There are many advantages to forming an LLC in Nevada. The lack of a state income tax is a big draw. Other advantages include enhanced privacy rights and asset protection. The real question, though, is not why Nevada LLC formation is a good idea, but how one is formed.
The first step in Nevada LLC formation is to consult with the business attorneys at the Sutton Law Center. It is necessary to determine whether a LLC is the best vehicle to use for any given situation. Once that is established, the next step is to actually form the LLC.
The name of a proposed LLC cannot be the same or deceptively similar to that of an LLC already in existence in Nevada. Therefore, it is important to check the availability of your proposed LLC name with the Secretary of State.
Articles of Organization
Nevada LLC formation requires that articles of organization be prepared and filed with the Secretary of State. The LLC can be formed by one individual or several. Further, the owners must decide whether the LLC will be managed by the owners themselves, or by appointed managers. If members are going to manage the LLC, they must be identified (with street address) in the articles of incorporation. If, instead, the LLC will be managed by outside managers, they need to be identified in the articles. In this situation, the LLC members do not need to be identified. In addition to identifying the managers of the LLC, the articles require the organizer to identify the agent for service of process in Nevada.
State Business License
The organizers must obtain a state business license as part of the Nevada LLC formation process. This is obtained through the Secretary of State.
Initial List of Managers
Upon forming a Nevada LLC, and annually thereafter, the LLC organizers must submit to the Secretary of State the Initial/Annual List of Managers. If the LLC is run by outside managers, then these individuals will be identified on the list. If, however, the LLC is managed by members, then it is the member-managers who must be identified on this form.
One of the most crucial documents of your LLC is the operating agreement, which sets forth the financial and functional structure and rules of the LLC.
More Information on Nevada LLC Formation
For more information or to schedule a consultation, contact the Sutton Law Center at 775-824-0300.