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How to obtain a Tax ID number for a self employed person?

Date: 09/24/2020 | Category: | Author: Martin Pouzar

How to obtain a Tax ID number for a self employed person?

A research study by the United States Small Business Administration (SBA), Office of Advocacy revealed that there are 30.2 million small businesses in the nation and almost 126 million full-time workers. Today, 33% of such workers are considered as self-employed and according to McKinsey, a global consulting firm, there are approximately 68 million freelancers in the country. The question is – is there a requirement of EIN for self employed individuals?

Introduction to Tax ID Number for Self Employed

If you are a self-employed individual or are running a sole proprietorship business, you will be required to file annual returns as well as pay an estimated tax every quarter. Self employed individuals in the US are generally required to pay income tax as well as self-employment tax (SE tax) and for this, they are required to obtain a tax ID for self employed individuals. Normally, self employed individuals will require a Social Security number (SSN) to pay taxes but if you are planning to open a separate business account or invest in a Keogh Retirement Plan, you will have to obtain an Employer Identification Number (EIN). Hence, we have created this reference guide to provide information on tax ID requirements for self-employed individuals and how they can obtain it.

Self Employed Persons

Self employed people in the US operate within a wide range and within different industries contributing to the U.S. economy. A self employed person can be a freelancer, digital nomad operating a home-based business, and even a proprietorship or single member LLC. The requirement of a Tax ID like EIN for self employed individuals is dependent on several factors including the type of business or work, the purpose (for example opening a business bank account) etc. In order to identify the requirement for a Tax ID, it is imperative to understand the classification of self-employed individuals from business as well as from the taxation perspective.

What Is a Self-Employed Person?

A self-employed individual by definition is someone who doesn’t work for an employer or company that pays them a specific salary or wage. Self-employed individuals are also known as independent contractors and they earn their income by directly conducting business with a company or several companies. Generally, the employer or company with whom self-employed individuals are in trade will not withhold any taxes and as a result, it becomes the duty of the independent contractor to file their returns. The returns are filed using SSN or EIN for self employed individuals. According to Internal Revenue Service (IRS), you are considered to be self employed if you:

  • Are carrying on a business or trade as an independent contractor or a sole proprietor
  • Are a member of a partnership that conducts a business or trade
  • Are in a business for yourself and this includes part-time businesses as well

EIN for Sole Proprietorship

The simplest and fairly common form of business in the US is a sole proprietorship business. It is a type of entity that is owned as well as run by an individual and is often known as a proprietorship, sole trader, or an individual entrepreneurship. This is a popular form of business because it is easy to set up and the cost of formation is nominal. Since a sole proprietorship and its owner are completely indistinguishable, the taxation is based on the fact that the income earned by the entity is the income earned by the owner. As a result, in order to file tax returns for sole proprietorship, you will be required to first obtain a tax ID for self employed individuals.

Do I need an EIN for a sole proprietorship?

Although sole proprietorship is one of the simplest forms of business, when it comes to obtaining a Tax ID, most owners are confused regarding the tax ID itself. It is quite popular that sole proprietors find themselves asking the question of whether they need to obtain an EIN for self employed individuals or they should file their taxes using the Social Security number (SSN). In reality, it is not mandatory for a sole proprietorship to obtain an EIN as the entity and individual are considered the same and hence tax returns can be filed using just the SSN. Similarly, applying for and obtaining an employer identification number (EIN) can prove beneficial for the enterprise and its owner.

When is an EIN Required for Sole Proprietors?

As a sole proprietor, it is never an easy task to manage the business as well as file the tax returns. It is a business structure where you have to ensure quarterly estimated tax payments using Form 1040-ES and annual return by filing Schedule SE (Form 1040). Of course, you can file these taxes using your Social Security number (SSN) and also by using an EIN for self employed professionals. Normally, sole proprietorship entities don’t require an employer identification number (EIN) except in specific cases as follows:

  • Future employees: You may have started the business as a self employed professional but as your business and income grows so will the need for more employees. In the distant future, if you plan to hire employees, you will require an employer identification number. You can obtain a tax ID for self-employed individuals or EIN number now so that you don’t have to go through the entire application process in the future.
  • Reduce certain risks: The Social Security number (SSN) is a unique nine-digit number that can be used for filing individual tax returns. The best way to reduce the risk of identity theft is to keep your SSN private. There have been instances of Social Security numbers being stolen and used for filing fraudulent tax returns as it helps in obtaining tax refunds. If you obtain a tax ID for self-employed individuals like the employer identification number then taxes will be paid using this tax ID thus protecting your SSN.
  • Financial Instruments: If you are planning to keep your personal savings account separate from the sole proprietorship account then you will be required to open a bank account for the same. A business banking requires you to provide an Employer Identification Number (EIN). This tax ID number can also be used by lending and credit agencies to track your business credit. Another salient aspect of obtaining an EIN for self employed professionals is that it will help you to apply for certain business loans.

If I have a sole proprietorship with a DBA, do I need an EIN?

