What is a Nevada LLC?
The Nevada Limited Liability Company is a blend between a partnership and a corporation combining the best attributes of both. You get the tax treatment and ease of management of the partnership and the limited liability protection of the corporation. The Nevada LLC has the flexibility to be taxed as pass-through partnership or like a corporation. Owners of the LLC, called members, get full limited liability protection from personally being responsible for the actions or debts of the LLC – within limits just like the corporation.
Nevada LLC Simplicity:
Nevada LLCs do not have the long and sometimes burdensome history of the Nevada corporation that has not changed significantly in hundreds of years. You will not have to manage all the requirements that Nevada corporations do including annual meetings, notices for those meetings, and formal voting that will ultimately have to be recorded within the corporate record book.
Nevada LLC Taxes:
Nevada LLCs can be taxed a multitude of ways and will be categorized into the following:
- Sole Proprietorship: If your Nevada LLC has only one member (not recommended), the IRS will deem it a disregarded entity. A single member LLC, disregarded entity, will be taxed as a Sole Proprietor.
- Partnership: If your Nevada LLC has more than one member (recommended), the IRS will allow partnership taxation or pass through taxation.
- C or S Corp: You can elect to be taxed as a normal C Corporation or even an S Corporation.
5 Nevada LLC Advantages:
- The charging order is the sole remedy of the creditor of a member, preventing foreclosure of the membership interest and protecting other members from adverse economic impacts. NRS 86.401
- Professional Nevada LLCs are allowed. NRS 89.040
- Indemnification of members or managers of Nevada LLCs has been increased to offer greater statutory separation between the entity and the individual. NRS 86.411 - 86.451
- Operating agreements adopted after filing the articles may be enforced. NRS 86.286
- Perpetual life of a Nevada LLC is allowed. NRS 86.155