Nevada LLCWhy Form an LLC in Nevada
Customers often ask us about the advantages of creating an LLC in Nevada.
Like many people in the business world, they’ve heard through the grapevine that forming a company in Nevada offers owners certain distinct benefits and protections that make it a more strategic choice than most other states.
Sure enough, there are unique advantages that come along with a Nevada LLC, and filing in that state will make a lot of sense for many businesses. But there are other states you’ll want to consider carefully too — namely, Delaware, Wyoming, and your own home state, among others.
Let’s explore the benefits of forming your LLC in the state of Nevada, as well as the advantages of LLCs in general.
Advantages of Forming an LLC in Nevada
For many years, Delaware enjoyed a reputation as the best state in the country for forming a new corporation or LLC. In recent years, however, several other states have made aggressive moves to position themselves as viable alternatives. Nevada is one of them.
The state of Nevada is in a unique position because of the gaming industry’s prevalence there. In fact, the state draws so much revenue from the gaming industry that it has been able to reduce or eliminate some of the fees that it might otherwise charge incoming companies (the kinds of fees that most other states apply).
Indeed, Nevada is increasingly seen as a “tax haven” or “corporate haven” state, where companies go to escape some of the regulations and fees they would find elsewhere.
The advantages of forming an LLC in Nevada include:
- There are almost no state taxes.Nevada has gotten rid of almost all the state-level taxes that would usually be levied against a business.
- Nevada won’t share your information with the IRS. Nevada is one of only a handful of states that do not maintain an Information Sharing Agreement with the IRS. In fact, the state will have virtually no tax information on your LLC to share in the first place, as Nevada doesn’t even have an income tax department.
- There is tremendous privacy protection. Nevada does not require that an LLC register a list of its members (i.e., owners) by name with the Secretary of State. Many states do require this. This benefit of the Nevada LLC allows investors, members, and others to remain anonymous. (Note, however, that at least one member must be named in the LLC’s articles of organization, which will become public record. Additionally, managers and managing members must also be named.)
- Nevada LLCs are friendly to non-locals. Unlike some other states, Nevada does not require that members of the LLC live in the state or conduct any meetings there. Additionally, any paperwork required of the LLC can generally be filed remotely by telephone, fax, or mail.
- Great communication. Nevada’s Secretary of State office earns high marks among business owners for its easy access and helpful customer service.