How To Change Sole Proprietor to LLC in Nevada
Nevada is one of the few states that does not require a reason to change your business classification, but there are still benefits to doing so. If you are considering changing from sole proprietor to LLC in Nevada, this blog post will help explain what goes into the process, why a business lawyer in Las Vegas can help, and how much it costs.
Why You Cannot Convert Sole Proprietorship To LLC
Converting from a Sole Proprietorship to an LLC can be a tricky business. First off, there is no such thing as converting your sole proprietorship into an LLC--you are changing over by forming the new entity (an LLC) then stop using your old one. This conversion process will involve some legal paperwork that you should consult with both an attorney and accountant before proceeding.
How To Start An LLC
Ensure Your Business Name is Available
Finding the perfect business name can be a challenging task. To make sure your desired title is available, you should do some research online to check availability with state databases and searchable legal filing services.
Articles of Organization
The next step is to file your Articles of Organization with the state office. The document itself can be simple and straightforward, but you’ll need information like LLC name/address as well as a purpose for it (allowing any lawful activity).
The most important thing when filing an Articles of Organization is filling out this form correctly--after all, there are consequences if you don't do so!
While the LLC is a great choice for those looking to protect their personal assets while enjoying increased flexibility in the organization, there are still some small documents that need attention. Some states require an operating agreement document that details who may manage and own your company should you ever decide to sell it or go bankrupt.
Register with the IRS
If you already have an EIN, then the good news is that there's no need to apply for a new one. If not, don't worry! You're going to be fine with this step because it only takes about 24 hours and doesn't cost anything extra!
When starting out in business it’s important to set things like tax filing status and employer identification straight before opening any accounts or taking on employees so registering for an IRS Employer Identification Number might just take care of some headache-causing details right off the bat!
Open a New Bank Account for your LLC
Congratulations! After your LLC in Nevada is approved and you've received confirmation from the IRS, opening an account for it will be a breeze.
Update your Details
Now that you have your new LLC, all of the marketing materials and anything else related to it will need an update. This includes updating a website with business cards for customers and vendors alike as well as checking post office records so they understand what kind of company you are running!
Changing a business' legal identity is not as simple of an update as changing account passwords or switching out old stock photos you've been using in marketing materials - this change comes at a significant cost (not financial) so be sure to take care when choosing what words best describe who you are now. There’s no need to go about making these changes alone either; we provide support through every step of opening up shop by helping facilitate connections with the help of our business lawyers, that will help answer any questions along the way while ensuring everything gets done right.