NV No Income Tax?

thepresident

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A Nevada has no income tax for a LLC, that operates and does business in NV. So what about an online business? Thanks
 

freqout

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Online business or offline doesnt matter, NV treats them as the same. Problem is that if you ever have to prove the business' home location was NV and this wasnt factual you may get in trouble with your state or the IRS, but that is unlikely.
 

kingofbigmac

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I live in Nevada! I didn't know there is no income tax for a LLC. I am going hopefully going to get a business license so I too am curious.
 

beakman

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OK, guys. My buddy the CPA explains it to like this:

It's true that NV does not have a state income tax, but NOBODY taxes an LLC. They are a pass-thru entity, meaning whatever profits or losses it incurs pass through to you and you report them on your personal taxes. So if you can show a loss on your LLC, you'll get a break on your personal taxes. So it doesn't matter where you incorporate as far as taxes go really. You are still responsible for claiming the LLC earnings on your personal taxes, INCLUDING STATE. So even if you LLC in NV, but you live in OH, or VA or wherever, you still must report that as income. Of course, if you live in a no-state-tax state, you don't have to report it. But just because the LLC is in NV, if you're not a resident of NV also, you DO have to claim these earnings in your state.

So if you make a pile in the LLC and haven't been doing your self-employment withholding all year, you're gonna owe a pile. As I understand it, the best thing to do is just have a payroll company handle writing you a paycheck as an employee a couple times a month. They'll automatically hold out the correct fed, state and local taxes and things should be pretty square at the end of the year. In fact, you can claim zero deductions and you should get a nice refund check come April.

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DISCLAIMER: I'm not an attorney, CPA, tax guy, etc., and can barely even find my keys in the morning, so this is just FYI and I don't make any claim, warranty, guarantee that it is accurate. Always consult a professional. That's what they're there for, and the good ones are worth it.
 

innocent

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For that being your first post Beakman you really hit the nail on the head. Good answer and I couldn't have said it better myself.
 

nvcowboy

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Beakman is right on .... and speaking as a Nevadan there's nothing like gambling, whoring and drinking for raising taxes so I don't have to pay taxes. How much fun can you stuff in to 24 hours? Ah, Nevada, the state that never sleeps or closes.

yeah baby,....the cowboy
 

kingofbigmac

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Duh I totally forgot when I was little I wanted to move to Nevada because I heard there was no State Income Tax so if you win money on a game show or whatever you will get taxed less. Completely forgot about that til now.
 
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