Qualification to Do Business in Nevada
The qualification to do business in Nevada form must be filed in hard copy with the secretary of state's office.3 min read
The qualification to do business in Nevada form must be filed in hard copy with the secretary of state's office. In addition to this form, a company will need to submit the most recent documents filed with the local government office to verify the amount of authorized stock available at its disposal.
How to Incorporate a Business in Nevada
The economic environment in Nevada has historically made it popular for doing business. Many entrepreneurs choose Nevada to incorporate their business or to formulate a limited liability company (LLC). Nevada has many conditions that make it an appealing state to transact business, including not having:
- Franchise tax
- Corporate income tax
- Personal income tax
- Equity transfer tax
- Tax on corporate shares
Nevada has privacy legislation and progressive asset protection that lures many business owners to the state when they decide to start a new company.
Choose a Name for Your Business
When starting a new business, one of the most important decisions is selecting the right name for your company. Owners should choose a name that correlates to the business's product, service, and message. Customers need to be able to easily find your business. Once you've selected a name, be sure to research to see if your chosen name has already been claimed in the desired state of incorporation.
Appoint and/or Recruit Members/Managers
When incorporating a new business, one of the first tasks for owners is to recruit and assign members to your management team. In LLCs, members are referred to as managers, and in a corporation, members are given the title of director. Nevada has specific requirements that are associated with these leadership positions in both an LLC and a corporation. Nevada LLC specifications include:
- Requiring members and managers to be at least 18 years old
- Requiring LLCs to have one or more members or managers
- Not having to specify where members and managers reside
- Requiring members' and managers' addresses and names to be listed in the Articles of Organization
Nevada corporation specifications include:
- Requiring directors to be a minimum age of 18 years old
- Not having to specify where directors reside
- Requiring a corporation to have one or more directors
- Not requiring officer addresses and names to be listed in the Articles of Incorporation
Filing the Incorporation Paperwork
The Articles of Organization for LLCs and the Articles of Incorporation for corporations need to be filed and submitted to the secretary of state office of Nevada.
Business License and Annual Report Requirement
At the time of filing the Articles of Incorporation, it is a requirement for all Nevada corporations to submit an annual list of directors/officers and apply for a business license. Similarly, all Nevada LLCs must file an annual list of members/managers and apply for a business license. Be aware that there are due dates and filing fees for both entities to complete this paperwork.
Corporations must pay a $150 filing fee for the annual list and $500 to receive a business license. LLCs must pay a $150 filing fee for the annual list and $200 to receive a business license.
Obtain Any Required Business Permits/Licenses
After meeting the business license registration obligation, there may be other licenses or permits necessary to satisfy Nevada state requirements.
Determine Other Regulatory Registrations and Obligations
There are additional regulatory and tax obligations to consider for a new LLC or corporation. In order to complete these tasks, you will need to apply for an Employer Identification Number (EIN).
Open a Business Bank Account
As a new business owner, it is necessary to keep the finances of the company separate from any personal assets. In order to verify the separation of finances and quickly adopt this practice, it is recommended to open a business bank account for your corporation or LLC. Most likely, in order to complete this process, businesses will need to file incorporation paperwork and have an EIN.
Incorporating a business in Nevada may include these obligations to meet state requirements:
- Have employees working in Nevada
- Have an office with a mailing address and physical location in Nevada
- Open a bank account or brokerage account in Nevada
- Have a business phone number in Nevada
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