1) Select your legal entity
- Sole Proprietor
- Limited Liability Company (LLC)
- S Corporation
2) Register with the Nevada Secretary of State’s Office
Businesses interested in incorporating, along with non-Nevada businesses seeking permission to do business in Nevada, need to register with the Secretary of State’s Office. The Secretary of State’s Office handles commercial recordings (incorporation, securities, notaries, trademarks and election information). Many online services are now offered through the Secretary of State’s website including online filing. For more information from the Nevada Secretary of State on starting a business click here.
In order to incorporate with the State of Nevada, you will need:
- Articles of Incorporation
- A Registered Agent
- Initial list of officers, directors and registered agent (filed annually thereafter)
3) Apply for a Federal Employer Identification Number
Use IRS Form SS-4 to apply for an employer identification number (EIN). An EIN is a nine-digit number assigned to sole proprietors, corporations, partnerships, estates, trusts and other entities for tax filing and reporting purposes. You may apply for an EIN in various ways, including online.Internal Revenue Service (800) 829-4933 (Business Tax Line) (800) 829-3676 (Tax Forms) (859) 669-5760 – fax http://www.irs.gov/
4) Fictitious Name Certification
Businesses that plan to use a name different than their legal or corporate name are required to obtain a fictitious name certificate. You can search on the County Clerk’s online DBA database to determine if the fictitious name desired is available. You can download DBA forms from the County Clerk’s website, however, the forms must be notarized so they cannot be submitted online.
Washoe County Office of the County Clerk:75 Court Street 893 Southwood Blvd. Reno, NV 89501 or Incline Village, NV 89451 (775) 328-3260 (775) 328-3275
5) Nevada Department of Taxation
Every new business is required to register with the Nevada Department of Taxation. This is the principal agency for obtaining information on Nevada’s state business license, sales tax or use tax permits. You can register, file, and pay most taxes online through the Nevada Tax Website.
Sales and Use Tax Registration
Sales tax is imposed at the retail level. Generally, use tax is imposed on tangible personal property purchased for storage or use in Nevada on which sales tax was not paid at the time of purchase.
Modified Business Tax
Employers who are required to pay a contribution to the Employment Security Division are subject to the Modified Business Tax. The Modified Business Tax is a quarterly payroll tax that is based on gross wages less qualified payments for health insurance/health benefit plans for employees. There is no cap or limit on the gross wages. Effective July 1, 2011, if the sum of all taxable wages, after health care deductions, paid by the employer does not exceed $62,500 for the calendar quarter, the amount of tax is 0.0% of the sum of those wages. If the sum of all wages exceeds $62,500 for the calendar quarter, the tax is $312.50 plus 1.17% of the amount the wage exceeds $62,500.
Nevada Department of Taxation:4600 Kietzke Lane Bldg L, Suite 235 1550 College Parkway, Suite 115 Reno, NV 89502 Carson City,NV 89706 (775) 688-1295 or (775) 684-2000 (775) 688-1303 – fax (775) 684-2020 – fax http://tax.state.nv.us/
6) Business Licenses
State Business License
Generally, all businesses that perform a service or engages in a trade for profit must obtain a State Business License. The annual State Business License Fee is $200. All non-profit 501(c) organizations and governmental entities are exempt from the license requirements and the fee. The application can be completed online or returned to the office of the Secretary of State.Secretary of State 202 North Carson Street Carson City, NV 89701-4201 (775) 684-5708 http://www.nvsos.gov/
Washoe County Business License
A Washoe County Business License is required if your business location address is in unincorporated Washoe County or your business is mobile and you will be doing business in the unincorporated area of Washoe County. You can find more information on the Business License Home Page.WashoeCountyDept. of Community Development 1001 East 9th Street, Bldg. A 2nd Floor Reno, NV 89512 (775) 328-3733 (775) 328-6133 – fax www.co.washoe.nv.us/
City of Reno Business License
