Nevada CEP Tax: Who Must Pay and How to File
Understand your business's obligation for Nevada's annual CEP tax. Learn how the flat-rate fee is applied by entity type and the required annual filing procedure.
The Nevada State Business License fee is a recurring cost that business owners operating within the state must address. This annual, flat-rate fee is levied on the majority of business entities and is a component of maintaining good standing with the state. The revenue generated from this fee is directed toward funding public education initiatives throughout Nevada. The requirement is administered by the Nevada Secretary of State as part of the business licensing process.
Determining Who Must Pay
Most entities conducting business in Nevada are required to pay the annual State Business License fee. This includes corporations, Limited Liability Companies (LLCs), partnerships, and sole proprietorships. Any person or entity that performs a service or engages in a trade for profit is considered to be “conducting business” and falls under this requirement. If an individual receives a 1099 form for work performed, it is a strong indicator that a state business license and the fee are required.
Certain organizations are exempt from the State Business License fee. A primary exemption is granted to nonprofit organizations that are recognized as exempt from federal income tax under section 501(c) of the Internal Revenue Code. Other exemptions include a natural person whose sole business is the rental of four or fewer dwelling units and a natural person operating a home-based business whose net earnings are below two-thirds of the average annual wage in Nevada.
Calculating the Fee Liability
The calculation of the State Business License fee is straightforward because it is a flat fee and not determined by business income, revenue, or payroll. The amount owed depends on the legal structure of the business entity.
The specific fee amount varies between two distinct tiers based on entity type. For corporations, including S corporations, the annual fee is $500. All other business types, which encompasses a broad category including LLCs, Limited Liability Partnerships (LLPs), general partnerships, and sole proprietorships, are subject to an annual fee of $200.
Filing and Paying the Fee
Compliance with the State Business License fee is integrated directly into the annual business license renewal process administered by the Nevada Secretary of State. Businesses file and pay the fee concurrently with their Annual or Initial List of Officers, Members, or Managers. This consolidated filing is managed exclusively through SilverFlume, the state’s online business portal.
The deadline for filing the renewal and paying the associated fee is the last day of the anniversary month of the business’s original formation or registration in Nevada. For example, a business formed on October 15th must complete its renewal and payment by October 31st of each subsequent year. The SilverFlume portal accepts payments via credit card, debit card, or e-check, providing an immediate confirmation of filing and payment.
Failure to file and pay by the established deadline results in a penalty. A late fee of $100 is automatically assessed for any business that does not submit the required renewal and payment on time. This penalty is in addition to the base fee amount owed.