An Employer Identification Number (EIN) is a unique tax ID number that is used by businesses to report income tax and also handle payroll taxes. It is fairly common to use “doing business as,” or DBA name for sole proprietorship. The role of the DBA is to create a legal connection between the owner of the sole proprietorship business and the ‘doing business as’ name. A sole proprietorship with a DBA simply means that the said business has a nickname but that will not change the fact that the business and the owner are the same for tax purposes. So, yes, you can apply for and obtain an EIN for self employed professionals. If you want to maximize your benefits or else, you can pay taxes using your SSN.

How do I obtain an EIN?

A sole proprietor is a self-employed professional who can obtain an Employer Identification Number (EIN) in the same manner that corporations or LLCs would obtain the same from the IRS. You will be required to submit the completed Form SS-4 to obtain a tax ID for self employed individuals. You can submit the application using different methods like filing online, through phone, fax, and email. Alternatively, you can apply for an Employer Identification Number (EIN) right here through IncParadise.

It is important to know that EIN applications can take anywhere from a few days to almost four weeks to process. If you are filing an EIN for a self-employed application then you will be required to disclose specific business or personal information including Taxpayer Identification Numbers (TIN) like Social Security number (SSN) or the owner.

Need any help from IncParadise?

There can be a lot of confusion when it comes to filing your EIN for a self-employed application and the process can also be time consuming. It is important to ensure that you provide the correct information as lack of it can lead to the application getting rejected. IncParadise can help you obtain your EIN online!

We, at IncParadise have been managing different aspects of new business formation for over a decade and will be able to help obtain tax ID for self employed individuals. We have a team of professionals with experience in several areas of business formation. Our team can address any query that you may have pertaining to a variety of business requirements right from incorporation to business licensing.

Are you a Sole Proprietor? Apply for your EIN Today!

Do I need a new EIN if I change from Sole Proprietorship to LLC?

Date: | Category: | Author: Martin Pouzar

Do I need a new EIN if I change from Sole Proprietorship to LLC?

Business structures change over a period of time and most often it happens because businesses want to take advantage of tax benefits. If you are a sole proprietor who wants to convert his business to an LLC then there will be several changes to the business structure. You may be required to apply for and obtain a new EIN because in sole proprietorship, the business and the individual is the same from a tax perspective but that will not be the case for an LLC.

Introduction to EIN

A business depending on its structure will require a Taxpayer Identification Number (TIN) to file its annual or quarterly returns. There are different types of Taxpayer Identification Numbers (TIN) and one of the most important amongst them is the Employer Identification Number (EIN). This article will provide information and answer queries pertaining to EINs for LLCs, converting from a sole proprietorship business to a Limited Liability Company and process of applying for a new EIN.

New EIN for Sole Proprietors

The Employer Identification Number is one of the most important forms of Taxpayer Identification Numbers (TIN) as it is mandatory for a wide variety of businesses including corporations and LLCs. As a sole proprietor, you can use your Social Security Number (SSN) for filing tax returns or you can obtain a new EIN and use the same.

When will you be required to obtain a new EIN?

If you are a sole proprietor then your business and you will be treated as the same entity when it comes to filing tax returns. Sole proprietorships can actually file their returns using Social Security number (SSN), yet you can obtain a new EIN in special cases and thinking of the future like in the following scenarios:

  • If you started your sole proprietorship business with an SSN and without any employees, but at a later date find yourself wanting to hire employees then you will be required to obtain a new EIN.
  • If you are planning to open a bank account for your business then you will require an Employer Identification Number (EIN) as most banks have made it a precondition for opening a business banking account.
  • Although you don’t need an EIN for all types of business loans there are specific loans the lender would prefer an entity to have.
  • If you plan to change the business structure of the sole proprietorship to another type of business entity like an LLC, you will require an EIN for LLC. This will also be applicable if you change your entity to a partnership or if you incorporate.
  • If your sole proprietorship is subject to bankruptcy proceedings
  • If you inherit or purchase an existing business, which is then operated as a sole proprietorship

When will you not be required to obtain a new EIN?

There are specific conditions in which a sole proprietorship entity will not be required to obtain a new EIN like:

  • If you change the existing name of your sole proprietorship business
  • If you change the current business location or add another location
  • If you operate multiple business entities

Are you ready to apply for a new EIN for your business entity?

Converting Sole Proprietor to LLC

If you have started a sole proprietorship business but now want to expand your business or want liability protection, or need tax incentives, what should you do? One of the best solutions is to convert from sole proprietorship to a Limited Liability Company. Once you convert your existing business, you will be required to apply for and obtain an EIN for LLCs. Let’s look at an example to understand the conversion and getting of a new EIN.

How did John convert his sole proprietorship to LLC and get a new EIN?

John Doe is a freelance graphic designer and he started his business as a sole proprietor. A few months down the line, he started getting multiple designing projects from overseas and the workload became much higher than he anticipated. So, he decided to hire some employees so that the workload could be divided and he would be able to achieve his business goals. In order to hire and keep employees as well as tackle the rising requirements of the business, he requires a better office infrastructure. A bigger office infrastructure meant investment and hence he took a loan to expand his business.

This restructuring brought John to the point of thinking of converting his Sole Proprietorship to an LLC, which would help protect his personal assets as well. Moreover, if he doesn’t convert his Sole Proprietorship he will be responsible for filing taxes and proper administration for these hires.

So, he converted his sole proprietorship to an LLC by following steps on how he could obtain a new EIN for LLC.

