Change in Initial/Annual List filings when claiming State Business License Exemption
As of August 6th 2011, the Declaration of Eligibility for State Business License Form is required to be filed for all Corporations, LLCs and other Title 7 entities at the time of filing their initial/annual list if they are claiming any exemption from the State Business License. The current exemptions that can be claimed are as follows:
- Governmental Entity Exemption
- 501(c) Nonprofit Entity Exemption
- Home-Based Business Exemption
- 4 or Fewer Dwelling Units
- Motion Picture Company
- NRS 680B.020 Insurance Company
Why is this now required when it previously was not?
Internal office investigations supported by a Nevada State Audit Report revealed that a significant number of claims for exemption were improper or fraudulent. It was found that the simple checkbox claim on the annual list of officers was insufficient in determining a valid claim for exemption and it was recommended that the Secretary of State request additional information regarding exemptions in order to substantiate an entity’s claim of exemption. Due to the high volume and continuous increase in the number of exemptions claimed, the Secretary of State developed this form containing declarations from those entities claiming any exemption from the State Business License.
What happens if I do not submit the declaration form with my initial/annual list of officers?
An annual list of officers, claiming any exemption, must be accompanied by the declaration form. Any annual list claiming an exemption that does not include the declaration form will be rejected and the customer will be informed of the rejection and the reason for such. The entity will be subject to additional penalties if the annual list and declaration form are not returned, in good order by the due date of the annual list.
What if I was unaware that I improperly claimed the exemption on a past annual list filing?
Pursuant to NRS 76.110, Corporations, Limited Liability Companies and other Title 7 entities may correct this oversight by filing an amended list of officers and paying the associated filing fee, plus the business license fees and late penalties for each year they improperly claimed the exemption. Similarly, a sole proprietorship or partnership or other Non-Title 7 business may make this correction by filing an amended State Business License Application and paying the associated filing fee, plus the business license fees and late penalties for each year they improperly claimed the exemption.
Can I file my annual list, claim for business license exemption and the declaration form online?
No. Online services for entities claiming an exemption are no longer available. All annual lists with a claim for exemption, including the declaration, which must be notarized, must be filed in the office and received by the annual list due date to avoid late penalties. Forms may be found on our website at www.nvsos.gov.