Nevada LLCs Avoid Virtually All State Taxes
With your Nevada LLC, you can avoid virtually all state level taxes including:
No corporate income tax
No personal income tax
No franchise tax on income
No admissions tax
No unitary tax
No inheritance or gift tax
Just about the only fee you will have to pay is your initial filing fee and a yearly fee. This alone can save you thousands, if not tens of thousands, of dollars by setting up your LLC in the state of Nevada.
Nevada Has Strong Privacy Laws
The state of Nevada takes the privacy of you and your partners very seriously. That is why privacy standards in Nevada are so much more comprehensive than in other states. A Nevada LLC does not have to list it’s shareholders. This means your investors can remain anonymous!
Plus, unlike other states a Nevada LLC is not required to list it’s assets. This means they will not be linked to you publicly. The only connection to you will be on your federal tax forms which are protected by law.
Nevada LLCs Have Liability Protections That Are Rock Solid
You cannot be held liable for the debts incurred by your LLC. Creditors will not have access to your personal bak accounts or property to satisfy the companies debts. The only way around this is if the debts were linked to some kind of fraud perpetrated by you. This protection is also offered to you in order to protect you from the other partners in your LLC.
Because of these protections investors are much more likely to invest in your Nevada LLC over one operating in another state.
You don’t have to live in the state to have a Nevada LLC
Nevada allows you to operate an LLC within the state by using an attorney to act as your registered agent. They can forward all correspondence to you and sign for legal papers should the need arise.
Many people in other states use a Nevada LLC to safely keep possession of their assets. Along with the increased privacy protections a Nevada LLC provides this can be quite beneficial.
Dispelling Some Common Myths About LLCs
An LLC is not a corporation. It is created through a similar process by filing paperwork called articles of organization with the state. Since it is not a corporation it only limits the liability of the partners. To see if your situation warrants forming a corporation instead of a limited liability company you should consult an attorney qualified to discuss the options your company should take.
An LLC is not a tax entity. All profits and losses are passed on to the partners in full. You will need to include these in your personal tax forms.
Most people associate an LLC with a smaller business or a professional partnership like a doctor’s office. There are many large businesses that use the LLC structure including Amazon.
Disclaimer: The purpose of this article is to provide general information about this subject in order to give you a basis for discussion with your tax and financial advisers. I am not a CPA or an attorney. This document should not be construed as tax or legal advice.