He converted his sole proprietorship to an LLC and obtained a new EIN for an LLC through the following steps:

  • Step#1 – Register LLC: The first step was to register a Limited Liability Company according to the State Statutes. John filed the Articles of Organization with the state where he wanted to form his LLC along with registration of LLC name as this will also help him to apply for and obtain an EIN for LLC.
  • Step#2 – Dissolution: John has to dissolve the existing business, which in this case is the DBA or sole proprietorship. It has to be dissolved in the state, city or county where it was originally registered.
  • Step#3 – LLC Operating Agreement: John may be required to create an operating agreement although not every state requires it. An operating agreement is a mandatory requirement in five states, which are Delaware, California, Missouri, Maine and New York
  • Step#4 – Obtain a new EIN: An Employer Identification Number (EIN) is required if you are converting or changing your business structure as outlined by the Internal Revenue Service (IRS). Since John wants to convert existing Sole Proprietorship with or without a DBA into a Limited Liability Company; he will be required to submit the EIN for LLC application with the IRS. John will receive a new Employer Identification Number (EIN) by visiting the IRS’ website.
  • Step#5 – Business License and Permits: The type of business license or permit required varies from one state to another. It is also different from one city or county to another depending on the state. Some businesses may require a single license while others may need multiple licenses or permits.

These five steps are very important towards converting your sole proprietorship to a Limited Liability Company and for obtaining a new EIN for LLC. Apart from this, there will be a lot of paperwork involved right from changing registered LLC names in bank accounts, accounts payable, vendor accounts, mailing addresses, websites, business cards, online listings etc.

IncParadise can help you get a new EIN for your LLC?

If your business is a sole proprietorship then converting to a Limited Liability Company has several benefits such as asset protection, tax advantages (as an LLC can choose how it wants to be taxed including as an S Corporation), management and ownership flexibility, and flexible profit distribution among others. If you want to convert to an LLC and are wondering how to do it then we can guide you through the process.

IncParadise, one of the reputed registered agents in the country has the experience and expertise to help you convert your existing business entity into an LLC. Our team of professionals will provide information pertaining to dissolving existing business entities and formation of Limited Liability Company in any state so that you can register your business in the fastest possible time. You can also directly apply for business licenses, annual reports, and EIN for LLC right here using our entity Management Software.

Are you ready to convert from Sole Proprietorship to LLC?

How do I obtain an Individual Tax Identification Number (ITIN)?

Date: | Category: | Author: Martin Pouzar

How do I obtain an Individual Tax Identification Number (ITIN)?

If you are residing outside the USA and want to start a business here then there are several business legalities that have to be considered including submission of an ITIN number application. The process of establishing a new business may be a little demanding for a non-resident or a foreign national as there are only specific forms of businesses that foreigners can invest in. Since there are certain restrictions in the area of foreign ownership in different types of business entities, the most common type of entities chosen are LLCs and C Corporations.

Introduction to ITIN or Individual Tax Identification Number

ITIN or Individual Tax Identification Number is a type of Taxpayer Identification Number (TIN) that is assigned by the Internal Revenue Service (IRS). The ITIN was actually created in 1996 to help individuals without a social security account to file tax returns in the country. This article has been created to impart information pertaining to what ITIN is; ITIN number application, it’s importance, how to apply, and the renewal process.

The Individual Tax Identification Number (ITIN) is an important tax processing number assigned by the IRS to individual resident or non-resident aliens in the US. The number is issued to ensure such individuals are able to comply with U.S. tax laws. An individual will be required to submit correctly filled ITIN number application to get the number from IRS.

What is ITIN or Individual Tax Identification Number?

The Individual Taxpayer Identification Number (ITIN) is a unique nine-digit US tax processing number issued by the Internal Revenue Service (IRS). An ITIN number is issued to individuals who are not eligible for obtaining a U.S. Social Security Number (SSN) but are still required by the law to file Individual Income Tax Return. Such individuals will be required to file an ITIN number application. The Individual Tax Identification Number is issued regardless of the type of immigration status an individual has because both non-resident and resident aliens may have U.S. reporting requirements under the Internal Revenue Code.

You will be required to submit an ITIN number application if you fall in any of the below mentioned categories:

  • If you are an U.S. resident alien planning to file a U.S. tax return based on the number of days present in the country
  • If you are a Non-resident alien and are required by the IRS to file a U.S. tax return
  • If you are a spouse or dependent of a U.S. resident alien
  • If you are a spouse or dependent of a non-resident alien visa holder
  • If you are a non-resident alien or foreign business investor claiming tax treaty benefit
  • If you are a non-resident alien student, researcher or professor claiming an exception or filing a U.S. tax return

In 2012, the IRS released a notification stating that once you receive this tax ID number, it has to be renewed every 5 years. The IRS amended the notification several times and in 2016, it stated that these numbers will expire automatically if not used within a period of 3 years and you will be required to apply for ITIN renewal in such a scenario.

Why is ITIN important?

The importance of ITIN lies in the understanding of who this tax ID is meant for. If you are not a U.S Citizen or are a resident alien but are planning to work or gain employment of some form in any of the states in the U.S then you will be required to submit an ITIN number application in order to be compliant with the tax laws of the country. Unlike Employer Identification Numbers (EIN), which is meant for businesses domestic and foreign, an Individual Tax Identification Number is meant only for individuals and not businesses.

