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Step by Step guide for a foreign person on a Visitor/Tourist, Business visa to setup a Company in Nevada

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Posted on | by rajeshkumar

Below is a deep, step-by-step, end-to-end guide for a foreign person (Indian citizen) who is physically in the U.S. on a Visitor/Tourist visa (B‑2) or Business Visitor visa (B‑1/B‑1/B‑2) and wants to form a Nevada company.

I’m going to be very direct on the biggest risk first: forming a company is usually possible, but working in/for the company while you are in the U.S. on a visitor visa is not allowed.

1) The most important rule: owning a U.S. company ≠ permission to work in the U.S.

What B‑1 / B‑2 visitors can do

The U.S. State Department lists examples of permitted visitor activities. For B‑1 (business visitor) these include things like:

  • Consult with business associates
  • Attend conferences/conventions
  • Negotiate a contract
    (And other limited visitor activities.) (Travel.gov)

What B‑1 / B‑2 visitors cannot do

The State Department also lists “Employment” as a travel purpose not permitted on a visitor visa. (Travel.gov)
It also states: a visitor (B1/B2) is not permitted to accept employment or work in the U.S. (Travel.gov)

Why this matters for your plan

Even if you legally form an LLC/corporation, if you’re in the U.S. on B‑1/B‑2 you should not:

  • provide services to customers,
  • do day‑to‑day operations,
  • manage staff hands-on in the U.S.,
  • receive U.S. payroll compensation for active work,
  • do “productive work” that looks like a job.

Safe framing (typical): On B‑1 you can usually do “setup” activities (meetings, negotiating, opening accounts, signing contracts), but not run operations as work.

Big immigration risk: If you violate visitor rules, you can face serious consequences (denial of entry later, visa cancellation, etc.). Also, failure to leave on time puts you “out of status,” and the State Department notes visas can be automatically void in that situation. (Travel.gov)

Practical recommendation: If you want to actively operate the business while physically in the U.S., talk to a qualified U.S. immigration attorney before doing anything that could be viewed as “work.”

2) Choose the right structure (Nevada LLC vs Corporation)

Nevada LLC (most common for foreign founders)

Pros

  • Simple structure
  • Flexible ownership (members can be foreign)
  • Common for small businesses, consulting, e‑commerce, holding companies

Cons

  • Foreign-owned LLCs can have extra IRS reporting (see Form 5472 section below)

Nevada Corporation

  • More formal (officers/directors, shares)
  • Nevada has a higher state business license fee for corporations ($500/year vs $200/year for most other entity types). (Nevada Secretary of State)
  • Initial filing fees depend on authorized stock value.

If you’re not sure: Most foreign solo founders choose a Nevada LLC, unless they have a specific reason not to.

3) Before you file: address, registered agent, and “living at friend’s rented house” issue

3.1 Registered Agent is mandatory

Nevada requires a registered agent with a physical Nevada address available during business hours to accept legal service of process. (Nevada Secretary of State)
You can use:

  • a Commercial Registered Agent service, or
  • a Noncommercial Registered Agent (a person/company with a Nevada address, typically representing fewer than 10 entities). (Nevada Secretary of State)

Recommendation: If you’re a foreign founder and you’re here temporarily, use a commercial registered agent. It reduces the risk of missed lawsuits/notices and keeps your friend out of legal-service issues.

3.2 Using your friend’s rented home address

This is not automatically illegal, but it creates real risks:

  • Lease restriction risk: Many leases prohibit running a business from the property.
  • Local licensing/zoning risk: If you claim the address as a business location, you may trigger home occupation rules (City of Las Vegas or Clark County, depending on your exact jurisdiction).
  • Mail/legal notice risk: Important tax/legal notices might go to your friend’s home.

Best practice:

  • Use a registered agent address for legal service, and
  • Use a separate mailing address you control (virtual mailbox/office) if you’re not truly operating from the home.

4) Step-by-step: Form a Nevada LLC (Domestic Nevada LLC)

Step 4.1: Optional name reservation

Nevada lets you reserve a name online:

Tip: You can often skip reservation and file directly if the name is available.

Step 4.2: File the LLC formation and initial compliance

Nevada’s business portal is SilverFlume, and Nevada SOS notes most online transactions are processed same day for no additional charge. (Nevada Secretary of State)

Core Nevada LLC state fees (typical):
From Nevada LLC filing instructions (republished copy of NV SOS form):

âś… Total Nevada state fees at formation (LLC): $425 (= 75 + 150 + 200)

Very important deadlines/penalties
Nevada’s LLC annual/initial list + business license form states:

  • Annual list filing fee: $150
  • Late penalty for list: $75
  • State business license fee: $200
  • Late penalty for business license: $100
  • Must be in the possession of the Secretary of State by the due date (postmark not accepted). (CloudFront)

Ongoing annual Nevada fees for an LLC (minimum, state level):

  • Annual list: $150
  • State business license renewal: $200
    → $350/year (not counting registered agent or local license) (CloudFront)

Step 4.3: Expedited processing (if you’re not filing online)

Nevada SOS offers expedited options (fees are additional to filing fees):

  • 2-hour expedite: $500 per filing/order
  • 1-hour expedite: $1000 per filing/order

In practice, if you file online, many founders don’t need expedite. (Nevada Secretary of State)

Step 4.4: Draft an Operating Agreement (not filed, but strongly recommended)

Not a Nevada SOS filing step, but very important:

  • proves ownership and authority (banks/payment processors ask)
  • helps reduce disputes
  • supports liability separation

Do this even for a single-member LLC.

