Clipboard with a blank form, a pen and a small plant on a desk, Nevada Business Taxes Explained for New Owners

Nevada Business Taxes Explained for New Owners

Last verified: November 5, 2026

A Nevada owner with no employees and under $4,000,000 in Nevada revenue owes the state $200 a year for the State Business License, plus a $150 annual list if the business is an LLC. Nevada has no corporate income tax, personal income tax or franchise tax, as the Governor's Office of Economic Development lists them. That is not the same as no tax: hiring one person, selling taxable goods or passing $4,000,000 in revenue each starts a separate state tax.

This guide covers the state taxes that apply to any Nevada business, whether a sole proprietorship, LLC or corporation, in the order a new owner meets them. LLC owners get the extra detail they need in each section, and a federal section near the end covers the tax that is larger than any of these.

What Nevada Does Not Tax

Nevada does not tax business profit at the state level, so a business that earns $90,000 owes the state nothing on it. What the state does charge is a license, an annual filing, sales tax if you sell taxable goods, a payroll tax if you hire, and a gross-revenue tax above $4,000,000. Of these, the payroll tax is the one new owners miss most often.

The State Business License

The state requires a State Business License from the Secretary of State before you conduct business in Nevada (NRS 76.100). The fee is $200, or $500 if you are a corporation organized under NRS chapter 78, 78A or 78B or a foreign corporation filing lists under chapter 80. The same amounts apply every year at renewal (NRS 76.130).

The $200 versus $500 split follows how the entity is organized under Nevada law. NRS 76.100 names corporations organized under chapters 78, 78A and 78B and foreign corporations under chapter 80 for the $500 fee, and an LLC is organized under chapter 86, which that list does not name. An LLC that elects S-corporation treatment with the IRS is still an LLC under Nevada law, so the statute's text points to $200, but confirm with the Secretary of State before you convert to an actual corporation, which pays $500.

If you are an LLC or corporation, you buy the license when you file your initial list and renew it with each annual list, so one filing covers both. A late renewal adds a $100 penalty under NRS 76.130. Sole proprietors and other businesses that do not file lists renew on the last day of the anniversary month of the license.

"Every business" has limits. NRS 76.020 excludes governmental entities, tax-exempt 501(c) nonprofits, businesses organized under chapters 82 or 84, and a natural person whose only business is renting four or fewer dwelling units. It also excludes a person who runs a business from home and whose net earnings stay under 66 2/3% of the state's average annual wage. That wage figure changes every year and is set under NRS chapter 612, so ask the Secretary of State for the current number before you rely on the exclusion. If you are unsure which side of the line you are on, buy the license: it costs less than a penalty. Our Nevada business license guide covers the application itself.

The Annual List

An LLC files an initial list of managers or managing members and then an annual list, each at $150 (NRS 86.263). The annual list is due by the last day of the month in which your formation anniversary falls. A late LLC filing adds a $75 penalty (NRS 86.272), and the entity can go into default if it stays unfiled. The list names each manager and member with an address, either residence or business, so a Nevada LLC is not anonymous to the state.

A corporation's annual list is priced by authorized shares: $150 at $75,000 or less, then $200, $300 and $400, plus $275 for each additional $500,000, to a maximum of $11,125 (NRS 78.150). The initial list is $150. For the initial list and license, the Secretary of State's State Business License FAQ gives the last day of the month after you file your organizational documents as the deadline (read from an October 14, 2026 Wayback snapshot). File both through the Nevada ORION business portal. The statute itself (NRS 86.263(1) and NRS 76.100) calls for the initial list and the license at the time of filing, so filing them together with the articles is the safe course; confirm the current due date with the Secretary of State.

For an LLC, that makes the first year $425 at the state level: $75 for the articles (NRS 86.561), $150 for the initial list and $200 for the license. Every year after that it is $350. A corporation at the lowest share tier pays $725 in year one ($75, $150 and $500) and $650 after that. If you are deciding between the two structures, the filing itself is simple to do yourself; if you would rather pay for it, compare LLC formation services in Nevada first.

