Q: What businesses are exceptions to or exempted from needing a State Business License?
A: Nevada nonprofit corporations formed under NRS Chapter 82 and Corporations Sole formed under NRS Chapter 84 are specific exceptions and are not required to obtain a State Business License. In addition, specific statutory provisions exempt certain businesses from the requirements of the State Business License. These businesses must still initially submit the form, WITHOUT FEE stating the specific exemption. The Statutory exemptions are as follows: • A governmental entity. • (b) A nonprofit religious, charitable, fraternal or other organization that qualifies as a tax-exempt organization pursuant to 26 U.S.C. § 501(c). • (c) A person as defined in Title 7 of the Nevada Revised Statutes, who operates a business from his home and whose net earnings from that business are not more than 66 2/3 percent of the average annual wage, as computed for the preceding calendar year pursuant to NRS Chapter 612 and rounded to the nearest hundred dollars. The average annual wage generally fluctuates each year. 66 2/3% of the average annual wage for 2010 is $27,000.00. • A natural person whose sole business is the rental of four or fewer dwelling units to others. • A business whose primary purpose is to create or produce motion pictures. As used in this paragraph, “motion pictures” has the meaning ascribed to it in NRS 231.020. • An insurance company licensed pursuant to NRS 680B.020 not conducting business not incidental to Title 57.
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Q: What if I fall in the group of businesses that are not required to secure a State Business License?
A: Except for entities formed under NRS Chapters 82 and 84, all businesses that are exempt are required to cite their exemption on the Initial/Annual List of Officers for Title 7 entities, and for NT7 entities on the application with the Office of the Secretary of State. You will receive a receipt and a notice of exemption.
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Q: Can I drop-off my State Business License Application without waiting in line?
A: If you do not have an immediate need for your State Business License, you may drop-off your application and filing instructions, along with the appropriate fees at one of our two office locations in Carson City or Las Vegas and your application will be processed through our normal filing procedures. Once processed, your State Business License will be delivered to you via the method specified in your filing instruction. If you need to have your State Business License processed immediately, you may file your application online at www.nvsos.gov or you may use our counter service at either of the Secretary of State’s office locations in Carson City or Las Vegas.
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Q: Why do I need to file a notice of exemption?
A: Since a business license is required for the conduct of business in this State, not filing a notice of exemption may cause your entity to show as default and prevent you from obtaining other licenses, permits, etc. with the State or other agencies.
For Title 7 entities who qualify for an exemption the notice will ensure that if you file your Annual List of Officers, but it is missing payment for the business license fee, that the entity status is not compromised.
This will also ensure that your entity is listed as “in good standing” on the Nevada Business Entity Search at www.nvsos.gov if you are in compliance with the law.
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Q: Are trade show or convention participants required to obtain a State Business License?
A: A person or governmental entity that operates a facility where exhibitions are held is responsible for paying the license fee for persons who exhibit but do not have a State Business License because they are not located in this State. Trade shows, conventions, craft shows, sporting events or similar events involving the exhibition of property, products, goods, services or athletic or physical skill are considered “exhibitions”.
The operator of the facility may elect to pay an annual license fee of $5000 for all events held that fiscal year or remit on a quarterly basis $1.25 per day for each business, for each event held at the facility. THE DEPARTMENT OF TAXATION MAINTAINS THE AUTHORITY FOR THE ISSUANCE OF A STATE BUSINESS LICENSE FOR OPERATORS OF FACILITIES WHERE EXHIBITIONS ARE HELD.
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Q: Am I required to notify the Secretary of State or the Department of Taxation if I close my business?
A: Yes, pursuant to law, a sole proprietor or general partnership (NT7) who ceases to do business in the state of Nevada must notify the Secretary of State not less than 10 days prior to the expiration of the State Business License to avoid the annual fee and a penalty for non-payment.
Title 7 entities must file dissolution or other terminating documents with the Secretary of State in order to avoid the annual fee and a penalty for non-payment.
You may be liable for any legal requirements governing a business in the State of Nevada if you fail to cancel or file dissolution/terminating documents
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Q: I am applying for a local business license, how can I prove that I have a current state business license?
A: Your State Business License is proof; or you may visit www.nvsos.gov and utilize the Nevada Business Search to verify the status of your business/license.
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Q: Can I expedite my business license application/renewal?
A: No, but if you complete the application/renewal online, the filing is effective immediately. However, a Title 7 entity filing its Initial or Annual List of Officers on an expedited basis will include the State Business License for no additional expedite fee.
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Q: I am a sole proprietor, am I required to have a State Business License?
