Complete Guide to Nevada LLC Taxes in 2025
Nevada is one of the most celebrated states for LLC formation, primarily because it imposes zero state income tax on individuals or businesses. For LLC owners, this means your share of LLC profits is not subject to any Nevada state income tax. However, Nevada is not completely tax-free: the state imposes a Commerce Tax on businesses with gross revenue exceeding $4 million, a $200 annual business license fee, and a $150 annual list filing. This comprehensive guide breaks down exactly what Nevada LLC owners need to know.
How Nevada Taxes LLCs
Nevada does not impose a state income tax on individuals, meaning LLC members pay zero Nevada income tax on their pass-through profits. This applies regardless of income level -- whether your LLC earns $10,000 or $10 million, no Nevada income tax is owed.
However, Nevada does impose several other taxes and fees on LLCs:
- Commerce Tax: 0.051% to 0.331% of gross revenue for businesses exceeding $4 million in Nevada gross revenue
- Annual State Business License: $200 per year
- Annual List of Members/Managers: $150 per year
- Modified Business Tax (MBT): Only applies to LLCs with employees (1.378% on wages over $50,000 per quarter)
Key Point: While Nevada has no income tax, the combined $350/year in annual fees ($200 business license + $150 annual list) makes it more expensive for annual compliance than many income-tax states. The Commerce Tax only affects businesses with over $4 million in gross revenue, so most small LLCs will not owe it.
Nevada Tax Overview for LLC Members
| Tax Type | Rate | Applies To |
|---|---|---|
| State Income Tax | 0% | All income -- no tax |
| Commerce Tax | 0.051-0.331% | Gross revenue over $4M |
| Business License | $200/year | All LLCs |
| Annual List | $150/year | All LLCs |
| Modified Business Tax | 1.378% | Wages over $50K/quarter (employers only) |
| Sales Tax | 6.85% + local | Taxable goods and some services |
Nevada LLC Annual Filing Requirements
- Annual List: $150, due on the LLC's formation anniversary, filed with Secretary of State
- State Business License Renewal: $200, due on formation anniversary
- Commerce Tax Return: Due August 14, only if gross revenue exceeds $4 million
- No State Income Tax Return: Nevada does not require individual income tax filing
- Federal Returns: Still required (IRS Form 1040, 1065, estimated payments)
Important: While Nevada charges no income tax, you still owe federal income tax and self-employment tax on LLC profits. The lack of state income tax only eliminates the state portion. Your total federal tax burden remains unchanged regardless of which state your LLC is formed in.
Nevada Commerce Tax
The Commerce Tax is Nevada's primary business tax, applying only to businesses with over $4 million in Nevada gross revenue. Key details:
- Threshold: $4 million in Nevada gross revenue (below this, no Commerce Tax is owed)
- Rates: Vary by industry category, from 0.051% (mining) to 0.331% (rail transportation)
- Common rates: Retail 0.111%, food services 0.194%, professional services 0.181%
- Filing: Commerce Tax Return due August 14 each year
- Note: Most small LLCs will never reach the $4M threshold
Nevada Sales Tax
Nevada imposes a 6.85% state sales tax with local additions, bringing combined rates to 8.375% in Clark County (Las Vegas) and varying rates elsewhere:
- State rate: 6.85%
- Clark County (Las Vegas): Combined 8.375%
- Washoe County (Reno): Combined 8.265%
- Food: Grocery items are exempt
- Services: Most services are not taxable
Nevada LLC vs. Other No-Income-Tax States
| State | Income Tax | Annual Fees | Other Taxes |
|---|---|---|---|
| Nevada | 0% | $350 | Commerce Tax on $4M+ revenue |
| Wyoming | 0% | $60 | Minimal |
| Texas | 0% | $300 | Franchise (margins) tax |
| Florida | 0% | $138.75 | None for pass-through |
| South Dakota | 0% | $50 | Minimal |
| Washington | 0% (income) | $60 | B&O tax on gross receipts |
Nevada LLC Formation Costs
- Articles of Organization: $75 with the Secretary of State
- Initial List of Members: $150
- State Business License: $200
- Total initial cost: $425 (one of the higher formation costs)
- Registered Agent: Required; professional services $100-300/year
- Annual ongoing: $350/year (list + license)
Strategic Considerations for Nevada LLCs
- No income tax benefit is real but limited: You save on state income tax, but federal taxes remain the same regardless of state
- Annual fees add up: $350/year is more expensive than many income-tax states with low annual fees
- Privacy protections: Nevada offers strong privacy for LLC owners (members not listed publicly)
- Asset protection: Nevada has strong charging order protections for LLC interests
- Formation in Nevada if you live elsewhere: You may still owe income tax in your home state; Nevada formation alone does not eliminate that obligation
Common Misconception: Forming a Nevada LLC does not eliminate your state income tax obligation if you live in a state that has income tax. Your home state will tax you on your worldwide income regardless of where your LLC is formed. The no-income-tax benefit only applies to Nevada residents and income sourced within Nevada.
Common Nevada LLC Tax Mistakes
- Thinking all taxes are eliminated: Federal income tax and SE tax still apply
- Missing the annual list deadline: Late filing incurs a $150 penalty
- Overlooking the business license: Failure to renew results in revocation
- Ignoring home state taxes: Non-residents still owe income tax in their home state
- Commerce Tax surprise: High-revenue businesses may unexpectedly owe this tax
Nevada Resources
- Nevada Secretary of State: nvsos.gov -- business filings, annual lists
- Nevada Department of Taxation: tax.nv.gov -- Commerce Tax, sales tax
- SOS Customer Service: (775) 684-5708