How to set up an LLC for your rental property in Nevada

If you’re a landlord or real estate investor in Nevada, you’ve probably heard that setting up an LLC for your rental property can offer some potential benefits. From personal liability protection to possible tax advantages, an LLC (limited liability company) is a popular choice for holding rental properties. But Nevada has its own rules, fees, and processes that make it unique. In this article, we’ll walk through everything you may want to know about how to set up an LLC for a rental property in Nevada, including costs, timelines, and ongoing requirements.

What an LLC is and what it protects you from as a landlord

An LLC is a business structure that generally aims to separate your personal assets from your business assets. For landlords, this means that if someone sues your rental property LLC, your personal finances—like your home, car, or savings—may be shielded from claims. This is a common reason many landlords wonder should landlords use an LLC.

That said, an LLC isn’t a magic shield. It won’t protect you if you personally guarantee a loan, commit fraud, or fail to maintain the LLC’s formalities. Also, it doesn’t replace insurance; it’s a legal structure, not a risk management tool. For more on how an LLC stacks up against other protections, check out our article on LLC vs umbrella insurance.

Step-by-step: how to set up an LLC for a rental property in Nevada

Setting up an LLC in Nevada is fairly straightforward if you know the steps. Here’s the typical process:

1. Choose a name for your LLC. The name must be unique in Nevada and include “Limited Liability Company” or an abbreviation like “LLC.” You can check name availability on the Nevada Secretary of State’s website.
2. Designate a registered agent. Nevada requires an in-state registered agent to accept legal documents for your LLC. This can be a person or a business authorized to do business in Nevada.
3. File your articles of organization. This is the official document that forms your LLC (more on this later). You file it with the Nevada Secretary of State, either online or by mail.
4. Create an operating agreement. Nevada doesn’t require this, but it’s highly recommended. It outlines the ownership and management structure of your LLC and helps preserve your liability protection.
5. Obtain an EIN from the IRS. This is your LLC’s employer identification number, needed for tax purposes and opening a bank account.
6. Register for state taxes (if applicable). Depending on your situation, you may need to register with the Nevada Department of Taxation.
7. File your initial list of managers or members and business license application. Nevada generally requires you to file an Initial List and obtain a state business license within 30 days of forming your LLC.

How much does it cost to set up an LLC in Nevada?

When thinking about how much does it cost to set up an LLC in Nevada, consider these fees, which are higher than most states.

• LLC filing fee: The fee to file your articles of organization with the Nevada Secretary of State is $425 total. This includes a $75 filing fee, a $150 initial list fee, and a $200 state business license fee.
• Annual fees: Each year after formation, you typically pay $150 for your Annual List and $200 for your business license renewal. These are generally due by the last day of the anniversary month your LLC was formed.
• Registered agent fees: If you hire a professional registered agent, expect to pay $100 to $300 annually.
• Optional costs: Operating agreement drafting or legal help, if you choose to pay for those services.

Keep in mind, Nevada’s fees tend to be higher than many other states due to the business license requirements, so budgeting accordingly is important.

How long does it take to set up an LLC in Nevada?

The answer to how long does it take to set up an LLC in Nevada depends on your filing method:

• Online filings: Typically processed within 1 to 3 business days.
• Mail filings: Usually take 7 to 10 business days.

Nevada also offers expedited processing for an additional fee if you want to speed things up.

Articles of organization: what are they and how to file them in Nevada

What are articles of organization? They’re the official documents you file with the state to create your LLC. The articles include basic info like your LLC’s name, registered agent details, and the management structure (member-managed or manager-managed).

In Nevada, you file your articles of organization online through the Nevada Secretary of State's SilverFlume portal. You can also mail a paper form if you prefer. Filing online is faster and more convenient.

Remember, the articles of organization are the first step—the state won’t recognize your LLC until they’re approved.

Do I need a lawyer to start an LLC in Nevada?

