Nevada Corporate Tax - Guide for international expansion to the US

Thinking about expanding your business to Nevada? Understanding the state's corporate tax landscape is crucial for making informed decisions about your company's growth strategy.

Nevada stands out among US states for its business-friendly tax environment, offering significant advantages for corporations looking to establish operations in the Silver State. Whether you're considering incorporation or expanding existing operations, knowing the tax implications will help you plan effectively and maintain compliance with state regulations.

If you're managing international payments as part of your Nevada business operations, Wise Business can help streamline your cross-border transactions with competitive exchange rates and transparent fees.

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This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited, its subsidiaries or affiliates, and it is not intended as a substitute for obtaining business advice from a tax advisor or any other professional.

Nevada Corporate tax rate in 2025

Nevada does not impose a state corporate income tax on businesses operating within the state.¹ This makes Nevada one of only a few US states without a corporate income tax, alongside states like Wyoming, South Dakota, and Texas.

Instead of corporate income tax, Nevada generates business revenue through other means. The state imposes a Commerce Tax on businesses with Nevada gross revenue exceeding $4 million annually². The Commerce Tax rate varies by business category, ranging from 0.051% to 0.331% of Nevada gross revenue above the $4 million threshold.³

Nevada also requires most businesses to pay an annual Business License fee. The fee structure varies depending on the business type and number of employees, ranging from $200 for businesses with no employees to $500 for businesses with 50 or more employees.⁴

Additionally, businesses may be subject to Modified Business Tax (MBT), which is imposed on employers who pay wages in Nevada. The MBT rate is 1.17% for most businesses and 1.554% for financial institutions, applied to quarterly wages exceeding $50,000.⁵

While Nevada doesn't have corporate income tax, businesses operating in the state must still comply with federal corporate income tax requirements administered by the Internal Revenue Service.

How to pay corporate tax in Nevada

Since Nevada does not impose a state corporate income tax, businesses operating in Nevada are not required to file state corporate income tax returns or make state corporate income tax payments to Nevada tax authorities.

However, Nevada businesses must still handle several state-level tax obligations. The Commerce Tax, when applicable, must be filed and paid annually through the Nevada Tax Center online portal.² Businesses with Nevada gross revenue exceeding $4 million must file Form CT-1 by the last day of the month following the end of their tax year.

The annual Business License fee must be paid to the Nevada Secretary of State. This fee is due by the last day of the month in which the business was initially registered, and annually thereafter.⁶ Payment can be made online through the Nevada SilverFlume business portal or by mail.

For businesses subject to Modified Business Tax, quarterly returns must be filed and payments made through the Nevada Tax Center. Form MBT-1 is due by the last day of the month following the end of each calendar quarter.⁵

Let's consider a hypothetical scenario: if your business had annual revenue of $1.5 million and operated with a 10% profit margin, giving it a taxable profit of $150,000, you would owe $0 in Nevada state corporate income tax. However, you would still need to pay the annual Business License fee (typically $200-$500 depending on employee count) and comply with federal corporate income tax obligations.¹

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Tax compliance in Nevada

Nevada is well known for its favourable tax climate, but businesses must still meet specific compliance requirements to stay in good standing. Although the state imposes no corporate income tax, companies are responsible for filing corporate tax returns at the federal level with the IRS. Depending on the structure, you may also need to manage:

• Payroll taxes
• Sales and use taxes
• Industry-specific levies

To remain compliant with Nevada regulations, businesses must:

• File an Annual List of Officers and Directors (for corporations) or Managers/Members (for LLCs) with the Secretary of State.
• Submit this filing by the last day of the anniversary month of incorporation.
• Renew the state business license annually.

Failure to meet these requirements may result in late fees, penalties, or even loss of good standing with the state.⁷

Building a clear corporate tax strategy is essential even in a low-tax environment. Companies operating across multiple states or internationally should carefully manage their corporate tax provision, while also understanding the difference between personal tax vs corporate tax obligations.

