Why Nevada Is One of the Best States for Business Taxes

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Nevada sits like a glimmering oasis for small businesses seeking to escape the hostile climate they face in many other states. One major draw for them is Nevada’s tax structure, which helps to make it one of the best states for businesses. Many taxes that businesses have to pay in other states simply don’t exist here or are structured to be less burdensome. Having a Nevada business address could be just what your business needs to reach its next level of growth.

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Is Nevada Tax-Free?

Nevada isn’t entirely tax-free, though residents tend to face lower Nevada business tax burdens than in other states (thanks to Nevada being one of the nine states without income taxes). This has proved to be a significant draw for new arrivals, especially from neighboring California. Despite the effects of the pandemic on Nevada, the state managed to add around 50,000 people and launched new businesses even as its main economic engine hit a wall. Many of these new residents work for major tech companies that have decided to let employees work remotely due to the pandemic, cementing Nevada’s status as one of the most tax-friendly states in the country.

Why Is Nevada a Tax Haven for Businesses?

Nevada’s business tax burdens rest lighter on small businesses than many other states, both in terms of the amount they must pay and what they need to keep track of throughout the year. Here are some of the key ways in which Nevada is one of the best states for business taxes:

No Corporate Income Tax

Nevada doesn’t require businesses to pay a corporate tax, but that doesn’t mean they get off for free. In place of a corporate income tax the state levies a Modified Business Tax (MBT), which is a quarterly payroll tax. Businesses that have a quarterly payroll of less than $50,000 are exempt from paying this. Those above this threshold are assessed a tax equal to 1.475% of their quarterly payroll.

No Franchise Tax

A franchise tax is the tax a business must pay simply to do business in a state. Nevada currently has no franchise tax, allowing businesses to save a little more when starting up. That helps make the Nevada business tax regime one of the best for new enterprises.

No Inventory Tax

Ten states tax the amount of unsold inventory that a business has at the end of the year. Nevada isn’t one of these, meaning you can store goods here for as long as you need to without worrying about paying a tax on them. This helps to make Nevada one of the states with the lowest taxes for businesses.

Low Commerce Tax Rate

Nevada offers a low commerce tax rate that varies across industries, but can be anywhere from .051% to .331%. Only businesses with gross revenues in excess of $4 million annually are liable to pay a commerce tax in Nevada, but all businesses must file a commerce tax return.

No Information Sharing With the IRS

Nevada doesn’t have an information sharing agreement with the IRS, giving residents an added layer of privacy they can get (almost) nowhere else. Texas is the only other state to offer this.

Reap Nevada’s Tax Benefits With Mail Forwarding

If you want to take advantage of Nevada’s tax benefits, you’ll need a physical location in the state and a designated agent who can represent your business. At Forward Nevada, we can offer you both at a competitive price! You can save time and money by working with us to domicile your business in one of the best states for business taxes. You’ll also have a Nevada street address, which adds far more legitimacy to your business than a P.O. box could.

Your New Business Address Should Be In Nevada!

Nevada’s opportunities only look like they will grow from here, making this the perfect time to set up your new business address in the state. At Forward Nevada, we can streamline this process for you with our business services, allowing you to quickly obtain a Nevada street address and presence in the state without having to travel here to set it up yourself. We can also ensure that you obtain your mail with our mailbox forwarding and change of address services. Contact us today to set up your new home base in Nevada and start saving money!