State Business Licenses - GENERAL PROVISIONS - Exemption: Applicability to certain persons who operate business from home.

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[Rev. 8/25/2014 11:53:11 AM]

[NAC-76 Revised Date: 9-14]

CHAPTER 76 - STATE BUSINESS LICENSES

GENERAL PROVISIONS

76.010               Definitions.

76.020               “Average annual wage” defined.

76.030               “Federal tax year” defined.

76.040               Business: Interpretation of certain statutory terms.

76.050               Exemption: Applicability to certain businesses whose primary purpose is to create or produce motion pictures.

76.060               Exemption: Applicability to certain persons who transact insurance business within this State.

76.070               Exemption: Applicability to certain persons who operate business from home.

76.080               Certain persons who operate business from home not liable for annual fee for renewal; determination of net earnings.

76.090               Certain persons exempt from requirement to obtain state business license.

76.100               Claim for exemption.

PENALTY FOR WILLFULLY FAILING OR NEGLECTING TO OBTAIN OR RENEW STATE BUSINESS LICENSE

76.200               Grounds for referral of matter for determination of whether to institute proceedings to recover fine.

76.210               Filing of complaint: Methods; required information.

76.220               Actions by Secretary of State upon receipt of complaint.

76.230               Actions by Secretary of State upon determination of sufficiency of complaint.

 

 

 

GENERAL PROVISIONS

      NAC 76.010  Definitions. (NRS 76.140)  As used in this chapter, unless the context otherwise requires, the words and terms defined in NAC 76.020 and 76.030 have the meanings ascribed to them in those sections.

     (Added to NAC by Sec’y of State by R080-11, eff. 3-9-2012)

      NAC 76.020  “Average annual wage” defined. (NRS 76.140)  “Average annual wage” means the average annual wage for a calendar year as computed pursuant to chapter 612 of NRS and rounded to the nearest hundred dollars.

     (Added to NAC by Sec’y of State by R080-11, eff. 3-9-2012)

      NAC 76.030  “Federal tax year” defined. (NRS 76.140)  “Federal tax year” means any period of 12 months for which a person is required to report income, tax deductions and tax credits pursuant to the provisions of the Internal Revenue Code and any regulations adopted pursuant thereto.

     (Added to NAC by Sec’y of State by R080-11, eff. 3-9-2012)

      NAC 76.040  Business: Interpretation of certain statutory terms. (NRS 76.140)  For the purposes of this chapter and NRS 76.020, the Secretary of State interprets the term:

     1.  “Governmental entity” to mean:

     (a) The government of the United States, this State or any other state or territory of the United States or an incorporated or unincorporated agency or instrumentality thereof;

     (b) A corporation which is wholly owned by the government of the United States; and

     (c) A county, city, town, district or other political subdivision of this State or any other state or territory of the United States.

     2.  “Person who operates a business from his or her home” to mean a natural person who individually operates a business and performs all essential business functions exclusively from his or her personal residence or a married couple who jointly operate a business and perform all essential business functions exclusively from their personal residence in this State if no part of the personal residence is held open to the general public for use in furtherance of that business that would require the posting of a business license in accordance with a county or municipal ordinance.

     (Added to NAC by Sec’y of State by R080-11, eff. 3-9-2012; A by R081-13, 2-26-2014)

      NAC 76.050  Exemption: Applicability to certain businesses whose primary purpose is to create or produce motion pictures. (NRS 76.140)  The exemption from the requirement to obtain a state business license which is set forth in paragraph (e) of subsection 2 of NRS 76.020 applies only to a person:

     1.  Who is registered with the Division of Motion Pictures and has obtained all applicable permits otherwise required by other agencies and political subdivisions of this State pursuant to subsection 1 of NRS 231.128;

     2.  Whose primary purpose is to create or produce in this State feature films, movies made for broadcast or other electronic transmission or programs made for broadcast or other electronic transmission in episodes; and

     3.  Who completes any form or provides any information requested by the Secretary of State to establish or verify the requirements set forth in subsections 1 and 2.

     (Added to NAC by Sec’y of State by R080-11, eff. 3-9-2012; A by R081-13, 2-26-2014)

      NAC 76.060  Exemption: Applicability to certain persons who transact insurance business within this State. (NRS 76.140)  The exemption from the requirement to obtain a state business license which is set forth in NRS 680B.020 applies only to a person who:

     1.  Conducts business under a license or certificate of authority issued by the Division of Insurance of the Department of Business and Industry pursuant to title 57 of NRS; and

     2.  Provides to the Secretary of State the number of that license or certificate of authority.

     (Added to NAC by Sec’y of State by R080-11, eff. 3-9-2012)

      NAC 76.070  Exemption: Applicability to certain persons who operate business from home. (NRS 76.140)

     1.  The exemption from the requirement to obtain a state business license which is set forth in paragraph (c) of subsection 2 of NRS 76.020 does not apply to a person who operates a business from his or her home during a federal tax year ending on or after December 31, 2011, in which:

     (a) He or she at any time failed to qualify as a person who operates a business from his or her home; or

     (b) His or her net earnings from that business were greater than 66 2/3 percent of the average annual wage for the most recent calendar year ending before the last day of that federal tax year.