It is important to submit ITIN number application as it will facilitate the following:

  1. An Individual Tax Identification Number lets resident and non-resident aliens or citizens file their tax returns thus paying into the system. This helps in building a tax base.
  2. It allows recipients of stipends and those individuals who have any form of taxable scholarships to file their returns
  3. Specific ITIN holders will be eligible for the Child Tax Credit (CTC). Depending on the income of the CTC applicant, you can avail a maximum CTC tax credit of $2,000 per qualifying child.
  4. Once you submit an ITIN number application and obtain the number, it can be used as a proof of residency. There are times when immigrants are required to prove how long they have been staying in the US and tax returns filed using ITIN can be a proof of that. An Individual Tax Identification Number can be used for opening an interest-bearing bank account. This is valid for those individuals who don’t possess a Social Security number (SSN).
  5. You may be a foreign student or citizen in the US but you can secure a driver’s license with the help of the ITIN number. It can be used in specific states to receive a driver’s permit, or even a state identification card.

It is also important to note that an Individual Tax Identification Number (ITIN) is not a tool for authorizing work in the US or for defining eligibility for any Social Security benefits. If you have a SSN then you are not required to file an ITIN number application.

Applying for ITIN

If you are a student visiting the US on a fellowship, scholarship or grant and it includes an income that is considered to be taxable then you will be required to submit an ITIN number application. This also stands true for both U.S. resident aliens and non-resident aliens that don’t have a Social Security number (SSN) but have to file U.S. tax returns. Hence, it is important to know the correct ITIN application process as the IRS has updated the procedures.

How do I apply for ITIN?

You will have to apply for an Individual Tax Identification Number (ITIN) with the IRS. There are certain documents required along with the ITIN number application. The following steps will help you in understanding the application process.

  • Step#1: You need to complete and submit the IRS Form W-7 (Application for IRS Individual Taxpayer Identification Number).
  • Step#2: You have to submit documents pertaining to proof of identity and foreign status. These documents have to be submitted along with the ITIN number application. You need to ensure the documents being submitted are current and have an expiration date. Some of the documents accepted by IRS as proof of identity include Passport, U.S. driver’s license, Foreign driver’s license, A U.S. federal income tax return, National identification card, Visa, Foreign voter’s registration card, and U.S. Citizenship and Immigration Services (USCIS) photo identification among others.
  • Step#3: Once all the necessary documents are in place, you can mail the ITIN number application along with the documents to Internal Revenue.

You can also apply for an Individual Tax Identification Number by taking an appointment at any of the designated IRS Taxpayer Assistance Centers or in-person by using the services of any IRS-authorized Certifying Acceptance Agent.

How long does it take to receive my ITIN?

Once you have submitted your ITIN number application along with the necessary documents as proof of identity and foreign status, the IRS will process your application. If you qualify for an ITIN then the IRS will mail you a letter with the assigned tax identification number within a period of seven weeks from the date of submission.

Renewing your ITIN

An Individual Tax Identification Number (ITIN) assigned by the Internal Revenue Service (IRS) comes with an expiration date. Earlier the expiration date was 5 years if the ITIN is not used for filing returns and now it is 3 years. If you don’t use your tax ID number for filing returns within a period of 3 years from the date of issuance then you will be required to apply for ITIN renewal. According to the IRS, the number of Individual Taxpayer Identification Numbers (ITINs) that expired in 2018 was in excess of 2 million.

Do I need to renew ITIN?

There are specific criteria that define the need for ITIN renewal. You need to consider the following aspects as they will determine whether you will be required to opt for a renewal of the tax ID number. The considerations are:

  • If you receive a notice from the IRS stating that you or your spouse or dependent Individual Tax Identification Number (ITIN) is scheduled to expire then you need to apply for ITIN renewal.
  • If you have not used your ITIN for filing any returns in the last 3 years then you need to opt for renewal as your ITIN will expire automatically.
  • If you own an Individual Tax Identification Number with the middle digits being 73, 74, 75, 76, 77, 81 or 82 e.g., 9XX-77-XXXX then it needs to be renewed even if you have used it for filing returns in the last three years.

How do I renew my ITIN?

The process of ITIN renewal is quite similar to that of applying for a new ITIN. In order to renew your Individual Tax Identification Number, you will be required to complete IRS Form W-7 and submit it to the IRS along with all necessary identification documents. You will not be required to submit a federal tax return. There are three methods for submission of renewal documents and they are:

  • Mail: You can mail the W7 form along with identification documents to the Internal Revenue Service. The identification documents will be returned by the IRS after reviewing within a period of 60 days.
  • Certifying Acceptance Agents: You can opt for ITIN renewal in-person by working with IRS authorized Certifying Acceptance Agents (CAAs). The role of a CAA is to authenticate your identification documents and can also ensure the ITIN application being submitted is correct. This option will save you from mailing your original identification documents to the IRS.
  • Taxpayer Assistance Center: You can also opt for ITIN renewal through the services provided by a Taxpayer Assistance Center. You will be required to call in advance and make an appointment at an IRS designated Taxpayer Assistance Center.

