In the state of Nevada, you’re required to have a business license to operate your company. Are you wondering whether or not it can be considered a tax deductible expense for your business? Knowing the answer could save you some money during tax season.
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Does Nevada Require a Business License?
Yes, Nevada does require every business that operates within the state to obtain a business license. The license must be renewed annually on the last day of the anniversary month in which the license was originally filed. In most cases, you will receive a reminder notification in the mail prior to the due date. However, it’s a good idea to keep this date marked in your own records to ensure that you properly renew the license on time each year.
For those who are sole proprietors with more than one business, you are only required to have one business license. However, if you are a sole proprietor with separate corporations or other entities, you will need to obtain a business license for each one.
Is a Nevada Business License Tax Deductible?
Fortunately for business owners, a business license is considered a tax deductible. When it comes time to file your taxes at the end of the year, don’t forget to pull out the paid receipt for your Nevada business license. For that matter, any filing fee that you paid to any other regulating authority is considered a tax deductible. As a reminder: hang on to all filing receipts just like you would with any other type of business expense that you might have occurred over the year.
How Much is a Business License in Nevada?
The cost of a business license in Nevada will depend on the type of business that you run. Corporations will pay a renewal fee of $500. All other business entity types will pay $200.
As we mentioned earlier, make note of your specific annual renewal date. If you file late, you will be hit with a $100 late fee (in addition to the annual fee that is due). For those who need a copy of the business license, you can request it for a minimal fee of $2.
No matter what type of business you run in the state of Nevada, a business license will always be a requirement that you will need to manage year in and year out. Not only do you need to keep up on your yearly license in order to avoid late fees, but it’s also considered illegal to operate your business in the state of Nevada without a business license. And of course, always be sure to take advantage of the fact that it is a tax deductible expense come tax season.
