The limited liability company, or LLC, is a relatively recent innovation in business organization. As an LLC member, you will enjoy limited liability, meaning that your personal assets cannot be reached by LLC creditors. Unlike C-corporations, LLCs are not subject to federal income taxation at the company level -- individual members are taxed on LLC income as their personal income. Nevada allows LLC organizers to file online.
Fit your business needs with the right LLC package
Select a name for your LLC and conduct an online business name availability search through the Nevada Secretary of State's website (see Resources). The name must include some designation of limited liability such as "LLC" or "Limited Liability Company."
Fill out the LLC Articles of Organization (see Resources). Provide the LLC's name and address, as well as the name and address of the registered agent designated to receive legal notices on behalf of the LLC. List the names of the LLC organizers and the initial members. Although you are required to state the LLC's purpose, it is acceptable to state that it is formed for "any lawful purpose." The registered agent must sign this form along with the organizers.
File the Articles of Organization with the Nevada Secretary of State. As of 2010, the processing fee is $75, or $200 if you want the LLC approved within 24 hours.
Complete an Initial List of Managers or Members/Business License Application (see Resources). This application requires you to provide the names and addresses of the LLC managers. It is acceptable for the LLC to be managed by members or by outside managers.
File the Initial List of Managers or Members/Business License Application, along with a processing fee of $325, with the Nevada Secretary of State within 30 days of filing the Articles of Organization.
Tips & Warnings
An LLC can choose to be taxed as a corporation by the IRS. In some cases, this results in tax savings for members.
Draft an operating agreement for the LLC and have all members sign it. An operating agreement is similar to a partnership agreement. It sets out how the LLC will be managed, how important decisions are to be made, how new members are to be added, how profits are to be shared and other LLC policies. Although Nevada does not require LLCs to create operating agreements, they are useful in the event of legal disputes. You do not need to file the operating agreement with the state of Nevada.
References & Resources
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