Nevada LLC Taxes

Nevada’s warm climate and abundance of entertainment opportunities has made it a great place to start a business in. But, with more business owners choosing to start their ventures in the state, many may find it challenging to understand the business taxes involved. 

Regardless of the size of your business, if you operate a limited liability company (LLC) in Nevada, you will need to ensure you stay up to date on your finances and pay federal, state, and local taxes. Our guide will help you understand which taxes you will need to pay for your Nevada LLC.

Recommended: Schedule a free consultation with an accountant to stay on top of your taxes. 

Nevada Modified Business Tax

Similar to franchise taxes in other states, the Modified Business Tax (MBT) for Nevada is a tax your business will need to pay in order to operate in Nevada. The MBT applies to employers and businesses that have employees and pay for contributions under the Nevada Unemployment Compensation Law. The amount owed is based on the gross wages your business pays employees (not including health care benefits).

For more information on the Modified Business Tax, visit the Nevada Department of Taxation’s MBT Information & FAQs page.

Nevada LLC Taxes Owed

LLCs benefit from pass-through taxation, meaning the business’s profits pass through to the members’ individual tax returns. As a result, your LLC itself does not pay taxes to the federal government or to the State of Nevada. Instead, LLC owners must pay taxes on their portion of the income made from the LLC. 

In Nevada, LLC owners can expect to pay the following taxes:

Federal Taxes

Regardless of where your business is located, if you have an LLC within the United States, you will have to pay federal income taxes and federal self-employment taxes. These taxes are reported on your Form 1040.

Federal Self-Employment Taxes

It doesn’t matter if your LLC is a single-member LLC or a multi-member LLC; all LLC members must pay self-employment taxes on their share of the LLC’s profits. The self-employment tax rate is 15.3%. 

Federal Income Taxes

Your federal income taxes will depend on your tax bracket, and the cutoffs for individual tax brackets, as well as the percent owed, will change each year. 

Nevada State Taxes

Every state has its own laws and regulations on how individuals and businesses are taxed. For example, Nevada does not have a state income tax which is definitely appealing to both residents and business owners.

Nevada Income Taxes

Nevada has no state income tax. While you will still need to pay federal income taxes, you will not have to worry about paying part of your income to the State of Nevada. Lacking a state income tax makes Nevada a very desirable place to operate a business in.

Nevada Sales and Use Tax

In Nevada, the state sales tax rate is 6.85%. In addition to that, you may have to pay a local sales tax depending on the county or city you are in. The average local sales tax rate is 1.38%, making the combined average sales tax rate in Nevada 8.23%. Make sure you know if your area has a local sales tax before doing business.

Register for your Nevada Sales Tax Permit

If you run a business in Nevada, you will need a Sales Tax Permit for your place of business. Should you run more than one location, each one will need its own Sales Tax Permit. Each permit will cost $15 for the filing fee.

Registration is done through SilverFlume, a program used by the State of Nevada to keep track of operating businesses and their needs.

Nevada Commerce Tax

The Nevada Commerce Tax is a yearly tax that affects some businesses that operate in Nevada. LLCs with revenue below $4 million do not have to file the yearly commerce tax. If your LLC does meet or exceed that number, you will have to file a Commerce Tax Return with the Nevada Department of Taxation.

To see if you need to file or for more information on the Commerce Tax, visit the Nevada Department of Taxation’s website.

Additional State Taxes

Nevada’s Department of Taxation oversees the collection of various taxes that businesses may have to pay depending on their location, industry, and number of employees. 

These are a few taxes that your Nevada LLC may be responsible for paying:

  • Short-Term Lessor Tax
  • Live Entertainment Tax
  • Real Property Transfer Tax
  • Minerals Tax
  • Intoxicating Liquor License and Tax

To learn more, check out the Nevada Department of Taxation website.

Nevada Local Taxes

The local laws and ordinances in Las Vegas are going to differ from those in Reno. Regardless of where you live in Nevada, we recommend you check with your local jurisdiction and ensure that your business obtains the proper local permits and follows any local regulations that may impact your business’s operation.

Nevada LLC Compliance

You must obey Nevada’s state and local laws to maintain your business's compliance and good standing. While LLCs technically do not file taxes with the state, Nevada LLCs must still file an annual report each year with the state.

Nevada LLC Annual List

All Nevada LLCs must file an annual list with the Nevada Secretary of State. Filing your list every year is required to keep your business open, as it also renews your State Business License. Filing can be done online or by mail and will cost you a total of $350 ($150 for your Annual List and $200 for the State Business License).

Your list will be due by the last day of your LLC’s anniversary month, otherwise known as the month your business was approved. If you miss this date, the Secretary of State will charge you a $175 late fee and put your LLC into “Default” status. Continuing to not pay the late fee and filing fee will cause your LLC to be “Revoked.”

Removing this status requires you to pay all late fees and filing fees. If your LLC remains in the “Revoked” status for five years, it will become “Permanently Revoked” and closed by the State.

For more information, check out our Nevada LLC Annual List guide.

LLC taxes are complex. While our guide can provide you with important information, we recommend you schedule a free consultation with an accountant to ensure that you handle your business taxes correctly.