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Q&A: Does a Nevada state business license required for a Nevada LLC that is formed to hold real estates?

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Question by ibkid i: Does a Nevada state business license required for a Nevada LLC that is formed to hold real estates?
I am forming a Nevada LLC to hold my real estates in Nevada, soldly for asset protection. Do I need to get a state business license (0) as well as EIN? I understand I would need it if I was conducting an active business in Nevada, but real estate holding/asset protection is passive. Thanks in advance for your help.

Best answer:

Answer by Martha
If it is your personal residence than you should file for an EIN number but request to be a disregarded for tax purposes. By placing it directly into the LLC you could loss the capability of taking personal tax write offs if you do not elect for the entity to be disregarded for tax purposes. You should not need to obtain a business license. Also, be aware that if you have a mortgage on you personal residence and placed the property directly into the LLC you may be in breach of your mortgage contract and your mortgage company could request payment for the full amount owed.

If the property is an investment property that you plan to rent out, than you will need to obtain a business license, the state just increased the state license fee to 0.00. You will need to obtain and EIN number so that you can open a bank account for depositing rental income and filing taxes. Again, if the property is mortgaged you may be in breach of your mortgage contract.

Nevada LLC’s are the absolute best possible entity for asset protection; however, when it comes to real property there can be complications when transferring the property into the LLC.

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