Owning an LLC in Nevada offers limited liability protection against creditors and company debt.
Before establishing this business structure, it is crucial to clearly understand what it would cost to establish and maintain a Nevada LLC structure.
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.
Here's what you need to know.
Quick Summary
- Filing an LLC in Nevada costs $425, which covers the Articles of Organization, state business license, and initial report.
- Name Reservation in Nevada lasts 90 days for a $25 fee, preventing other business owners from using your legal name.
- The Articles of Organization to register a foreign LLC in Nevada cost $75.
How Much Does an LLC Cost in Nevada?
An LLC in Nevada costs $425. However, there are other filing costs that you may bear, such as business license, registered agent fee, annual reports, and name reservation, as we'll see further down.
Nevada LLC Filing Fee
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].
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
Nevada Registered Agent Service Fee
To draft and file all legal paperwork while incorporating an LLC in Nevada, you need a resident/ registered agent.
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.
If you plan on using a commercial registered agent service, ensure that the registered agent you choose is of legal age, has a business street address in Nevada, and can be reached during regular business hours.
Depending on your business, the Nevada LLC cost for a registered agent service is between $49 and $300 annually.
Nevada Business License Fee
The state of Nevada offers a nationwide general business license application costing $200 [2].
All LLCs must obtain this license to start operating in Nevada.
Also, this license has a one-year term, and as soon as it expires, you must renew it for $200 to keep your business in the right shape.
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.
Other LLC Filing Costs
Let's look at other filing costs of forming an LLC in Nevada.
1. Business Name Reservation
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. You can easily look up a Nevada LLC and see if your name is available.
In Nevada, you must fill out the Name Reservation Form and submit it to the Nevada 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.
Ensure you use a unique business name because if the name is similar to any other, the SOS will automatically reject your Articles of Organization plus the name reservation application.
2. Doing Business As (DBA Name)
A Doing Business As Name or DBA is a name that your LLC operates under different from the legal entity name.
To legally conduct transactions in Nevada under an assumed name, you must file a form with the County Clerk's Office and pay a DBA name filing fee of $25.
In Nevada, DBAs are essential for obtaining business licenses and opening a business bank account.
3. Nevada LLC Annual Report/Initial List
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 annual reports in Nevada costs $150.
Failure to meet the deadline the LLC owner 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.
And if you fail to submit the annual report within a year, the Nevada Secretary of State will administratively disband your company.
4. Nevada Certificate of Good Standing
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.
To show that your LLC is authorized to trade in Nevada, you can apply for a certificate of good standing from the Nevada Secretary of State and pay a $50 filing fee.
5. Certified Document Copies
Throughout managing your Nevada LLC, you may need certified copies of essential paperwork, like your LLC operating agreement, 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.
6. Nevada LLC Taxes
Like a sole proprietorship, a Nevada LLC is treated as a "pass-through entity" for federal and state tax reasons. Meaning LLC members file taxes based on their personal tax returns.
Nevada offers the best economy to establish an LLC because of its welcoming taxation.
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%.
However, organizations must submit a commerce tax return as a requirement for conducting business in the state. This only applies to companies with taxable revenues of at least $4,000,000 [3].
7. Employer Identification Number
The Internal Revenue Service gives all business entities a nine-digit Employer Identification Number.
An EIN is like a social security number for your business entity and is required when filing taxes on a federal and state level, applying for commercial loans or establishing 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.
8. Nevada LLC Operating Agreements
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.
Once all shareholders sign, the contract acquires legal connotation and becomes enforceable. If any amendments occur during the term of the LLC, partners must submit a written amendment file to enforce the changes.
You can create an operating agreement for $0 with your LLC members or hire a professional contractor for $100-$250.
9. Business Insurance Premiums
Nevada LLC owners shell out, on average, between $0.95 and $100 every paycheck period for workers' insurance plans.
Based on your LLC location and the business decisions you make, the usual yearly expenses for Nevada LLC basic insurance vary.
You may get additional specialist insurance if your LLC or employees are also involved in specialized tasks.
Nevada law mandates that most LLCs with employees have workers' liability insurance, even if they only have one worker.
You can either apply to be self-insured or get insurance from a private insurer.
Foreign LLC Registration
A Nevada foreign LLC is a company formed in a different domestic state, for example, Alaska, but wishes to expand its activities into Nevada.
Before your foreign LLC is legally allowed to transact in Nevada, you must apply for its registration by completing the Application for Registration of Foreign Limited-Liability Company form.
After filling out all your details, you must pay the filing fee of $425, which covers your Articles of Organization, the initial list of managers, and your state business license.
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.
How Much Is the Late Fee for LLC Annual Report in Nevada?
The late fee for LLC annual report in Nevada is $100. Failure to submit your annual on time can also cause your company to lose its good standing with the state.
Do You Need Professional Help with Your Nevada LLC?
A Nevada LLC is an excellent option if you want to open a business entity. It gives minimal liability protection, financial strength, and inexpensive upkeep costs.
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.
We recommend these professional services because they include everything from comprehensive service plans and affordable pricing to professional and dependable customer care.
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/
