As soon as you form a business (LLC, Corporation, DBA, etc), you automatically are given responsibilities by the government that you should always take care of. Starting a business in Nevada is a privilege, and with this privilege comes the obligation to pay for the different taxes demanded of your particular business type.
While you have tax obligations towards the federal government, there are also some Nevada business tax requirements imposed at the state and local levels. It is therefore up to you, as a new entrepreneur, to find out all the deliverables for Nevada business taxes.
To get you started, this guide outlines the common tax obligations applicable for Nevada businesses, and a recommended tool to help make your tax life much easier and stress-free.
There is no Nevada Business Income Tax to speak of as of this writing or a personal income tax for that matter. Although this is the case, there are still some state taxes that a business should comply with. For businesses with employees that report gross wages, there is the Modified Business Tax (MBT) implemented by the state.
This quarterly payroll tax has a 1.17% rate, which is applicable to taxable wages that exceed a $62,500 bracket. That is, if you have taxable wages that exceed $62,500 in one quarter, you are required to pay $312.50 and an additional 1.17% on the amount that exceeds the $62,500 bracket.
When it comes to Nevada federal tax forms and publications, it is important that information pertaining to requirements and various tax forms should only come from a reliable source.
This is to ensure that you are following what is specified by the governing agencies for faster approval and compliance of tax deliverables. For all information, forms, and reports related to Nevada business taxes, always refer to the Nevada Department of Taxation.
The Nevada unemployment insurance tax is mandatory for businesses with employees at a rate of 2.95% of wages for each employee.
There are some criteria that have to be met for a business to pay for unemployment insurance tax. This government initiative is a benefit provided by the state of Nevada for state workers who have been laid off or fired through no fault of their own. This subsidy helps these workers get by while they are still looking for another job in the state.
There is a need for Nevada sales and use tax for small business entrepreneurs in the state. The current rate for the Nevada sales tax is at 4.6%. However, this rate is only at the state level, and there might still be a possibility of municipal or local state tax, so that it could reach up to 8.15%.
The use tax on the other hand is a counterpart of the sales tax, so where the latter is not imposed, the use tax will be implemented. For sales and use tax forms, this page on the Department of Taxation of Nevada can help.
While there are many professional services available that can take care of your tax requirements and obligations for your business, your limited resources as a startup entrepreneur can be a hindrance.
A good alternative to these professional services is the use of small business accounting software. These applications provide a number of tools and features that can relatively automate a number of manual repetitive tasks.
Small business accounting software applications such as FreshBooks, QuickBooks, and Xero are industry leaders when it comes to powerful accounting and bookkeeping tools for small businesses. The beauty of these applications is that it provides entrepreneurs a wide variety of invaluable tools that are not only limited to performing accounting tasks. These tools also automate bookkeeping tasks, report generation, finance tracking, and more.
Note that this guide should not be taken as legal advice or a tax document. Its only purpose is to serve as an informational article, so it should be treated as such. For questions on the specifics of Nevada business taxes or starting a new business, refer to the expert advice of a business lawyer.