Nevada Businesses Caught Falsely Claiming Licensing Exemptions

An executive audit of Nevada’s business license filings has found that a significant number of businesses are falsely claiming they are exempt from paying the annual business license fee.

Source: Quarterly increases in claimed exemptions (Nevada Secretary of State)

The state stands to lose nearly $11 million in revenue in the next fiscal year due to the number of businesses that claim to be exempt but in fact do not qualify for exemption under current state statutes, according to a summary report provided by Secretary of State Ross Miller.

Miller says he has accepted the audit’s recommendations and will take steps in the coming months to ensure that businesses that are required to obtain a state business license in Nevada come in to and stay in compliance with the law.

“It’s just too easy right now to get away with false or fraudulent filings that cost the state millions in lost revenue and penalize the thousands of businesses that diligently remain in good standing in Nevada,” said Miller.

Miller said he will file a report with auditors that will detail his intended approach to determining whether businesses that claim exemptions from business license requirements do in fact qualify.

Nevada law requires any person or entity that performs a service or engages in a trade for profit to obtain an annual state business license.

Home-based businesses that bring in less than $27,000 a year in net earnings are exempt from the requirements, as are non-profits and a limited number of other types of business.

The audit also identified the likelihood that a significant number of businesses in the state have neither filed for an exemption nor obtained a business license.

By comparing local government business license records to the Secretary of State’s records, auditors found 22.5% of locally-licensed businesses do not have a state license, constituting another nearly $4 million in lost revenue to the state (nearly $2 million if the current sunset provision is enacted on June 30).



  • Dick Hertz

    $11 Million? First, this is a lie. The headline of this article is “Nevada Businesses Caught Falsely Claiming Licensing Exemptions”, yet Ross Miller doesn’t cite a single example. Miller also doesn’t mention that the state has lost hundreds of millions in revenue (and over years BILLIONS of dollars in revenue) from the doubling of the business license in the first place. An action that Miller endorsed and made no effort to stop in 2009. It is unfathomable that there are any businesses in existence that net less than $27,000 a year including mom & pop part time home businesses. He wants to screw them all. He obviously believes that all business owners (even people making candles at home part time) are rich and need to contribute to cover the cost of his mistakes since being elected Secretary of State.

  • Joysayler

    Wow!  Do you have proof that this is a lie?  Kind of hard to believe.  You don’t think businesses run out of the home can net less than 27,000  a year; you must be joking-that’s more than many people who receive social security or disability bring home.  You are definintely not in tune with those who have to live on measly incomes that do NOT even reach teh poverty level as defined by the Federal govt.

    Dick;  you’re a dick!

  • Dick Hertz

    Joy, the proof that it is a lie is that he didn’t cite a single example. I’m sure there are a few businesses skirting this law. Personally, I KNOW there are thousands of business people in the state… realtors, Avon ladies, etc. making LESS than $27,000 a year. You misunderstood my point which is that Ross Miller apparently doesn’t believe all businesses aren’t profitable right now and making over $27,000 a year. Ross Miller thinks every business owner is rich and can afford to pay for his errors.

  • Mark Turmell

    Nice. Since some companies might be defrauding the state, Miller wants to punish them all just in case. Typical government bullshit.

  • Vgerphonehome

    You are beter off being illegal and getting the benefits in the USA and no different in the State of NV. More fees and more taxes means crap . Fire all the state employees. Gestapo nation

  • Vgerphonehome

    This should happen in NV. Too many laws to choke the freedom to live and do biz. nation of laws which no one understands and Lawmakers can hide behind. Cowards.
    Connecticut employees get layoff notices

  • Wayne D

    “ the proof that it is a lie is that he didn’t cite a single example. I’m sure there are a few businesses skirting this law. ”

    Huh? The “proof” is that he didn’t cite a single example, then you turn around and claim that you’re sure there are some skirting the law. 

    That doesn’t make a helluva lot of sense.