corporation, llc

Why Nevada Is Perfect For Your LLC

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.

llc, llp

Creating An LLP vs. An LLC

As your business grows it is wise to begin looking into forming some kind of Limited Liability Company (LLC) or a corporation in order to protect you and any partners you may have from the company and its liabilities. In most cases this can also work to protect the company from the personal problems of you and your partners. But which type of partnership is right for your business? We will look into two types of partnerships. One is an LLC and the other is a Limited Liability Partnership (LLP).

First let’s look at the main differences between the two. A Las Vegas LLP is restricted to certain kinds of licensed professionals. These include doctors, lawyers and accountants, though other licensed professions can also form an LLP. Another way to reference an LLP is as a Professional Limited Liability Partnership or PLLP.

By forming an LLP each partner is protected from the debts and liabilities owed by their partners. However, the protection offered by an LLP is often less comprehensive than that offered by  an LLC. Typically an LLP is formed when state laws prohibit the partners from being able to form an LLC or a corporation.

Both forms of partnership are created by filling papers with the state and paying a filling fee. Both also require yearly registration fees.

Both partnerships don’t require extra tax filings as they are both use the pass through taxation method. Profits and losses will be recorded on the partners personal income tax forms.

Some key differences between the two are that an LLP is required to carry certain types of insurance and it is typically difficult to generate outside investment for the partnership with an LLP. Also, selling a piece of an LLP, or as a whole, can be difficult because of the partners involved.

When you are ready to begin the process of creating your own LLC or LLP in Las Vegas be sure to work with a Las Vegas LLC attorney that specializes in corporate law. You don’t want to go it alone when you are making some of the most important and far reaching decisions of your life. To get more detailed information on this topic please read our guide on maintaining your Nevada limited liability company.