Nevada Business Resource
1) Nevada Tax Registration
If your goal is to start a business in Nevada, you will first need to register for the taxes demanded of your occupation. Sales and use tax is a common form of business taxation in the state of Nevada. However, depending on the nature of your business, you may need to register for additional expenses. The Nevada Tax Center, a page on the Nevada Department of Taxation’s website, allows you to register for a Sales or Use tax permit, check for additional required permits, manage your account and revise your information. The site also features a Frequently Asked Questions page to address any additional concerns or inquires. While the page offers a variety of tax-related services, be aware that it only supports the Internet Explorer browser.
For contact information and information concerning local events and tax updates, you can visit the Nevada Department of Taxation’s main page.
2) Business Licenses
A business based in Nevada must also aim to acquire a business license. These licenses carry a fee of $100, in addition to an annual renewal fee of $100. Failure to obtain or renew a state business license will result in a penalty of an additional $100. Businesses that purchase property for storage must also register for a Use Tax Account.
Certain types of businesses need not apply for a Nevada business license. For example, the following types of businesses are exempt from the license laws:
- Government entities
- Nonprofit religious entities,
- Charitable organizations
- Fraternal organizations
The Nevada Department of Taxation offers a State Business License document that can help you determine whether or not you need a license to operate your business.
3) Local Permits
The local government in your area, such as that of your city or county, may require specific permits and licenses. Each municipality may have its own unique regulations. Here are some of the most common licenses and permits you may need.
- Alarm Permit
- Building Permit
- Business License and/or Tax Permit
- Health Permit
- Occupational Permit
- Signage Permit
- Zoning Permit
4) Incorporation Filing
Nevada-based businesses that are corporations, non-profits, limited liability companies and partnerships must register with the state. Application forms and fee information can be found on the site of the Nevada Secretary of State.
A sole proprietorship business does not need to register with the state, but that business will feature the owner’s personal name. This also means that business liabilities may become personal liabilities, putting personal assets at risk.
5) Doing Business As
If the risks involved with a sole proprietorship seem overwhelming, consider simply registering as a limited liability company or corporation. Doing so will allow you to create a business name that is legally separate from your personal name. This will also provide more protection for your personal assets in case a business-related lawsuit arises.
Employer Requirements
6) Withholding Income Taxes
The Internal Revenue Service advises that employers hold onto employment tax records for at least four years after the filing process of the year’s 4th quarter. The retained records should encompass the following items:
ñ Personal information of employees, such as contact information and social security numbers
ñ The identification number of the employer
ñ A copy of each employee’s tax withholding allowance certificate
ñ Wage, annuity and pension payment information for each employee
IRS website features a lengthier list of items that you may want to consider keeping in your records. By following this list of recommended items, you will be able to monitor the growth of your business over time, determine tax deductible elements and prepare tax returns. Overall, these records will keep your business running smoothly and efficiently.
W-4 and W-2 Forms
Employees must return signed copies of Form W-4 to the employer. Form W-4 is a withholding exemption certificate, which the employer must then send to the IRS.
It is also the employer’s duty to handle Form W-2, which contains information regarding the withheld taxes and paid wages of each employee for the prior year.
By the following January, every employee should receive a copy of Form W-2 for his or her personal records. Copies that are not received by employees should be kept on file by the employer.
These following sources provide information and applications for the W-2 and W-4 forms:
ñ The Social Security Administration’s Employer W-2 Filing Instructions and Information page
ñ The Internal Revenue Service’s Employer Tax Guide
7) Employee Eligibility Verification (Form I-9)
Employers should instruct newly acquire employees to fill out Form I-9 and return it within three days of beginning employment. The employer must keep all of these forms on file for each employee. Form I-9 serves as proof of eligibility to work within the country.
Form I-9 can be found on the official site of the United States Citizenship and Immigration Services.
8) New Hire Reporting
The employer must report the hiring or re-hiring of employees within 20 days of the beginning of employment. The report’s information should include items such as the employee’s name, social security number, physical address and contact information and qualifications for health benefits. Information regarding the employer will also be necessary. The Nevada Division of Welfare and Supportive Services offers a New Hire Reporting page.
9) Insurance Requirements
If you must hire employees for your Nevada-based business, you will be responsible for additional tax expenses, such as unemployment tax and workers’ compensation tax.
Workers’ compensation tax aids employees who are injured on the job or victims of work-related illnesses. More information is available on the Nevada Department of Business and Industry’s Workers’ Compensation page.
Unemployment insurance tax aids unemployed individuals who are willing and able to work. Visit Nevada’s Employment Security Division for more information.