International Expansion to Nevada

Nevada offers one of the most attractive business climates in the United States, making it a prime destination for international expansion. Ranked 7th in the State Business Tax Climate Index, the state stands out for not imposing a corporate income tax, personal income tax, franchise tax, inventory tax, or estate tax. As a result, there’s effectively no Nevada corporate tax rate to manage.⁸

Businesses that might otherwise spend resources on complex corporate tax accounting can instead take advantage of exemptions and incentives. For instance, qualifying companies may benefit from sales and use tax abatements, which can lower rates to as little as 2%.⁹ These policies reduce operating costs and create a competitive edge compared to states with higher tax obligations, such as those applying a labour corporate tax rate.

Beyond taxation, Nevada’s economy is fueled by growth industries like technology, logistics, and renewable energy. It also has a thriving outdoor recreation sector. Outdoor recreation spans nearly 52 million acres of public land in Nevada and added $8.1 billion to the state’s GDP in 2023 while supporting over 58,000 direct jobs. Nevada ranked #1 among the lower 48 states for outdoor recreation job growth between 2022 and 2023, further underscoring its dynamic economy.¹⁰

Here’s a step-by-step overview of how to set up a business in Nevada:¹¹

1. Conduct market research to understand local demand, workforce availability, and competitors.
2. Choose a business structure and name.
3. Designate a registered agent to handle legal documents.
4. Register your business through Nevada’s SilverFlume online portal.
5. Obtain an EIN from the IRS, along with relevant licenses and permits.
6. Open a U.S. business bank account to manage finances.

Nevada’s combination of tax advantages and thriving industries makes it a highly strategic location for companies expanding into the U.S. market. For practical steps and required documentation, check Wise’s guide on how to open a US bank account for an LLC as a non-resident.

Incorporation of Business in Nevada

To incorporate a business in Nevada, you must register your business through the Nevada Secretary of State or the online portal SilverFlume.

The requirements for setting up here are:¹²

• The company must have at least one member or manager who must be 18 years or older.
• There are no residency requirements, so non-U.S. entrepreneurs can easily incorporate.
• File Articles of Organisation (for LLCs) or Articles of Incorporation (for corporations).
• Filings must include the company name, purpose, ownership structure, shares, and management roles.
• Appoint a registered agent in Nevada to accept legal and tax documents.
• Obtain a Federal Employer Identification Number (EIN) to hire employees and open a U.S. business bank account.
• Apply for a state tax identification number if required for your business activities.

Business entities in Nevada

Common business types in Nevada include:¹¹

• Sole Proprietorships and General Partnerships: These are the simplest forms and don’t require formal registration beyond securing a state business license and relevant permits. However, the owner and business are legally inseparable, meaning personal assets remain exposed.
• Limited Liability Companies (LLCs): Popular among small to mid-sized firms, LLCs protect owners (members) from personal liability. Profits pass through to members’ personal tax returns. Since Nevada has no state-level corporate income tax, LLC members generally only manage federal filings, simplifying compliance.
• Corporations (C Corporations): A corporation is a separate legal entity and can raise capital by issuing shares. C-Corps must file federal corporate tax returns and pay taxes on profits, while shareholders also pay taxes on dividends, creating “double taxation.” Businesses expanding from countries with a minimum corporate tax rate or a corporate gains tax rate often find Nevada’s structure appealing because there’s no additional state burden.

Pro tip: Although Nevada businesses don’t need to calculate a state corporate income tax, federal rules still apply. Companies must keep track of corporate tax deadlines and may benefit from the best corporate tax software or specialised software for corporate tax returns to stay compliant. These tools simplify reporting and help manage filings, especially for corporations with multi-state or international operations.

International corporate tax best practices

Here are some of the best strategies to ensure compliance with local tax laws, save more money, and reduce tax burdens.

