2620 Regatta Drive, Suite 102

Las Vegas, NV 89128

702-485-1200

[email protected]
Classifications: 
Corporate Conversions and DETR Audits
(Translated from Legalese to English)

 

Given the recent increase in business license fees for Nevada corporations, we've been getting a lot of calls regarding converting those entities into LLCs.  Many corporations may be better off as LLCs, not just because of the fee increase.

 

Also, as an employer you may have employees and independent contractors.  Read the article below on how to best prepare for an audit by the unemployment division. 

Recently, the Nevada legislature increased the cost of doing business here in Nevada.  Initial and annual lists (required annually) increased for every type of entity by $25.  While this is may be the cost of a few cups of fancy coffee, the real heartburn is being felt by our clients who are organized as corporations.  The state business license fee, formerly $200 for every type of entity, is now $500.  That's a considerable increase.  What's worse is probably 90% of our clients who are organized as corporations don't need to be.  LLCs provide the same liability protection as corporations, with more flexibility in how the IRS treats the company for tax purposes.  


Have you received an audit notice from the Nevada Department of Employment, Training, and Rehabilitation (DETR)?  Try not to panic.

Here's what you should know:

The purpose of the audit is to verify that the numbers reported to DETR match the numbers in your books.  The letter you received lists a bunch of documents the auditor wants to see at the audit meeting.  The auditor will check your numbers against the ones you reported to DETR and make sure they match.

If you have paid workers as independent contractors, the auditor wants to see backup documentation that they are, in fact, independent contractors and not actually employees for which you need to pay taxes. The fact that you have an independent contractor agreement with them is NOT sufficient.  Read more about DETR's rules on  Employees and Independent Contractors.

This is the biggest sticking point.  Basically, if you hire someone to perform services for your company, you must put them through payroll unless:  Read More.  

Join the new university president, Len Jessup as he discusses UNLV's plan to become a top-tier public research university by 2025. Part of the plan includes:
  • Improve student achievement
  • Expand research and creative activities
  • Shore up infrastructure that eroded during the budget cuts
  • Launch School of Medicine
  • Support economic diversification efforts
  • Spin out new businesses out of research and creative efforts
  • Provide more resources dedicated to tackling community issues
  • Return more revenue to the state through out-of-state tuition and grant dollars
  • Retain Nevada's best young students
  • Strengthen the global network of alumni and increase the value of their degrees

Wednesday, Sept. 30
11:30 a.m.- Networking and lunch
Noon - 1 p.m. - Program
UNLV Richard Tam Alumni Center
4505 S. Maryland Parkway, Las Vegas, NV  89154




We would like to congratulate 

Bobby Misko on his Top 100 Men of the Year nomination. 

Be sure to vote for Bobby HERE using the email address [email protected]

 
We hope this newsletter has been informative.  Please forward it to any other business owner you know who might need the advice. 

If you want to be updated every time we updated our blog, click here.

 

Sincerely,
Gina Bongiovi

Corporate Consigliere 

Bongiovi Law Firm
702.485.1200
bongiovilaw.com
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