Forming a business in Nevada can be a detail-oriented process and getting it right the first time is critical to avoid a lot of headaches and issues in the future. There are a number of different types of business entities available in Nevada, and the first thing you’ll want to do is choose which one is best for you.
The most popular business entity in Nevada is the LLC, or Limited Liability Company. Attorneys or other professionals sometimes form a PLLC, or Professional Limited Liability Company. Other popular kinds of business entities are Limited Partnerships, C-Corps, and S-Corps. Let’s look at the different options you have, and take a closer look at the benefits provided when you form an LLC in Nevada, as well as what you should do to be sure it’s done right.
Forming an LLC in Nevada
The first thing you should always do is talk with your partners to determine the kind of business you want to establish. Each business entity has its own specific set of rules so you should take some time and talk with your proposed partners about your goals for the particular venture as this will have an effect on the kind of business entity you choose. Consider things like taking on future investors, expansion to other jurisdictions, or even whether or not you plan on taking your company public down the road.
Your Governing Documents
When you begin the process of forming an LLC in Nevada, you will definitely want to spend some time preparing a solid set of governing documents or your “operating agreement”. You can think of the operating agreement at the constitution for your company, because it dictates the rules for how the company will be governed moving forward. Things such as voting rights, the structure of meetings and how to dissolve the company if needed are governed by your operating agreement. The more detailed and specific your governing documents are, the better off you’ll be as you move forward with your company. Take time to discuss the operating agreement in detail with your partners to make sure everybody is in agreement before you execute the document. Just pulling a copy of an operating agreement off of the internet might work for you, but cookie cutter operating agreements are not for everybody.
The Costs of Forming Your Limited Liability Company
The fees in Nevada for forming an LLC are rather low, and the price is well worth it to protect your personal assets and the assets of your other businesses. Spending some money early on to make sure this is all done properly can potentially save you many thousands of dollars down the line in legal fees, should you end up having to fight things out in court.
Working with an Attorney
Even though the process seems fairly straightforward, it’s always a good idea to work with a qualified attorney when forming an LLC in Nevada. The right Nevada business lawyer will be able to walk you through the entire process and make sure you get everything right the first time. For help establishing your business, contact Connor & Connor, PLLC, today.