TRUE Cost to Start a Nevada LLC (Don’t Overspend!)

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.

To clarify, most states don’t require name reservations, and they’re rarely necessary. If you’re concerned about someone else registering the name you want, you could opt to simply form your LLC instead of reserving the name.

Whether you reserve your business name or not, you should always perform a Nevada business name search to make sure the name you want is available.

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. 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.

The information you’ll need to file your Articles of Organization includes the official business name of your LLC, an indication that your business is a series or restricted LLC (if applicable), the name and address of your registered agent, your LLC’s dissolution date (if applicable), an indication that your company will be managed by its members or a manager, the names and addresses of each LLC manager or managing member, the name, address, and signature of your LLC’s organizer, the date, and your registered agent’s signature.

Before we move on, we’ll mention that a Nevada series LLC uses the same Articles of Organization used by a standard LLC. However, if you’re forming a Nevada professional LLC, you’ll need to use a specialized version of this document. Check out our full guides to these types of LLCs for more information!

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.

What are some of the most commonly required business licenses for Nevada LLCs? If your business operates in a regulated industry, you will probably need some sort of professional license to operate in compliance with state law. On the municipal level, things like alarm permits, building permits, and zoning permits are all very common.

LLC Formation Service

Starting an LLC in Nevada 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 a Nevada LLC formation service. These services take care of the registration process for you, so you don’t have to spend time on research, paperwork, and filings.

Most of these services (like ZenBusiness and IncFile) offer basic LLC formation services 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 Nevada 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, saving you from the penalties of delinquent filings and the stress of having to do it yourself.

If you need to change your Nevada registered agent or resign as a Nevada registered agent, check out our full guides on each of these topics.

Attorney Fees

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 $500-2,000.

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.

If you don’t want to go digging for your own attorney, we compiled the following list of highly rated business lawyers in Nevada. All of these attorneys are primarily focused on the business world, they all receive five-star ratings from clients, and they all have excellent Avvo ratings.

• Michael Lee
• Tiffany Floyd
• Becky Pintar
• Andre Lagomarsino
• Tisha Black

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 the 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 information required to file your annual list includes the official business name of your LLC, your LLC’s entity number, the names and addresses of each manager or managing member, the date, your title, and your signature.

For more info on annual lists for Nevada LLCs, check out our full article on this topic!

Taxes

The federal government categorizes LLCs as “pass-through” entities, so they don’t file separate corporate tax returns. LLC owners and members report their 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.

Key Steps for Starting a Nevada LLC

1. The first step to forming a Nevada LLC is to come up with a good name for your business. You’ll want to make sure the name you want is still available and hasn’t already been claimed by another business, so you’ll need to search the state’s business database to verify its availability.
2. Next, you’ll need to choose your registered agent. While you can legally serve as your own registered agent in Nevada, this role can actually be more of a hassle than you might expect. That’s why we always recommend hiring a reputable registered agent service that can handle the responsibility of this position on your behalf.
3. The third step involves the preparation and filing of your Articles of Organization. You’ll need to fill out the paperwork and pay a $75 fee. Once the state processes this document, your LLC will be officially open for business! However, keep in mind that you also need to submit your initial list and business license application, with fees totaling an additional $350.
4. That’s not the end of the road for the startup process though, as you’ll also need to create an operating agreement for your LLC. There is no legal requirement for Nevada LLCs to have written operating agreements, but it’s still an extremely important element of any LLC. The operating agreement is an internal document that outlines how your LLC will operate, and there are several aspects of this document that can prevent messy ownership disputes down the line.
5. You will also need to acquire a federal tax ID number (also known as an EIN, or employer identification number). This is essentially a Social Security number for your business, as it is a nine-digit code used to file taxes, hire employees, open business banking accounts, and more.
6. Next, you’ll need to register for any relevant taxes with the Nevada Department of Taxation, and also obtain all licenses and permits that apply to your business type. Keep in mind that, depending on the nature of your business, you might require licenses from the federal, state, county, and municipal governments.

Once you’ve finished all of these steps, you’re ready to operate a compliant business entity with the state of Nevada!

Key Steps for Maintaining a Nevada LLC

After you’ve completed all of the items in the previous section, you’ll need to focus on maintaining your LLC. The first step in this process is to open a business bank account. This will help you keep your business and personal expenses entirely separate, and it will also help immensely with your accounting and taxation responsibilities.

You should also keep detailed records of every financial transaction that takes place with your LLC. This means maintaining a file of invoices for every purchase and sale you make, along with information regarding your employees or contractors and the work they perform for your business.

As we already mentioned, annual reports are a key component of LLC maintenance in this state, and there are harsh financial penalties for delinquent reports. Additionally, you might want to hold an annual meeting to discuss goals and priorities for your LLC, although this is an optional step.