Nevada LLC for Foreign Investors
Zero state income tax with strong privacy and asset protection
0% State Tax
No income or franchise tax
Privacy Protected
No member disclosure
Charging Order
Exclusive remedy
No IRS Sharing
State privacy from feds
Why Nevada for Your US Business?
Nevada has positioned itself as one of the most business-friendly states in America with a compelling combination of tax advantages, privacy protections, and flexible business laws.
Key Advantages
- No corporate income tax
- No personal income tax
- No franchise tax on income
- Privacy in public filings
- No IRS information sharing
Best For
- Asset protection structures
- Holding companies
- Real estate investments
- Trading entities
- Privacy-focused investors
Nevada vs Delaware vs Wyoming
For foreign investors focused on asset protection and privacy, Nevada and Wyoming are typically better choices than Delaware. Delaware's advantages primarily benefit companies seeking venture capital or planning to go public.
🚫 No State Income Tax
Nevada has no corporate income tax, no personal income tax, and no franchise tax based on income. Your LLC profits are not taxed at the state level.
🔒 Privacy Protections
Nevada does not require disclosure of member or manager names in public filings. Your ownership can remain private from public searches.
🛡️ Charging Order Protection
Nevada provides the exclusive remedy of charging order protection, meaning creditors cannot force liquidation of your LLC interest.
📊 No IRS Information Sharing
Nevada has no information sharing agreement with the IRS, providing an additional layer of privacy for your business records.
Nevada vs Other States
| Feature | Nevada | Delaware | Wyoming |
|---|---|---|---|
| State Income Tax | None | None (non-DE) | None |
| Annual Fees | $350/year | $300/year | $60/year |
| Privacy | Yes | Yes | Yes |
| Charging Order Exclusive | Yes | No | Yes |
| No IRS Sharing | Yes | No | Yes |
| Series LLC | Yes | Yes | Yes |
| Court of Chancery | No | Yes | No |
Federal Tax Treatment
Your Nevada LLC will be taxed at the federal level based on your election:
Tax Classifications
- Single-Member: Disregarded entity (Form 1040-NR)
- Multi-Member: Partnership (Form 1065, K-1s)
- Corporation: C-Corp (Form 1120)
- Note: Foreign owners cannot be S-Corp shareholders
Effectively Connected Income (ECI)
If your Nevada LLC conducts a trade or business in the US, the income is considered Effectively Connected Income and is taxed at regular US tax rates. You must file a US tax return and may need to make estimated tax payments.
FIRPTA Withholding
If your Nevada LLC holds US real estate, the Foreign Investment in Real Property Tax Act (FIRPTA) requires withholding of 15% of the gross sales price when you sell. Proper structuring can help minimize this burden.
State Tax Nexus
While Nevada has no state income tax, if your LLC does business in other states (owning property in California or having employees in Texas), you may have tax obligations in those states. Nevada formation does not exempt you from taxes in states where you have nexus.
Formation Process
Steps 1-4
- Choose LLC name (must include "LLC")
- Appoint Registered Agent ($100-300/yr)
- File Articles of Organization ($75)
- Obtain State Business License ($200)
Steps 5-8
- File Initial List ($150)
- Apply for EIN (Form SS-4)
- Draft Operating Agreement
- Open US Bank Account
Registered Agent Requirement
Nevada requires a registered agent with a physical address in the state. As a foreign investor, you will need to hire a registered agent service (typically $100-300/year).
Initial List Filing
Within 30 days of formation, file the Initial List with the Secretary of State. This can list a manager rather than disclosing all members for privacy. Fee is $150.
Annual Requirements
Annual Filings
- Annual List of Managers/Members: $150
- State Business License Renewal: $200
- Registered Agent Maintenance: ~$150
- Federal Tax Returns (based on classification)
- BOI Reporting (FinCEN requirement)
Total Annual Cost: Approximately $500/year for basic Nevada LLC maintenance, plus professional fees for tax preparation.
Filing Deadlines
Annual List and Business License are due by the last day of the month in which your LLC was formed. Keep your registered agent current; update within 30 days of any changes.
Charging Order Exclusivity
Nevada law makes the charging order the exclusive remedy for a creditor of an LLC member. This means a creditor cannot foreclose on your LLC interest, force distributions, or compel liquidation. They can only receive distributions if and when you choose to make them.
Single-Member LLC Protection
Unlike many states, Nevada explicitly extends charging order protection to single-member LLCs. This is crucial for foreign investors who often operate as sole owners.
Operating Agreement Flexibility
Nevada allows significant customization of your operating agreement, including provisions for restricted transfer of interests, buy-sell arrangements, and management succession that can further enhance asset protection.
When Nevada May Not Be Right
Consider Alternatives If
- Seeking venture capital (Delaware preferred)
- Real estate in other states (form in that state)
- Budget constraints (Wyoming is cheaper)
- Need established case law (Delaware has more)