Nevada Business License
The Nevada Department of Taxation imposes an annual Nevada business license tax on any business registered in Nevada. As of July 1st, 2015, the annual fee has raised from $200 a year to $500 a year for corporations (the fee has remained at $200 for LLCs). There is also a $100 late fee if not filed on time. This used to be something fairly non-regulated and kind of a loose law that no one really wanted to enforce.
In addition, there were some tax loopholes in the code that said things like: “Disregarded entities do not have to pay the annual Nevada business license tax. BUT if you file an 1120, 1041, scheudle C, E, or F, you still have to file.” So as the loophole read, if you formed a Nevada LLC, you would usually file a 1065 return with the IRS. So you’re safe, right?? NOT. The only way according to this loophole would be if you filed a partnership return K1, because that wasn’t listed in the code.
Also, a lot of non-US residents form companies in Nevada. They don’t file tax returns at all, so they felt that they were exempt altogether, because part of the code read “If you file a tax return…”. Other entities like partnerships, sole proprietorships, and business trusts, also could be halfway read in a way that you could feel safe not filing your annual business license tax. It has never been regulated and people just paid their annual list of officers, annual list of directors, annual list of managers, or annual list of members, and called it good.
Northwest Registered Agent LLC has always recommended our clients file the annual business license, but even some of ours don’t.
Well now, as of October 1st, 2009, the Nevada Secretary of State will be regulating the payment of your Nevada annual business license tax. Guess what?? Everyone who has never filed a Nevada business license will now have to pay ALL the years back, plus late fees! You also will not be able to file your annual list without paying this, so your company will fall out of good standing if you don’t pay up. Isn’t that crazy? And Nevada promotes itself as the business friendly state?
The annual Nevada business license also just kind of started when you sent in the application and your due dates would be each year according to when you initially sent the business license in. They would not send out a reminder, so you were required to just remember when you initially sent it in and send in a renewal. At least now, you will know when they are due, because they are making them due at the same time as your annual Nevada list of information. If you’re one of the lucky ones that have paid your Nevada business license tax, your time that it’s due each year and the money you’ve already paid will be prorated to coincide with your Nevada annual list timing.
In order to submit a Nevada business license, you will be required to give Nevada the following information:
- Business name
- Your phone number
- Your federal Tax ID number
- Your main physical and mailing address
- State you’re incorporated in
- Email address
- Your website address
- Locations of your business in Nevada
- Location of your business records
- All actual owners names, RESIDENTIAL ADDRESSES, SOCIAL SECURITY NUMBERS, DATES OF BIRTH, HOME TELEPHONE NUMBERS AND PERCENT OF OWNERSHIP…Wow.
- If you’re going to have employees, you’ll have to list a lot of items, like when you’re going to have employees, how much you’ll pay, number of employees, etc…
- The type of business you’ll have in Nevada
- Detailed description of the nature of your business in Nevada
- If you’ve ever had a company in Nevada before.
There is an option to get out of the iron-clad grip Nevada has on it’s entities.
Well, if you have a current Nevada company and are forced with getting an annual report bill for $500 bucks or more, we can move your company out of Nevada for you, BUT YOU MUST ACT QUICK BEFORE YOUR COMPANY FALLS OUT OF GOOD STANDING!!
We can move your company and domesticate it in Wyoming for you for a nominal fee. We have registered agent offices in every state, so we’re not biased to one state or the other. The facts remain…Wyoming costs $52 a year for an annual report, they don’t track ownership and you don’t file any type of your federal tax return there, because there’s no state personal or corporate income tax.
In Nevada, you spend all your time filing documents and paying fee after fee, and they have crazy late fees. You’re annual cost in Nevada is now a minimum of $350 a year, making it one of the most expensive states in America to have a business in.
If you would like to move your Nevada company to Wyoming, we can accomplish this for you, but your company has to be in good standing to make the move. If you move your company to Wyoming, Wyoming will keep your initial corporate filing date you have in Nevada. As far as your corporate documents are concerned, your company won’t skip a beat, and you’ll still have the history of your initial filing date.
As of now, you can still file online at to establish your Nevada business license tax with the Nevada Department of Revenue, or download the form and send it in through the mail.