Nevada LLC out of state [Beginner's Guide]

Last updated : Aug 3, 2022

Do I have to live in Nevada to form an LLC there?

Member/Manager Information of LLCs Unlike some states, Nevada does not require members or managers to live in the state itself. In order to successfully form an LLC, you must be 18+ years old and file your articles of organization.

How do I register an out of state business in Nevada?

To register your foreign business in Nevada, you must file an Application for Registration of Foreign Limited-Liability Company with the Nevada Secretary of State (SOS). You can download a blank application form from the SOS website.

Do I need a physical address for LLC in Nevada?

Whether you are planning to register an LLC in Nevada or a business corporation, you will require a physical address to ensure you are able to conduct your business properly.

Can a California LLC operate in Nevada?

To qualify in Nevada, a corporation must file what is called a “Qualification to Do Business in Nevada” form with the Nevada Secretary of State, provide them a stamped copy of your Articles of Incorporation from the California Secretary of State, pay the filing fee, and appoint a registered agent located within the ...

Why is it better to form an LLC in Nevada?

Advantages to Forming an LLC in Nevada Nevada offers a wide range of benefits as a state of incorporation, including its ease of registration, relatively low corporate taxes and lack of state taxes. Nevada also offers strong privacy protections to business owners and a business-friendly environment.

Is it better to start an LLC in California or Nevada?

If your business will be primarily based in Nevada, you should probably form in Nevada. And if your business operation will be primarily in California, you should probably form in California. That's because you will need to file Articles of Organization and pay state filing fees in any state where you do business.

Does an LLC need a business license in Nevada?

Yes. A single-member Limited Liability Company is an entity required to file an annual list with the Secretary of State and therefore, is also required to maintain a State Business License. An LLC's State Business License Application is now part of the LLC's Annual List of Managers/Members.

How much does it cost to file an LLC in Nevada?

Nevada LLC Filing Cost The total Nevada LLC filing costs (the cost to create the LLC) are $425. That's $75 for the Articles of Organization, $200 for the State Business License, and $150 for the Initial List of Managers or Managing Members.

Does an LLC have to file a tax return in Nevada?

Nevada is one of only a very few states that does not have a personal income tax or a corporation income tax. Consequently, for most LLCs, including those that may have elected to be taxed as corporations, no state income taxes are due.

Can I use a PO Box for my LLC in Nevada?

6. You Can't Use a PO Box For Your Business License. Similar to how PO boxes will not work as your business address in the state of Nevada, they will not help you obtain a business license either. PO box addresses are not considered a real physical address, which limits what you can do with the PO box address.

Do you need a Nevada address for a Nevada LLC?

Do I have to maintain an office, bank account, or business address in Nevada? Nevada LLCs are not required to maintain an office, bank account, or business address in the state of Nevada. The sole address a Nevada LLC is required to maintain within the state is that of a registered agent.

What is needed for a Nevada LLC?

To form a Nevada LLC, you need three things: a name for your business, a registered agent, and the required documents, such as Articles of Organization.

Can Nevada LLC work in Texas?

Yes. A series LLC formed under the laws of another jurisdiction will be treated as a single legal entity for qualification purposes. The LLC itself rather than the individual series should register as the legal entity that is transacting business in Texas.

What is the best state to set up a LLC?

Delaware. Some experts point to Delaware as the best state for setting up an LLC due to its business-friendly legal system.

How do I transfer my LLC from California to Nevada?

To move a California corporation to Nevada, a conversion plan must first be drafted, and the board of directors and either the shareholders of the corporation or the members of the LLC must approve it. The California secretary of state must then approve it.

Should I start an LLC in Delaware or Nevada?

Delaware also has a much more extensive history of case law than Nevada. Statistical studies have shown that incorporating in Delaware tends to provide a premium to the market value of a corporation in relation to its assets, whereas Nevada does not provide that same premium to corporation value.

How long does it take to set up an LLC in Nevada?

Nevada LLC FAQs It costs $75 to file your articles of organization. You'll also have to pay $150 to file an Initial List of Managers or Managing Members, as well as a Business License Fee of $200. Regular processing time is five days.

Is Nevada a good state for an LLC?

Every state offers limited liability, privacy, and tax benefits to one degree or another to the business owners for forming LLC on their country. But if you are looking for ultra-low state tax, privacy, and confidentiality, a business-friendly environment, then forming Nevada LLC is at the top among other states.

Can I live in California and have an LLC in another state?

As a California resident, you are free to register the LLC for your online business in any state.

Can a Nevada LLC own property in California?

In forming an LLC for your rental property in another state, you can choose between the states of Nevada, Texas, and Wyoming since these states give good charging order protection. So, you set up a Nevada LLC to own your California rental property.

