Business entities in Nevada in 2023
Most of our Clients interested in starting a business in Nevada prefer to setup the domestic limited liability company. However, other forms of business ownership 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 the corporate level;
- Best uses: A Nevada LLC is generally setup by Clients for starting a small business in the US.
The C-Corporation (C-Corp)
- The Nevada close corporation 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 0% 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 need 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
- Our Clients 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.
Gaming licensed company
- Nevada can be called the gaming and gambling capital of the world – with Las Vegas and Reno being the most popular gaming hubs in the USA;
- As an extension, gaming companies are another popular type of business and profitable options for investment;
- The requirements to start an online gaming company registered in Nevada are the same as a regular LLC, except for the additional requirement for a regulatory license issued by the Nevada Gaming Commission and the Nevada Gaming Control Board;
- On average, it takes around 4 months to acquire the license to provide online gaming and betting services.
Table of Comparison between business entities
| LLC | C-Corporation | Branch Office | LLP | Free Zone Company | |
|---|---|---|---|---|---|
| How long to set the company up? | 1 week | 2 weeks | 2 weeks | 1 week | 1 week |
| How long to open company bank account? | 4 weeks | 4 weeks | 4 weeks | 4 weeks | 4 weeks |
| Issued share capital required? | US$1 | US$1 | N/A | US$1 | US$1 |
| Allowed to sign sales contracts with local Clients? | Yes | Yes | Yes | Yes | Yes |
| Allowed to invoice local Clients? | Yes | Yes | Yes | Yes | Yes |
| Nevada corporate tax payable? | 0% | 0% | 0% | 0% | 0% |
| Federal corporate tax payable? | 0% | 35% | 0% | 0% | 0% |
| Withholding tax rate payable? | 35% | 0% | 35% | 35% | 35% |
| Corporate bank account | BNY Mellon | Wells Fargo | Bank of America | U.S. Bank | Wells Fargo |
| Can rent office premises in Nevada? | Yes | Yes | Yes | Yes | Yes |
| Allowed to import raw materials? | Yes | Yes | Yes | Yes | Yes |
| Allows to export goods? | Yes | Yes | Yes | Yes | Yes |
| Can the entity hire expatriate staff in Nevada? | Yes | Yes | Yes | Yes | Yes |
| Tenancy agreement required before incorporation? | No | No | No | No | No |
| Do you visit Nevada for company incorporation? | No | No | No | No | No |
| Individual shareholders allowed? | Yes | Yes | Yes | Yes | Yes |
| Corporate shareholders allowed? | Yes | Yes | Parent Company | Yes | Yes |
| Corporate director(s) allowed? | No | No | No | No | No |
| Resident director required? | No | No | No | No | No |
| Resident agent required? | Yes | Yes | Yes | Yes | Yes |
| Resident shareholder required? | No | No | No | No | No |
| Minimum number of directors/managers? | 1 | 1 | 1 | 1 | 1 |
| Minimum number of shareholders | 1 | 1 | Parent Company | 1 | 1 |
| Public register of shareholders and directors | Yes | Yes | Yes | Yes | Yes |
| Statutory audit required? | No | No | No | No | No |
| Annual tax return to be submitted? | Yes | Yes | Yes | Yes | Yes |
| Access to US double taxation treaties? | Yes | Yes | Yes | Yes | Yes |
| Estimate of engagement costs | US$ | US$ | US$ | US$ | US$ |
| Total Nevada business setup costs in Yr. 1 | 7,740 | 10,100 | 8,940 | 8,940 | 9,900 |
| Subsequent annual costs (incl. accounting and tax fee) | 4,300 | 4,300 | 4,300 | 4,300 | 4,300 |
| Healy Consultants Invoice | View invoice PDF | View invoice PDF | View invoice PDF | View invoice PDF | View invoice PDF |
