Nevada LLC

Nevada LLC Limits Liability

A Nevada LLC is one type of business entity which can be created in the state of Nevada. LLC is a fairly new type of business operation which has been around a little over thirty years and means Limited Liability Corporation. An LLC enjoys the benefits of a partnership as well as some benefits of a corporation, such a limited liability, the ability to spread income amongst family members to reduce tax liability, operating agreement as to the distribution of profits, and the ability to operate multiple LLCs under the Nevada Series LLC.

Nevada LLC Compared to Incorporating

A Nevada LLC had disadvantages when compared to incorporating in the state of Nevada, such a having to report all income on personal tax returns, interests are not freely transferable, and laws regarding LLCs vary from state to state. Nevada corporations on the other hand receive many tax benefits while still limiting personal liability. Shield Services, Inc., www.shieldcorp.net, offers assistance to businesses considering creating an LLC or incorporating while discussing which type of business would be the most advantageous for your organization.

Nevada LLC Taxation Part 2

We previously discussed the 4 different ways your Nevada LLC can be taxed. The single entity requires a little more in depth discussion. The IRS considers a single entity LLC to be either a single person or another entity. For the purposes of taxes the IRS considers a husband and wife as a single entity. If you are a single entity they want you to file the LLC return on your personal return. This can be a positive or negative feature. In the positive it will cost you less with your accountant. A very big negative could be that you will now pay self employment taxes on everything you made. That could prove very costly. Make sure prior to forming your Nevada LLC that you have discussed everything with your accountant to ensure that you are structuring yourself so as to minimize your taxes.

Nevada LLC Taxation

If you chose to form a Nevada LLC you will need to determine how you would like to have it taxed when you apply for your EIN. You have the following choices:

1. Corporation - C Corp
   
2. Corporation -S Corp
   
3. single member entity
4. partnership

Each of those choices has different tax implications for you. They range from flow through income to potential for double taxation. So prior to starting your Nevada LLC you should contact your accountant and determine which way would be best for you.