What you should know before you file
Plain-language answers to the questions clients ask most often. If yours isn’t here, send us a note via the contact form.
Why form a corporation or LLC?
Liability. If you do business as a sole proprietor and get sued, your personal assets are at risk. If you do business through a corporation or LLC, the lawsuit names the entity, not you personally. The cost of incorporating is small relative to the protection it provides.
What is the difference between an S corporation and a C corporation?
S corporation: profits and losses flow through to the individual shareholders. To elect S status, file IRS Form 2553 within 75 days of incorporation. We complete this form for you at no charge. Limits apply: under 75 shareholders, individuals or qualifying trusts only, no preferred stock with special liquidation or dividend rights.
C corporation: the corporation pays its own income tax on Form 1120; shareholders are then taxed again on dividends. C status is typical for companies expecting more than 30 shareholders or a public offering. Most of the corporations we form are C/closed corporations.
What is an LLC and when should I use one?
An LLC is best for ownership groups that will stay the same start to finish. There is no stock; ownership is held as 100% membership interest. LLCs are particularly appropriate for investment real estate. If a tenant slips, falls, and sues, they sue the LLC - not you personally. The lease should be in the LLC’s name and rent checks payable to the LLC so there is no doubt the owner is the company.
An LLC can elect S-corp or C-corp tax treatment. There are no record-keeping requirements, no board of directors, no annual meetings, no corporate minutes, and no corporate veil to be pierced.
What does a registered agent do?
If someone sues your corporation or LLC, service of the lawsuit is delivered to your registered agent. The agent forwards the lawsuit to you. Nevada law requires every entity to have a registered agent with a Nevada street address (NRS 86.231 for LLCs, NRS 78 for corporations).
You are free to change agents at any time. Our annual fee to act as your agent is $50. The state charges $125 for the annual list and $60 for the change-of-agent form.
How much does it cost to form a Nevada company?
Standard service ($299 + state fees, three weeks): $125 to the Secretary of State for the initial list, $95 to LorettCo, $100 to Nevada for the State Business License. Annual list fees can be higher if stock value exceeds $75,000.
Expedited service ($474 + state fees, 24 hours): we pick your papers up at the Secretary of State the next business day.
How long does formation take?
Three weeks for standard service. About 24 hours for expedited service - if you place your order at 11:00 a.m. today, your filed papers are picked up at 11:00 a.m. tomorrow.
What do you need from me to form my company?
Four things. (1) The name of your company plus one alternate. You don’t have to use “Inc.” or “Corporation” - but only corporations are allowed those endings, so they’re a useful signal. We’ll check name availability free. (2) The names of your director(s) - you only need one. (No names needed if you use our $250 nominee service.) (3) The mailing address where you want your original paperwork sent. (4) Payment - Visa, Mastercard, Amex, cashier’s checks, and personal checks all accepted.
Do I need a corporate book or seal?
No. Per NRS 78.065, the use of a seal or stamp by a corporation on any corporate document is not necessary. You are free to obtain a corporate minute book or seal on your own. Many incorporators mark these up; check around before you buy.
How does the money-back guarantee work?
If you are not happy with our formation service, return your original formation papers to us and we refund your fee. We retain the original paperwork and file an amendment to change the company name; you are free to file under the name you originally chose with another provider.