Nevada LLC Advantages:

The Nevada Limited Liability Company is a blend between a partnership and a corporation combining the best attributes of both. You get the tax treatment and ease of management of the partnership and the limited liability protection of the corporation. The Nevada LLC has the flexibility to be taxed as pass-through partnership or like a corporation. Owners of the Nevada LLC, called members, get full limited liability protection from personally being responsible for the actions or debts of the LLC – within limits just like the corporation.

Nevada LLC Simplicity:

Nevada LLCs do not have the long and sometimes burdensome history of the Nevada corporation that has not changed significantly in hundreds of years. You will not have to manage all the requirements that Nevada corporations do including annual meetings, notices for those meetings, and formal voting that will ultimately have to be recorded within the corporate record book. My Nevada LLC recommends keeping records to ensure the separation of person and the Nevada LLC.

Nevada LLC Taxes:

Nevada LLCs can be taxed a multitude of ways and will be categorized into the following:

- Sole Proprietorship: If your Nevada LLC has only one member (not
  recommended), the IRS will deem it a disregarded entity.  A single member LLC,
  disregarded entity, will be taxed as a Sole Proprietor.

- Partnership: If your Nevada LLC has more than one member (recommended), 
  the IRS will allow partnership taxation or pass through taxation.

- C or S Corp:  You can elect to be taxed as a normal C Corporation or even an S

  Corporation.

Nevada LLC Charging Order:

A charging order is what a judge can grant a creditor that has obtained a judgment against you for a particular amount of money. Unlike a corporation which a creditor can obtain your stock and then sell, transfer, or anything else they want because the creditor becomes the owner, the Nevada LLC can only provide a court ordered charging order which means any profits that are distributed to the owner, must be paid to the creditor until obligations are paid in full. The charging order does not allow the creditor any management capabilities within the Nevada LLC. This will allow you to amend your operating agreement to keep the profits of the Nevada LLC in the company and pass all tax burdens to the creditor holding the charging order. Charging orders protect the Nevada LLC members significantly that it makes most attorneys settle out of court or even from not suing altogether.

My Nevada LLC recommends forming your Nevada LLC as a manager-managed multi-member LLC because Nevada provides “charging order” protection to this LLC formation structure.