Entrepreneurs across the nation work hard to turn their ideas and dreams into profitable businesses. There are a lot of steps that need to be taken to create a fully realized establishment, but the first one should be deciding on what business structure to use. There are different styles of businesses, and these styles may have a direct impact on the way they operate, who they can employ, taxes, and asset protection.
To make an informed decision on how you wish to proceed with your business, we have provided an in-depth look into the specific requirements you will need to meet to legally form an LLC in the state of Nevada. Read on for our guide to understanding and forming a Nevada Limited Liability Company. This guide will cover the benefits of an LLC, the importance of an operating agreement, the fees associated with setting up, how to handle taxes, the process for filing an annual report, and considerations for a single member LLC.
An LLC stands for Limited Liability Company. This is essentially a corporate structure that personally protects owners from company liabilities. It is a business structure in the US that should things go wrong with a company, its owners are legally protected and do not have to pay out to resolve the company's debts or liabilities personally. Arguably, this structure is perfect for up-and-coming entrepreneurs without much to go off. Companies will most likely have difficult times due to the infancy of their operations. Companies with first-time owners will not have the funds or experience to be able to support any liability cases and debts.
Limited Liability Companies, LLCs, are hybrid entities. This means that they combine the characteristics of a corporation with that of a partnership or sole proprietorship. It is the perfect ‘middle ground’ between the two.
An entity or an individual can be a member of a Limited Liability Company except for banks and insurance companies. Limited Liability Companies also do not pay taxes on their profits directly. This is because their profits as well as their losses are passed through to members, who will then report them on their tax returns.
Limited Liability Companies are known to be much more flexible than corporations. They offer more freedom as well as ranging opportunities that may be too flexible for the regimented structure of a corporation. Some of the factors that make an LLC more flexible than a corporation are:
The structure of an ‘owner’ – LLCs can be formed in numerous ways and feature different examples of authority. The seniority of an LLC may be more complex and can look very different across different LLCs. LLCs could be a single-owner business where just one person owns the entire company and is the forefront boss singlehandedly. They could also be a partnership where two individuals or two brands join together to form, manage and lead one LLC. They could also be created using a multi-member structure. This could be a board of members governing together to create and sustain a successful business as a group.
The number of members – an LLC is also more flexible because of the number of members it could have, sense that it could have. There is entirely no limit to how many members there can be as part of an LLC meaning you can make your entire staff body as big or as little as you’d like.
To form and legally sustain an LLC, numerous requirements across the board must be met. These can vary across states and should be checked and ensured they are met to avoid persecution. Below is a list of some Nevada LLC requirements:
Nevada LLC Name – in Nevada the name of an LLC must end with the informant that it is an LLC in some way. This could be that at the end of the name it states “Limited Liability Company”, “Limited Company”, “Limited”, “LC”, “Ltd. Co”, “Ltd.”, “LLC”, or “L.L.C.” The name must also be entirely different and unique to any other already formed LLCs. This means it cannot be the same or descriptively similar to already established companies.
Member/Manager Information – in Nevada there are requirements for the members and managers of an LLC to legally provide certain information. This information is:
The Articles of Organization Requirements – all states require a piece of documentation called the Articles of Organization to be filed when forming an LLC. The information required on the document can vary depending on the state, there are a few general points that are typically expected such as the name of the LLC, the type of business it is, the address of where the business will be conducted alongside a list of the members/managers names and addresses. However, some states ask for additional specific pieces of information. In Nevada this is:
Corporation taxes Nevada, and fees – there are taxation requirements and ongoing fees LLCs are expected to follow. These are:
As well as the business license that is stated above to be filed with the annual listing, other business licenses and permits may also be required depending on the nature of your corporation. For example, if you are planning on selling alcohol your LLC will require a ‘liquor license’ which will allow them to profit from selling alcohol and sell it on their premises. It is important to check if there are any specific licenses or permits your company may need to legally fulfill its role.
An operating agreement – this is another key document required to be filed by all LLCs. This outlines the business’ financial and functional decisions which include rules, regulations, and provisions.
If you’re considering starting a business and are wondering which corporate structure would suit you better, there are numerous things to consider. Below we will compare both an LLC and a corporation to help you make an informed decision on which is best suited to you and your business plan.
If you’re considering running a business or are already currently a sole proprietorship, you may want to consider an LLC. This would be especially beneficial for you if you’re concerned with limiting your legal liability as much as possible. LLC due to their protection is ideal for sole owners and those who may be new to the industry without the foundations to completely branch out without legal support. They are also perfect for those who wish to start their business quickly and easily, perhaps someone with not a lot of experience, as they are super easy and fast to form.
Of course, corporations have their benefits too and some potential business owners would be better suited to this structure. A key benefit of using a corporate structure is the advantage of profits. Corporations allow profits to remain within the corporation and to be paid out as dividends to shareholders. This means that corporations are much more flexible when it comes to excess profits. Corporations are also great for businesses that wish to eventually issue and sell stock. This is because corporations can easily issue shares to raise capital for further expansion of the business allowing them to become much bigger entities.
As an entrepreneur with a solid concept for a business, turning your dream into a reality should not feel out of reach. That’s why many people opt for creating an LLC. Forming an LLC also comes with many benefits, some of these are:
If you’re considering creating your own LLC, we highly recommend working alongside a trusted lawyer or professional team of attorneys such as the ones you will find at Wyoming LLC Attorney. Working with a lawyer when establishing your LLC is a great way to trust that everything is legitimate and has been fully executed to avoid prosecution. The team of attorneys at Wyoming LLC Attorney are dedicated to providing you with the best legal advice. This legal advice can help to make sure all of your documents are completed and filed properly to avoid any legal misconduct or complications. They can also help with any legal issues or qualms that you may face at any point and give you the best advice on how to handle things.
Wyoming LLC Attorneys are dedicated to making people realize their dreams especially if they’re just starting in business. This means you can use their help at the very start of your journey too as they can even help you to decide if an LLC is the right business structure for you. They are professionals with the insight you need to succeed and at an affordable rate that is perfect for beginners.