Does Nevada Have Franchise Tax for LLC? Nevada LLC Formation and Taxes

Nevada allows an individual to form a limited liability company (LLC). The income from the LLC is included on your individual tax return. Nevada has no franchise or inventory income taxes.

LLC Registration and Mailing Address

Can you use a PO box for an LLC in Nevada? You need a physical Nevada address as well. The PO box can be your mailing address. Corporations pay a $500 fee. All other business types pay a $200 fee. The State Business License must be renewed yearly. When an Initial List of Officers or Annual List of Officers is due, the business license fee is due.

Taxation of LLCs in Nevada

LLCs with over $4 million in revenue pay the Commerce Tax, which is between 0.051% and 0.331% of gross revenue, depending on the LLC’s sector. Nevada requires payroll taxes if your LLC has employees. The payroll tax rate in Nevada is 1.475% for employees making under $28,990 yearly and 1.725% for those making more.

LLC tax classification in Nevada shows the tax categories LLCs can opt for. LLCs have a simplified tax structure compared to corporations. An LLC does not pay business income taxes due to its pass-through taxation structure. Members file income tax returns based on their profit share. Unlike corporations, LLCs do not pay income taxes on profit or revenue.

Annual Obligations for Nevada LLCs

Nevada LLCs must file an Annual List and renew their State Business License yearly to maintain good standing status and keep doing business in Nevada. The Annual List and License renewal are filed together.

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