Requirements for Incorporating in Nevada
Requirements for Incorporating in Nevada.
One of the main points in forming an LLC, or “limited liability company,” is that you establish your business as a legal entity separate from yourself. This separation protects both your personal assets and your personal credit status in the event that some liability is incurred, or you encounter financial difficulties that force the business to close. If you have ever looked into what is required to incorporate either online or otherwise, you’re probably aware that some states are considered “corporate havens.” Those who incorporate business in states such as Delaware or Nevada enjoy certain protections and advantages not available elsewhere; there are good reasons to form an LLC in Nevada.
Every state has requirements and procedures to form a corporation, and Nevada is no exception. If it is your intention to incorporate in Nevada, you’ll need to know the process.
Getting Started
It may seem obvious, but in order to form an entity of any kind in Nevada, first you need to choose a name for your business. If you are using your personal name, you’ll need to add “Inc.”, “Co.” or “Ltd.” Etc…, in order to make it clear that it is in fact a business and not a natural person. In addition, certain types of businesses must be approved by the state before incorporating in Nevada. This pertains specifically to financial services, engineering firms and insurance carriers.
Articles of Incorporation
In order to form an entity in the state of Nevada, you must document the fact that you are of legal age (18 or older), include the location of your primary residence, and certify that you are in fact the director, manager, member, or partner. If there are other individuals, the same information must be filed when you incorporate a business in Nevada.
While it is not necessary, in order to form a corporation in Nevada as a C-Corp or S-Corp and will be selling stock in the company, the Articles of Incorporation must include information on the type and amount of stock that will be issued.
Registered Agent
Every state requires a corporation to have a “registerd agent.” This person is someone who actually resides in the state of Nevada, who is authorized to receive correspondence from state agencies.
Once You Are Up and Running
Incorporating in Nevada is relatively simple as long as standard set procedures are followed.
Once you form your entity in Nevada, you’ll need to furnish an initial list of officers and directors, even if that is you alone, as well as that of your resident agent. This information pertaining to your Nevada entity will need to be updated every year.
In addition, if you are planning to conduct business inside the state of Nevada and you reside elsewhere, you may need to register in your home state as a “foreign” or out-of-state entity. It’s a bit of trouble, but the protections and tax benefits you’ll enjoy when you form a Nevada entity definitely make it worthwhile.
