An LLC affords your business many benefits and protects you as an owner. Business incorporation can be done in any state including a state your business is not physically based in.
For this reason many businesses choose to incorporate in Nevada due to the many advantages local law provides, including:
- There is no Nevada personal or corporate income tax for out of state businesses
- There is no franchise tax in Nevada
- Lower payroll taxes compared to other states
- A streamlined business court system that decreases risk, time, and expense should the need for litigation arise
Filing out of State Business Taxes
While businesses incorporated in Nevada enjoy the above advantages, it also creates the need for proper tax preparation and bookkeeping. Consider the following:
- While Nevada’s tax code is quite favorable to businesses, a company incorporated in Nevada must file taxes in the state they are conducting business. Note that this is also true no matter what state you are incorporated in.
- Improper filing results in late fees, penalties, and other fines which can negatively impact a business.
- Don’t underestimate the complexity of business taxes in general, as it relates to business structure and employment taxes. Proper business tax filings can include, but are not limited to, income taxes (both owed and estimated), self-employment taxes (if applicable), employment taxes concerning your employees, excise taxes for certain industries, and highly specific forms depending on how you do business. For example, Form 2290 relates to specific vehicles used on public roads such as tractor trailers, buses, and certain types of trucks.
- The forms you need vary based on how your business is incorporated. Partnerships and corporations, for example, use different forms and the IRS will only accept the appropriate forms when filing. Accounting methods also vary depending on the size, scope, or the type of your business and can be based on cash, accrual, or a combination of the two. No matter what method you choose, this must be reported to the IRS when you file your taxes.
- Never underestimate the need for professional filing services to calculate the common complexities of businesses expenses and earnings aside from corporate documentation and employment taxes. This can include overall income, cost of goods sold, various deductions, depreciation of business property, tax credits, and other various deductions and expenses.
As the above information shows, businesses taxes can be quite complex and you need a skilled and experienced professional to prepare them correctly. It has been proven time and again that returns prepared by a professional save the taxpayer a lot of time and money.
At Corporate Capital, we have the experience needed to properly handle all your business tax needs and ensure proper filing.
Conveniently located in Las Vegas, our familiarity with Nevada state law is especially beneficial for businesses incorporated in the state, and we also represent clients from across the nation.
Contact us today to learn more about the services we offer and how we can effectively manage your business taxes and bookkeeping.