order to do business in the state. The state business license application fee is $200 and this license has to be renewed at that price every year.
In addition to the state business license, depending on your business location, your Nevada LLC may have to pay an annual license fee in the city where you operate.
An LLC is categorized as a “pass-through entity” by the federal government for tax purposes just like a sole proprietorship or a partnership. Meaning, LLC members report income and losses to their individual tax return. In general, Nevada is one of the best states to set up an LLC due to its friendly taxation. There is no individual tax, no corporate tax, 4.7% self-employment tax rate, 6.85% sales tax rate as of 1st July 2021.
However, entities are required to file a commerce tax return as a privilege for doing business in the state. This only applies to business entities that gross more than $4,000,000 that taxable year.
Other LLC Filing Costs
In addition to the above-mentioned charges, there are other charges that you may incur depending on your business requirements. This include:
LLC Name Reservation Fee
You can have your favorite name reserved in Nevada for up to 90 days prior to LLC formation. You can file a Name Reservation Request online or via email and pay the $25 filing fee.
“Doing Business As” (DBA) Name
If you are planning to run your Nevada LLC with a different name from your official business name, you’ll need to register a DBA. For a Nevada LLC, you must pay the $25 filing fee when filing for a fictitious name.
Business Domain Name & Website
A business domain name is the web address for your business website. You need to acquire the domain name for your New Jersey LLC so that nobody else can use it.
Acquiring a domain name in Nevada costs between $10 to $20 depending on the discounts offered. However, newer domain name extensions such as apps. may go beyond this range.
Articles of Organization Fee
Articles of organization are a mandatory requirement in Nevada for you to form an LLC. You cannot start an LLC in the state without filing for articles of organization with the secretary of state, during which you will pay only a $75 filing fee.
Though it is not a must you have to hire an attorney when forming an LLC, hiring an attorney will help you avoid mistakes when filing your articles of formation with the state.
Hiring an attorney to help you form an LLC and answer questions will offer you peace of mind. Hiring an attorney will cost somewhere between $500 – $2,000 flat fee or $150 – $350 hourly fees.
Tax ID Number (EIN)
An Employer Identification Number (EIN) is essentially a social security number for an organization. You will have to get an EIN to help you open an account, file and manage federal state taxes, and hire employees. You can get an EIN for your Nevada LLC for free from the IRS by applying online.
The Top 2 Nevada LLC Services
After thorough research on the best professional service to form an LLC in Nevada, we settled on Zenbusiness due to a number of reasons. To begin with, Zenbusiness is one of the cheapest services but well-packed with features in all their packages.
Zenbusiness will prepare and file the articles of organization with the Nevada secretary of the state on your behalf. Despite their cheaper packages, they will offer you free registered agent services for 1 year.
In addition, the company offers a worry-free guarantee feature that includes preparation and filing of your annual report, and two amendments per year.
ZenBusiness’s other biggest win is its reliable customer support service. As a result, the company boasts the best customer feedback.
IncFile free formation basic package makes it the cheapest LLC formation service for someone who just wants to form an LLC in Nevada. With the free package, you will get all the necessary business formation services. The best part, they include the 1-year free registered agent services in their free package as well.
Other services offered in addition to filing an article of the organization include name search, preparation of an operating agreement, obtaining an EIN, company alerts on annual report deadline, licenses, statement of formation among others. The company also boasts a 1-day processing speed and great customer support.
For that reason, they have one of the best online feedback among users.
How to Start an LLC in Nevada
- Name Your Nevada LLC
- Choose Your Registered Agent
- File Articles of Organization
- Prepare an Operating Agreement
- Obtain an EIN
- File Annual Reports
Step 1: Name Your Nevada LLC
The LLC name must be available for use in the state of New and meets other Nevada state requirements. For that reason, you will have to conduct a thorough online name search on various business databases.
Step 2: Choose Your Registered Agent
A Nevada LLC must have a registered agent to receive imp[ortant documents on behalf of the company and undertake the service of process. This can be a business entity, , a third-party individual, or a member of your company. However, you can also be your own registered agent.
Step 3: File Articles of Organization
To form an LLC in Nevada, you must file the articles of organization with the Nevada secretary of state. The form can be filed online but is also available for download and the information required are as simple as name and address.
Step 4: Prepare an Operating Agreement
You will need to create an LLC operating agreement that outlines the ownership and operating procedures of an LLC. Operating agreements ensure that business owners are on the same page and reduce the chances of feature conflict.
Step 5: Obtain an EIN
Employer Identification Number (EIN), is like your company’s social security and it is very important. You will need an EIN to open a business bank account, file and manage federal tax as well as hire employees in New york. You can download an EIN form from the IRS website for free.
Step 6: File Annual Reports
A Nevada LLC needs to file an annual report or what is called an annual list with the Nevada secretary of state. This is done to keep up-to-date business records.
Nevada is a very attractive state to start a limited liability company because of its reversible tax benefits and low fees on some common LLC requirements. Nevada LLCs have many tax advantages including no state income tax, no personal, no franchise tax, or corporation tax.
Nevada also has a great privacy law. You can run your Nevada LLC anonymously and restrict the information shared by the IRS. I would recommend this state for both domestic and foreign LLCs.
Frequently Asked Questions
The cost to form an LLC in Nevada is $425. These include articles of organization, state business license, and an initial list of managers filing fees.
Depending on your business requirements, you may have quite a number of services to renew in Nevada. However, the main ones are the annual list of managers and state business license renewal that will cost you a total of $350.
The cheapest way to form a Nevada LLC is to file the documents with the secretary of state by yourself. This will leave you with only a state filing fee to pay.
Nevada offers a range of advantages when it comes to LLC formation including ease of registration and low taxation. Besides, Nevada has greater business privacy.
It will take around 7-10 business days for your Nevada LLC application to be processed. However, if you use professional services with expedited filings like Zenbusiness and IncFile, you may get your LLC application processed within 1-2 business days.
+ 4 sources
- TRUiC (2020). Certificate of Good Standing Nevada. [online] howtostartanllc.com. Available at: https://howtostartanllc.com/what-is-a-certificate-of-good-standing/certificate-of-good-standing-nevada [Accessed 26 Jul. 2021].
- Nvsilverflume.gov. (2012). SilverFlume Nevada’s Business Portal to start/manage your business. [online] Available at: https://www.nvsilverflume.gov/login [Accessed 26 Jul. 2021].
- Trustpilot. (2021). ZenBusiness. [online] Available at: https://www.trustpilot.com/review/www.zenbusiness.com [Accessed 26 Jul. 2021].
- Shopperapproved.com. (2016). Reviews & Ratings For IncFile.com | Shopper Approved. [online] Available at: https://www.shopperapproved.com/reviews/IncFile.com [Accessed 26 Jul. 2021].