Select a Name for Your LLC in Step 1 The name of your LLC must meet Nevada’s naming criteria before you can submit an Article of Organization. You must use the words “Limited-Liability Company” or an acronym like “LLC” or “L.L.C.” in your name. It cannot use specific restricted words like “bank” or “insurance” unless you have the required license.
Select a Registered Agent in Step 2 Every Nevada LLC is also required to have a registered agent, who agrees to accept legal mail and other official papers on the LLC’s behalf. You have the option of designating yourself as the registered agent or working with a reputable registered agent firm.
Step 3: Submit the Articles of Incorporation You can submit the Article of Organization to the Nevada Secretary of State once your name and registered agent are set. The $75 filing fee is payable either online or by mail. The name of your LLC, the name of its registered agent, and the names and addresses of its members are all listed in the Articles of Organization.
Are Operating Agreements and LLC Agreements the Same Thing? No, an LLC agreement and an operating agreement are not the same thing. An operating agreement is a more comprehensive document that describes how the LLC will be run on a daily basis. An LLC agreement is a legal document that describes the ownership and management structure of the LLC. Even though it is not required by law, every LLCs should have an operating agreement.
Do Operating Agreements and Articles of Organization Have the Same Meanings? Operating agreements and articles of organization are not the same documents. The official document submitted to the state to establish an LLC is called the articles of organization. On the other hand, operating agreements are internal contracts that describe how the LLC will be managed. Although the LLC’s articles of organization may briefly describe its management structure, they are not as comprehensive as an operating agreement. Do Distributions Have to Be Made by an LLC? An LLC is not compelled to distribute money to its members, to be honest. Distributions are payments made from the LLC’s earnings to its members. While LLCs must disperse losses to its members, they are not compelled to do so with profits. LLCs have the option of holding profits in reserves or reinvesting them into the firm.
The number of pages in an operating agreement Depending on how complicated the LLC is, an operating agreement’s length may change. Operating agreements can range in length from a few pages to more than 50 pages. The operational agreement must address all pertinent issues, including the governance structure, member duties and obligations, and how revenues and losses will be distributed.