5) Get your EIN from the IRS (critical for bank + taxes)

Step 5.1: Apply for EIN (foreign founders can do it)

IRS EIN application options include online, fax, mail, or phone. (IRS)
Key points from IRS EIN guidance:

  • If you fax your SS‑4, you can receive an EIN in about 4 business days (if you include your fax number). (IRS)
  • If you mail it, it can take about 4 weeks. (IRS)
  • IRS also provides an international phone number for EIN questions/applications. (IRS)

Step 5.2: “Responsible party” must be real

The IRS states the responsible party is the person who controls/manages the entity and that nominees are not authorized to obtain EINs. (IRS)

Don’t do this: put a random U.S. person as “responsible party” just to get an EIN faster if they don’t truly control the company. That can create tax/legal problems.

6) Banking in the U.S. (where foreign founders struggle most)

This is not a Nevada filing rule, but it’s where many foreign founders get stuck.

What banks commonly ask for:

  • Passport + visa + I‑94 record (often)
  • Nevada formation documents
  • EIN confirmation
  • Operating Agreement
  • Proof of address (sometimes both business + personal)
  • Sometimes an ITIN (not always required, but helpful)

Hidden reality: Some banks will not open accounts for non‑residents without:

  • in‑person visit,
  • stronger U.S. address evidence,
  • or additional compliance review.

Recommendation: Expect 1–3 weeks of friction unless you already have strong documentation.

7) Nevada taxes and registrations (Department of Taxation)

Step 7.1: Sales & Use Tax Permit (if you sell taxable goods/services)

The City of Las Vegas home-based business guidance explicitly says you must apply for:

  • Nevada State Business License (SOS), and
  • Nevada State Sales & Use Tax Permit (Department of Taxation),
    before the jurisdictional license application will be accepted.

Nevada Dept. of Taxation also notes cities/counties may require proof such as:

  • Nevada Business Registration or Sales Tax Permit (validated/confirmation). (State of Nevada)

Step 7.2: Commerce Tax (if you get big)

Nevada Commerce Tax applies to businesses with Nevada gross revenue exceeding $4,000,000 in a fiscal year. (State of Nevada)

Step 7.3: Modified Business Tax (MBT) (if you have employees/wages)

Nevada Dept. of Taxation MBT FAQs explain MBT and that an MBT number is issued for paying MBT. (State of Nevada)
If you have no employees and no Nevada wages, MBT may not apply—but confirm for your situation.

8) Las Vegas / Clark County local licensing (this is where your “friend’s rented house” matters)

Step 8.1: First figure out your jurisdiction

Las Vegas addresses can be:

  • City of Las Vegas, or
  • Unincorporated Clark County, or
  • another city (Henderson, North Las Vegas, etc.)

Clark County states that the location you conduct business determines the jurisdiction, and if you’re in unincorporated Clark County, you must apply with Clark County. (Clark County, NV)

Step 8.2: City of Las Vegas home-based business timeline

City guidance says:

  • You must complete state steps first (SOS license + NV Sales & Use Tax permit).
  • Normal turnaround time for licenses is about 14 to 30 days.
  • A license technician typically contacts you within 1–2 business days to finish and collect fees.

Step 8.3: City of Las Vegas fees (example from instruction sheet)

One City of Las Vegas business license instruction sheet states:

  • Total fees due with the application are $300 ($250 license fee + $50 processing fee)
  • If approved to operate from your home in City limits, an additional one-time $50 Home Occupation Permit fee is required (Las Vegas Nevada)

Step 8.4: Clark County fees (important even if you’re not in the city)

Clark County says:

  • There is a $45 non-refundable application fee (in addition to other license fees). (Clark County, NV)
    Fees vary by license category and activity. (Clark County, NV)

9) Federal “hidden” compliance for foreign-owned LLCs: Form 5472 (VERY IMPORTANT)

If your Nevada LLC is foreign-owned (for example, single-member LLC owned by you as a non-U.S. person), you may have IRS reporting obligations even if you have little/no profit.

The IRS Instructions for Form 5472 state:

  • A penalty of $25,000 will be assessed on a reporting corporation that fails to file Form 5472 when due and as required.
  • The penalty also applies for failure to maintain required records. (IRS)

This is one of the most expensive “surprise penalties” foreign founders face.

Action recommendation: Before you start using the LLC, hire a CPA who specifically handles foreign-owned U.S. entities, and ask them (in writing) whether you must file Form 5472 (and any related filings).

