Once you have made the decision to form an LLC or incorporate a new business in Nevada, one of the things you would require is a Nevada business license unless statutorily exempted. Where and how do you obtain a business license in the state of Nevada?
The filing and payment for State Business License for Nevada was initiated since October 1, 2009. The application for business license is processed by the Secretary of State’s office. Earlier Nevada business license authority was Department of Taxation but Pursuant to AB 146 passed by the 2009 Nevada Legislature, and codified in NRS Chapter 76 – the authority was transferred to the Secretary of State.
It is important to understand that the Nevada State law requires that every individual or entity preparing to conduct business in the state has to first obtain a business license, which has to be renewed annually.
Note: There are certain businesses that may be exempt from the State Business License requirement and you can find out from the office of the Secretary of State whether your business is exempted or not.
Do you need a Nevada Business License?
Nevada is considered as one of the dream jurisdiction in the United States for LLC’s and corporations and this is because it has flexible tax policies and a favorable business climate. There are several advantages of incorporating in Nevada and this is what makes the state a first choice for LLCs and businesses. Some of the advantages that you can benefit from include:
- Nevada does not tax the income of state’s citizens and LLCs
- It is not mandatory for directors, shareholders, and officers of an LLC in Nevada to be Nevada residents.
- No Personal State tax
- No Corporate State tax
- No franchise tax on income
- No unitary tax
- No admissions tax
- No estate tax or gift tax
- Nevada is the only state in the USA that does not have a formal information-sharing agreement with the IRS
- In Nevada, incorporation can take place without the need for any minimum initial capital
You will be able to benefit from the above advantages only when you plan to start a business in the state. In order to start a business or LLC in Nevada, you will require a Nevada State Business License, which is issued by the Secretary of State’s office. The filing and payment towards a company license was transferred on October 1, 2009 from the Nevada State Department of Taxation to the Secretary of State.
Whether you reside in Nevada or any other state, the moment you choose to start your business, you will require this license without which you will not be able to incorporate or form your LLC. It is important to get a complete understanding of the regulations of business license in Nevada as it will help you to ensure compliance with all licensing requirements.
If you require in-depth information regarding incorporation of business or formation of LLC in the state of Nevada, you can speak with one of our business experts or click on the incorporation page of the said state.
Getting a business license in Nevada
A State Business License is a mandatory requirement for starting a small business or corporation in Nevada and this license has to be renewed each year. There are specific types of organizations that are not required to obtain Nevada company license and this includes:
- Government entities
- Nonprofit religious entities
- Charitable organizations
- Fraternal organizations
In the state of Nevada, a nonprofit corporation that has been formed under NRS Chapter 82 as well as a Corporation formed under NRS Chapter 84 is automatically excluded from the requirement of obtaining a business license in Nevada.
Determine Type of Business
Business license required in the state of Nevada vary according to the type of business. Some of the business specific license categories include:
- General License
- Privileged License (valid for gaming and liquor)
- Regulated License
In order to move ahead with the specific type of business license required in the state of Nevada, you need to identify the type of business and what your business offers. You can choose the type of business entity as an LLC, General Partnership, Corporation, or Sole Proprietorship. In the state of Nevada, more than 70% of small businesses start out as LLCs.
Once you have identified the type of business, we at EastBiz.com, Inc. will help you obtain the right license for your business to become operational in the state.
County Business License
There are 8 counties in the state of Nevada and each county has their own format for business license in Nevada. Hence, it is extremely important to determine the city/county that your corporation, small business, or LLC will operate from. Some of the important aspects to be considered while applying for company license are:
- The location as well as the type of business will determine whether you require a county license or a city license as well.
- If you are planning to operate your business from several jurisdictions within a single county you will be required to obtain a city license from each of the jurisdictions.
- The Nevada company license fee will vary according to the type of your business.
- The company license fee will also vary according to the jurisdiction of your business.
- You will also require special permits from Police, Health, Building, or Fire Departments prior to starting your business.
- Separate permits will also be required for businesses catering to gaming, liquor, home occupation, and cosmetology among others.
- Business license will have to be renewed each year. The renewal will be due on the last day of the anniversary month in which you had filed the license. As for partnerships and sole proprietorships (NT7), the Nevada Business License needs to be renewed on or prior to the expiration date mentioned on the license itself.
Obtaining a business license in Nevada County is not that demanding a process but it is important to ensure you apply for the license with the right authorities. If your entity is a corporation, an LLC, limited partnership or any other Title 7 entity, then the application for a Nevada state business license can be filed online or mailed or faxed to the Las Vegas or Carson City offices. The filings should be accompanied by specified state business licensing fees at the time of submission. Failure to obtain the right type of business license and permits can result in fines and even lead to premature closure of your LLC or Corporation.
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