How to Register for a Sales Tax Permit in Nevada

What happens in Vegas, stays in Vegas – goes the old overused slogan. But it had to be used one more time because in this article we are looking into how you can start up a business not just in Las Vegas, but in the whole state of Nevada.

Starting your own business is something many people dream about. Now, this may seem even more far-fetched than your boss’ unrealistic deadlines and goals, but are they really unattainable? Is it really that hard to achieve all that? Are you destined to work at your desk the majority of your life and not really get a chance to have anything outside of that, no friends, no family? No, as simple as that. There are ways to start your business and achieve your goals, but there are also steps you will need to follow.

Now, as in every article of this kind, we have to stress that this is not an official document, but an informal guide that aims to help you prepare to set up your business in the state of Nevada, and to apply for a sales tax permit if you are required to obtain one. It is advisable to contact an attorney or a business advisor since their experience will certainly help you along the way, not only with the legalities of starting a business in the state of Nevada but also with the important and extensive preparation process.

Preparing to Register a Business in Nevada

The bulk of your preparation work consists of gathering information about the market conditions that await you. Jumping into a business venture without actually knowing the supply-demand dynamics is certainly the wrong approach to take. To make sure you don’t make any slip-ups, it is best to consult an attorney or a business advisor, and here are the reasons why. First, the extent of the research needed can often be overwhelming for a single person, especially if you are not used to these tasks. In addition, attorney and business advisors will already have a network in place, sources they collaborate with and the results of their research will not only be through but they will be delivered faster.

What would that research show, and what is it for? Well, as part of the preparation, you are not only working on yourself (building skills, gaining experience), but you also have to work on your idea, the product, the market you plan to operate in as well as on your company. The results of the research will form your business plan. This will contain current information about the market. It will allow you to make predictions of your costs and expenses. It will, essentially, allow you to, through several scenarios, determine whether your business is viable and sustainable in the current environment.

A business plan will have to include projections of your costs, your expenses, as well as projected revenue, income and a lot more. It will serve as a roadmap in the establishment process, as well as an essential document to present a strong case if you intend on sourcing funds from banks or any other financial institution. None of these will even consider investing in your business if you don’t present them with a strong business plan.

Other than these projections, the research will enable you to see whether the model you are proposing and the market you are targeting would bring positive results. Entering markets because personal preference can often end badly, as you may be entering a very competitive market with established players that you would not be able to compete with.

This is why it advisable to look at the less competitive niche markets, undersupplied markets that will allow you to settle into your role as business owner. You will be facing less competition and work within a market where the demand outweighs the supply. This means you will have a steady stream of customers and generate income. With quality products, and good service you would not only be able to gather valuable experience in running a business, but you’d also be able to build a following of customers that would recognize your brand, build your reputation for you by word of mouth and actually follow you if you ever decide to expand into a new market.

But throughout all this process you have to work on yourself as well. Learn what your insecurities are and overcome them. Learn the skills you require and, if necessary, build a team of qualified people who will bring something to the table and actually help you propel your business forward.

With all that work done, it is time to look into the legal part of the process of registering a business in the state of Nevada. What permits you to need to obtain, where do you start, what is a sales tax permit and do you need one? All these are questions we will look to answer in the paragraphs that follow in this article.

Registering a New Business in Nevada

To legally register your business in the state of Nevada there are certain steps you have to follow. These don’t really differ much from any other state in the US. The first step is to look at the business structure options, which range from the sole proprietorship and general partnerships (the simplest forms and the easiest to set up and maintain) to limited liability partnerships, limited liability companies (LLCs) and corporations. Do your research on each of these options since any of these options has its own legal and tax implications, the Nevada Secretary of State says.

The state of Nevada has set up its online platform, named SilverFlume Nevada’s Business Portal, which streamlines the process of registering your business with the state. After selecting your business structure, which will be the first option on the business portal, your next step is to select a name for your business. The SilverFlume portal allows you to conduct a Nevada Business Search and check whether the name you plan on using already exists.

When setting up your business in Nevada, keep in mind that depending on the city or county your business will be located in, you have to consider the zoning requirements and make sure to contact the relevant authorities in case you require any specific permits.

Once you complete the registration process through the SilverFlume business portal, your next step is to look into the tax obligations your business might have. We will now consider the tax obligations in the state of Nevada as well as the sales tax permit requirements.

Nevada Sales Tax Permit

The tax portion of the registration process is often considered the most complicated one, and it is better you consult professionals in the field of business development to help you with this step.

If you do not plan on operating your business under your own name and under your own Social Security Number (SSN), your first step is to obtain the Employer Identification Number (EIN), issued by the U.S. Internal Revenue Service (IRS). The EIN can be obtained by applying online.

Now that you have obtained the EIN, you have to check whether you have to obtain a sales tax permit from the Nevada Department of Taxation. For that, you need to determine if your business has a sales tax nexus in the state of Nevada, namely, if you have an office or a place of business, an employee, goods in a warehouse or if you own a real or personal property in the state among other things.

If you do tick any of these boxes, you proceed with checking whether your line of business falls under the ‘taxable’ category. In general, services are not taxable in the state of Nevada, unless the service you provide results in completing a sale of tangible property. Dealing with tangible property is taxable, although there are certain exemptions which we will look into later.

Now that you’ve established that you have a sales tax nexus in the state of Nevada, you have to apply for a sales tax permit. According to the Nevada Department of Taxation, “every person, firm, partnership, corporation, etc., engaging in business as a seller of the tangible personal property must apply to the Nevada Department of Taxation for permits.”

In order to register for a sales tax permit, the state of Nevada encourages the use of the online Nevada Tax Center to streamline the process, although you can also use the Nevada Business Registration Form, fill it out and mail it to the address provided in the Contact Details section below. You will have to provide your business identification information, as well as the estimated monthly receipts, total monthly receipts, and total Nevada monthly taxable receipts. You will also have to chose the reporting cycle and provide the information about the total number of business locations in the state. The application has to be submitted with a $15 fee.

The advantage of registering online is that you will receive your permit instantly while mailing the Nevada Business Registration Form could mean you will have to wait a couple of weeks before receiving your permit. Another advantage is that, once you do receive your permit you do not have to renew it.

Sales Tax Exemptions in Nevada

As we noted above, there are certain exemptions that allow for sales and purchases without having to pay tax. This is especially the case for those who intend on purchasing merchandise for resale. If this is the case, you can use the Nevada Resale Certificate to avoid paying tax on purchases. Keep in mind that a sales tax permit is not the same as the resale certificate. The state also allows Nevada vendors to accept out of state certificates.

While you have to make sure that you fill out the form properly before presenting it to your seller, you could also be on the receiving end of such a resale certificate. In that case, you have to make sure the certificate is completely filled out. The information required includes the name of the buyer, their line of business, the name of your business as well as detailed description of the items the buyer is purchasing from you. Make sure the certificate includes the name of the buyer and their signature.

Once you do accept the resale certificate, keep it on file in order to provide it to the relevant authorities in case of an audit. Bear in mind that a Nevada resale certificate is valid for three years maximum, and you have to obtain a new one from the buyer after the original document expires.

Contact Details

Nevada Department of Taxation

Compliance Division
1550 College Parkway
Carson City, Nevada 89706

Secretary of State

Nevada State Capitol Building
101 North Carson Street, Suite 3
Carson City, NV 89701
Phone: 775-684-5708
FAX: 775-684-5725
Email: [email protected]

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