Tuesday, September 20, 2016
In June of 2015, the State of Nevada passed a law establishing a Commerce Tax. The tax is a gross receipts tax. Every person or entity doing business in the State of Nevada must file a return, even if no tax is due. The taxable year runs from July 1st to June 30th of the following year. The initial year for the Commerce Tax was July 1, 2015 through June 30, 2016. The initial return was due on August 15, 2016, with one six month filing extension available (February 15, 2017). Subsequent returns are due on August 15th of each successive year (six month filing extensions available to February 15th).
In addition to corporations, partnerships, limited liability companies, business trusts and joint ventures; ‘doing business in Nevada’ includes sole proprietorships (file a schedule C with the federal individual income tax return) and anyone with rental property located within the state of Nevada. The law does exempt certain businesses from the tax such as credit unions, certain governmental units and non – profit entities that qualify as tax exempt organizations pursuant to the Internal Revenue Code Section 501 (c).
Businesses whose gross receipts are less than four million dollars ($4,000,000) for the taxable year will pay no tax. Businesses whose gross receipts, after limited allowable deductions, exceed four million dollars for the taxable year will pay a tax that varies based on their type of business. Complete information and forms are available online at http//tax.nv.gov
Who do I choose? Things happen that are beyond our capacity. For instance, you receive a letter from the IRS stating they are going to...
Starting a new business involves a lot of planning. The accounting is a very important part of managing your business. You must consider t...
Clients have asked and maybe hoped that under the new tax law "C" corporations no longer have what is considered a double taxation...