A common question landlords ask is do I need a lawyer to start an LLC? The good news is that starting an LLC in Nevada is designed to be accessible for non-lawyers. Many landlords successfully file the articles of organization and complete the steps on their own.

However, you might want to consult a lawyer or a professional service if:

• You’re unfamiliar with Nevada’s specific LLC requirements.
• You want help drafting an operating agreement tailored to your situation.
• You’re concerned about complex ownership structures or multiple members.

If you feel comfortable with paperwork and online filings, you can definitely DIY the process. Just be sure to carefully follow Nevada’s requirements.

How to get an EIN for an LLC that owns rental property in Nevada

After setting up your LLC, you’ll likely need an EIN (employer identification number) for tax reporting and banking. This is true even if your LLC is a single-member entity.

Getting an EIN is free and easy. You apply directly on the IRS website through their online EIN application. The process only takes about 10 minutes, and you receive your EIN immediately.

You can learn more about applying for an EIN on the IRS website.

Do LLCs need annual reports and other ongoing compliance in Nevada?

Yes, LLCs in Nevada have ongoing compliance requirements. Do LLCs need annual reports? In Nevada, instead of a traditional annual report, LLCs must file an Annual List of Managers or Members and renew their State Business License every year.

These filings are generally due on the last day of the anniversary month of your LLC formation. The total fee for these filings is $350 ($150 for the Annual List and $200 for the business license).

Late filings may lead to penalties or administrative dissolution, so you may want to monitor deadlines carefully.

S corp vs LLC for landlords: what’s the difference?

Many landlords wonder about the difference between an LLC and an S corporation, especially when it comes to tax benefits.

• An LLC is a flexible business structure that offers liability protection without a lot of formalities. By default, a single-member LLC is treated as a disregarded entity for tax purposes, and multi-member LLCs are partnerships.
• An S corporation is a tax election that an LLC or corporation can make with the IRS. It allows profits and losses to pass through to owners, potentially reducing self-employment taxes.

For landlords, the choice depends on your goals, income level, and willingness to handle additional paperwork. Both structures offer liability protection, but S corps come with stricter operational rules.

It is advisable to consult a qualified tax professional to understand the implications and pros and cons of S corp vs LLC for your rental property.

LLC vs umbrella insurance for rental property risk management

While an LLC provides legal protection by generally separating your personal assets from business liabilities, it doesn’t replace insurance. That’s where umbrella insurance comes in.

An umbrella insurance policy adds an extra layer of liability coverage above your standard landlord insurance. This can cover large claims that exceed your primary policy limits.

For a detailed comparison, see our post on LLC vs umbrella insurance.

In Nevada, landlords should consider both forming an LLC and maintaining robust landlord insurance policies tailored to the state. Learn more about landlord insurance in Nevada to protect your investment.

When does setting up an LLC make sense for Nevada landlords?

An LLC may make sense for many Nevada landlords when:

• You want to help protect your personal assets from lawsuits related to your rental property.
• You’re planning to own multiple rental properties and want to separate them into different LLCs.
• You want a flexible ownership structure for partners or investors.

However, an LLC might not be necessary if you own just one property and have minimal risk, or if the cost and paperwork outweigh the benefits for your situation. Also, remember that the LLC doesn’t replace the need for adequate insurance.

If you’re unsure, consider talking to a qualified attorney or accountant familiar with Nevada real estate law.

Final thoughts and next steps

Setting up an LLC for your rental property in Nevada can provide important legal protections and structure for your real estate investments. While the process is straightforward, understanding Nevada’s specific requirements—such as the LLC filing fee, annual list, and business license—is key.

If you decide to proceed, you may want to start by checking name availability on the Nevada Secretary of State’s site, then file your articles of organization online. You might also consider consulting professionals as needed. Remember to obtain your EIN from the IRS and plan for ongoing annual filings.

And of course, protecting your rental property means more than just forming an LLC. Be sure to review your insurance coverage and consider both LLC and umbrella policies to manage your risk wisely.