*Information required. Your personal information is only used to contact you. Incorp will never sell or share your information.
All good things must come to an end, and Nevada’s legislature has confirmed that saying to be true. InCorp is committed to assisting you in making an informed decision by providing the following information as an overview of the recent changes. Whether you are already a valued customer and wish to reincorporate in another state, or you are seeking to utilize our exceptional services for the first time, we are here to guide you through the process.
Nevada was once known as “America’s Tax Haven” because of the favorable tax climate, reasonable annual fees, and privacy benefits which all resulted in a pro-business attitude.
However, on July 1, 2015 everything changed. While InCorp once recommended incorporating in Nevada, and are in fact based in Nevada, we now strongly suggest businesses reconsider incorporating here and offer the following facts to support our recommendation:
Here’s what changed:
This is a brand new tax assessed on the gross receipts of all business revenues in excess of $4 million, with no deductions for expenses. Passive entities, nonprofits, real estate trusts and certain other entities are exempt, but all others are grouped together according to their code in the North American Industrial Classification System and assessed at a unique rate assigned by industry. Those rates assuredly will increase within 2 years. The following points are the critical aspects of this new tax:
For all corporations, the annual assessment for the state business license fee will increase to $500. This is more than double the current “temporary increase” rate of $200 that you have been paying, and five times the $100 rate that existed prior to 2010! For all other business entities besides corporations, the annual business license fee will remain $200. This increase is perhaps the most detrimental of all and should be taken into serious consideration when making your decision on where to incorporate.Contact InCorp today to learn more!
Each year, every business in Nevada is required to update the Secretary of State with its list of Officers, Directors, Managers, etc. This fee varies by entity type, but will increase by $25 for every entity type. If you are currently paying $125, your new rate will be $150. That may not seem like much of an increase, but when you consider the increased fees and taxes, it all adds up to no good.Contact InCorp today to learn more!
In 2003, the Nevada Legislature created an excise tax on all private-sector payroll in Nevada at a rate of 0.67 percent. That rate was raised to 1.17 percent on a temporary basis in 2009. It has now been raised again on a permanent basis to 1.475 percent with an exemption for the first $50,000 in quarterly payroll. For all mining companies and financial institutions, the rate is 2.0 percent. However, firms can now deduct 50 percent of the amount paid in commerce tax from their MBT liability.Sales & Use Tax
In 2009, the Nevada Legislature raised the statewide sales and use tax by 0.35 percent on a temporary basis. That change has now been made permanent.Other Taxes
The cigarette tax was raised from 80 cents per pack to $1.80 per pack. The requirements for the pre-payment of certain mining taxes were extended along with the suspension of certain allowable deductions from mining taxes. If you require a more detailed explanation, please speak to your tax professional for further information.Contact InCorp today to learn more!