Nevada LLC Taxes

The default federal tax status for your Nevada LLC depends on its number of members (owners). A single-member LLC (SMLLC) is normally taxed as a sole proprietor, and a multi-member LLC is taxed as a general partnership. Because of this pass-through tax status, revenue is distributed to members and filed on their personal income tax at the 15.3% federal self-employment tax rate (12.4% for Social Security and 2.9% for Medicare), while the LLC itself pays no federal corporate income tax.

LLCs with default tax status file federal taxes with the following forms:

• Single-member LLC—Form 1040 (usually Schedule C, but some SMLLCs file C-EZ, E, or F)
• Multi-member LLC—Form 1065

LLCs are not limited to default tax classification, though—you can also elect S-corp or C-corp tax status for your LLC. Here’s how that affects your LLC’s taxes:

Nevada LLCs taxed as S-corp

S-corp status is useful for some LLCs—S-corps do not pay corporate income tax, and can make member distributions exempt from the 15.3% federal self-employment tax.

Your LLC can file for S-corp status with IRS Form 2553. Before you file, check the IRS S-corp requirements to make sure your LLC qualifies, as only US-originating companies that follow certain limits on shareholders and stock can become S-corps. S-corp tax returns (through IRS Form 1120-S) are also more complex than returns for default status. Not all LLCs will save money by electing for S-corp status, so it’s a good idea to check with a CPA before you commit to changing your LLC’s tax status.

LLCs taxed as C-corp

It’s fairly uncommon, but some LLCs choose to be taxed as C-corps, which is the default tax status of corporations. C-corps suffer from “double-taxation,” paying 21% corporate income tax while owner shareholders also get taxed on dividends. However, C-corps also have access to a wider range of tax breaks than default LLCs or S-corps, and tend to be more appealing to investors, making C-corp status a sensible option for LLCs in search of broader funding opportunities.

As with an S-corp, we recommend speaking to a CPA to see if your LLC will benefit from C-corp status. C-corps report their income with IRS Form 1120.

There is no state income tax in Nevada—no corporate income tax, personal income tax or franchise tax that applies to LLCs. Whether your LLC is classified with default status, as a C-corp or an S-corp, you’ll still pay no state tax on its income.

However, Nevada has an annual Commerce Tax on gross receipts, which must be filed by businesses making more than $4,000,000 over a taxable year. Commerce Tax rates vary depending on industry, ranging from 0.051% for mining-related industries to 0.331% for businesses related to rail transportation.

Nevada Annual List and Business License Fee

Much like other states’ annual reports, Nevada requires updates on business ownership and contact information, which combines with the state business license for an annual fee. LLCs must pay a total cost of $350 for this filing—$150 for the list fee and $200 for the license.

The Annual List and Business License application can be submitted by mail or online through the Nevada business portal SilverFlume.

Nevada has a minimum statewide sales tax of 6.85%. Counties can add additional sales tax on top of that, up to 1.525%. Nevada’s highest general sales tax is 8.375% in Clark County. You can find the specific sales and use tax rate for your location on a map provided by the Nevada Department of Taxation and Fee Administration. You’ll also need to register for eClearance for Sales and Use Tax, which is $15 per Nevada location.

Some cities and counties in Nevada impose taxes of their own, such as a 13% room tax rate in Las Vegas. You will need to pay local taxes for your LLC in its home location and in any other cities or counties where it conducts business.

Here are some other taxes that are imposed by the state of Nevada.

Nevada State Employer Taxes

Nevada employers must pay unemployment insurance and workers’ compensation taxes:

• Unemployment Insurance (UI) Tax—Employers are taxed up to a base wage of $40,100 for every employee (wages over that threshold are not taxed). For roughly the first three years that an employer is subject to the law, the unemployment tax rate is effectively 3% (2.95% towards unemployment insurance and an additional 0.05% towards Nevada’s Career Enhancement Program). Afterwards, a rate between 0.25% and 5.4% will be assigned to the employer by the Nevada Employment Security Department every year. The rate is calculated based on the amount of unemployment taxes paid by (and unemployment benefits charged to) the employer, and their average taxable payroll for the past three years.
• Workers’ Compensation—Nevada employers are required to purchase workers’ comp insurance for all employees. Rates vary based on claim history and the risk involved in the work your employees do, but Nevada’s estimated average rate is $0.94 per $100 of payroll.

To learn more about Nevada employer taxes, visit the Nevada Unemployment Insurance Employer Self Service website.

Industry Taxes

The Nevada Department of Taxation also taxes certain industries and regulated substances in the state, including:

• Tire Tax
• Liquor Tax
• Cigarette Tax
• Other Tobacco Products Tax
• Wholesale and Retail Marijuana Excise Taxes
• Net Proceeds of Minerals Tax
• Gold and Silver Excise Tax
• Live Entertainment Tax
• Insurance Premium Tax
• Bank Branch Tax

Yes. If you have an Nevada foreign LLC (an LLC doing business in Nevada formed outside the state) you still need to pay all applicable Nevada taxes, including local-level city and county taxes.