Goldberg-Maroney - Certified Public Accountants

Starting a Business in Nevada

· Entity Formation

o CPA will consult on the entity type. We do not practice law and therefore do not form entities.

o Professionals (doctors, etc.) will generally need a good standing letter from the board to form a professional corporation. For example, physicians need a letter from the board of medical examiners to verify medical license in Nevada.

o Attorney

§ Recommended method. A poorly chosen or executed formation can cause negative legal liability and tax consequences later.

o Paralegal

§ Navigate the forms

o Do it yourself

§ Nevada Secretary of State forms and fees

§ If you select yourself as resident agent, be sure to renew annually and file change of address when appropriate. Otherwise, your entity may be revoked reinstatement is more expensive.

· Federal

o EIN (Employer ID number)

§ Apply for an EIN on the IRS web site

§ CPA can apply for you. The attorney forming an entity will often obtain the number for you.

· Don’t apply more than once. Two or more numbers cause much correspondence and confusion.

· SAVE the number IRS assigns on line. You will receive a confirmation of the number in the mail.

o General information from IRS about starting a business

o 1099s – Every year by January 31 your business must issue a 1099 to any vendor to whom you paid $600 or more.

§ BEFORE you pay individuals (janitor, window washer, etc.) or partnerships (landlord and small businesses) ask them to complete form W-9. You will have the 1099 information and the vendor will be on notice that you intend to issue 1099s if they qualify to receive one.

§ Form W-9

o Sign up for electronic payment of federal taxes using the Electronic Federal Tax Payment System (EFTPS).

§ This is the easiest and safest way to pay IRS.

§ Depending on the size of the payments, it may be required.

§ It is a separate system and IRS cannot access the system to “take” any funds

§ Any business requesting a new EIN and indicating it will have Federal Tax Deposit obligations is automatically pre-enrolled in EFTPS

· Business taxpayers receive notification in the mail that they are pre-enrolled, along with their EFTPS PIN

· The next step is to activate the enrollment by calling a secure 800 number and entering bank account information

§ Businesses or individuals that already have an EIN can apply on line by going to eftps.gov

· After EFTPS processes your enrollment, you will receive two separate mailings. Watch for and retain the two letters. Send copies to your CPA.

o One will be a Confirmation/Update Form. The other will be a letter that includes your Enrollment Trace Number, Personal Identification Number (PIN), and instructions on how to obtain an Internet Password.

o Once you receive your PIN, you may begin making payments by phone.

o You must have information on both letters to obtain your Internet Password, and begin making payments via the Internet.

· Nevada taxes - general information

o State of Nevada business license

§ No license required for

· Nonprofits – IRC 501(c) entities

· Small sole proprietorship businesses (home-based business not earning more than 66-2/3 percent of the average annual wage (about $22,000))

· Person (natural person, not an LLC or other entity) whose sole business is renting 4 or fewer dwelling units

§ Exempt entities may submit a limited version of the Nevada Business License application to the Nevada Secretary of State

§ All others must submit a Nevada Business Registration (business license and sales/use tax)

· Read the Nevada Business Registration instructions

o Apply on line or

o Apply on paper or

o Ask a professional to apply for you

o Sales and use tax

§ Every business should register, even services only businesses

§ Use tax is the self-reporting and payment of Nevada sales tax on items that you buy out of state or on line and have shipped to Nevada. It is required, not optional.

§ Businesses collecting sales tax must supply the state with a bond (cash, CD, or insurance) based on your estimated monthly sales tax

§ See Nevada Business Registration to apply

· Payroll & payroll taxes

o If a sole proprietor or LLC member or partner, do not pay yourself a paycheck as an employee. Owners must pay estimated tax payments.

o If using a payroll service, they can help you apply

o BEFORE hiring

§ Obtain workers’ compensation insurance from your casualty insurance agent

· Generally, no insurance required for owners

§ Employees must complete employment forms – retain them in your files

· W-4 (employee tax withholding) - W-4 and

· I-9 (Employment Eligibility Verification) - I-9

o State Unemployment - Instructions for Unemployment Insurance Registration