Want any assistance for getting or renewing your ITIN?

If you are a resident alien in the US or your spouse or dependent are a resident alien and are required to file tax returns then the Individual Tax Identification Number (ITIN) will act as your tax ID. You will be required to submit an ITIN number application along with identification and foreign status documents, which can be quite a cumbersome process. If you are looking for information or have any query pertaining to applicability of ITIN then the IncParadise team can provide assistance.

We can also provide information or help answer any query you may have related to any aspect of new business formation and provide a range of additional services that will assist in maintaining and smooth functioning of a business.

Turn your idea into a business today!

Licensing a Home Based Business in Las Vegas

Date: 07/24/2020 | Category: | Author: Martin Pouzar

Licensing a Home Based Business in Las Vegas

According to the GEM Entrepreneurship Report, 69 percent of startups in the USA are considered to be home based businesses. If you have been thinking about establishing a small business from your home in Las Vegas then this is probably the perfect time to do so. There are certain requirements your business has to meet including registration in the state and obtaining a home business license in Las Vegas.

An Introduction to Home Based Business License in Las Vegas

Las Vegas, considered as the entertainment capital of the world is also a great destination to start a home business. All types of businesses whether based out of commercial space or home-based require a state business license and also a local business license in Las Vegas. There are almost 38 million businesses in the U.S that are home based and this number is going to rise in the coming years. There are more individuals and entrepreneurs opting to start home-based businesses due to several benefits and hence it is important to ensure that the business can run without any hiccups. This is possible only if you apply for and obtain the necessary home business license in Las Vegas or any permits that may be required to operate your business legally.

What is a Home Based Business?

There are so many opportunities for entrepreneurs that home based businesses are becoming a trend. A home based business has often been the starting point for several big businesses like Apple Computer and Baskin-Robbins ice cream. A home-based business (HBB) is basically a type of small business that is operated from the business owner’s residence. The residence is known as a home office. There are several reasons why it is becoming a popular business option and they are:

  • Low start-up cost: One of the primary driving factors for home-based businesses is lower cost of operations. For example: Doing business in Las Vegas especially out of a commercial or industrial space may prove to be highly expensive but if you start off from your own home then you are saving on the rental cost.
  • Flexibility: A home-based business ensures flexibility in terms of work time and type of work. You will be able to spend more time working by cutting down time to commute. You can also work in different time zones depending on your convenience as well as client requirements.
  • Tax Benefits: There are several tax benefits of operating a home-based office. You will be able to deduct a part of your home expenses from your business income like property taxes, mortgage interest, utility bills etc. Of course, you can enjoy these benefits only if you have obtained a home business license in Las Vegas.

A home-based business depending on its location requires licenses and permits and in some regions there are residential zoning restrictions for such businesses. If you are planning to conduct business from your residence in Las Vegas, you will have to obtain a home business license in Las Vegas.

Operational standards for a home occupation permit from LVMC 19.16.180(G)(1)

Doing business in Las Vegas is easy if you meet all regulations and requirements including that of a business license for home-based businesses. The Las Vegas, NV Unified Development Ordinance governs the operational standards for a home occupation permit. The purpose of LVMC 19.16.180 is to ensure individuals are able to obtain a Home Occupation Permit. This permit allows limited types of income producing activities to be conducted from a residential building or unit.

Some of the operational standards for a home occupation permit from LVMC 19.16.180(G)(1) include:

  • It allows doing business in Las Vegas by the occupants of the residential dwelling unit and they should be engaged in a business activity that is approved by the permit.
  • There will not be any employees reporting for work nor can they be dispatched from the residential property.
  • If you are doing business in Las Vegas with the home occupation permit then you cannot transact business or offer to transact business with any clients or customers visiting your property.
  • You will not be permitted to display advertising or signage anywhere on the residential property
  • The permit doesn’t allow storage of any type of toxic chemicals or hazardous materials within the premises
  • The permit facilitates doing business in Las Vegas but doesn’t allow:
    1. Sale of vehicles by vehicle dealers pursuant to NRS Chapter 482
    2. Business involving ammunitions or explosives
    3. Operating a barber shop or beauty parlor
    4. Ambulatory or other emergency services

Planning to establish a home-based business in Nevada?

Applying for a Home Based Business License

A home business license in Las Vegas will ensure you are able to operate your business from your residence. There are various stages of licensing along with specific requirements that you need to fulfill. It is important to note that there are several types of small businesses that can get a business license to do business from their residence. At the same time, it is important to understand that a home-based business should not have any impact whatsoever on the immediate surroundings or neighborhood. Now, let’s look at the various stages and requirements for home business licenses.

Apply for your Nevada State Business License with the Nevada Secretary of State

The first step is to ensure you have the state business license. This license is mandatory for small businesses operating in the state of Nevada and is issued by the Nevada Secretary of State. According to NRS 76.100, it is mandatory for a business or individual to apply for and obtain a business license prior to doing business in Las Vegas. Failure to obtain a license may lead to penalties and in some cases operational restrictions. We at IncParadise can assist you with the process of filing for the state business license.

