Nevada Changes Rules on $200 Fee Exemption


Do you own a Nevada Corporation, Partnership or LLC? Were you planning on applying for an exemption from the $200 annual business tax, by claiming the 003 home-based business exemption?

It may be too late.

The Nevada Secretary of State’s office notified all of its Commercial Resident Agents today about some significant changes to the Business License Fee exemption procedure. In order to get a fee waiver now, you must submit a notarized Declaration confirming that you qualify, and answer certain questions. You also need to file your paperwork by mail, rather than online (so don’t wait until the last minute!)

But the most significant of those changes is the fact that NV SOS is now refusing to accept Declarations from companies without Nevada addresses. The Secretary of State has also determined that the resident agent address is insufficient to qualify as a Nevada address for this purpose.

However, the State’s position would appear to conflict with existing Nevada law, and the Secretary of State’s own website, which makes no mention of home-based business addresses only being in Nevada. We were told this morning that this was a new interpretation of their rules.

And finally, even though notice only went out this morning, the changes are retroactive to August 6, 2011.

So … at this point you can either pay the $200 or attempt to dispute the ruling, by filing your 2011 Annual Report, along with the new Declaration, and a letter stating your reasons for disputing the change (i.e., nowhere in Title 7, NRS 76, and in particular NRS 76.020 does the law specifically state that only businesses with local Nevada addresses are eligible for the exemption. In addition, the NV SOS makes no mention of the address requirement on its own website http://nvsos.gov/index.aspx?page=267).

If you have any questions on the new changes, contact us! We’re always here to help.

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