All persons or companies conducting business in the City of Reno must obtain a business license prior to commencement of such business, whether operating from a fixed location in the City or coming into the City from an outside location. Applications packets can be downloaded from the City’s website, but must be submitted in person or by mail. You can find more information on the application process from the City of Reno’s Business License Division.Reno City Hall- Business License Office One East First Street, 2nd Floor Mail to: PO Box 1900 Reno, NV 89505 (775) 334-2090 http://www.reno.gov/
City of Sparks Business License
All persons or companies conducting business in the City of Sparks must obtain a business license prior to commencement of such business, whether operating from a fixed location in the City or coming into the City from an outside location. Applications packets can be downloaded from the City’s website, but must be submitted in person or by mail. For more information you can go to the City of Sparks’ Business Licensing page.Sparks City Hall- Business License Office 431 Prater Way Mail to: PO Box 857 Sparks, NV 89432 (775) 353-2360 (775) 353-7802 -fax www.cityofsparks.us/business
7) Additional Requirements for Employers in the State of Nevada:
Worker’s Compensation Insurance
An employer who has one or more employees must, by law, obtain workers’ compensation insurance coverage unless certified by the Commissioner of Insurance as a self-insured employer. Some employees are excluded due to unique criteria.
Nevada Employment Security Division
An employer must register with the Employment Security Division within 30 days after becoming subject to the Nevada Unemployment Compensation Law. An employer becomes subject to the law once $225 in wages has been paid in any calendar quarter. The unemployment insurance (UI) tax rate for new employers is 2.95% (.0295) of taxable wages. In addition, all employers must pay a tax for the Career Enhancement Program (CEP) of .05 percent (.005). Taxes are paid on wages up to the taxable wage limit for each employee. The taxable wage limit for 2011 is $26,600. There is no unemployment insurance tax paid by employees.Nevada Employment Security Division 500 East Third Street Carson City,NV 89713 (775) 684-3849 (775) 684-3850 – fax http://www.detr.state.nv.us/
W-4 Employee’s Withholding Allowance Certificate
All employees hired need to complete IRS Form W-4 so the employer can withhold the proper amount of income tax per pay period. Any change in the employee’s tax status requires a new form (all employees should update their W-4 form annually). A hard copy must be filed with the IRS when directed to do so in a written notice or pursuant to specified criteria set forth in future published guidance.Internal Revenue Service (800) 829-4933 (Business Tax Line) (800) 829-3676 (Tax Forms) http://www.irs.gov/
Department of Homeland Security Form I-9 Employment Eligibility Verification
All U.S.employers are required, at the time of hire, to obtain a completed, signed and dated Form I-9 for each employee. This completed form must be retained by the employer either for three years after the date of hire or for one year after employment is terminated, whichever is later.Department of Homeland Security U.S.Citizenship and Immigration Services www.uscis.gov/portal/site/uscis
8 ) State Labor Laws
All employers must comply with Nevada’s labor statutes and post notices (the Rules to be Observed By Employers and the Notice of Limitations Affecting the Application of Lie Detector Tests) at each place of business with employees.Office of the Labor Commissioner 675 Fairview Drive Suite 226 Carson City,NV 89701 (775) 687-4850 (775) 687-6409 – fax www.laborcommissioner.com/
9) Personal Property
Nevada law also requires all persons, firms or businesses owning, renting, leasing, holding a business license or controlling business personal property to file annually a list of the property with the Assessor’s Office. Personal property declarations can be filed online.Washoe County Assessor’s Office 1001 East 9th Street Reno, NV 89512 (775) 328-2213 www.co.washoe.nv.us/assessor
10) Special Permits
A new business may be required to obtain additional permits for the Health, Police, Fire or Building Departments. Inquire with the appropriate licensing agency.
If you need further assistance, please contact either:
|Leslie Daane, CPA
|Kam L. Chan, CPA