Key Takeaways

  • Nevada is a popular state for forming LLCs due to no state income tax, strong privacy protections, and flexible business laws.
  • To start an LLC in Nevada, you must name your business, appoint a registered agent, file Articles of Organization, and obtain an EIN.
  • Nevada requires initial and annual filings, including an Initial List of Members/Managers and a State Business License.
  • Costs to form and maintain a Nevada LLC include filing fees, licensing fees, and annual renewals.
  • Although attractive, Nevada LLCs may not reduce taxes if you operate primarily in another state, as you may need to register there as a “foreign LLC.”

Starting an LLC in Nevada is advantageous for business owners thanks to the state's legal and tax benefits. These benefits apply even if your primary business location is in a different state. There are so many perks to forming a limited liability company (LLC) in Nevada that it is becoming almost as highly regarded as Delaware for the formation of new businesses. 

In recent years, the Nevada legislature has deliberately made forming companies in its state more attractive to new businesses both in and out of state. The goal is to attract more business and compete with other states such as Delaware. Delaware has become known as one of the most sought-after states for business formation due to:

  • Low corporate taxes.
  • A high level of liability protection.

With the benefits Delaware has to offer new businesses, the state has enjoyed a steady stream of revenue from the increase in business registrations and associated fees, making business formation an industry in and of itself. Nevada made its recent changes in an attempt to aggressively seek out this type of revenue and become one of the most business-friendly states.

There are still a few drawbacks to forming your LLC in Nevada, such as: 

  • Higher organization fees.
  • Naming initial owners or managers on the articles of organization.

However, the state is still known as a "privacy state" that provides a certain degree of anonymity to business owners.

Steps to Forming Your LLC in Nevada

Forming an LLC in Nevada is as easy as following these steps.

Name Your LLC

The first and most important step is naming your LLC. When deciding on your business name:

  • Make sure the name is easy for clients to search for.
  • It must include the words limited liability company or the abbreviation LLC after it.
  • You must include the required licenses and paperwork if you use restricted words such as bank, university, or attorney.
  • You cannot use any words that could cause your company to be confused with a government agency. 
  • You can reserve your name for 90 days by filing a Name Reservation Request.
  • You must send in a name application with a $25 fee.
  • Check for website and email name availability even if you don't plan on setting these up right away. 

Choose Your Registered Agent

Nevada requires that you name a registered agent who will be available to receive any legal papers, such as summons or notices of legal action, on behalf of your LLC. The owner can act as the registered agent or designate another person as long as that individual has a physical address in Nevada and is allowed to perform business in the state.

File Your Articles of Organization 

To officially register your LLC, you will need to file your company's Articles of Organization with the state. Your Articles of Organization must specify whether your LLC will be member-managed or manager-managed. In member-managed LLCs, the owners are actively engaged in the day-to-day functions and operations. In manager-managed LLCs, a designated manager runs the daily operations. Along with your articles, you will need to include the $75 processing fee or $125 for expedited services. Your Articles of Organization will need to include several pieces of information, such as:

  • The name and address of the company.
  • The name and address of your registered agent.
  • The dissolution date.
  • An employer identification number (EIN) or federal tax identification number.
  • The names and addresses of the organizers.

Once you file your Articles of Organization, it will take a few business days for processing unless you choose expedited services. 

Create an Operating Agreement

Though creating an operating agreement is not a requirement for forming your LLC in Nevada, it is good practice to have one to describe your operating procedures and outline your ownership.

Get an Employer Identification Number

You must have an EIN from the IRS to:

  • Identify and operate your business. 
  • File state and federal taxes.
  • Open a business checking account.

An EIN is basically your company's Social Security number. You can obtain an EIN for free either online or by printing out and mailing in the proper form.  

Initial and Annual Filing Requirements in Nevada

Content:In addition to filing your Articles of Organization, Nevada law requires two important filings:

  • Initial List of Managers or Members – Within 30 days of forming your LLC, you must file an Initial List of Managers or Members with the Nevada Secretary of State. This filing identifies who manages or owns the company.
  • State Business License – All Nevada LLCs must obtain a State Business License. This license must be renewed annually along with the Initial List.

Failure to complete these filings can result in penalties or the loss of good standing status.

Nevada LLC Costs and Fees

Forming an LLC in Nevada comes with specific fees, which are generally higher than in some other states:

  • Articles of Organization filing fee: $75
  • Initial List of Managers/Members: $150
  • State Business License fee: $200
  • Annual renewal (list + license): $350 total

Expedited processing and additional services may incur extra costs. Although these fees are higher compared to some states, Nevada’s tax advantages and privacy protections are often considered to outweigh the upfront expense.

Taxes for Nevada LLCs

One of the biggest draws for forming an LLC in Nevada is the state’s lack of corporate and personal income tax. However, LLCs in Nevada still face other tax obligations, such as:

  • Commerce Tax – Nevada imposes a gross revenue tax on businesses with more than $4 million in annual Nevada-sourced revenue.
  • Sales and Use Tax – If your LLC sells goods or taxable services, you must register with the Nevada Department of Taxation and collect sales tax.
  • Employer Taxes – If you hire employees, you must pay payroll taxes, unemployment insurance, and comply with federal employment tax rules.

This makes Nevada particularly attractive for businesses with operations outside the state, but compliance with other states’ tax rules is still required if your company conducts business elsewhere.

Privacy and Asset Protection in Nevada

Nevada is often referred to as a “privacy state” because it does not require disclosure of LLC owners in public records. Other advantages include:

  • No Information Sharing with IRS – Nevada does not have an information-sharing agreement with the IRS, enhancing confidentiality.
  • Strong Asset Protection – Nevada law offers some of the strongest liability protections in the U.S., limiting creditors’ ability to seize ownership interests.
  • High Anonymity – While the Initial List of Managers or Members is required, owners can often preserve anonymity by appointing managers or using nominee services

Foreign LLC Registration Considerations

If your Nevada LLC does business primarily in another state, you may still be required to register as a foreign LLC in that state. This means:

  • You must comply with the business registration rules of the other state.
  • You will pay filing and annual fees in both Nevada and the foreign state.
  • Any tax advantages of Nevada may not apply if your business income is generated elsewhere.

For many business owners, Nevada is most beneficial if you actually operate within the state, or if asset protection and privacy are top priorities

Frequently Asked Questions

1. How much does it cost to form an LLC in Nevada?

It costs at least $425 initially: $75 for the Articles of Organization, $150 for the Initial List of Managers/Members, and $200 for the State Business License.

2. Does Nevada have an annual LLC fee?

Yes. Each year, LLCs must file an annual list ($150) and renew their state business license ($200), totaling $350 annually.

3. Do Nevada LLCs pay state income tax?

No. Nevada does not impose corporate or personal income taxes, but businesses may owe sales tax, payroll taxes, and a commerce tax on revenues over $4 million.

4. Can I form an LLC in Nevada if I live elsewhere?

Yes. Many out-of-state owners form LLCs in Nevada to benefit from its favorable laws, but you may also need to register in your home state as a foreign LLC.

5. Is an operating agreement required for a Nevada LLC?

No. An operating agreement is not legally required, but it is strongly recommended to outline management, ownership, and financial procedures.

If you need help starting an LLC in Nevada, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.