How Much Does an LLC Cost in Nevada (All the Fees Explained)
Before forming a limited liability company, it is crucial to clearly understand what it would cost to establish and maintain a Nevada LLC structure.
As an experienced Mergers and Acquisitions specialist and a Master’s Degree holder in tax law, I helped several entrepreneurs form their businesses and merge organizations.
After consulting with our team of LLC specialists and looking through the Nevada Secretary of State's website, we've outlined all the expenses you could incur while forming an LLC in Nevada.
While you can finish the LLC formation process independently, using a professional service might help you avoid making costly errors.
Here is a list of the top Nevada LLC services that can help you launch your business if you're seeking one.
Quick Summary
- An LLC in Nevada costs \$425, which covers the Articles of Organization, state business license, and initial report.
- Additional expenses that your LLC may have to shoulder include annual report fees, taxes, operating agreement, and other business documents.
- As of July 1st, 2021, the state removed corporate tax and personal income tax. This left Nevada LLC owners to only pay a self-employment tax rate of 4.7% and a sales tax rate of 6.85%.
- Through my experience, it’s good practice to employ a lawyer to ensure the paperwork’s legality and ensure all documents are in order before submission.
Cost to Start an LLC in Nevada
Before you could form an LLC in Nevada, there are mandatory fees and optional expenses you have to shoulder.
1. LLC Formation Filing Fee (\$425 - Mandatory)
The filing fee for an LLC in Nevada is \$425. This total amount covers the Articles of Organization (\$75), the state business license (\$200), and the initial list of managing members (\$150) [1]. According to the Nevada Secretary of State, this comprehensive fee structure simplifies the process, contributing to Nevada having over 100,000 active LLCs, reflecting the state's business-friendly environment.
Expect your Nevada LLC application to be approved in about 5 to 6 weeks once you've paid the filing fee.
However, you can pay additional fees for expedited shipping with the following options:
- \$125 for expedited shipping of 24 hours
- \$500 for a 2-hour delivery
- \$1000 for a 1-hour delivery
When my clients are on a budget, I advise them to file their application online since the documents are processed within the same day.
2. Registered Agent Service Fee (\$80-\$300 – Optional)
The state requires all LLCs to appoint a registered agent who’ll receive service of process on behalf of the company and draft and file all legal paperwork.
In addition to the choice of serving as your own registered agent in Nevada, you can also hire a specialized agency to manage your correspondence with the SOS.
Depending on your business, the Nevada LLC cost for a registered agent service is between \$80 and \$300 annually.
3. Name Reservation Fee (\$25 - Optional)
Applying for a name reservation is a good idea if you have a business name in mind but aren't ready to incorporate the LLC immediately.
In Nevada, you must fill out the Name Reservation Form and submit it to the Secretary of State's office. The Nevada LLC cost for name reservation is \$25.
After approval, your name will be reserved for 90 days and won't be available for other entities to use.
If you want your Nevada name reservation application approved faster, you can pay an additional \$50 for expedited shipping.
Before filing the reservation form, I remind my clients to look up their preferred LLC name and see if it’s available and compliant with state regulations.
Expenses Following the Approval of Your LLC
There are additional expenses that should be covered after the state approved your business.
1. Business License (\$200 - Mandatory)
The state of Nevada offers a nationwide general business license application costing \$200. All LLCs must obtain this license to start operating in Nevada [2].
This license has a one-year term, and that’s why I remind clients to renew it for \$200 to keep their LLCs compliant with state business laws.
The country clerk of your business location also issues a local business license. This license is based on gross business income but can range between \$25-\$670, depending on where your LLC is situated.
2. Annual Report Fee (\$150 – Mandatory)
All Nevada LLCs must submit an annual report by the end of the company's anniversary month. For example, if your LLC was established in September 2022, you must submit an annual report before the end of September 2023.
Filing an annual report in Nevada costs \$150.
If they fail to meet the deadline, the LLC owners will be subject to a \$100 penalty fee in addition to the regular filing charge. Additionally, the Nevada LLC will lose its right standing with the SOS.
3. Taxes (Depending on Income Bracket - Mandatory)
Like a sole proprietorship, a Nevada LLC is treated as a "pass-through entity" for federal and state tax reasons. This means LLC members file LLC taxes in Nevada based on their personal tax returns.
Nevada offers the best economy to establish an LLC because of its welcoming taxation. Members are no longer subject to corporate tax and personal income tax.
In Nevada, businesses with gross revenue exceeding \$4,000,000 annually are mandated to file a Commerce Tax return, according to the Department of Taxation, highlighting the state's taxation requirements for substantial business operations [3].
4. Operating Agreement (\$100 - \$200 - Optional, but Recommended)
The Nevada LLC Operating Agreement is a constitutional agreement document that empowers the company to establish its informative principles, routine operations, and interests for each member.
You can create an operating agreement for \$0 with your LLC members or hire an online LLC formation service for \$100-\$200.
If you have a budget to spare, I advise that you hire an attorney to draft the company’s document to ensure its legality.
"A Nevada LLC Operating Agreement is a legal document that outlines the ownership structure, management style, and profit distribution among the LLC Members."
- Jon Morgan, CEO, Co-Founder & Editor-in-Chief of Venture Smarter
5. Doing Business As (\$25 - Optional)
A Doing Business As Name or DBA is a name that your LLC operates differently from the legal entity name.
To legally conduct transactions in Nevada under an assumed name, you can file a form with the County Clerk's Office and pay a DBA name filing fee of \$25.
6. Certificate Of Good Standing (\$50 - Optional)
A Certificate of Good Standing is a document that proves that your LLC is in the right standing with the SOS in terms of tax payments and filing paperwork.
If you're sourcing potential investors, they might request a copy of your certificate of good standing to prove the legitimacy of your business.
This document is also essential if you want to go into business with other companies.
I was able to apply for a Certificate of Good Standing from the Nevada Secretary of State as long as I paid the \$50 filing fee.
7. Certified Document Copies (\$30 + \$2 per page - Optional)
Throughout managing your Nevada LLC, you may need certified copies of essential paperwork, like your initial list, articles of formation, and certificate of good standing.
These certified copies are helpful for numerous reasons. For instance, if you wish to relocate your LLC to another state as your business grows, the foreign state would want a certified document copy.
In Nevada, state-certified copies cost \$30 plus a \$2 fee for every extra page.
8. Employer Identification Number (\$0 - Optional, but Recommended)
The Internal Revenue Service gives all business entities a nine-digit Employer Identification Number.
When clients ask the importance of obtaining an EIN, I inform them that it is required when filing taxes on a federal and state level, applying for commercial loans, opening a bank account, and establishing business credibility.
On the IRS website, you may apply for an EIN for free or hire a business and pay a filing cost of \$50 to \$100.
Related Articles:
FAQs
How Much Does It Cost To Renew a Nevada LLC?
It costs \$350 to renew a Nevada LLC. This amount covers the renewal of the business license (\$200) and the annual initial list of managing members (\$150). Additionally, you may incur extra fees if you hire a professional registered agent service.
What Payment Methods Can I Use To Pay Nevada State Fees For Filing My LLC?
The payment methods you can use to pay Nevada state fees for filing your LLC include check, money order, and credit or debit cards.
References:
- https://www.nvsos.gov/sos/businesses/commercial-recordings/forms-fees
- https://www.nvsos.gov/sos/licensing/state-business-license/state-business-license-faq
- https://tax.nv.gov/Commerce/FilingRequirementFAQs/
The note about the Commerce tax only applying to businesses with over $4 million in revenue is reassuring for smaller LLCs. It’s a good reminder that Nevada is pretty business-friendly.