If you are planning to start a business in Nevada, one of the first things you will need to do is obtain a business license. While relatively simple, there are many considerations that need to be made, as well as steps to follow to ensure that the process is fast and easy, allowing you to focus on starting and growing your business. In this article we will explain what you need in order to file for a Nevada Business License and ensure you are operating within the regulations of the State of Nevada. 

Step 1. Decide your Business Structure

Depending on what type of business you have, and how you will be operating, you will need to select a business structure. If you own the business by yourself, and do not state otherwise, your business will be considered a Sole Proprietorship. This means that you have full control over your business, however you remain personally liable for any future debts or obligations of the business. 

Another option is an LLC or Limited Liability Company. With this business structure, the business owners cannot be held personally liable for debts of the company. This option provides more protection to business owners and can be a better option for businesses that have more risk associated with them. 

You may also decide to structure your business as a partnership if there are two or more members. The two kinds of Partnerships are Limited Partnerships (LP) and Limited Liability Partnerships (LLP). Limited Partnerships will consist of one general partner who has unlimited liability in the company, while the other limited partners have only limited liability. In a limited liability partnership, all partners have limited liability. The benefits of LPs and LLPs is that they offer more flexibility in the distributions of profits between partners. They also have higher investment attraction as LPs are often used for investment purposes (such as real estate or venture capital).

The other types of business structures are Corporations. Corporations are separate legal entities from their owners, allowing managing members to enjoy the benefits of limited liability, while adhering to their own set of characteristics and legal implications. Corporations are owned by Shareholders who purchase their share of the company through investment. A corporation will have a board of directors who oversee major decisions for the company, while day-to-day operations are handled by Corporate officers such as the CEO, CFO, or COO. This business structure is preferable for a company that plans to raise money through investment, or if ownership changes are foreseen, as corporations can easily be bought, sold, or transferred. 

Step 2: Obtain your DBA or Fictitious Name Certificate

If you are planning to operate your business under a name that is different from your legal name. You will need to submit a Fictitious Name Certificate with your local County Clerk’s office. This will allow your local municipalities to identify the firm owner. This requirement applies to all forms of business structures listed above. 

Step 3: Obtain Your Business License

Next you will file for your Nevada Business License with the Secretary of State’s Office. The Nevada Business License needs to be renewed every year. The cost to file for a business license is $500 for Corporations, and $200 for all other business types. This fee is due at the time that your Initial List of Company Officers or your Annual List of Company Officers is due. 

Step 4: Obtain Your Local License

Nevada is unique in that it requires all businesses to also file for a local license within the city or county that they are operating in. In some cases, there may be an additional fee for this license. 

Step 5: Other Special Licenses and Permits

Depending on the type of business you operate, you may also be required to file for additional permits or licenses in Nevada. Examples of these special permits are used for contractors, dentists, beauticians, etc. If you are unsure whether you may need additional licenses, call Raich Law today to consult with an attorney!

Step 6: File for an EIN (Employer Identification Number)

If your business is a proprietorship, corporation, or a limited liability company, you also need to file for an Employer Identification Number. This number is used by the IRS as a taxpayer identification number, as well as being used for business owners who pay employee wages to one or more employees. This number will be used on your business’ tax documents and may also be referred to as a Tax ID Number. 

If you are starting a business in Nevada, We’re here to help. Call Raich Law today to consult with an attorney and take the stress out of filing for your Nevada business license. We can make sure that every step of starting your business is taken care of the right way, the first time. Contact us today at 702.758.4240 for a free consultation!