Apply for your Nevada State Sales & Use Tax Permit with the Nevada Department of Taxation

One of the important requirements prior to filing for a home business license in Las Vegas is to apply for the Nevada State Sales & Use Tax Permit. This is applicable for any individual, firm, partnership, etc., that is planning to engage in business in the state. You will be required to apply for this permit with the Nevada Department of Taxation-Compliance Division. You can go through our detailed guide on Nevada Taxes for businesses.

Apply online for Las Vegas home-based business license

You can apply for a home business license in Las Vegas by filing your printed license application with the City of Las Vegas-Business Services Division. Alternatively, you can file the application online. The normal turnaround time for processing a business license varies from 14 to 30 working days.

Business License Information

There are different types of businesses that you can start from your home or residence. The license fee for each type of business activity is different. Prior to doing business in Las Vegas, you will be required to apply for the relevant license.

How can IncParadise help you?

IncParadise is one of the most respected registered agents in the state of Nevada. Our primary objective is to facilitate sharing of information pertaining to formation of new businesses in the state. We will not only provide assistance by answering any business license related query you may have but also ensure you have all documents necessary for doing business in Las Vegas. You will be able to benefit from the following:

Our expert team will help you to obtain the required home based business license

There are primarily two types of licenses required to conduct your business in Las Vegas – state business license and local license. Our team of experts and experienced professionals will not only assist with the process of helping you apply for and obtain both licenses but also provide all information necessary for making an informed choice regarding doing business in Las Vegas.

Our other services in Nevada

Apart from helping you obtain a home business license in Las Vegas, IncParadise also provides a varied range of business related services. We can provide customized services specific to your business requirements. You can also benefit from additional services like forming or incorporating a new business in Nevada and state business license renewals.

Register your home based business in Las Vegas Today!

How to obtain Carson City Business License and Permits

Date: | Category: | Author: Martin Pouzar

How to obtain Carson City Business License and Permits

Carson City takes a lot of pride in the fact that it offers a “business friendly” environment to new and existing businesses. This is also a reason for businesses relocating to the city. If you are planning to operate from here then you will need to obtain a business license in Carson City first, so that you can benefit from small business initiatives and incentives offered by the Division of Community Development.

An Introduction to Obtaining Business License and Permits in Carson City, Nevada

Carson City also officially known as the Consolidated Municipality of Carson City is the capital of one of the most business friendly states in the nation. It’s the 6th largest city in Nevada and is considered to have a growing and diverse economy that is being driven by retail as well as commercial growth. The capital of Nevada is quite the favorite amongst new businesses that are opting to carry out business activities primarily in service-sector industries. A business license in Carson City can help your establishment to become an integral part of the growing consumption-oriented industries.

A survey conducted by Advisor Smith revealed that the capital of Nevada is being recognized as one of the top cities in the nation for starting a new business. The survey further revealed that Carson City holds the distinction of adding 4.61 new businesses per 1,000 residents each year. Some of the top businesses in the city include Genoa Lakes Golf Resort, Vitamin Research Products Inc., Clear Creek Holding Co., Cavallero Heating & Air Conditioning, and The Nevada Appeal among others. If you are planning to operate your business in Nevada then you will need to register in the state and obtain a business license in Carson City

Carson City economic outlook

Why should you start a business in Carson City? Economically, the capital of Nevada is on a growth curve driven primarily by varied industries. The economy of Carson City is enjoying higher growth in some of the largest industries including Public Administration, Manufacturing, Retail Trade, Tourism, Oil & Gas Extraction, and Mining among others. The Gross Domestic Product for Carson City was recorded at $3,661 million. New businesses have formed in the leisure and hospitality industry thus increasing employment and productivity. The city has also experienced stronger growth in construction and logistics and data centers.

There are several reasons why entrepreneurs prefer to start businesses in Carson City. Some of the salient aspects include:

  • Carson City has witnessed an increase in the job market by 3.3% as compared to last year. This growth can be attributed to an increase in new business filings.
  • There is no income tax in Carson City as compared to the US average of 4.6%.
  • Future job growth based on industry growth is expected to be 40.6 percent, which is higher than that of US (33.5%)
  • Redevelopment activities paid for through tax-increment financing or TIF-80, which will ensure owners of properties within a Redevelopment Zone don’t pay any additional property tax.
  • New businesses can apply for business licenses in Carson City with ease thus minimizing the waiting time to make a business operational
  • Carson City Office of Business Development provides several programs to assist new businesses in setting up including the rapid response program
  • The city has four highways that play a critical role in strengthening the infrastructure

Start your New Business in Carson City Today

Obtaining Carson City Business License and Permits

If you are planning to start a business in Carson City then one of the primary requirements would be to obtain the necessary business licenses and permits. This is required by both Nevada Revised Statutes and Carson City – Code of Ordinances. There is a specific procedure for business license application and there are certain requirements that a business needs to be compliant with. Let us take a look at how you can obtain your business license in Carson City.

1. Create an LLC/Corporation

If you have already decided that you will start a business in Carson City then the first step would be to register your business. You can start a business in Nevada as a corporation or as a Limited Liability Company (LLC) by filing Articles of Incorporation or Articles of Organization with the Nevada Secretary of State (SOS) or you can save time and register your new company with IncParadise.

