Nevada has no state income tax, but it does have a few business taxes and fees that every owner should know. Here are the three that come up most.
1. Nevada State Business License
Almost every business that operates in Nevada needs a State Business License, including LLCs, corporations and many sole proprietors. It is issued by the Nevada Secretary of State.
- LLCs and most entities: $200 per year
- Corporations: $500 per year
It is renewed every year together with your Annual List, by the last day of the month you registered. There are some exemptions, for example for certain nonprofits and very small home-based businesses, but you should confirm before assuming you are exempt.
2. Commerce Tax
The Commerce Tax only applies to businesses with more than $4 million in Nevada gross revenue in the fiscal year that ends June 30. Most small businesses never owe it. Businesses above that amount file an annual return, generally due in mid-August.
3. Modified Business Tax (MBT)
If you have employees in Nevada, you may owe the Modified Business Tax. It is a quarterly tax on the wages you pay, after a quarterly exemption amount and a deduction for employee health benefits. It is filed with the Nevada Department of Taxation. Owners who switch to an S-Corp and start paying themselves a salary should keep it in mind.
Other registrations you might need
- Sales tax permit if you sell taxable goods
- Unemployment insurance with DETR when you hire
- Local business license from your city or Clark County