     2.  Except as otherwise provided in NRS 76.120, a person described in subsection 1 must obtain a state business license for his or her home-based business not later than 180 days after the last day of a federal tax year ending on or after December 31, 2011, in which the exemption for a home-based business does not apply to him or her.

     (Added to NAC by Sec’y of State by R080-11, eff. 3-9-2012)

      NAC 76.080  Certain persons who operate business from home not liable for annual fee for renewal; determination of net earnings. (NRS 76.140)

     1.  If a person who operates a business from his or her home is required to obtain a state business license as a result of his or her net earnings from that business, his or her liability for each annual fee required by NRS 76.130 depends upon the net earnings of the person from that business for the most recent federal tax year ending before the date on which that fee would otherwise become due. The person is not liable for the fee if he or she establishes to the reasonable satisfaction of the Secretary of State that those net earnings were less than 66 2/3 percent of the average annual wage for the most recent calendar year ending before the date on which that fee would otherwise become due.

     2.  For the purposes of determining the net earnings of a person who operates a business from his or her home, the Secretary of State will request, on a form prescribed by the Office of the Secretary of State, that the person disclose annually to the Secretary of State the net earnings reported on the federal income tax return filed with the Internal Revenue Service for that business for the preceding tax year.

     (Added to NAC by Sec’y of State by R080-11, eff. 3-9-2012)

      NAC 76.090  Certain persons exempt from requirement to obtain state business license. (NRS 76.140)

     1.  If a person, other than a natural person, has a state business license for the conduct of a business by that person, no natural person is required to obtain a state business license for any activity conducted in furtherance of that business solely because any income, tax deductions or tax credits attributable to that activity may be reported to the Internal Revenue Service as income or loss from a partnership, S corporation, estate, trust or real estate mortgage investment conduit on a Schedule E (Form 1040), Supplemental Income and Loss Form, or its equivalent or successor form.

     2.  If a partnership or limited-liability company has a state business license for the conduct of a business by that person, no partner or member thereof is required to obtain a state business license for any activity conducted in furtherance of that business solely because any income, tax deductions or tax credits attributable to that activity may be reported to the Internal Revenue Service as income or loss from:

     (a) A sole proprietorship on a Schedule C (Form 1040), Profit or Loss From Business Form, or its equivalent or successor form; or

     (b) A farm on a Schedule F (Form 1040), Profit or Loss From Farming Form, or its equivalent or successor form.

     3.  For the purposes of this section:

     (a) “Limited-liability company” means a person organized pursuant to chapter 86 of NRS or the equivalent laws of another jurisdiction.

     (b) “Partnership” means any association of two or more persons described in NRS 87.060, regardless of whether that association reports to the Internal Revenue Service partnership income, tax deductions or tax credits on Form 1065, U.S. Return of Partnership Income Form, or its equivalent or successor form.

     (Added to NAC by Sec’y of State by R080-11, eff. 3-9-2012)

      NAC 76.100  Claim for exemption. (NRS 76.180)  Except as otherwise provided in subsection 2 of NRS 76.105, a person who claims to be excluded from the requirement to obtain a state business license must submit annually to the Secretary of State a claim for the exemption on a form prescribed by the Secretary of State that includes, without limitation:

     1.  The name of the person claiming the exemption;

     2.  If available, the business identification number issued with the original notice of exemption;

     3.  The exemption code provided by the Secretary of State under which the exemption is claimed;

     4.  The physical street address and, if different, the mailing address where the person will be conducting business in this State;

     5.  The electronic mail address where notices and correspondence may be received;

     6.  Other information the Secretary of State deems necessary to ensure that a claim for an exemption from the state business license is appropriate;

     7.  A declaration under penalty of perjury that:

     (a) The information contained in the form is true, correct and complete to the best of the person’s knowledge and belief;

     (b) The person acknowledges that pursuant to NRS 239.330, it is a category C felony to knowingly offer any false or forged instrument for filing with the Office of the Secretary of State; and

     (c) The person meets the statutory requirements for an exemption from the requirement to obtain a state business license pursuant to NRS 76.020; and

     8.  The signature of the person claiming the exemption from the state business license.

     (Added to NAC by Sec’y of State by R081-13, eff. 2-26-2014)

PENALTY FOR WILLFULLY FAILING OR NEGLECTING TO OBTAIN OR RENEW STATE BUSINESS LICENSE

      NAC 76.200  Grounds for referral of matter for determination of whether to institute proceedings to recover fine. (NRS 76.180)  The Secretary of State may refer the matter to the district attorney of the county in which a person’s principal place of business is located or the Attorney General, or both, for a determination of whether to institute proceedings to recover the fine set forth in NRS 76.180 if the person:

     1.  Is purporting to be a business organized and existing under the laws of this State but has willfully failed or neglected to obtain or renew a state business license and to pay the fees required by NRS 76.100 and 76.130; or

     2.  Is doing business in this State but has willfully failed or neglected to obtain or renew a state business license and to pay the fees required by NRS 76.100 and 76.130.

