Nevada Business Taxes for LLCs

Filing fee: $425 (Articles of Organization)

Processing time: Varies — standard processing available through the Nevada Secretary of State

State agency: Nevada Secretary of State (formation); Nevada Department of Taxation (state taxes)

Annual report due: Annual list of managers/members due by the last day of the anniversary month of formation; $150 fee

State tax rate: No state income tax. Commerce tax: 0.051%–0.331% on gross revenue above $4 million. Modified business tax: 1.17% on gross wages.

Nevada LLCs don't pay state income tax — Nevada has none. But that doesn't mean your LLC has no state tax obligations. Depending on your revenue, payroll, and what you sell, you may owe the commerce tax, the modified business tax, and Nevada sales tax, on top of federal taxes that apply to all LLCs regardless of state.

• No Nevada state income tax on LLC profits

• Commerce tax applies if your LLC earns more than $4 million in Nevada gross revenue per year

• Modified business tax (MBT) applies if your LLC has employees — currently 1.17% on gross wages

• Sales tax applies to taxable goods sold in Nevada — rates vary by county

• Federal pass-through taxes apply to all LLC members regardless of state

Nevada imposes 3 main state-level taxes that can affect your LLC: the commerce tax, the modified business tax, and sales tax. Which ones apply to you depends on your revenue, whether you have employees, and what your business sells.

Commerce tax

The commerce tax is Nevada's version of a franchise or business privilege tax. It applies to businesses with more than $4 million in Nevada gross revenue in a fiscal year. If your LLC earns below that threshold, you still need to file a return — you just won't owe anything. The tax rate ranges from 0.051% to 0.331% depending on your industry. Returns are due 45 days after the end of the fiscal year (June 30). Most small LLCs won't hit the $4 million threshold, but the filing requirement still applies.

Modified business tax

If your LLC has employees, you'll owe the modified business tax (MBT). The MBT is calculated on gross wages paid to employees at a rate of 1.17%, after deducting health insurance premiums. Returns are filed quarterly with the Nevada Department of Taxation. This is one of the taxes that catches new employers off guard — it's separate from federal payroll taxes and has its own filing schedule.

Sales tax

Nevada has a state sales tax, and the rate varies by county. If your LLC sells taxable goods — or certain taxable services — in Nevada, you need to collect and remit sales tax to the Nevada Department of Taxation. The statewide base rate is 6.85%, but local additions can push the effective rate higher depending on where your business operates. Services are generally not taxable in Nevada, but physical products are. A tax professional can help you figure out whether your specific products or services are subject to sales tax.

Nevada LLCs are pass-through entities for federal tax purposes — the LLC itself doesn't pay federal income tax. Instead, profits and losses flow through to the members, who report them on their personal tax returns. How that works depends on how many members your LLC has and whether you've made an S Corporation election.

Single-member LLC

A single-member LLC is treated as a disregarded entity by the IRS. You report business income and expenses on Schedule C, attached to your personal Form 1040. You'll also owe self-employment tax — currently 15.3% on net earnings — which covers Social Security and Medicare. The self-employment tax rate breaks down as 12.4% for Social Security (up to the annual wage base) and 2.9% for Medicare.

Multi-member LLC

A multi-member LLC is taxed as a partnership by default. The LLC files Form 1065 with the IRS, and each member receives a Schedule K-1 showing their share of income, deductions, and credits. Members then report that K-1 income on their personal returns and pay self-employment tax on their share of active business income.

S Corporation election

If your LLC earns enough profit, electing S Corporation tax status can reduce your self-employment tax burden. Under an S Corp election, you pay yourself a reasonable salary as a W-2 employee and take additional profits as distributions — only the salary portion is subject to self-employment tax. You file Form 2553 with the IRS to make the election. A tax professional can help you figure out whether the S Corp election makes sense for your income level.

If your Nevada LLC has employees, you take on both state and federal payroll tax obligations. These are separate from the taxes you pay as an LLC member on your own income.

On the federal side, you're responsible for withholding federal income tax from employee wages, matching FICA contributions (Social Security and Medicare), and filing Form 940 for federal unemployment tax (FUTA). On the Nevada side, you'll file quarterly modified business tax returns and pay 1.17% on gross wages. Nevada doesn't have a state income tax, so there's no state income tax withholding — but the MBT still applies. Workers' compensation in Nevada is handled through private insurance, not a state payroll tax.

Most LLC members need to pay estimated federal taxes quarterly. Because LLCs don't withhold taxes from owner distributions the way an employer withholds from a paycheck, the IRS expects you to pay as you go. If you expect to owe $1,000 or more in federal taxes for the year, you'll generally need to make quarterly estimated payments — due in April, June, September, and January.

Not paying enough in estimated taxes can mean an underpayment penalty at year end. A tax professional can help you figure out the right payment amounts based on your projected income.