Learn about the annual report and tax filing obligations for Nevada limited liability companies.
To establish and operate a Nevada limited liability corporation (LLC), you must prepare and submit a number of paperwork with the state. This article discusses the most significant Nevada LLC continuing reporting and state tax filing obligations.
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The Annual Report (Annual List)
The state of Nevada requires you to submit an annual report for your LLC, which is more precisely known as an annual list. To complete the list, just a few pieces of information are necessary, namely the names and addresses of the LLC’s managers or managing members. The first list is submitted on or before the final day of the first month after the filing of the articles of incorporation. The deadline for following yearly lists is the final day of the month in which the LLC’s anniversary occurs. (For example, if you formed your LLC in June, each following yearly list must be submitted by the end of June.)
If submitted by the due date, the yearly list filing cost is $125. Late filings incur penalties. The yearly list may be filed online or by downloading a fillable annual list form from the SOS website.
Business Permits
As a general rule, all Nevada enterprises must get a state business license from the Nevada Secretary of State, which must be updated on a yearly basis. The licensing and renewal fees are each $200. A license is acquired by submitting a “Other” Nevada State Business License Application. You may file online or by mail at the Nevada Secretary of State’s State Business License Only website.
State Corporation Tax
Most LLCs are pass-through tax corporations when it comes to income taxes. In other words, the burden for paying federal income taxes is passed via the LLC to the individual LLC members.
Nevada is one of just a few states that does not levy a personal or corporate income tax. As a result, most LLCs, even those that may have decided to be taxed as corporations, owe no state income taxes. Furthermore, since Nevada does not have a personal income tax, LLC members will normally owe no state tax on revenue earned via a Nevada LLC.
Employer Taxes in the State
Do you have workers in your LLC? If this is the case, you must pay employer taxes. Some of these taxes are paid to the federal government (the IRS) and are not addressed in this section. (However, it is important to understand that federal employer tax duties begin with getting a federal employer identification number (EIN).) However, certain Nevada companies are also required to pay state taxes.
The modified business tax (MBT) in Nevada is a quarterly payroll tax paid to the Nevada Department of Taxation (DOT). The tax is generally owed for any calendar quarter in which your LLC pays more than $62,500 in taxable salaries. To pay the tax, you must first register with the Nevada Employment Security Division (ESD). Online registration is available, as is Form APP-01-00 (Nevada Business Registration). Furthermore, your ESD registration is linked to the payment of state unemployment compensation taxes (also known as unemployment insurance or UI taxes). These taxes go to the ESD. Check the DOT and ESD websites for additional information on these different state employer taxes, including current MBT and UI tax rates.
Taxes on Sales and Use
If your LLC sells items to Nevada clients, you must collect and remit sales tax. This implies you’ll need to register with the Department of Taxation for this reason. On the DOT website, you may register online or obtain a fillable form. Following registration, you will get a sales tax permit for each business location where you sell items. You must then pay sales tax on a regular basis (typically monthly or quarterly) using the DOT’s Combined Sales and Use Tax Return or the DOT’s online system.
Other States Registration
If you want to do business in states other than Nevada, your LLC may need to be registered in any or all of those states. The exact states concerned will determine if you are needed to register: each state has its own regulations for what defines conducting business and whether registration is required. For registration reasons, having a physical presence (a business location) in a state, recruiting personnel in a state, or soliciting business in a state (through telephone, print advertisements, mail, or the Internet) are sometimes considered conducting business. Obtaining a certificate of authority or comparable document is normally required for registration.