Business entities in Nevada

setting up a new company in NevadaMost of our Clients prefer to setup the limited liability company in Nevada. However, other options available include the C-Corporation, a branch office and an LLP.

The Limited Liability Company (LLC)

  • Our Clients can setup an LLC with 1 director and 1 shareholder, who can be non-residents and non-US nationals. Also, Nevada corporate law does not require proof of any share capital deposit;
  • Like all other US entities, Nevada LLCs may choose to be taxed as a corporation or as a partnership. A partnership income is only taxed in the hands of the shareholders, while corporation income is taxed at corporate level as well;
  • Best uses: A Nevada LLC is generally setup by Clients for starting a small business in the US.

The C-Corporation (C-Corp)

  • A C-Corp is also incorporated with i) 1 director and 1 shareholder of any nationality and ii) US$1 as the share capital;
  • A C-Corp must suffer tax twice – once at the corporate level and the in the hands of the shareholders;
  • Best uses: Nevada C-Corps are generally incorporated in order to take advantage of the zero state corporation tax. However, federal corporation tax must still be paid.

Branch Office

  • Our Clients may also consider setting up branch offices of their foreign companies in Nevada. The branch office will have a registered agent and an address in Nevada;
  • The business activities of a branch office will be the same as the parent entity. Furthermore, the branch office will also be required to pay annual franchise taxes;
  • Best uses: A branch office is recommended, only when our Clients wish to book their global income under 1 company’s name, rather than under multiple companies.

The Limited Liability Partnership (LLP)

  • In Nevada, it is also possible for our Clients to setup LLPs. These entities will have at least 1 member and 1 manager, who may not be US residents or nationals;
  • An LLP is a hybrid between an LLC and a General Partnership (GP) i.e. like an LLC, the liability of members is limited and like a GP, the tax will only be paid once – in the hands of their shareholders;
  • Best uses: A Nevada LLP is generally setup by Clients to provide professional services. E.g. – Accounting Firms, Law Firms.

Free Zone company

  • Lastly, our Clients will have the option of setting up a free zone company in one of Nevada’s 2 free zones;
  • To set up the company, our Clients will need to i) incorporate an LLC or C-Corp and ii) thereafter, apply for a free zone operating permit. Please note, it may take up to 9 months to secure permit approval;
  • Best uses: A free zone company is generally used to setup an export oriented manufacturing business.

Table of Comparison between business entities

 LLCC-CorporationBranch OfficeLLPFree Zone Company
How long to set the company up?1 week2 weeks1 week1 week1 week
How long to open company bank account?4 weeks4 weeks4 weeks4 weeks4 weeks
Issued share capital required?US$1US$1N/AUS$1US$1
Allowed to sign sales contracts with local Clients?YesYesYesYesYes
Allowed to invoice local Clients?YesYesYesYesYes
Nevada corporate tax payable?0%0%0%0%0%
Federal corporate tax payable?0%35%0%0%0%
Withholding tax rate payable?35%0%35%35%35%
Corporate bank accountBNY MellonWells FargoBank of AmericaU.S. BankWells Fargo
Can rent office premises in Nevada?YesYesYesYesYes
Allowed to import raw materials?YesYesYesYesYes
Allows to export goods?YesYesYesYesYes
Can the entity hire expatriate staff in Nevada?YesYesYesYesYes
Tenancy agreement required before incorporation?NoNoNoNoNo
Do you visit Nevada for company incorporation?NoNoNoNoNo
Individual shareholders allowed?YesYesYesYesYes
Corporate shareholders allowed?YesYesParent CompanyYesYes
Corporate director(s) allowed?NoNoNoNoNo
Resident director required?NoNoNoNoNo
Resident agent required?YesYesYesYesYes
Resident shareholder required?NoNoNoNoNo
Minimum number of directors/managers?11111
Minimum number of shareholders11Parent Company11
Public register of shareholders and directorsYesYesYesYesYes
Statutory audit required?NoNoNoNoNo
Annual tax return to be submitted?YesYesYesYesYes
Access to US double taxation treaties?YesYesYesYesYes
Estimate of engagement costsUS$US$US$US$US$
Total Nevada business setup costs in Yr. 17,74010,1008,9409,9008,940
Subsequent annual costs (incl. accounting and tax fee)4,3004,3004,3004,3004,300
Healy Consultants InvoiceNevada LLC invoiceNevada c-corp invoiceNevada branch office invoiceNevada free zone invoiceNevada FZ LLC invoice

Contact us

For additional information on our business setup services in Nevada, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar
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