EMINUTES places cookies on your device to give you the best user experience. By using our website, you agree to the placement of these cookies. Please read our updated Privacy and Cookie Policy.

19 • 2017

What is a Nevada state business license?

Under Nevada law, most entities and natural persons cannot conduct a business in Nevada unless and until they obtain a “state business license” issued by the secretary of state. Nev. Rev. Stat. § 76.100. In general, a “business” that has to be licensed in Nevada is broadly defined to include any entity organized under Nevada law, “whether or not the entity performs a service or engages in a business for profit.” Nev. Rev. Stat. § 76.020. However, the definition of a “business” does not include, among other things, a 501(c)(3) corporation, a natural person whose sole business is the rental of four or fewer dwelling units to others, and a person operating a relatively small business from his or her home. (Motion picture companies used to be excluded from the definition of a “business” required to be licensed in Nevada, but that exclusion was removed in 2017.) A corporation applying for a Nevada state business license must pay a $500 fee with the initial application. In addition, a corporation must also pay $500 each year for the state business license annual renewal fee. Nev. Rev. Stat. § 76.130(2). The initial and annual state business license fees make Nevada a relatively expensive state in which to form and maintain a corporation, even though Nevada does not require the payment of a minimum franchise tax every year. By contrast, Delaware has a minimum annual franchise tax, but it is only $175, compared to the $500 state business license annual renewal fee in Nevada. For more information about the cost of incorporating in Nevada, see Why It Is a Bad Idea to Incorporate in Nevada If You’re Not Going To Do Business There.