LLCs, or limited liability companies, have become more and more popular, especially in Nevada. The primary reason for popularity of LLCs is their ability to combine the LLC services personal liability protection of corporations with attractive tax benefits and the simplicity of forging a partnership. In addition, they are extremely flexible and require less paperwork. LLCs can be set up as new entities, or converted from an existing business. Estimates reveal that Nevada, with 40,000 LLCs in 2005, has more than the corporate-friendly state of Delaware.
What are the benefits associated with a Nevada limited liability company? First, it provides protection from personal liability. Second, it portrays a better image of the organization and enhances its credibility. Third, it offers “pass-through” taxation. Fourth, it also offers increased privacy to the owners. The Nevada LLC today has become popular primarily because of Nevada’s pro-business environment and lack of a corporate income tax. No LLC members can be sued for the LLCs liability in Nevada.
The other benefits of a Nevada LLC are the absence of state tax, the simplicity in setting up and managing LLCs, the universal eligibility, ability for the formation of a single-member LLC, the flexibility in location, the privacy benefits, asset protection facility and corporate ownership, and the facility for same-day creation of the LLC.
There are specialized companies that offer Nevada LLC services to organizations. These services include name availability search, preparation of the Nevada LLC application, execution of Nevada LLC filing forms, status monitoring of the application, all correspondence with the state of Nevada, a 24-hour online customer status center, guarantee of filing success and the forwarding of important Nevada LLC documents, amongst others.