Thursday, June 25, 2015

Nevada Multi Member LLC Operating Agreements Require Thought and Customization

New York "business divorce" lawyer Peter Mahler blogs about his experiences involving two members of a New York limited liability company who relied on LegalZoom to draft their LLC's operating agreement. New York's LLC laws differ from Nevada's, but the key takeaways may be the same for Nevadans considering entering into a partnership based on an online, cookie-cutter document:
[When] the members’ relationship turned bitter .... shortcomings in the operating agreement also contributed significantly to the parties’ legal postures and willingness to risk litigation.... I’m not suggesting that every lawyer-drafted LLC agreement is a model of perfection, but I found ... that a standard form operating agreement being sold online by a major company to the unknowing public as a more affordable alternative to using a lawyer ... suffer[ed] from such a fundamental flaw that, in the end, only intensified the parties’ legal conflict.
LegalZoom LLC Agreement: Bargain or Blunder?

Friday, June 19, 2015

Nevada Corporation Business License Fee Increased

As part of an overall state budget, Nevada's state license business fee for corporations will increase on July 1, 2015, from $200 to $500 per year. Nevada limited liability companies will remain at $200 per year. Both fees were slated to decrease to $100 per year until the recent lawmaking. Additionally, annual list fees for most corporations and LLCs will also increase from $125 to $150 per year.

The tax package that was enacted to balance the state budget also makes "temporary" increases in the sale tax and payroll taxes permanent.

Nevada does not have a state-level corporate tax.

For new incorporations, it may be possible to easily avoid the increased fee by selecting an LLC instead. For existing Nevada corporations, there are some other alternatives to consider, the complexity of which will vary depending on the client's circumstances - please contact me to discuss these.