Nevada LLC - Limited Liability Company

A company established under limited liability, implies that it exists a legal person separate from its owners; with ability to transact on its own as a legal person, sue or be sued, own property as well as recruit its own human resources.

For a private company, it will be convenient to start one as a limited liability company. Below are some of the characteristics of a company with limited liability:

• Liability protection for business owners.
  • The liability of the company does not extend to its members personal property. Personal assets of owners are not at risk of being lost is need be for a takeover or liquidation. The company carries its own liabilities with its assets and not those of its members. This is different from the owners of partnerships or sole proprietorship who may be called upon to settle the business liabilities and debts from their personal assets.
• Taxes are limited to the business itself.
  • The federal taxation of "C" corporations usually extends to the dividends of the shareholders, while in Limited Liability Companies only the business itself is subject to tax. In essence, Nevada corporations are subject to double taxation - once for the corporation itself and then again for the individual shareholders, which is not the case with the Limited Liability Company.
  • A proper understanding of the laws governing the taxation of limited liability companies is essential since these laws vary depending on the region or states where you intend to do business.
• Less paperwork.
  • Nevada corporations are required by law to file annual reports, including minutes, shareholder notifications, etc. There is no such requirement for annual reports for LLCs. However, LLCs may prepare this reports for internal purposes .i.e. Managerial reasons
• Flexibility.
  • The stringent rules and regulations that dictate a corporation's organizational structure like in Nevada corporations do not apply to LLCs. In general an LLC tends to take up an informal nature than a corporation.
• State Regulations
  • Different states have their own unique requirements and costs associated with LLCs. In some states, it costs more to launch a LLC than to incorporate a business, while in others the cost is the same. In other states you may be required to pay an annual fee for LLCs while in some other states, an LLC is required to have at least two partners.