Sales Tax

The Department of Taxation states the base state sales tax rate as 6.85%, and counties add their own. Its published rate sheets show Clark County (Las Vegas area) at 8.375% on a sheet dated January 1, 2020, and Washoe County (Reno area) at 8.265% on a sheet dated April 1, 2017. Those sheets are old, so look up your own address on the Department's sales and use tax publications page before you quote a rate to a customer.

If you sell taxable goods, you need a seller's permit before your first sale. The permit costs $15 per location and is applied for through the Department of Taxation: Start or Run a Business page or in My Nevada Tax. It is separate from your LLC or corporation filing. You collect the tax from the customer and hold it for the state, so none of it is your income.

The retail sales tax statute reaches the sale of tangible personal property at retail (NRS 372.105), and the retailer collects the tax from the consumer. Confirm your filing frequency and due dates with the Department of Taxation when you register.

Whether a service is taxable, and what applies to sales shipped to buyers outside Nevada, depends on the facts. Ask the Department of Taxation, or a CPA, before you assume either way.

Commerce Tax

The Commerce Tax applies only to a business with Nevada gross revenue over $4,000,000 in a fiscal year (NRS 363C.200). It is charged on revenue above that line at an industry rate from 0.051% to 0.331%, so a business with $5,000,000 in Nevada revenue owes between $510 and $3,310 on the $1,000,000 above the line. A business at or under $4,000,000 files nothing. Revenue is the measure here, not profit, so a thin-margin business can owe it in a year it loses money. An employer that pays the Commerce Tax gets a credit against the MBT equal to 50% of the Commerce Tax paid, usable in the four quarters after the year it was paid for (NRS 363B.110(4)).

The return is due 45 days after the June 30 fiscal year end; for the 2025-2026 year that was August 14, 2026 (Department of Taxation: Commerce Tax). See Nevada Commerce Tax explained for the industry categories.

If You Hire: Payroll Taxes

Your first employee adds two Nevada taxes on top of federal withholding, which goes to the IRS in every state.

  • Modified Business Tax (MBT): For most employers the rate is 1.17% of the wages you pay in a quarter above $50,000, per the Department of Taxation's Modified Business Tax page (rate effective July 1, 2023). A business that pays $75,000 in wages in a quarter owes 1.17% of the $25,000 above $50,000, which is $292.50 for that quarter. Every employer files the quarterly return, even when nothing is due, by the last day of the month after the quarter ends (NRS 363B.110). The Department's rate reductions lowered the statute's base rate of 1.475%, and financial institutions have a separate rate. Wages are what the tax counts, and how an owner's own pay is treated depends on the federal tax election, so ask a CPA before you budget for it. See our Nevada Modified Business Tax guide for the filing.
  • Unemployment insurance (UI): Contribution rates run from 0.25% to 5.40% of taxable wages, by class (NRS 612.550). The statute sets a standard rate of 2.95% for employers until they have enough history to be rated (NRS 612.540), so confirm your assigned rate with the Department of Employment, Training and Rehabilitation (DETR). Register with DETR before you hire.

You will need an EIN to register as an employer. It is free from the IRS, and the IRS EIN application warns about websites that charge for it. Workers' compensation insurance is a separate cost; see Nevada workers' compensation requirements.

Recurring State Tax Costs at a Glance

Item Cost Notes
State Business License $200 a year ($500 for corporations) NRS 76.100; renewed with the annual list
Annual list, LLC $150 a year NRS 86.263; $75 penalty if late
Annual list, corporation $150 to $11,125 a year By authorized shares, NRS 78.150
Seller's permit $15 per location Department of Taxation: Start or Run a Business
Sales tax 6.85% base, plus county rates Collected from customers; rate sheets
Commerce Tax 0.051% to 0.331% above $4,000,000 Only over $4,000,000 in Nevada gross revenue, NRS 363C.200
Modified Business Tax 1.17% of quarterly wages above $50,000 Only if you pay wages; Department of Taxation
Unemployment insurance 0.25% to 5.40% of taxable wages Only if you hire; NRS 612.550

A solo LLC with no employees and under $4,000,000 in revenue owes the state $350 a year. Which agency collects what matters: the Secretary of State handles formation, the license and the annual list, and the Department of Taxation handles sales tax, Commerce Tax and the MBT.

