You have probably received a “Welcome to Nevada Commerce Tax” letter if you own or control investment real estate in an entity such as a Limited Liability Company (LLC). If you own investment real estate in your own name or in a trust, you probably did not receive a letter, even though you are still obligated to file this form and, theoretically at least, pay the commerce tax.
http://tax.nv.gov/Commerce/FilingRequirementFAQs/ is a very good resource page that will confirm for you that if you own investment real estate, you are obligated to file this form. So far, I have not been able to find penalties for not filing. (If they exist, you would expect to find them on one of these pages!)
But there is good Nevada Commerce Tax news
You will also see that this will probably not financially affect you: the standard Nevada Commerce Tax exemption is gross earnings of $4,000,000 or less per year. In property management, we’ve found over the years that it is important to be in the habit of filing forms like these, because penalties may someday come into effect that we haven’t discovered so far…
http://tax.nv.gov/Commerce/WelcomeLetter/ will show you how to register and file this and other Nevada compliance documents. These may be a bit of a hassle to set up, but Nevada is still an extremely pro-business state: $0 for your commerce tax is awfully commerce-friendly! And it’s relatively convenient to get this requirement out of the way: it took me about ten minutes to complete the process, from setting up an entity at https://www.nevadatax.nv.gov/# to completing the little details.
I am not personally worried about the expense, but I am worried about compliance and penalties for our clients. Let me know if you think tracking and updating forms like this is a service you would like us to offer. And I would really, really like to know whether getting a “Welcome” letter about a tax gave you a chuckle, too!
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