How to Form a Business in Nevada

Compare entity types, see Nevada filing fees, and find the right structure for your business.

Nevada Formation Costs

CostLLCCorporation
Filing fee$75$75
Annual fee$0$0
Annual report fee$150
Registered agent (typical)~$125/yr

Commerce tax applies if gross revenue exceeds $4M

Annual list of managers/members costs $150

Business license fee of $200 annually

Nevada Tax Overview

Nevada has no state income tax. Pass-through entities (LLCs, S-Corps) benefit significantly.

Entity Types Compared

Sole Proprietorship

The simplest structure. You and your business are the same legal entity.

Pros

  • +No formation paperwork or fees
  • +No separate tax return — report on Schedule C
  • +Full control over all decisions

Cons

  • -No liability protection — personal assets at risk
  • -Self-employment tax on ALL profit (15.3%)
  • -Harder to raise funding

Limited Liability Company

Liability protection with pass-through taxation. The most popular choice for small businesses.

Pros

  • +Personal assets protected from business debts
  • +Pass-through taxation — no double tax
  • +Flexible management structure

Cons

  • -Self-employment tax on all profit (same as sole prop)
  • -State filing fees and annual fees
  • -Some states have franchise taxes (e.g., CA $800/yr)

S Corporation

An LLC or Corp with an S-Corp tax election. Splits income into salary + distributions to reduce self-employment tax.

Pros

  • +Save thousands in self-employment tax
  • +Only pay payroll tax on salary, not distributions
  • +Liability protection

Cons

  • -Must pay yourself a "reasonable salary"
  • -Payroll requirements ($1-2K/yr in CPA and payroll costs)
  • -More complex tax filing (Form 1120-S)

C Corporation

A separate legal entity with its own tax rate. The standard structure for VC-funded startups.

Pros

  • +Can raise venture capital and issue stock options
  • +Multiple share classes for investors
  • +No ownership restrictions

Cons

  • -Double taxation: corporate tax + dividend tax
  • -Most complex and expensive to maintain
  • -Board of directors required

Not sure which is right for you?

Our free quiz calculates your actual tax burden under each entity type based on your income and Nevada tax rates.

Take the Quiz

Compare Entity Types in Nevada

Form Your Business in Nevada

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Frequently Asked Questions: Nevada Business Formation

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

The Nevada LLC filing fee is $75. Annual fees are $0/year. You'll also need a registered agent (~$125/year).

Does Nevada have state income tax?

No. Nevada has no state income tax, which makes it favorable for pass-through entities like LLCs and S-Corps.

Should I form an LLC or S-Corp in Nevada?

It depends on your income. If your Nevada business earns under $80K/year, a standard LLC is simpler and cheaper. Above $80K, an S-Corp election can save thousands in self-employment tax by splitting income into salary and distributions. Use our free quiz to calculate your exact savings.

What is the cheapest state to form an LLC?

States like Kentucky ($40), Arizona ($50), Colorado ($50), and Arkansas ($45) have the lowest LLC filing fees. However, forming in your home state is usually best — forming out-of-state means you'll need to register as a foreign LLC in your home state anyway, doubling fees.

Disclaimer

Filing fees, tax rates, and regulatory requirements on this page are based on publicly available data and may not reflect recent changes. This information is provided for educational purposes only and does not constitute tax, legal, or financial advice. State requirements can change — verify all fees and requirements with the Nevada Secretary of State or a qualified attorney before filing. Always consult a CPA or tax attorney for advice specific to your situation.