Are you thinking about starting a business in the state of Nevada? You will be happy to know that there are only 6 simple steps for your business to be legal in Nevada.
Today, we are going to go over the 6 steps for you to start your business in the state of Nevada.
Choose a Business Name
Choosing a business name for your Nevada business should not be something you make in a day or two. Rushing this process can lead to mistakes later down the line as well.
It is wise to take some time to choose a name that you truly want. You should choose a name that people will easily remember and even associate with the business you plan on setting up as well.
To ensure you have a business name that people will remember for years to come, your name should typically follow these below guides:
- Contains alliteration or rhymes
- A name you can say proudly
- A name that is easy to pronounce
- A name that benefits your business
When you think you have your business name picked out, you will need to search for them on the Nevada Business Name Search page. This will allow you to see if your name is taken or not.
Small Business Entities in Nevada
Now that you have decided on a name, next up is figuring out which small business entity you will need for your Nevada business.
The most common small business entities are the following:
In the state of Nevada, a sole proprietorship is where you will be operating your business as yourself. Essentially this means, you are operating your business as one person, so you will be personally liable and responsible for all activities in said business and any wrongdoings that may arise.
Next up is a Nevada Corporation. A corporation is going to be a more complex business entity. This corporation is going to consist of shareholders, board of directors and corporate officers
To be honest, if you are looking at making your business entity a corporation, this is not really going to be a small business since corporations typically will face double taxation.
If your business is not going to stay a small business entity, then the corporation will work for you.
An LLC in the state of Nevada will be an entity that combines sole proprietorship and corporation benefits.
For instance, you will have personal liability protection just like a corporation and will not face double taxation either like the Sole Proprietorship entity as well.
LLC is one of the more popular small business entities in the state of Nevada. Typically, people will choose LLC over all other options when they are first starting out on their small business adventure.
Must Register the Business Forms with Nevada Secretary of State
You finally have your business name and your small business entity, what is the next step?
The next step is to file the correct business forms with the Nevada Secretary of State.
Here’s the breakdown of what each business entity will cost you to file:
To file the correct business forms for an LLC in the state of Nevada will cost you around $425. This amount consists of the following fees:
- Articles of Organization for $75
- State Business License for $200
- Initial List of LLC Managers for $150
To file the correct business forms for a corporation in the state of Nevada will cost you around $725. This amount consists of the following fees:
- Articles of Incorporation for $75+
- State Business Licenses for $500
- Initial List of Officers for $150
Pro-Tip: The filing fees for a corporation will solely be based on the number of shares that the corporation has. The more shares, the larger the fees.
To file the correct business forms for a sole proprietorship in the state of Nevada will cost you around $200. This amount consists of the following fees:
- State Business License for $200
Pro-Tip: For a sole proprietorship in the state of Nevada you are not required to fill out a formation form with the state. You only need to have a State Business License.
Fictitious Firm Name
When choosing a sole proprietorship or even a partnership small business entity, you can do business under your legal name. If you choose not to go down this route, you will need to file the Fictitious Firm Name form. You can file this form at your local County Clerk’s Office and not with the Secretary of State.
EIN Number and Tax Rules
Now, we are getting into the nittier gritty part when it comes to creating your Nevada business.
First and foremost, if you are new to the business world, you are probably wondering what an EIN number. EIN is short for Employer Identification Number or what is also known as the Federal Tax ID Number.
So, essentially the EIN number will be used by the Internal Revenue Service to easily identify your business when it comes to tax purposes.
You will need to have an EIN Number for your business before you can open a business bank account, acquire financing, file taxes, and employee payroll.
You can get your EIN number for your business via online, fax, or mail. If you choose the online option, you will get your EIN number within 15 minutes.
Acquire a Business Bank Account
In the state of Nevada, you will need to have a business bank account for your business as it will keep your personal assets separate and it will make your finances and accounting much easier to handle.
Keeping your business from your personal finances separate will make filing your taxes easier rather than having everything combined.
File with the Nevada Department of Taxation
Before you can officially open for business, you will need to register your business with the Nevada Department of Taxation.
You can do this with the SilverFlume. This is going to be free to file. There is no filing fee associated with this.
If your business in Nevada will transfer or sell tangible property, you will need to collect sales tax from your consumers. This sales tax will then need to be sent to the Nevada Department of Taxation.
Sales Tax Permit
In order to collect sales tax, it will require you to get the sales tax permit. The sales tax permit is $15. You can also use SilverFlume to get the sales tax permit as well.