Nevada LLC Taxes

LLC Pass-Through Taxation

By default, LLCs don't pay taxes directly. Instead, the LLC members report the income (or losses) on their personal Form 1040 tax return. This is called pass-through taxation — tax responsibility "passes through" the LLC to its owners.

How Are LLCs Taxed in Nevada?

By default, a Nevada LLC is taxed by the IRS based on the number of members:

• An LLC with 1 owner (Single-Member LLC) is taxed like a Sole Proprietorship
• An LLC with 2+ owners (Multi-Member LLC) is taxed like a Partnership

These are the "default" statuses — automatically applied based on member count. You can also elect to have your LLC taxed as a Corporation (S-Corp or C-Corp) by filing extra paperwork with the IRS.

Single-Member LLC (default)

The IRS treats Single-Member LLCs as Disregarded Entities — the LLC doesn't file its own federal return. Instead, the owner reports LLC income on their personal Form 1040 (Schedule C if owned by an individual).

Multi-Member LLC (default)

Multi-Member LLCs file a Form 1065 Partnership Return and issue a Schedule K-1 to each member. Each member then reports their share of profits on their personal Form 1040.

Husband & Wife LLC

Electing Corporate Taxation

• S-Corporation: File Form 2553 with the IRS. Can reduce self-employment taxes once the LLC has consistent profits (generally $70,000+ net income per member). Speak with an accountant first.
• C-Corporation: File Form 8832 with the IRS. Uncommon for small LLCs. Primarily useful for large employers offering healthcare fringe benefits.

Nevada State Income Tax

Good news — Nevada does not have a state-level personal income tax. You do not need to file a state income tax return for your Nevada LLC.

Nevada also has no corporate income tax. However, Nevada does have a Commerce Tax and requires businesses to maintain a State Business License — see below.

Nevada Special LLC Taxes

Nevada Commerce Tax

Nevada imposes a Commerce Tax on businesses with Nevada gross revenue exceeding $4 million in a fiscal year. Rates range from 0.051% to 0.331% depending on the industry. LLCs below the $4 million threshold are not subject to the Commerce Tax (but must still file a return showing they are below the threshold).

Nevada State Business License

All Nevada LLCs must maintain an annual State Business License ($200/year, renewed with the Secretary of State). This is included in Nevada's annual $350 filing.

Local Income Tax

You and/or your LLC may also need to file and pay income taxes with your local municipality (city, county, etc.). Contact your local government or hire an accountant to confirm local requirements.

Nevada Sales Tax

If your LLC sells taxable products (and sometimes services) in Nevada, you may need to collect sales tax and register for a Seller's Permit (also called a resale license or sales tax permit).

Nevada's state sales tax rate is 6.85%. Local rates typically add 1.15%–1.525%, bringing most totals to 8–8.375%.

Register for Nevada Seller's Permit →

Contact the Nevada Department of Taxation at 866-962-3707 with questions.

Nevada LLC Payroll Taxes

If your Nevada LLC has employees, you must handle payroll taxes, which include:

• Federal income tax withholding
• Nevada state income tax withholding (Nevada has no state income tax withholding)
• Social Security and Medicare taxes (FICA)
• Federal unemployment tax (FUTA)
• Nevada state unemployment tax (SUTA)

Payroll calculations are complex — most LLC owners hire a payroll service or accountant.

Nevada Tax Agency Contact

Nevada LLC Taxes — FAQs