YOUR NEVADA TAX RETURN IS DUE
For many years Nevada has been promoted as “one of the best places to incorporate” because of their privacy, asset protection and NO STATE TAXES – until now.
On May 31, 2015 the Nevada State legislature passed into law a Gross Receipts Tax and has developed the first ever Nevada Commerce Tax Return.
Yes, you read that correctly. Every for-profit business in Nevada must now file a Nevada State Commerce Tax return by August 15th of each year. The Nevada corporation tax includes pass-through entities such as S-Corps, LLC’s, and Partnerships. This tax return is due even if a company has not previously paid any Nevada state taxes, is not generating a profit, or is a flow through entity. Also, remember this is a tax on your gross income so there are no deductions! You can read more about Nevada’s corporate tax here.
At this time, not all businesses are being required to pay the Gross Receipts Tax, but let’s be realistic, when has any government bureaucracy ever started a tax, fee, or improvement fund etc. for “some” businesses without it eventually being required by ALL?
All we have to do is look at the history of Nevada’s corporation fees over the past ten years:
•Nevada has increased its filing fees twice.
•The “State Business License” (SBL) was re-created. Only specific businesses were required to pay a one time fee, as opposed to a yearly fee.
•Nevada then started requiring all businesses file a SBL and pay a yearly fee.
•Nevada then raised this yearly fee 3 times on corporations, over a period of 4 years.
The SBL fees continue to rise. It began at $100 then went to $200 for pass-though entities. Corporation now pay $500. Additionally, if you file or pay late, you will be assessed a $100 penalty fee. There is also another $100 penalty fee if you file your Nevada Commerce Tax return late.
A LACK OF PRIVACY — Getting worse
Look at what is currently required in addition to corporate changes in Nevada.
Go to the Nevada Secretary of State’s website. Type in the name of the person(s) you are looking for and all the business entities that person(s) is affiliated with, or has ever been affiliated with, will be listed.
On the State Business License form, you are required to list all officers, directors, shareholders, with their first and last names, home address, home phone, date of birth, SSN and the percentage of the company they own.
Now lets throw in the new Nevada Commerce Tax Return form. They will now need to know the total income and the source of that income for all companies, so they can make the determination if a tax is owed.
Remember, this is required from all Nevada corporations, even if you do not owe any tax, nor have any Nevada sourced income.
Wyoming is your best choice
Wyoming has not raised its fees in many years. Wyoming has consistently been ranked the most business friendly state in the nation to start or operate a business. Wyoming has no income tax, no gross receipts tax, and no State Business License. Wyoming is much more private. Wyoming does not require the listing of members or managers on the public record.
YOU CAN TRANSFER YOUR COMPANY TO WYOMING
If you currently have a Nevada entity and are fed up with the rising fees and multitude of forms – the good news is Wyoming allows you to re-domicile (move) your entity from ANY State to Wyoming and enjoy all the benefits of owning a Wyoming LLC.
You will maintain your original incorporation date, your Federal EIN number will stay the same. Any assets the company has do not have to be transferred to a new entity. And you will enjoy the low annual renewal fee of just $50 for all entities that do not have assets – physically located in the State of Wyoming. There is no business license, no tax returns, no filing of shareholder information, no franchise tax, and no gross receipts tax.
For more details on moving an entity go to https://wyomingcompany.com/moveit/