A: Yes. Unless statutorily exempted, sole proprietors doing business in Nevada must maintain a State Business License. Sole proprietors may submit their State Business License application online at www.nvsos.gov, by mail, or in-person.
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Q: Are there any other requirements for businesses obtaining a State Business License?
A: NRS 372.220 requires that every business that purchases tangible personal property for storage, use or other consumption in this State must register with the Department of Taxation for a Use Tax Account. Once you have been issued a business license by the Secretary of State, contact the Department of Taxation to determine if you are required to register for the Use Tax account. There may be other state and local government filing requirements depending on the nature of your business. You will find a new business checklist at www.whynevada.com.
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Q: Is a single member Limited Liability Company (LLC) required to maintain a State Business License?
A: Yes. A single member Limited Liability Company is an entity required to file an annual list with the Secretary of State and therefore, is also required to maintain a State Business License. An LLC’s State Business License Application is now part of the LLC’s Annual List of Managers/Members. If your State Business License expires before your annual list or you need to apply for a State Business License before your Annual List is due, you may file a “Gap” filing to obtain your State Business License. An LLC may submit its State Business License application online at www.nvsos.gov, by mail, or in-person.
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Q: Can I call, email or send a letter indicating that I am closing my business?
A: No, NT7 entities such as sole proprietors or general partnerships must complete a cancellation form online at www.nvsos.gov under state business license. Once the form is received the status will change from listing an expiration date to “cancelled”. Title 7 entities must file dissolution or other terminating documents with the Secretary of State.
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Q: What is the State Business License and who is required to file?
A: State law requires that every person or entity doing business in the State of Nevada obtain a business license annually. A business that meets the criteria shall not do business in the state of Nevada without the State Business License. Certain businesses may be exempt from the state business license requirement.
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Q: What constitutes “doing business” in Nevada?
A: Pursuant to Title 7 of the Nevada Revised Statutes and for the purposes of the State Business License, “business” means any person, except a natural person that performs a service or engages in a trade for profit, any natural person who performs a service or engages in a trade for profit and is required to file with the Internal Revenue Service a Schedule C (Form 1040) Profit or Loss from Business Form, a Schedule E (Form 1040) Supplemental Income and Loss Form, or a Schedule F (Form 1040) Profit or Loss From Farming Form, or any entity formed pursuant to Title 7 of the Nevada Revised Statutes, including, without limitation, those entities required to file with the Secretary of State.
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Q: What is the cost of a State Business License and when is it due?
A: The State Business License Fee is $200 and must be renewed annually.
For entities that are formed under NRS Title 7, the business license fee is due at the time an Initial List of Officers or Annual List of Officers is due. The State Business License Fee is in addition to the fees for the initial or annual list.
For Non-Title 7 businesses (NT7) such as sole proprietors and partnerships, the business license application is required as soon as you begin to conduct business in Nevada.
Check, debit card, e-check, trust account, credit card and cash (only in-person) are accepted forms of payment.
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Q: How do I obtain/apply for a State Business License?
A: A business must apply for the State Business License with the Office of the Secretary of State. For Title 7 entities, the application for a business license is part of the Initial List or Annual List of Officers filing and can be filed online at www.nvsos.gov, by mail or in-person. For Sole proprietors and partnerships a State Business License can be filed online at www.nvsos.gov, by mail, or in-person. All filings must be accompanied by all appropriate fees at the time of filing or the filing will be rejected and additional fees and penalties may apply.
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Q: What do I receive when I submit for a State Business License?
A: You will receive a license indicating the effective term of the business license and a receipt.
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Q: What is a Title 7 entity?
A: A Title 7 entity is an entity organized pursuant to the laws of Nevada and has filed formation documents with the Office of the Secretary of State. Title 7 entities are required to file an Annual List of Officers or its equivalent and include domestic and foreign qualified corporations, limited liability companies, limited partnerships, limited liability partnerships, limited liability limited partnerships and business trusts.
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Q: What is a non-Title 7 or NT7 business?
A: A non-Title7 (NT7) business is a sole proprietorship or partnership doing business in Nevada that is not required to file its organizational documents with the Office of the Secretary of State. NT7 businesses doing business in the state of Nevada are required to maintain a State Business License unless specifically exempt.
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Q: What is the renewal fee and when is it due?
A: The renewal fee is $200 and business entities which have a State Business License shall pay the renewal fee based on their anniversary date. For Title 7 entities, this date coincides with due date of the Annual List of Officers.
For sole proprietors and partnerships, the Business License must be renewed on or before the expiration date listed on the license.
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