The Nevada Secretary of State recently discovered that it’s losing tens of millions of dollars in license revenue because businesses have been improperly claiming the home-based business exemption from the state business license requirement.
Essentially, if you own and operate a home-based business that generates less than $27,000 a year, you can get out of paying the $200 annual state business license fee. Up until August 6, 2011, any business could claim the exemption without having to prove it really qualifies. Because businesses have been abusing the exemption, the Secretary of State no longer accepts applications for the exemption online. Now, if you qualify and want to apply for the exemption, you’ll have to complete and notarize a new form that verifies the business address and the revenue generated.