• In order to form an LLC in Nevada, you need to select a resident agent, determine who will manage the company, and file articles of organization with the Nevada secretary of state. An operating agreement, while helpful, is not mandated by statute.University of Nevada Small Business Development Center: FAQs

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• Nevada has no state income tax for either corporations or individuals, low state payroll taxes, no inventory tax and no franchise tax.University of Nevada Small Business Development Center: FAQs This makes Nevada an attractive place to do business. Any revenue generated in Nevada by a Nevada LLC will not be subject to tax.

If you do business outside of Nevada, however, that portion of your business, payroll, and assets may be subject to tax in the appropriate jurisdiction. Consequently, you will not avoid taxes on business that isn't based in Nevada just by incorporating your business as a Nevada LLC.

• An LLC isolates business assets from creditors, like a C corporation, but is generally taxed on a flow-through basis with business income passing to the owners' tax returns, unless the LLC has elected to be treated as a corporation for tax purposes.IRS.gov: Limited Liability Company (LLC) IRS: What is a Limited Liability Company? Nevada has no state income tax on either corporations or individuals, so the election would not be relevant in the case of a Nevada LLC that only does business within Nevada.

(Articles of Incorporation Form from Nevada Secretary of State)

• In order to register an LLC in Nevada, you need to file articles of organization with the secretary of state. A filing fee of $75 needs to be enclosed with the application, and may be paid by check, e-check, or credit card.

If you are in a hurry, you can receive approval quickly by paying a fee.State of Nevada: Limited Liability Company Fees

1. Turning around your application in 24 hours costs an additional $125.State of Nevada: Limited Liability Company Fees
2. Two-hour processing can be guaranteed for an additional $500.State of Nevada: Limited Liability Company Fees
3. Your LLC can be established in an hour for a $1,000 convenience fee.State of Nevada: Limited Liability Company Fees

• The following information is required to register an LLC in Nevada:

1. Name of the organization
   1. The name must be original, and not already on file with the secretary of state for another business entity.State of Nevada: Limited Liability Company Packet
   2. You may also wish to check with your county clerk's office to see if a sole proprietor is using the name. While this would not preclude your using the name to form your LLC, you might want to consider selecting an alternate to avoid confusion.University of Nevada Small Business Development Center: FAQs
   3. To see if someone has already trademarked the name, you can check with the U.S. Patent and Trademark Office. If the name you want to use is trademarked, you may wish to contact an attorney and discuss your options.U.S. Patent and Trademark Office: Search Trademarks Now University of Nevada Small Business Development Center: FAQs
   4. If the name you wish to use relates to industries that are licensed by the state such as banking, finance, insurance, engineering, accounting or real estate, the name must also be approved by the respective licensing board before the articles of organization are filed with the secretary of state.State of Nevada: Limited Liability Company Packet
2. Registered agent
   • If the company is sued, the registered agent is the entity who would accept service of process. The agent must provide a Nevada street address and sign a certificate of acceptance as part of the registration process.State of Nevada: Limited Liability Company Packet
3. Manager
   • Limited liability companies may be managed by either a manager or a member (owner). The name and address of each manager or member who will be serving as a manager must be included on the application.State of Nevada: Limited Liability Company Packet
4. Organizer
   • The articles can be executed by one or more individuals. The name and address of each organizer needs to be listed on the form.State of Nevada: Limited Liability Company Packet

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• An operating agreement is not required in order to form an LLC in Nevada. It is good practice to have one, however, as any legal issues relating to operating the business will default to state law if you don't.NOLO.com: The LLC Operating Agreement The operations of an LLC in Nevada are governed by Chapter 86 of the Nevada state code.*State of Nevada: Chapter 86 - Limited-Liability Companies

Typical topics addressed in an LLC operating agreement include:

1. Management structure and responsibilitiesNOLO.com: The LLC Operating Agreement
2. Ownership interest and allocation of profits and lossesNOLO.com: The LLC Operating Agreement
3. The responsibilities of each LLC memberNOLO.com: The LLC Operating Agreement
4. Methodology for determining valuation in the case of dissolution or buyoutNOLO.com: The LLC Operating Agreement

• You will not need a federal tax identification number unless you have elected for the LLC to be taxed as a corporation, or if you have employees and need to withhold and pay employment taxes.IRS: What is a Limited Liability Company?

• In as little as an hour, you can complete the process of establishing an LLC in Nevada by filing one form and paying a fee. In return, you establish a business structure that protects your personal assets by keeping them separate from your company's operations and therefore keeping them away from business creditors as well.