10) ITIN (if you need to file U.S. taxes personally)

If you need an ITIN (Individual Taxpayer Identification Number), IRS W‑7 instructions say:

  • Allow about 7 weeks for status,
  • 9–11 weeks during peak periods or if filing from overseas. (IRS)

11) Beneficial Ownership Information reporting “BOI” (Corporate Transparency Act)

This has changed recently and is confusing, so here is the current high-level rule from FinCEN:

FinCEN’s BOI page states that all entities created in the United States (formerly “domestic reporting companies”) and their beneficial owners are now exempt from BOI reporting under an interim final rule. (FinCEN.gov)
The Federal Register summary for the interim final rule also explains it narrows BOI reporting so that domestic companies are exempt and it applies to foreign reporting companies. (Federal Register)
FinCEN’s news release describes removing BOI reporting requirements for U.S. companies and U.S. persons. (FinCEN.gov)

Practical takeaway for you (Nevada LLC formed in Nevada):

  • A Nevada LLC you form in Nevada is a U.S.-created entity → currently exempt from BOI reporting per FinCEN’s interim rule. (FinCEN.gov)
  • But if you use a foreign company and then register it to do business in the U.S., BOI may apply.

Risk note: This area has been changing in courts and rules; always verify again at the time you file. (FinCEN.gov)

12) Realistic timelines (Nevada + IRS + Las Vegas)

Here’s a realistic timeline if you are organized:

Same day – 2 days

  • Pick name + registered agent
  • File Nevada LLC online
    Nevada SOS indicates many online transactions are processed same day. (Nevada Secretary of State)

4 business days – 4 weeks (EIN)

  • EIN by fax ~4 business days (if you include fax number) or mail ~4 weeks. (IRS)

2–6 weeks (local licensing)

  • City of Las Vegas home-based license: about 14–30 days.
  • Clark County varies by license type; start early. (Clark County, NV)

2–3 months (if you need ITIN)

  • ITIN often 7–11 weeks. (IRS)

Full checklist: what to do, what not to do

A) “To do” checklist (in order)

Phase 1 — planning (1 day)

  • Decide: LLC vs Corporation
  • Decide business activity + whether you will need sales tax permit
  • Decide if you will actually operate while in U.S. (visa risk check) (Travel.gov)

Phase 2 — Nevada formation (same day)

Phase 3 — IRS & banking (1–3 weeks)

  • Apply EIN (fax is fastest in many cases) (IRS)
  • Prepare Operating Agreement
  • Open bank account (expect compliance questions)

Phase 4 — Nevada tax + local license (2–6 weeks)

  • If needed, apply for Sales & Use Tax permit (NV Dept. of Taxation)
  • Determine if you’re City of Las Vegas vs unincorporated Clark County (Clark County, NV)
  • Apply for city/county license (and home occupation permit if operating from home) (Las Vegas Nevada)

Phase 5 — compliance setup (ongoing)

  • Calendar your annual renewal deadline (end of anniversary month) (CloudFront)
  • Hire CPA for foreign-owner compliance (Form 5472 risk) (IRS)
  • Keep clean bookkeeping, separate bank accounts

B) “Not to do” checklist (high risk)

Immigration “don’ts” on B‑1/B‑2

  • Don’t perform day-to-day operational work in the U.S. (employment/work not permitted) (Travel.gov)
  • Don’t overstay (out-of-status consequences and visa issues) (Travel.gov)

Compliance “don’ts”

  • Don’t miss Nevada annual list/business license deadlines (late penalties apply) (CloudFront)
  • Don’t ignore Form 5472 obligations if you’re foreign-owned (penalty can be $25,000) (IRS)
  • Don’t use a “fake” responsible party or nominee for EIN (not allowed) (IRS)
  • Don’t assume “Las Vegas address = City of Las Vegas license” (often it’s unincorporated Clark County) (Clark County, NV)

13) Cost summary (what you should budget)

Minimum (Nevada LLC, state-level only)

Annual recurring Nevada (LLC)

Late penalties (LLC)

Local licensing (examples)

  • Clark County: $45 non-refundable application fee + activity-based fees (Clark County, NV)
  • City of Las Vegas (example instruction sheet): $300 application fees + $50 home occupation if home-based (Las Vegas Nevada)

Professional costs (typical market ranges; not state fees)

  • Registered agent service: often ~$100–$300/year
  • CPA/tax prep (foreign-owned compliance): varies widely (budget for it)
  • Virtual mailbox/office: varies

14) My recommendations for your exact situation (Indian citizen on visitor visa, staying at friend’s rented home)

  1. Form the Nevada LLC if your goal is to set up ownership and structure now, but do not “work” the business while physically in the U.S. on B‑1/B‑2. (Travel.gov)
  2. Use a commercial registered agent (don’t use your friend). (Nevada Secretary of State)
  3. Do not list your friend’s rented home as your business operating location unless:
    • the lease allows it, and
    • you can meet home occupation/local licensing rules.
  4. Before any money moves, hire a CPA to confirm whether you trigger Form 5472 reporting (the penalty risk is too high to guess). (IRS)
  5. If your real plan is to live in the U.S. and run the company hands-on, talk to an immigration attorney before you start operating. (Forming an LLC is not a work permit.) (Travel.gov)

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