What Is a Nevada LLC?:
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- A Nevada LLC combines the best features of partnerships and corporations.
- Key attributes:
- Tax Treatment: Like a partnership, it enjoys pass-through taxation—profits and losses flow directly to the owners (members) without being taxed at the entity level.
- Limited Liability: Similar to a corporation, members benefit from limited liability protection, safeguarding their personal assets from the LLC’s debts and actions (within certain limits).
Nevada LLC Simplicity:
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- Unlike traditional Nevada corporations, LLCs avoid the burden of centuries-old history:
- No annual meetings or related formalities.
- No need for meticulous meeting notices.
- Formal voting records are unnecessary.
- Unlike traditional Nevada corporations, LLCs avoid the burden of centuries-old history:
Nevada LLC Taxes:
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- Nevada LLCs can be taxed in various ways:
- Sole Proprietorship:
- If your Nevada LLC has only one member (though not recommended), the IRS treats it as a disregarded entity, taxed as a Sole Proprietor.
- Partnership:
- For LLCs with multiple members (recommended), the IRS allows partnership taxation or pass-through taxation.
- C or S Corporation:
- You can elect to be taxed as a C Corporation or even an S Corporation.
- Sole Proprietorship:
- Nevada LLCs can be taxed in various ways:
Advantages of Nevada LLCs:
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- Charging Order Protection:
- The sole remedy for a creditor of an LLC member is a charging order, preventing foreclosure of the membership interest and protecting other members from adverse financial impacts.
- Professional Nevada LLCs:
- Nevada permits the formation of professional LLCs, catering to licensed professionals (e.g., doctors, lawyers, architects).
- Enhanced Indemnification:
- Members and managers of Nevada LLCs enjoy increased statutory separation between the entity and themselves, enhancing protection against personal liability.
- Enforceable Operating Agreements:
- Operating agreements adopted after filing the articles can be enforced.
- Perpetual Life:
- Nevada LLCs can have perpetual existence.
- Charging Order Protection:
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PO Box 471 Carson City, NV 89702
Text/Local (775) 450-4979
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