Prior to March 8, 2012, an exemption to the State Business License was provided to certain types of home-based businesses. As such, those businesses that were “home-based” and earned less than a certain amount of yearly income did not have to file for the state business license or pay the annual fee of $200.
However, effective March 8, 2012, the Legislative Subcommittee to Review Regulations approved the measure that Secretary of State Ross Miller said was necessary after the Secretary of State took over collecting the $200 state business fee in 2009 from the Department of Taxation.
Mr. Miller estimated 60,000 entities claim to be home-based businesses and that the state is losing about $10 million annually.
Now, all entities formed in Nevada must pay the $200 annual fee for the state business license despite the fact that their company may have been formed not to operate a business but, for example, as a holding company or to own a rental property.
The regulation limits the home-based business exemption to “natural persons” who sign a statement that they earn less than the threshold income, i.e. sole proprietorships or general partnerships who meet the exemption requirements and other entities which do not afford asset protection to the owner.
Entities claiming a home-based business exemption on their annual list filing after March 8, 2012 will be returned to the customer for correction and to apply for the state business license.
A copy of the approved regulation can be found under the “Announcements” section of the Secretary of State’s website.