LLC in Nevada - Posted by Dan (Michigan)

Posted by osupsycho (OK) on July 19, 2005 at 08:48:38:

From what I understand the way that is recomended to avoid this problem is that the nevada corp does not do business in the other state. The nevada corp is a separate (on paper) business that sells its services in nevada and the other business goes there to buy (or lease) them. The key is that the local business must have no value on paper. In other words it must owe (on paper) as much or more money as it is worth to the nevada corp. Thus if someone sues the local company and wins it does not matter because it has no real value (it owes more than it is worth). This makes the suit a dead end and keeps the owners of the nevada corp secret (even though they are the same as the local company).

This seems to me to be only needed if you set out to do bad business or if you were in a highly litigious business. Way to much trouble, time and money for the small chance that it will ever be used. Of course you would get to take “business” trips to Nevada…Vegas baby Vegas!

LLC in Nevada - Posted by Dan (Michigan)

Posted by Dan (Michigan) on July 14, 2005 at 15:05:44:

I’m considering setting up a corporation in Nevada to gain better protection for my future ?Lonnie? deals and land/home packages from possible lawsuits, increase my anonymity, etc.

Have any of you gone through Nevada to set up s-corps or LLC?s as apposed to doing it in your home state?

Re: LLC in Nevada - Posted by John Merchant

Posted by John Merchant on August 02, 2005 at 10:27:48:

I’d advise some caution and some very careful reading if you’re going to hire anybody else to do your NV corp for you.

A friend of mine in WA ended up paying more than $7000 to some so-called corp expert in NV to get his set up and registered…when he could have done it himself for just a few hundred.

For the NV Registered Agent, I’d recommend you shop the NV yellow pp. to find a cheap one there.

Lawyers have used and relied on CT (Corporate Trust Corp.) for lots of years to both inc. and for AFS in every state as they’re in every state…maybe not the cheapest but very reliable.

Re: LLC in Nevada - Posted by Tom (WA)

Posted by Tom (WA) on July 21, 2005 at 12:08:26:


You are worrying too much and making this much more complicated that it needs to be. Life is full of complications anyway, don’t find ways to create more. Just start buying and selling. An LLC in your state is just fine.

Wyoming Corps are also good - Posted by docniss

Posted by docniss on July 21, 2005 at 10:14:56:

I set up a Wyoming corp for protection, a few hundred less than setting up the Nevada LLC. Did it through Nevada Corporate Center. Was fast and easy.

Good luck

Re: LLC in Nevada - Posted by Bill (OH)

Posted by Bill (OH) on July 16, 2005 at 06:53:29:

We just attended John Hyre’s Entity Seminar this week. Excellent!! I strongly recommend getting his course/attending the seminar before you spend $$$. What we are saving setting up our first 2 entities more than pays for the total investment. Not an infomercial, I’ve had his other course on bookkeeping for a while & it’s great too. Bill (OH)

Re: LLC in Nevada - Posted by Lyal

Posted by Lyal on July 15, 2005 at 07:26:14:

If you plan on doing business in your state, your NV LLC or Corp or whatever will be required to register as a “foreign entity” in your state. With the info required to do that, your anonymity and protection is gone.

In my opinion, and I’m not any authority, better to set it up in your own state, do business ethically and keep a low profile (hold title to property in trust etc).

I know John Hyre had a seminar recently on entities. You should consider attending something like it to get an expert’s opinion.

Re: LLC in Nevada - Posted by John

Posted by John on July 14, 2005 at 15:54:57:

I have heard of this also, suppose to be the cats meow for some reason, I’ll be curious to read the details anyone may have.

Re: Wyoming Corps are also good - Posted by alton m browning

Posted by alton m browning on September 02, 2005 at 15:53:13:

i need to set up llc as i am seeing if i can work for the govmt anything special i need?

Re: LLC in Nevada - Posted by New Mexico LLC

Posted by New Mexico LLC on July 21, 2005 at 11:10:42:

A NM LLC is better for anonimity.

for lawsuit protection you should set up an LLC in your home state.

Re: LLC in Nevada - Posted by JeffB (MI)

Posted by JeffB (MI) on July 14, 2005 at 18:24:33:

John Hyre spoke about this several months ago when he spoke at our local RE investor’s group. He was frowning on the idea, though I can’t remember the specific reason. Something to do with it not offering any tangible benefits, I believe.

Re: LLC in Nevada - Posted by Mike (Seattle WA)

Posted by Mike (Seattle WA) on July 14, 2005 at 16:19:04:

A Little info:

Nevada corps are supposed to offer more protection because the state won’t allow anyone - including the IRS - to look at company filing infomation. I believe this also includes assets controled by the company.

For what it’s worth, I just set my LLC up locally in Washington. If someone wants to sue me that bad, the Nevada corp isn’t going to make a difference.

Re: LLC in Nevada - Posted by RMS

Posted by RMS on August 15, 2005 at 17:39:05:

I want to set up an LLC in New Mexico. How do i get an

Application? Let me Know soon.

Re: LLC in Nevada - Posted by osupsycho (OK)

Posted by osupsycho (OK) on July 18, 2005 at 08:45:42:

John Hyre just came to our local REI meeting last week and spoke. I loved what he said about entities and the analogy he used.

He said that an entity is like a knife in war. You don’t start with a knife, you first call in the bombers to bomb the crud out of the enemy, then you use artillery to blast the crud out of what survived, then you use the tanks to blast the crud out of the remaining stuff, then you use machine guns to shoot the remains, and finally if there is anything left you use your “knife” to stab it.

In other words it is good to have an entity for protection (he was not talking about the tax benefits in this scenario) but it is not the only, or even best, thing you should be doing. Just being smart and using good business practices (ie being ethical) will solve most problems.

Re: LLC in Nevada - Posted by Jeff Lewis

Posted by Jeff Lewis on July 17, 2005 at 08:31:08:

Nevada also will allow issuance of Bearer Shares making whomever the owner of the shares is the owner of all. It can all be set up for total anonymity.

Re: LLC in Nevada - Posted by Lyal

Posted by Lyal on July 18, 2005 at 20:28:19:

But again, to do business in a particular state you need to register as a foreign entity and divulge all the particulars (officiers, members etc.) which negates all the reasons for creation in Nevada.