A Nevada LLC affords the option of many owners or managers or members, or just one Manager (owner).

In basic words, a Nevada LLC is taxed as a Partnership, unless S status is applied for with the IRS. (However, if a Nevada LLC has only one owner, the LLC will be taxed as a sole proprietorship.) Comparably, an S Corporation has the same qualities but different disadvantages. One of these is the limit on stock holders. In other words, an S status affords the Nevada LLC offers single taxation while avoiding the double taxation of C Corporations.

Double taxation for C Corporations means that C Corporations pay taxes at the corporate level, and then again on dividends, bonuses or salaries. S Corporations or S LLC's on the other hand, file an election with the IRS to obtain S status, which means, again, that the profits, instead of being taxed twice, pass-through to a person’s personal income.

One of the drawbacks of S Corporations is that each owner must be a citizen of the United States, or at least a longtime resident. Also, there is a limit to the number of shareholders—the limit is seventy-five.

The Nevada Advantage

If a Nevada LLC owns or has title to the house, everything is deductible: real estate taxes, interest on your mortgage payments, property management fees, all of the maintenance and upkeep such as landscaping, pool service, home repairs & home improvements such as painting—and even the garbage service is deductible.

Retirement planning will allow you to put aside cash that won't be taxed until retirement at a much lower tax bracket. For example, after paying the first $25,000.00 of FICA taxes on your Social Security, you may direct the rest of your FICA taxes toward the retirement deferred plan of your choice.

Health Insurance costs paid by a Nevada LLC can include unlimited expenses, such as surgical, physician & and dental insurance. Moreover, all of your non paid insurance medical expenses for your family are 100% deductible when your family members are corporate officers of a Nevada LLC. In addition, 100% of medical premiums can be deducted against the profits of a Nevada LLC—up to the extent of the pro-rate or share of the LLC's net profit.

A Nevada LLC is privileged by law to have many tax deductions which are not attainable for individuals. Moreover, Nevada LLC's have a lower tax rate than most at every stage of their income.

Nevada Revised Statutes do not require any owner of a Nevada LLC to register with the state their accumulated or net worth. Moreover, Nevada has always held to the policy of no reciprocation of favors with the Internal Revenue Service. Unlike other states, Nevada continues to decline record keeping of private information. Indeed, Nevada leads the way in protecting your assets.

Forming a Nevada LLC is the first step for informed people and business proprietors to protect their assets; that is, if they choose Nevada. The benefits of forming a Nevada LLC entity are varied and many. The benefits of any corporate entity far outweigh the benefits of a sole proprietorship.

Now  a Nevada LLC provides unique liability protection, whereas failing to incorporate provides no liability protection whatsoever. As already mentioned, Nevada provides the strongest corporate veil of all the states, and has never been pierced. In the liability protection afforded a Nevada LLC, creditors can't pursue an officer or member/manager's personal assets for business indebtedness unless they've broken the law.

Consider, then, that corporate entities have tax favorable savings compared to that of being a proprietorship: self-employment taxes; life insurance; owner-officer health insurance premiums; corporate improvements on personal property for reason of corporate image, and many more.

Unlike the profit of C Corporations, the profit-income of S Nevada LLC’s are passed-through to the individual and reported on the individual's personal income tax return, instead of being taxed first before the profits are divided. For the record, there are fewer restrictions on LLC ownership compared to that of S Corporations (One hundred shareholders is the maximum for S Corporations.). Be sure to check with your CPA for proper guidance.