Three Nevada LLCs, Three State Bills

These are illustrations built from the rates above, not real businesses. They show how quickly the state bill depends on what the LLC does.

LLCState bill each yearHow it is figured
Solo consultant, no employees, $250,000 in revenue$350License plus annual list; no MBT without wages, under the Commerce Tax line
Retail shop, $300,000 in yearly wages, $1,000,000 in sales$1,520, plus sales tax collected$350 in fees, plus $1,170 MBT ($75,000 a quarter, $292.50 on the amount above $50,000, four quarters)
Distributor, $6,000,000 in Nevada revenue, no payroll$1,370 to $6,970$350 in fees, plus Commerce Tax of $1,020 to $6,620 on the $2,000,000 above the line

In all three, the federal bill is larger than the state bill, and the owner's home state may add its own tax.

Federal Taxes for LLC Owners

Nevada's lack of an income tax does nothing for your federal return. The IRS's LLC classification rules set the default: a one-member LLC is disregarded, so its income goes on the owner's own return, and an LLC with two or more members is a partnership. Nevada does not care which you are. The IRS does.

  • Self-employment tax. The rate is 15.3% (12.4% Social Security plus 2.9% Medicare). For 2026 the Social Security part applies to the first $184,500 of combined wages and net earnings (IRS: self-employment tax). For an active owner of a profitable LLC this is often the largest single line after income tax.
  • Estimated payments. For 2026, Form 1040-ES lists April 15, June 15 and September 15, 2026, and January 15, 2027 (IRS Form 1040-ES (2026)). The January payment is not required if you file by February 1, 2027 and pay in full.
  • A separate return for some LLCs. A partnership LLC files Form 1065 and gives each member a Schedule K-1 (see the IRS's Form 1065 page).

You can change the default with Form 8832 (corporate classification) or by electing S-corporation status on Form 2553 (IRS: S corporations). An S-corporation election adds payroll and a separate Form 1120-S, so it pays off only at a profit level where the savings exceed that cost. That is a calculation for a CPA, not a Nevada rule.

Common Myths About Nevada Business Taxes

Myth: Nevada businesses pay zero taxes. They pay no state income tax. They do pay the license and annual list, federal income and self-employment tax, sales tax on what they sell, MBT and unemployment insurance if they have payroll, and Commerce Tax above $4,000,000.

Myth: Forming in Nevada means your home state cannot tax you. Where you live and where you do business decide that, not where the LLC is filed. California shows the point: every LLC doing business in California owes the state's annual $800 tax, plus a fee once California income passes $250,000, whether it was organized in Nevada or not (California Franchise Tax Board: LLCs). If you live in or sell into a state with an income tax, ask a CPA licensed there before you count on Nevada's savings.

Local Licenses and Permits

State tax is only part of the bill. Cities and counties issue their own business licenses on top of the state license, and the fee and the rules differ by place and by business type. Start with our Nevada city and county guides, and if you work from home, read the home-based business guide. Some trades, such as food service, need further permits from the agency that governs them.

Where This Guide Stops

This guide covers state business taxes and the federal basics for LLC owners. It does not cover corporate federal returns, taxes tied to specific industries such as gaming or lodging, or how a particular service or product is classified for sales tax. Those turn on facts about your business, so a Nevada CPA or tax attorney should confirm your own situation before you choose a structure, including whether an S-corporation election pays off at your profit level. For free guidance, the Nevada Small Business Development Center and the U.S. Small Business Administration Nevada district office offer counseling.

Disclaimer

This article is general information, not legal or tax advice. Fees and rates change, so confirm each figure with the agency named beside it before you file or pay.

Sources

Keep exploring: related Nevada guides