2. Obtain a Fictitious Name Certificate (DBA)

Every person planning to start a business in Carson City under a fictitious or assumed name, which is different from the legal name of such a person will be required to file a DBA (doing business as) pursuant to NRS 602.010. This has to be filed with the office of the County Clerk, Carson City or alternatively, you can order it through IncParadise.

3. Obtain a State Business License

Prior to applying for and obtaining a local business license in Carson City, you will be required to apply for a state business license. It is mandatory to apply for a state business license pursuant to Chapter 76 of 2015 Nevada Revised Statutes irrespective of the type of business entity. A business cannot become operational without the state business license hence; we at IncParadise have included this as a part of your business registration or incorporation process.

4. Obtain a retail sales permit (If Required)

A retail sales permit also known as a sales tax permit is required by those businesses that are selling tangible personal property. If you are not such a seller then you may not be required to obtain this permit prior to applying for a business license in Carson City. The fee for sales tax permit is $15 and it is issued by the Nevada Department of Taxation – Compliance Division.

5. Obtain a local license

Once you have fulfilled all of the above, you will be able to apply for a local business license in Carson City. The type of business license or permit will vary according to the type of business activity. It is important to note that some businesses may require multiple local licenses. You can check our Business License Report to identify the licenses your business may need to apply for in Carson City.

6. Obtain needed Environmental Permits

In order to obtain a local business license in Carson City you need to check whether your business requires environmental permits. This permit is issued by the Nevada Division of Environmental Protection (NDEP) as well as local authorities. The permit will be required in the following cases:

  • If a business activity leads to discharging air pollutants
  • If a business activity causes discharge of wastewater from industrial processes
  • If there is construction activity for a specific project that may impact or have future impact on streams or wetland areas

7. Obtain Special Permits (If required)

It is important to know that not all businesses will require special permits. Depending on the type of business and nature of activity, you may be required to obtain special permits from the Fire, Health, and Planning Departments. You can refer to our business license report to check what all licenses or permits you may require apart from the state business license and local business license Carson City.

Check our Business License Report for Licensing in Carson City

How does IncParadise help you?

If you are planning to start a business in Carson City, Nevada then you will be able to benefit from the strong infrastructure, varied business incentives, and a growing economy. IncParadise, as one of the most respected registered agents will help you form your LLC or business corporation in the state. You can also contact our specialists in case you have any queries related to the process of formation of your small business. Your business can benefit from:

  • The Services of our expert team – Our expert team consists of experienced professionals who will help you to obtain the required state business license and local business license in Carson City. Our team will also help answer your queries and if required guide you through the process of business formation in the state. The IncParadise team will not only help you with business incorporation or formation in Nevada but provide information pertaining to requirements based on the type of business entity you want to form in the state.
  • Our other services for Nevada businesses – We at IncParadise believe that every business has a different set of requirements and hence, we are equipped to cater to any business related services you may require. We provide several additional services that will help you to start your business in Carson City as well as maintain compliance with Nevada state requirements.

Set up your Carson City Business with IncParadise!

How to obtain Douglas county Business License and Permits

Date: | Category: | Author: Martin Pouzar

How to obtain Douglas county Business License and Permits

Douglas County situated in the northwestern part of Nevada has witnessed a growth in overall economy, which constitutes formation of new businesses, increase in employment, and strengthening of various industries and sectors. If you are planning to start a new business in the county then you will have to obtain a state business license as well as a Douglas County business license.

An Introduction to doing business in Douglas County, Nevada

Whether small or medium sized; it is never an easy task to start a business. There are several requirements that you have to meet and this includes state specific requirements like a Nevada state license or a Douglas County business license as well as business specific requirements like keeping the overall cost of forming a business low. There are several industry sectors that have witnessed a rise in startups and new businesses in the county. One of the top sectors is the ‘Food & Agriculture’ sector that contributed in excess of $300 million to the economy of Douglas County. The food manufacturing output value was $190 million with the top food manufacturing industries being frozen fruits, coffee, tea, juices, vegetables, and canned fruits.

Business in Douglas County

Douglas County is home to different industries and businesses and one of the popular industries is tourism followed by gaming. It is known as the Sierra Region of Nevada as it is home to the breathtaking Sierra Nevada Mountains. The mountains along with the southern shore of Lake Tahoe play a key role in the development of the tourism industry. Over the last few years, several small and medium sized enterprises with a Douglas County business license have been formed to cater to the rising demands of tourists visiting the county.

The diverse industry sectors in Douglas County constitute small businesses, startups, and medium sized enterprises. Some of the high revenue generating industries include manufacturing, tourism, agriculture, mining, and construction. The industries play a key role in attracting new business to the county but there are other factors as well like easy access to Nevada’s rail, and highway arterial infrastructure and the proximity to deep-sea ports as well as major US markets. You can start your business after obtaining a Douglas County business license as the county offers a pro-business tax structure as well as a regulatory environment.