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what's going on alex here and today i'm answering questions from the youtube comments and these questions have to do with establishing a business entity outside of the state of california to do business in the state of california will that provide any sort of tax benefits and can that serve as a way to avoid california income taxes so let's take a look and first one is from cobra commander and goes as follows mr efros love your videos i do as well thank you so much have a question i live and work in los angeles but california is not business friendly you could say that again can i open an llc in nevada to avoid paying all the fees and costs and taxes from california what do you recommend all right this is a good question and this is one that's often brought up because california is indeed not business friendly why because for llcs for example you get the privilege if you're doing business in california of paying an 800 annual minimum tax just for the privilege of having an llc in california on top of that if your gross receipts exceed 250 000 in a particular tax year you're also going to be looking at paying the annual llc fee which begins at 900 on top of the 800 and can go up from there so you may very well be paying the state thousands upon thousands of dollars just for the privilege of doing business in california and with that along with other penalties and taxes and bureaucracy red tape that's applicable to doing business in the state it's logical that business owners are going to try to circumvent or avoid some of these taxes if they can possibly do so and unfortunately california saw this coming all right and it all has to do with the term doing business all right and i'm gonna explain what that means here we take a look at this ftb franchise tax board website having to do with limited liability companies and specifically you see a bunch of topics here but we want to know more about doing business in california so let's take a look so in terms of doing business in california california defines doing business as quote actively engaging in any transaction for the purpose of financial or presuming area gain or profit an llc is quote doing business if any of the llc's members managers or other agents performs activities in california on behalf of the llc regardless of where the llc otherwise conducts business in addition an llc is doing business in california if it is a non-registered foreign llc that is a member of an llc that does business in california or it is a general partner in a general limited partnership that does business in california so these rules can get quite a bit technical and we don't have to get into all of the specifics right now but just know that the phrase doing business can be wide-ranging in its application let's take a look at some handy dandy examples though and you'll find out that this is a bit of a funny coincidence here so paul is a california resident and a member of a nevada llc do you think that they saw this coming quite possibly the nevada llc owns property in nevada the llc hires a nevada management company to collect rents and provide maintenance paul has the right to hire and fire the management company he occasionally has telephone discussions from california with the management company in nevada regarding the property he is ultimately responsible for the property and oversees the management company paul conducts business in california on behalf of the llc and the llc must file form 568 and pay all those applicable taxes and fees you can see here that there is a limited amount of involvement that paul has arguably that he's using the management company based in nevada right nevada management company and all he's doing is having some phone conversations to discuss the management of the property and oversee the management company even with that level of involvement he's conducting business in california behalf of the llc in this situation it doesn't work out in the favor of the taxpayer let's look at the second example rachel is a california resident and member of an oregon llc the oregon llc has a retail store in oregon rachel uses a california address for the llc's tax filings and a california accountant to prepare the llc's taxes rachel conducts business in california on behalf of the llc you can see that even when it doesn't seem like you're doing business in california these elements of management and overseeing the operations of a business can in fact mean that you're from an income tax perspective doing business in california and california is very aggressive about this stuff and you can see that they very much see it from their own perspective in terms of you're likely doing business in the state unless you could prove otherwise unfortunately that that's really how it's structured if we keep it real here let's look at example number three sarah is a california resident and a member of a texas llc texas does not have an income tax so similarly to nevada someone could say hey i'll form my llc in texas and i'll do business in california i can avoid all those taxes let's see how this scenario plays out the texas llc receives royalties from texas oil wells sarah maintains a california business bank account and secures financing in california for the llc's texas investments sarah believe it or not conducts business in california on behalf of the llc the llc must file form 5-68 so you can see in all three of these scenarios it just so happens that california wins all right so you can see this area they don't play games they want to make the case that everybody's doing business in california unless you could prove otherwise essentially it comes down to that now with that said going back to the question i would not attempt to do what's outlined here because california will get you all right and if they can prove that you were doing business out of the state then you're going to be hit with the penalties and interest and it's important to remember that you still have to register your llc in california if you're doing business in the state even if it's a foreign meaning outside of the state of california foreign entities so if you have an entity registered in a different state you still have to register that entity in california as a foreign llc then you can conduct business in california all right a lot to keep track of but at the end of the day don't get the idea that you can form a business any different state and circumvent california taxes they've seen this coming they know all about this game and unfortunately it does not work on top of that you may also have filing requirements in that other state depending on whether or not you did business in that other state and so forth so many times this creates a lot more complication from administrative perspective so the only reason why you would want to organize your entity in a different state and conduct business in california is the possible legal benefits and those have to do with let's say delaware is is very much friendly towards corporations so you may form an entity in the state of delaware and then do business in california but that ha

