Small Home-Based Business Exemption for the Nevada Business License

Recently, Nevada changed its procedure for collecting business license fees, resulting in nearly every Nevada entity paying $200 each year for a Nevada Business License.  The $200 fee for the license, now due at the time of filing of the Annual List, is another added hoop to the bureaucracy of maintaining an entity in Nevada.  See, $200 More Reasons To Choose Nevada.

However, if your company is a home based business and meets a certain income threshold, the company will be exempt from the business license fee. A person who operates a business from his home and whose net earnings from that business are not more than 66 2/3 percent of the average annual wage, as computed for the preceding calendar year pursuant to NRS Chapter 612 and rounded to the nearest hundred dollars. The average annual wage generally fluctuates each year. 66 2/3% of the average annual wage for 2010 is $27,000.00. If the company falls under this category, the Annual List must be filed stating the specific exemption. The Nevada Business License will then be generated at the time the Annual List is filed without the required fee.