If you live in Nevada and are a Sole Proprietor, Las Vegas Tax Services LLC is prepared to assist you with your tax planning and preparation.

Any citizen who performs a service or engages in a trade for profit can be a Sole Proprietor in the state of Nevada. Essentially, a person creates an unincorporated business by themself and there is no separate legal entity created. Therefore, there is no legal difference between the owner and the business.

Individuals that can operate as a Sole Proprietorship may include (but not limited to):

• Freelance Writer
• Freelance Photographer
• Freelance Videographer
• DJ

If you are not on a regular payroll or receive only commissions as payment, such as an entertainer/performer, salesperson, or freelance/independent contractors, you may also be considered a Sole Proprietor in the state of Nevada.

No, Sole Proprietors are not required to file formation documents to register your business with the state of Nevada. However, sole proprietors may be required to get a permit and/or complete a State Business License Registration or file a Notice of Exemption (if they qualify) before they conduct any business in the state of Nevada. State Business Licenses will need to be renewed each year on or before the expiration listed on the license and there is a renewal fee. At Las Vegas Tax Services, we are prepared to assist you with business entity formation.

While operating as a Sole Proprietor has many advantages, it does come with some risk. If you are a Sole Proprietor, you face unlimited personal liability in the state of Nevada in the event of legal issues. This means that your personal assets are at risk. Another drawback may also be a lack of access to loans and investments. If you are concerned about any of the disadvantages associated with Sole Proprietorship, consider establishing an LLC.

A Sole Proprietorship is treated as a Pass-Through Entity (PTE). This means that because there is no legal difference between the sole proprietor owner and the business itself, the business income will be reported on the owner’s personal tax return using IRS Form 1040, Schedule C under the business owner’s name and social security number.

Adding these forms to personal tax returns can be tedious and confusing. Instead of taking the risk of filing incorrect tax returns, which could mean an audit, schedule a free consultation with the Las Vegas Tax Services professionals. Our team can handle your tax preparation and even assist you with tax planning so you can maximize your deductions, implement year-round tax saving strategies, and more!