Types of companies in Nevada
Choosing the right company type
Each company type in Nevada offers distinct advantages and carries different obligations. There is no one-size-fits-all solution in the field of Nevada company formation and the choice really depends on your particular needs. However, due to its flexibility, most foreign investors and businessmen usually prefer to form a Nevada Limited Liability Company (LLC).
Why Nevada?
Foreign investors prefer Nevada for its tax advantages, privacy, and business-friendly laws. Nevada has no corporate or personal income tax, no franchise tax, and no inheritance tax, making it cost-effective for entrepreneurs and ideal for international financial planning purposes. The state also offers strong privacy protections, as LLC owners do not have to disclose their identities publicly, and nominee services can be used for anonymity.
Nevada’s business laws favor asset protection, with strong liability shields for owners and directors. The registration process is fast, often completed within 24 hours, and there is no requirement for U.S. residency, allowing foreign investors to manage businesses remotely.
Nevada companies also benefit from easier access to U.S. banking, which is essential for international transactions. Many foreign investors use Nevada LLCs for holding assets like real estate or intellectual property while keeping ownership discreet. Compared to Delaware or California, Nevada provides greater privacy and lower costs, with fewer regulatory burdens.
For entrepreneurs looking to enter the U.S. market while enjoying tax savings, strong legal protections, and easy company formation, Nevada is one of the best choices.
However, if your business has annual revenues in excess of US$ 4 million, then you may be subject to a gross receipts tax (also know as "Commerce Tax"), that is imposed on revenue, rather than net income, and whose rate varies by industry.
Nevada LLCs Accounting Requirements
A Nevada LLC has relatively simple accounting requirements but must comply with state and federal regulations. Key requirements include:
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Annual List & Business License Renewal – LLCs must file an Annual List of Managers/Members and renew their Nevada state business license with the Secretary of State.
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No State Income Tax Filings – Nevada does not have a corporate or personal income tax, so there are no state tax filing requirements. However, federal tax filings (IRS Form 1065 for multi-member LLCs or Schedule C for single-member LLCs) may be required.
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Commerce Tax Filing (If Applicable) – If the LLC earns over $4 million in gross revenue, it must file a Commerce Tax return with the Nevada Department of Taxation.
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Sales Tax Compliance – If the LLC sells taxable goods/services, it must register for and collect Nevada sales tax.
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Proper Financial Records – While there is no audit requirement, LLCs should maintain accurate financial records, bookkeeping, and bank statements to track income and expenses.
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Payroll & Employment Taxes – If the LLC has employees, it must handle payroll taxes, unemployment insurance, and workers’ compensation compliance.
USA Taxation of Nevada LLCs
Despite the lack of State income taxes, Nevada LLCs are subject to USA Federal Tax Laws. The Internal Revenue Code (the "IRC") dictates that the taxation of Nevada LLCs is contingent on the number of members. In a unique scenario, if the LLC has a single member, it is treated as a disregarded entity for Federal Income Tax purposes. Disregarded entities with foreign ownership are required to file a pro-forma Form 1120 and Form 5472 with the IRS.
On the other hand, if the Nevada LLC has two or more members, it is treated as a partnership for tax purposes. Unlike corporations, it is not subject to double taxation. Instead, it is considered a flow-through entity for Federal Income Tax purposes. This means that LLC members are required to report their share of taxable net income generated by the company in their personal tax return, even if the income is not distributed by the LLC.
However, the sole member of, or the members of, a Nevada LLC can file a tax election with the IRS to treat their limited liability company as a separate taxable entity. In that scenario, the Nevada LLC would be taxed as a Nevada Corporation and subject to the US Federal Corporate Income Tax, whose rate is currently 21%.
How much does it cost to form a Nevada LLC?
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My Fee for Standard Nevada LLC Formation - US$ 1,200
The fee includes:
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Required filings with Nevada Secretary of State for LLC formation
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Nevada Business License fee for 1 year
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Nevada registered agent service for 1 year
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Application with the IRS for an Employer Identification Number (EIN)
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Introduction to a recommended US financial institution
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Initial Beneficial Ownership Information Report (BOIR) filing with FinCen
Any other professional service is not included in the fee quotation above. Any additional professional service is charged according to my fee policy.
Can I request your assistance to form a Nevada Corporation or Partnership?
Yes. I can also assist you in forming a Nevada Corporation or a Nevada General or Limited Partnership. Do not hesitate to ask us for a price quotation for those services! A professional US CPA will guide you throughout the Nevada company formation process and explain all the accounting and tax requirements for a Nevada Corporation or a Nevada Limited Partnership or General Partnership.
Do you also provide company formation services in other US States?
Yes, I can assist you in the company formation process in most US States. Bear in mind that the US Federal Income Tax applies equally in any US State and that each US State can have a different legal framework for company formation. If you need specific advice on corporate law, I will be happy to refer you to a licensed US corporate lawyer. Click on US Company Formation to be redirected to the list of US States where I offer company formation services to foreign clients.
I also assist clients who wish to form an offshore company in British Virgin Islands (BVI), Turks and Caicos Islands (TCI), Luxembourg, or the Cayman Islands.
Are you seeking assistance for your international business journey?
NEVADA COMPANY FORMATION FOR FOREIGNERS
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My Nevada LLC Formation Fee: $ 1,200