Why Form an LLC in Nevada?

By Anna Assad

A Nevada limited liability company (LLC) is a business organizational structure that blends the legal aspects of a corporation and partnership. The owners, known as members, of a Nevada LLC have personal asset protection from creditors of the company under state law, but other benefits exist, especially if the LLC primarily conducts business in the state.

Tax Savings

The members of an LLC formed in Nevada do not pay personal income tax on profits received from business conducted in the state, as Nevada does not have personal income taxes. Profits made in another state may be taxable in accordance with the state's tax laws. No gift, inheritance or admission taxes, or taxes on tickets to the public for places like amusement parks, are levied in Nevada. Nevada does not share information about LLCs to the Internal Revenue Service, the government agency responsible for the collection and enforcement of federal taxes.

Minimum Requirements

The minimum requirements to form an LLC in Nevada are less restrictive than those found in other states. The members of the LLC do not have to live or conduct meetings in Nevada, and the LLC paperwork may be filed by phone, fax or mail. No annual business meetings are required and the LLC does not have to draft an operating agreement, although doing so provides a plan for the company's management. Nevada laws favor the operating agreement and generally permit the agreement's provisions to oversee the internal procedures of the LLC.

Ready to start your LLC? Start an LLC Online Now

Asset Protection

Nevada laws do not allow a creditor to attach a standard money judgment to the interest of an LLC member. The creditor may be able to obtain a court "charging order" allowing the creditor to place a lien on the profits that the LLC member is entitled to receive.

Privacy

Nevada law is geared toward protecting the privacy of individuals engaged in business. The names and addresses of an LLC's board members are not a matter of public record, as no requirement for the public naming of the individuals exists in state laws as of 2010.

Ready to start your LLC? Start an LLC Online Now
Compare Forming an LLC in Wyoming or Nevada
 

References

Related articles

LLC Minutes Requirements

One of the major benefits for a small business owner in choosing to form a limited liability company, or LLC, over a corporation is that maintaining the formalities for an LLC is a simpler process. If the owners of a corporation or LLC do not maintain legal formalities, a creditor may be able to pierce the corporate veil and hold the business owners personally responsible for business debts. Unlike a corporation, however, an LLC is not required to hold annual meetings.

Advantages of Forming an LLC in Nevada

A limited liability company (LLC) is a form of business organization that offers limited liability and no double taxation of company distributions. An LLC is governed by the law of the state in which it was formed, and every state has its own set of LLC laws. Nevada LLC law offers certain unique advantages to LLC members.

What Laws Exisit to Protect a Member of an LLC From Bad Intentions of Other Members?

The conduct of limited liability company, or LLC, owners, known as members, is governed by state law. Each individual state has a limited liability company act, LLCA, or something similar, that establishes legal standards that apply to the conduct of members in relation to other members. If a member feels others are not acting in the best interest of all, there are legal avenues available to resolve the dispute or allow the dissenting member to exit the company.

LLCs, Corporations, Patents, Attorney Help

Related articles

Oregon Limited Liability Company Act

Limited Liability Companies, known as LLCs, are business entities that may be taxed like partnerships but limit owners’ ...

How do I Get Out of an LLC Partnership?

A limited liability company, or LLC, is a form of business entity created by state LLC statutes. An LLC combines the ...

How to Draft an LLC Agreement

State law regulates the operations of limited liability companies, or LLCs, far more loosely than it regulates ...

Can a Creditor Collect if an LLC Is Dissolved?

Circumstances might arise under which a creditor can collect debt from a dissolved limited liability company. As such, ...

Browse by category
Ready to Begin? GET STARTED