• Stay compliant with local and international tax laws: complete the legal registration process in every jurisdiction where your business operates. File all required tax returns on time to avoid penalties, and ensure you stay up to date with local tax laws to remain fully compliant.
• Leverage double taxation treaties (DTTs): DTTs are essential in making sure that you're not taxed on the same income twice. Therefore, CFOs and Directors need to have a clear understanding of these treaties between the countries in which your business operates and how they can potentially relieve your tax burden. The United States has tax treaties with over 60 countries to prevent double taxation.
• Maintain up-to-date and transparent financial records: maintaining clear and up-to-date financial records helps companies prepare accurate tax returns, reducing the risk of errors that could lead to penalties. Additionally, having organised financial records simplifies the process during financial audits.

Take the complexity out of international expansion with Wise Business

Researching corporate tax is a crucial step when expanding your business into a new country. The next step is setting up the financial infrastructure to handle the complexities of operating across borders, from managing multi-currency cash flow to mitigating FX risk.

The Wise Business account provides the financial tools to make your international expansion to Nevada efficient and simple. It's the one account for managing your money globally.

With a Wise Business account, you can:

• Pay suppliers and initial fees: Pay suppliers, global payroll, and one-off incorporation costs in the local currency.
• Get paid like a local: Use local account details for 8+ major currencies to easily receive payments from customers or investors.
• Manage your money across borders: Hold and exchange 40+ currencies in one account, always with the mid-market exchange rate and low, transparent fees.
• Streamline your accounting: Integrate with tools like Xero or QuickBooks to simplify tracking your company's international finances.
• Empower your team: Provide multi-user access for your finance team and issue expense cards for international spending.

Wise is designed to support every step of your journey, from paying your first registration fee to receiving international payments and managing your global treasury.

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FAQs - Corporate tax in Nevada

Who is liable for corporate tax in Nevada?

No entities are liable for Nevada state corporate income tax since the state does not impose this tax. However, all businesses operating in Nevada must comply with federal corporate income tax requirements. Additionally, businesses may be subject to Nevada's Commerce Tax if their Nevada gross revenue exceeds $4 million annually, and most businesses must pay annual Business License fees.

Are there any tax incentives for businesses in Nevada?

Yes, Nevada offers several business incentives. The state provides various tax abatements and incentives through programs administered by the Governor's Office of Economic Development (GOED). These include sales tax abatements for qualifying businesses, property tax abatements, and transferable tax credits. The state also offers incentives for businesses in specific industries such as manufacturing, logistics, and technology.⁹

What is the tax treatment of dividends in Nevada?

Nevada does not impose state income tax on individuals or corporations, so dividends received by Nevada residents or Nevada corporations are not subject to state income tax. However, dividends are still subject to federal income tax requirements. For corporate shareholders, federal rules regarding dividend taxation and potential deductions still apply.

What are the common pitfalls to avoid regarding corporate tax in Nevada?

The main pitfall is assuming that Nevada's lack of corporate income tax means no tax obligations exist. Businesses must still comply with federal corporate income tax, and may be subject to Commerce Tax, Modified Business Tax, and annual Business License fees. Another common mistake is failing to register properly with the Nevada Secretary of State or missing annual filing deadlines. Additionally, businesses should ensure they understand the Commerce Tax threshold and filing requirements to avoid penalties.

Sources used in this article:

1. Tax Foundation: Nevada Tax Rates & Rankings
2. Nevada Department of Taxation: Commerce Tax FAQs
3. Nevada Revised Statutes (NRS) Chapter 363C
4. Nevada Secretary of State: Business Entity Forms & Fees
5. Nevada Department of Taxation: Modified Business Tax FAQs
6. Nevada Revised Statutes (NRS) Chapter 76
7. Wyoming LLC Attorney: Nevada LLC Annual Report Filing
8. Governor's Office of Economic Development (GOED): Doing Business in Nevada
9. Governor's Office of Economic Development (GOED): Incentives
10. Nevada Department of Outdoor Recreation: Outdoor Business Industry
11. CorpNet: Starting a Business in Nevada

Sources last checked 21/08/2025