In Nevada, you may incorporate a S corporation (S corp) by founding a limited liability company (LLC) or a corporation, then choosing S corp status from the IRS when you file for your EIN.
An S corporation is a tax categorization, not a company structure, according to the IRS. The S corp classification is used to lower a company’s tax burden.
In our How to Start a S Corp in Nevada tutorial, we’ll walk you through the steps.
Table of Contents
Considerations Before Forming a S Corp
You must examine the following things before founding a S corporation:
Is a S corporation the best option for your company?
S corporation limitations
Why is an LLC the ideal structure for the S corporation tax status?
Are the tax benefits of a S corporation good for you?
Is a S Corporation the Best Business Structure for You?
Considerations Before Forming a S Corp
You must examine the following things before founding a S corporation:
Is a S corporation the best option for your company?
S corporation limitations
Why is an LLC the ideal structure for the S corporation tax status?
Are the tax benefits of a S corporation good for you?
Is a S Corporation the Best Business Structure for You?
How to Form a S Corporation
There are two major methods to form a S corporation:
When requesting your employee identification number, organize an LLC and obtain S corp tax status from the IRS (EIN)
By creating a company and applying to the IRS for S corp status
We do not advocate forming a company with the S corp tax status since it undermines all of the advantages of forming a corporation.
Forming an LLC and Choosing S Corp Status in Nevada
To form an LLC and elect S corp status, follow these five simple steps:
Step 1: Give Your LLC a Name
Step 2: Select a Registered Agent.
Step 3: Submit the Articles of Incorporation.
Create an Operating Agreement in Step 4
Step 5: Obtain an EIN and submit Form 2553 to elect S Corporation tax status.
Step 1: Give Your LLC a Name
The first and most significant step in forming an LLC in Nevada is deciding on a name.
Make sure your name conforms with Nevada naming regulations and is readily searched by prospective customers.
1. Follow the Nevada LLC naming guidelines:
The terms “Limited-Liability Company,” “Limited Liability Company,” “Limited Company,” or “Limited” or the acronyms “Ltd.,” “L.L.C.,” “L.C.,” “LLC,” or “LC” must be in your name. The term “Company” may be shortened to “Co.”
Certain terms in your corporation’s name must be approved by Nevada.
To use the terms accountant, accountancy, accounting, auditor, auditing, certified public accountant, and CPA, you must get permission from the Nevada State Board of Accounting.
To use the phrases bank, banc, banque, savings & loan, banker, bancard, banq, thrift, banking, banco, bancor, trustee, interbanking, bancorp, credit union, debt collection, collection agency, or trust, you must get permission from the Nevada Commissioner of Financial Institutions.
To use the terms adjuster, indemnity, reinsurance, underwriter, annuity, insurance, risk retention group, underwriting, casualty, life & accident, surety, bail, bail bonds, fugitive recovery, bail bondsman/men, bounty hunter, and bale, you must get permission from the Commissioner of Insurance.
To use the terms financial, mortgage, or mortgage banking, you must first get permission from the Commissioner of Mortgage Lending.
To use the phrases engineer, engineered, engineering, professional engineer, registered engineer, and licensed engineer, you must get permission from the State Board of Professional Engineers.
To use the terms architect, architecture, registered architect, licensed architect, registered interior designer, registered interior design, residential designer, registered residential designer, licensed residential designer, and residential design, you must obtain permission from the State Board of Architecture, Interior Design, and Residential Design.
To use the terms common-interest community, community association, master association, unit-owners’ association, and homeowners’ association, you must get permission from the Administrator of the Real Estate Division of the Department of Business and Industry.
The Ombudsman must approve the use of the terms common-interest community, community association, hoa, home owners association, master association, unit-owners association, and property owners.
You will also need permission to use the terms college, university, and higher education.
2. Does the name exist in Nevada? You may check the Nevada Secretary of State website’s business entity search to discover whether your preferred LLC name is available.
3. Is the URL accessible?
We suggest that you check to see whether your company’s name is accessible as a web domain. Even if you don’t intend to construct a company website right away, you may want to purchase the URL to prevent others from gaining it.
Step 2: Select a Nevada Registered Agent
Your Nevada LLC must have a registered agent.
A registered agent for your LLC will accept legal papers and tax notifications on your behalf. When you submit your LLC’s Articles of Organization, you will name your registered agent.
Many company owners opt to use the services of a registered agent. Many of these firms will incorporate your LLC for a modest price and provide free registered agent services for the first year.
Consent to Appointment of a Nevada Registered Agent
Nevada registered agents must submit a Registered Agent Acceptance form to confirm their appointment.
The form contains:
The name of your LLC
The registered agent’s name
The registered agent’s signature
The execution date
The acceptance form is also included in the Nevada LLC creation kit on paper.
Step 3: Submit the Articles of Organization for the Nevada LLC.
To properly register an LLC, the Nevada Articles of Organization are utilized.
Step 4: Draft an Operating Agreement for your LLC.
An LLC operating agreement is a legal document that defines your LLC’s ownership and member responsibilities.
Step 5: Apply for an EIN and fill out Form 2553 on the IRS website.
An EIN is a number assigned by the US Internal Revenue Service (IRS) to companies in order to identify and tax them. It is basically a business’s Social Security number.
When you apply directly with the IRS, EINs are free.
Select S Corporation Tax Status
The IRS will give a link to Form 2553, the Election by a Small Business form, during the online EIN application process.