Obtaining Douglas County Business License and Permits

Douglas County’s economic vitality vision and goals focus primarily on leadership and resource commitment towards education and innovation, which are also considered to be a part of the new age industry sectors. A new business after acquiring a Douglas County business license can take advantage of the various benefits and business incentives offered by the state and local administrations. The county has laid in place certain guiding principles that are meant to help businesses in the long run and this includes:

  • Improving business climate
  • Enhance education and workforce
  • Maintain exceptional quality of life
  • Preserve natural environment while strengthening infrastructure
  • Attract startups and businesses that are unique and marketable

The question is if you are planning to set up your business in this county then what is the process for obtaining a Douglas County business license? There are specific requirements that every business has to meet in order to conduct business in the county and they are:

1. Create an LLC/Corporation

There are different forms of business that you can form in Douglas County and the most popular forms are Private Corporations and Limited Liability Companies. The process of formation or incorporation is dependent on the type of company you want to create. This is one of the first steps towards obtaining a Douglas County business license. If you plan to form a private corporation then filing Articles of incorporation will be necessary (NV Rev Stat § 78.030) and to form an LLC filing Articles of organization will be required (NV Rev Stat § 86.151) to start a business in Nevada. The new business registration documents will be filed with the office of the Nevada Secretary of State (SOS) or alternatively you can order it through IncParadise as it will save you time. You can also benefit from the experience of IncParadise as one of the top registered agents in the state as well as the additional services provided by the company.

2. Obtain a Fictitious Name Certificate (DBA)

DBA is also known as “Doing Business As” name, a fictitious business name, or even a trade name. In the simplest of terms, if a person or a business entity conducts business under any other name other than it’s original name then that name is considered to be a DBA. If you are an individual or company planning to conduct your business under any other name then you will be required to file for a DBA certificate pursuant to Douglas County Codes 5.02.010. This has to be filed with the office of the county clerk. You will need to submit a copy of the certificate with your Douglas County business license application and you can also contact us to benefit from our expertise and professional assistance towards fulfilling your business filing requirements .

3. Obtain a State Business License

Each and every Title 7 Business Entity being formed in the state of Nevada has to apply for a state business license. A Title 7 business entity includes private corporation, LLC, LLP, LLLP, LP, and business trusts. It is mandatory to obtain state business licenses prior to applying for a Douglas County business license. A business entity is required to apply for the Nevada state license along with initial or annual list while being compliant to all requirements of NV Rev Stat § 76.100 (2015). The Nevada business license application has to be filed with the Secretary of State. Alternatively, you can opt for IncParadise incorporation of new company services as it includes filing of business license for Nevada.

4. Obtain a retail sales permit (If Required)

A retail sales permit is meant for those businesses that are going to be engaged in selling of tangible personal property. This permit is an additional requirement apart from the Douglas County business license and is applicable only to qualifying businesses. If a business has multiple locations then they will be required to apply for separate permits for each of those places of business. You will be required to apply to the Nevada Department of Taxation for a retail sales permit along with a fee of $15 for each business location.

5. Obtain a local license

You can apply for and obtain a Douglas County business license once you have fulfilled all requirements as required by Nevada Revised Statutes and Douglas County Codes. The local business license will be issued by the office of the Douglas County clerk. The type of business license or permit that you will require is dependent on the type of business activity. It is also important to note that some businesses may require multiple local licenses or permits like a restaurant serving alcoholic beverages will require food licenses and alcohol permits.

6. Obtain needed Environmental Permits

Will your business require environmental permits? This permit is required by specific businesses based on their business activity and this is an additional requirement apart from the Douglas County business license. The environmental permit is issued by the Nevada Division of Environmental Protection (NDEP) as well as county authorities. This permit is required by those businesses whose activities may lead to:

  • Discharge of air pollutants
  • Discharge of wastewater from industrial processes
  • Discharge of waste due to construction activity
  • Storm water Discharge
  • Onsite Sewage Disposal

7. Obtain Special Permits (If required)

There are specific business activities that are permitted only when the concerned business obtains special permits. An example will be ‘special use permit’ as defined by Douglas County codes 20.604.010. This permit is issued by the planning department and ensures land use is permitted for specific businesses by right in a particular zoning district. Certain businesses also require special permits from the fire department or building department in order to conduct their businesses. These special permits are considered as additional licensing requirements apart from the state business license and Douglas County business license.

Register your New Business in Douglas County Today

How can IncParadise help you?

Douglas County is a growing economy that is already on the path towards strengthening their existing infrastructure. Once you have a Douglas County business license, you will be able to conduct business in the county and IncParadise as one of the most respected agents in Nevada is here to assist you in all aspects of business formation. IncParadise not only brings in its experience and expertise in helping businesses register in the state but can also provide a range of relevant services like:

  • The Services of our expert team – A team of experienced professionals at your disposal! Yes, our team has managed different requirements of startups, entrepreneurs, and businesses in such a way that you don’t have to worry about any of the state registration processes. The team is well versed in Nevada Statutes and County Codes thus ensuring your business is able to meet all requirements and is compliant with laws of business formation like the requirements entailed for obtaining a Douglas County business license.
  • Our other services for Nevada businesses – The process of business formation requires submitting different documents, applying for state and Douglas County business licenses, obtaining tax ID (EIN), filing specific documents on time to avoid penalties etc. At IncParadise, we understand the processes and submissions can be time consuming and over-burdening for new businesses and hence, we offer a range of additional services that will ensure all essential requirements of businesses are taken care of. Some of our additional services include mail forwarding services in Nevada, virtual office, annual report filing service, and Nevada foreign qualification among others.

Set up your Douglas County Business with IncParadise!