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NEVADA LLC – BUSINESS LICENSE
An integral part of the process of forming a Limited Liability Company is applying for a Nevada business license. A new business whether it is into manufacturing, services, retail, or scientific innovation, the businesses can become operational only if they have the required permit or license.
Introduction – Business License for Nevada LLC
Nevada is one of the top states when it comes to providing a pro-business environment to start-ups. The state and local government have committed themselves to ensure Nevada businesses enjoy a low-regulation environment and this includes low cost start-up, and streamlined Nevada LLC business license process.
A business license is a document that confirms that a business can operate in a specific jurisdiction in Nevada or anywhere within the state. The license is a type of permission issued to a business depending on the type of business or industry. The licensing process is different for different states and there are specific organizations that do not require a Nevada business license. They are:
- Government entities
- Non-profit religious entities
- Charitable organizations
- Fraternal organizations
Apart from organizations as mentioned above, certain manufacturers will not be required to obtain a Nevada business license pursuant to NV Rev Stat § 76.103 (2017).
Do I need business licenses and permits for my Nevada LLC?
If your business doesn’t belong to any of the above category, will it require a business license? Yes. In Nevada, all Title 7 entities need to obtain a business license. A title 7 entity is any business entity that has been organized under the Nevada Revised Statutes and has filed formation or incorporation documents with the Secretary of State. Title 7 entities include domestic and foreign limited liability companies (LLC), limited partnerships (LP), corporations, limited liability partnerships (LLP), limited liability limited partnerships (LLLP) and business trusts. Nevada business license is governed by Chapter 76 of the 2015 Nevada Revised Statutes.
It is important to also understand that the business license or permit required is dependent on the type of business. The location of your LLC will also play an important role in defining the licensing needs.
Since a Nevada LLC business license is mandatory for most businesses, failure to comply with the licensing or permit requirements can lead to a penalty of $100 and payment of additional fees pursuant to NV Rev Stat § 76.110 (2017). Such an LLC can even be subjected to operational restrictions. The penalties for operating without a business license can vary from $1,000 to $10,000.
Types of Business License in Nevada
Most businesses registering in the state of Nevada will require a license or a permit. The Nevada LLC business license can be defined under the following categories:
State Business License (SBL)
This is a mandatory license for most start-ups and is issued by the Nevada Secretary of State (SOS). It has to be renewed annually. The Secretary of State has set certain requirements for state business license and it is governed by NRS 76.100. It states that if a business entity is required to file an initial list or annual list with the Secretary of State then it must obtain a state business license during the time of filing the list.
Federal License
There are only specific businesses that may require a Federal License or permit. The requirement of this type of Nevada LLC business license is dependent on the type of activity a business in involved in and accordingly contacts the agency responsible for issuance of such a license. Some of the business activities and their corresponding issuance agencies include:
- Drug Manufacturing: This license is issued by the Food and Drug Administration (FDA)
- Ground transportation: This license is issued by the Department of Transportation (DOT)
- Investment Advising: This federal license is issued by the Securities and Exchange Commission (SEC)
- Preparation of meat products: This federal license is issued by the Food and Drug Administration (FDA)
- Selling alcohol, tobacco or firearms: This Nevada LLC business license is issued by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (AFT)
- Broadcasting: This license is issued by the Federal Communications Commission (FCC)
Retail sales permit
This permit is issued by the State Department of Taxation. You will need to check with the taxation department to identify if your business requires this permit.
Local license
If you are forming a small business LLC in Nevada then you may require just a local license, which will enable your start-up to operate within the county or city where it is situated. Such licenses are issued by the county clerk office or city administration.
Note: If you are planning to operate in multiple cities or counties then you will be required to apply for a local Nevada business license in each of the counties or cities.
Special Permits
This is applicable to small businesses in cities or counties and depending on the type of business, special permits can include those issued by the Fire, Police, Health, or Building Departments.
There are other processes and requirements that need to be met in order to get your Nevada LLC business license. Let’s look at an example:
If you are planning to start a “child care” facility then prior to issuance of the Nevada LLC business license, the concerned authorities (Department of Health and Human Services Nevada Division of Public and Behavioral Health) will conduct an inspection. The inspection is there to ensure you or your facility fulfils necessary business license requirements, safety regulations, insurance and zoning requirements of the city or county it is located in.
IncParadise can guide you through the process of obtaining a Nevada business license!
Nevada Business License Application Fee
The Nevada LLC business license fee is subject to the type of license your business entity requires in the state. The fee will be different for federal, state, and city or county licenses.
IncParadise can help you obtain the state business license. We can also provide assistance with information concerning local business licenses and their applicable fees.
If I’m going to start a single-member LLC, do I need a business license?
Yes, a Nevada single member LLC (SMLLC) is a business entity that are required by NV Rev Stat § 76.100 (2017) to file an annual list with the Secretary of State and hence will have to obtain a Nevada LLC business license to conduct business in the state. The business license application is included in the Annual List of Members or Managers of a Limited Liability Company.
How IncParadise can help you with Nevada Business License?
There are different types of Nevada business license that is issued on the basis of the activities conducted and the location of a business. Your business may require:
- A state business license (SBL)
- A State and Federal License
- A State and Local County License
It may look like a complicated process especially when it comes to identifying what type of license your company should ideally apply for. This is where our experience and expertise will assist you with ensuring you are able to apply for and obtain the correct Nevada LLC business license.