Think about your LLC a year from now: raking in profits and taking Nevada by storm. You have big plans, but before your business can officially take off, you’ll need to make a bit of an investment.
And we’re not talking about renting office space or paying employees – before you sell a single product, there are startup costs associated with launching an LLC in Nevada.
While you’re making plans and dreaming big, make sure that you consider all the possible costs associated with starting an LLC. To help you out, we’ve compiled the most common Nevada startup fees here.
Quick Note: If you’d like to keep your costs of starting an LLC as simple and low as possible, consider hiring ZenBusiness – a reliable business formation service. To get a better idea of the value they offer and how it works, we compared them to the two most well known services:
Bare Minimum Cost to Start an LLC in Nevada
- Optional: LLC Name Reservation Fee
- $25 for online or paper forms
- Required: Articles of Organization Fee
- $75 for online or paper forms
- Required: Initial Business License Fee
- $200 for online or paper forms
- Required: Initial List of Managers or Members Fee
- $150 for online or paper forms
Overall Nevada LLC Formation Costs
LLC Name Reservation Fee
Reserving a business name is not a mandatory step in starting your LLC. However, in certain situations, it’s a nice option. If you have a great LLC name in mind, but you’re still sorting out some details before starting your business, you might want to file for a reservation. For a $25 fee, you will receive a 90-day hold on your desired name, renewable for subsequent 90-day periods for additional $25 fees. On the other hand, if you’re ready to start your business right away, go straight to the Articles of Organization, as it will automatically register your name.
Articles of Organization Fee
This is the big one, the most important form that you’ll file to start your Nevada LLC. Filing the Articles of Organization is what officially puts you on record with the Secretary of State. No Without it, your business doesn’t exist in the eyes of the state. The fee for this form is $75. You also have three options for expedited processing: 24-hour service for $125, two-hour service for $500, or one-hour service for $1,000. It’s a one-time filing, so this is the only time you will pay this $75 fee.
Business and Professional Licenses
Every business entity operating in Nevada must maintain a valid business license, which needs to be renewed each year (see “Annual Fees” below). The initial business license fee is $200 and you can file it online or using a hard copy.
Beyond the general business license, your LLC might require certain professional licenses, depending on the type of business you do. Mortgage bankers, for instance, must obtain licensure through the Commissioner of Mortgage Lending. Cities and/or counties sometimes have their own licensure laws, and you can learn about them by contacting your local government.
LLC Formation Service
Starting an LLC can be a complicated and time-consuming process. If you want to spend less time on paperwork and more time planning your business, you might opt for an LLC formation service. These services take care of the registration process for you, so you don’t have to spend the time on research, paperwork, and filings.
Most of these services (like ZenBusiness and Northwest) offer basic LLC formation service like Articles of Organization filing, tax consultations, and phone/email support for a flat rate, with options to pay more for premium packages with premium services like Employer Identification Numbers, Operating Agreements, and expedited filing.
Registered Agent Service
Appointing a registered agent is an important part of your LLC formation process. Your registered agent is responsible for handling sensitive legal and tax documents and keeping your business compliant with Nevada business law. In short, you need an agent you can trust.
While you can be the registered agent for your own LLC, this puts pressure on you to keep up with business filings and potential legal disputes. Sometimes it’s better to hand off that responsibility to a professional. A registered agent service ensures that your annual reports and other forms are filed efficiently and on-time, saving you from the penalties of delinquent filings and the stress of having to do it yourself.
Not all registered agent services are equal, so you’ll need to be careful in choosing one. Fortunately, we’ve done some research for you, and we recommend Northwest Registered Agent. In addition to registered agent services, Northwest also handles LLC formation — and they’ll include a registered agent free for one year when you form your business with them. We think they’re the most reliable choice, but if you’d like to evaluate all your options, check out our Best Registered Agent Services guide.
If you have questions or concerns about the LLC formation process or if it’s the best business structure for you, sometimes it’s best not to take chances and consult an attorney. They’re not cheap, but they can provide essential business advice, professional filing assistance, and peace of mind.
Some attorneys offer free consultations (usually 30-60 minutes) but will charge by the hour after that. On average, business attorneys charge between $150-350 per hour. Some will offer a flat rate for setting up an LLC, which can range from $500-2000.
Cost variations depend on the experience and location of the lawyer. Hiring a lawyer is an investment in your business, so you’ll want to make sure you do research to find the best fit. A site like Avvo, which offers access to a database of Nevada business attorneys, can help you compare your options and find the right choice for your LLC.
Foreign Qualification Fee
This only applies if your LLC was formed in another state and is now expanding into Nevada. In these cases, the “Application for Registration” takes the place of the Articles of Organization.
All foreign business entities are required to foreign qualify in Nevada, or they could incur some pretty severe penalties. The Application for Registration costs $75 and manager/member list, also required, costs $150. You can find all the necessary documents here.
LLC Annual Fees
When you first start your LLC, you need to submit an “Initial List of Managers or Members,” which comes with a $150 fee. Then, every subsequent year your LLC must file an Annual List (either online or on paper) for another $150. It is due by the end of the month after your LLC’s anniversary month.
As mentioned above, every LLC must also maintain a valid business license. This means that the license must be renewed every year for $200.
So, each year, you can expect to pay $350 in total annual business fees.
The federal government categorizes LLCs as “pass-through” entities, so they don’t file separate corporate tax returns. LLC owners and members report its income and losses on their own returns instead. On top of that, Nevada is one of the few states that doesn’t have an income tax.
But Nevada does require its business entities to file a “Commerce Tax Return” as a privilege for doing business in the state. Payment only applies to businesses that grossed more than $4,000,000 that taxable year, but all businesses must file a return, regardless of their income.
There are other specific circumstances that might make your LLC subject to business-related taxes. LLCs that hire employees pay an unemployment insurance tax and LLCs that sell merchandise pay a sales and/or use tax. You can register for these taxes online or by filing a paper form.
What If I Don’t Pay?
Looking at all these fees, you might be thinking: how can I pay less? While you might be tempted to look for loopholes or find a way around them, this could cause you bigger problems in the future.
Failure to make annual filings by the required deadlines will result in both monetary and business penalties. File your Annual List late and it will accrue a $75 fine, and late business license renewals will add a $100 fine. But that’s not all. An LLC with outstanding filings and/or fees will be labeled “in default,” meaning it has lost its good standing with the state and will be unable to foreign qualify in most states, apply for some business loans, and conduct other particular transactions until it catches up with all of its requirements and files for renewal. But if you don’t reconcile your missing forms/fees for one year, the state can revoke your business, prohibiting it from doing business in the state.
There are penalties for delinquent Commerce Tax payments too, although they depend on the amount and number of days late. See the Commerce Tax Return instructions to calculate late fees.
Planning Your Expenses
By now, your budget spreadsheet might be looking a little crowded, but have no fear! Most of these are one-time fees that you won’t have to worry about again. Plus, with all these on the books, there won’t be any surprise costs when you register an LLC in Nevada.
Soon, you’ll have these fees behind you and you’ll be forging ahead, growing your business and earning profits. As you do, make sure to keep up with the few recurring fees – like Annual Lists and business license renewals – so your business doesn’t fall out of good standing.