Thanks for your comment Rene Tricamo, have a nice day.
- Allan Wohlford, Staff Member

so Jim can you legally incorporate or organize respectively an LLC or a corporation out of state and what I mean by that is if you are a business in California can you have and take advantage of being a Nevada Wyoming or Delaware corporation or LLC yes you can range because the newspapers of the last several months have made it sound like there's something inherently unethical or illegal about going out of state if you just sit in your room for a minute look around at the furniture the desk the pins that are laying on your desk your very computer screen every single one of them ninety-nine percent likely to have been done by a corporation that exists someplace further than two miles down the street from where you're sitting right now many of them are done by foreign corporations meaning from another entire country and many of them are done by someone who goes in the next state over Nevada or Oregon or someplace else all of this was assembled this thought that going out of state or shopping for a forum as we'll get into a little bit later for purposes of doing business is somehow unethical or illegal is totally false in fact it's the wisest thing to do now someone is a counselor for one of these organizations either as an attorney or a CPA or a financial adviser in many cases they're probably derelict if they don't advise them to go to the state the tax is in the least and permits what they want to do as a business the most profitably so no there's nothing unlawful about it at all it's the purpose that you're doing it for that can be unlawful or if you're putting it together and then run say ill-gotten gains through them then that can be unlawful now the idea of just going there to be a fake so the people don't know who the contents are who the officers or directors are that itself is not unlawful it's not even an unlawful thought to want to do that in fact it makes very good sense many people don't want to be identified out there and searched constantly because now capable through the internet by virtue of just their mere affiliations they just feel like people are not know that much about their lives and in many cases there's very good reasons for them not to know many people are marketing overs it's finally they shown an interest in one market it might actually change the market just because of their status in the market and who they are in other cases like being publicized on every single move they make in their life they just plain don't want it they don't want the International paparazzi looking over their shoulders and in a sense everybody now that just search the internet to see what they can find on people probably is what I would call a paparazzi of some kind and they just don't want that kind of Big Brother looking over their shoulders not because they have some nefarious reason but because people just don't want to be watched whether it's for good reasons or not they don't want to be surveilled and have cameras watching them every place they go I understand the notion so no there's nothing inherently awful about doing it perfect so notwithstanding fraud any type of legal activity is anything that would obviously violate the Patriot Act or the Internal Revenue Service or code this is an absolute complete entire lawful and enviable practice not only by a poll and appropriate but as I said it's something that even makes good sense based upon sound business planning going for instance to a street that has lower taxation when the one you're in very good business going to a state where labor cost less than what it would cost in the state that you originate from very good business plan and just to make it a little bit more clear remember this isn't somebody just sitting down thinking these things up these are the states actually engaging in programs to invite you to do that it's come on our state is open for business come on down do some business with us we'll save your taxes we'll give you benefits we might even give you tax incentives we might even give you tax credits the movement like Tesla got going to Nevada some very serious tax credits would anybody say no the American thing to do would be to turn those billions of dollars of tax credits down over the period of the time they've promised to be there and say no I'd much rather pay a lot of taxes and get no tax credit whatsoever and I have no desire to do that whatsoever who in their right mind would say a thing like that it's entirely legal and it's even solicited by the states so inherently there's nothing wrong with it so it seems like suddenly and this makes it even more so it seems to me the case that I don't want to be surveilled that merely having business with a couple of the unities that just go and set you up in another state of which there's many posts Ekman's iike the one you're advertised is not the only one the so-called Panama papers many many of them largest and most successful law firms in the United States put these together in fact if you went behind most SEC fun seekers files you probably find out that major New York law firms major Berlin law firms major firms coming out of Tokyo have recommended that contact of their clients as an abbreviated way to set these companies up because they make very good so I think it's unfortunate that the newspapers and the other journalistic media is making hay out of saying if you don't want to be surveilled then something must be wrong because if you had nothing to be guilty for why wouldn't you why would you care that the entire universe knows everything you're doing why would you care welcome it there's a lot of people that say are you kidding me I don't even like to go to the store with my hair uncombed no I don't want the world looking in on all of my affairs I have no desire to do that and that doesn't make me a criminal in fact it BB makes insane so have you got anything else in that that magic wrap of ideas there now that's perfect thanks Jim you're certainly welcome thank you for inviting me to these

Thanks Codi your participation is very much appreciated
- Allan Wohlford

About the author

Allan Wohlford

I've studied control engineering at George Mason University in Fairfax and I am an expert in space telescopes. I usually feel sick. My previous job was detective I held this position for 27 years, I love talking about cooking and rappeling. Huge fan of Borgore I practice croquet and collect rocks.