     (Added to NAC by Sec’y of State by R081-13, eff. 2-26-2014)

      NAC 76.210  Filing of complaint: Methods; required information. (NRS 76.180)

     1.  A person may report to the Secretary of State that a person may be subject to the fine set forth in NRS 76.180 by emailing a complaint to blcompliance@sos.nv.gov or by mailing a complaint to:

 

Secretary of State

Commercial Recordings Division

Attn: Business Compliance

202 North Carson Street

Carson City, Nevada 89701

 

     2.  A complaint filed with the Secretary of State pursuant to subsection 1 must be on a form prescribed by the Secretary of State and must contain, at a minimum:

     (a) The name, street address, telephone number and, if applicable, the electronic mail address and any other contact information of the complainant;

     (b) The name, street address, telephone number and, if applicable, the electronic mail address and any other contact information of any person authorized by the complainant to file the complaint on behalf of the complainant;

     (c) The name, street address, telephone number and, if applicable, the electronic mail address and any other contact information of the person alleged to be subject to the fine set forth in NRS 76.180;

     (d) Information identifying all persons involved in the alleged conduct subjecting the person to the fine set forth in NRS 76.180, including, without limitation, the names, street addresses, business locations, telephone numbers, electronic mail addresses and Internet websites of the persons involved in the alleged conduct;

     (e) Information identifying the nature of the business engaged in by the person alleged to be subject to the fine set forth in NRS 76.180;

     (f) Information identifying any other regulatory entity or agency or any court, arbitrator or other tribunal with which the complainant has filed a complaint or report regarding the same conduct, including, without limitation, the name and address of the regulatory entity, agency, court, arbitrator or tribunal, the date upon which any complaint or report was filed and the case number assigned to the complaint or report, if any;

     (g) Any additional information which the complainant believes may assist in the investigation of the allegations made in the complaint;

     (h) Copies of any documents which the complainant believes may assist in the investigation of the allegations made in the complaint;

     (i) A statement indicating whether the complainant is willing to testify regarding the complaint in a court of law or in an administrative proceeding; and

     (j) A statement that to the best of the complainant’s knowledge the information contained in the complaint is true and correct.

     (Added to NAC by Sec’y of State by R081-13, eff. 2-26-2014)

      NAC 76.220  Actions by Secretary of State upon receipt of complaint. (NRS 76.180)

     1.  Upon receiving a complaint filed pursuant to NAC 76.210, the Secretary of State will:

     (a) Review the complaint and any information submitted with the complaint;

     (b) Determine whether the allegations in the complaint may be addressed through the administrative processes of the Office of the Secretary of State; and

     (c) Determine whether to refer the complaint to another regulatory or enforcement agency of this State, a political subdivision of this State, another state or the Federal Government.

     2.  The Secretary of State may refer the information obtained in a complaint filed pursuant to NAC 76.210 and any information obtained by the Secretary of State through an investigation of the complaint to another regulatory or enforcement agency of this State, a political subdivision of this State, another state or the Federal Government.

     3.  The Secretary of State may request that the complainant or the person alleged to be subject to the fine set forth in NRS 76.180 provide any information deemed necessary by the Secretary of State to assist in the investigation of the allegations made in the complaint.

     (Added to NAC by Sec’y of State by R081-13, eff. 2-26-2014)

      NAC 76.230  Actions by Secretary of State upon determination of sufficiency of complaint. (NRS 76.180)

     1.  If the Secretary of State determines that the information provided with a complaint filed pursuant to NAC 76.210 is not sufficient to warrant further investigation or processing of the complaint, the Secretary of State will send to the complainant written notification of the deficiencies in the complaint.

     2.  If the Secretary of State determines that the information provided with a complaint filed pursuant to NAC 76.210 or obtained during the course of an investigation of another matter is sufficient to warrant further investigation or processing, the Secretary of State may send a written demand for a response to the complaint or investigation to the person alleged to be subject to the fine set forth in NRS 76.180.

     3.  A response demanded pursuant to subsection 2 must be:

     (a) Completed and returned to the Office of the Secretary of State within the time specified in the written demand; and

     (b) Signed under oath by the respondent or, if the respondent is an entity, by a person in a position of responsibility with the respondent.

     4.  If, based on the information submitted with a complaint, any information obtained during an investigation of the complaint and any information included in a response demanded pursuant to subsection 2, the Secretary of State determines that a person is subject to the fine set forth in NRS 76.180, the Secretary of State may demand that the person file any document required to bring the person into compliance with chapter 76 of NRS and pay any fee, penalty or fine required by the laws of this State.

     5.  If, in response to the demand of the Secretary of State pursuant to subsection 4, the person does not file a document required to bring the person into compliance with chapter 76 of NRS or pay any fee, penalty or fine required by the laws of this State, the Secretary of State may refer the matter to the district attorney of the county in which the person’s principal place of business is located or the Attorney General, or both, and request that the district attorney or Attorney General institute legal proceedings to require the person to file any document required to bring the person into compliance with chapter 76 of NRS and to pay any fee, penalty or fine required by the laws of this State.

     6.  The Secretary of State may communicate any findings made or actions taken in response to a complaint or the investigation of a complaint to:

     (a) The complainant at the address provided on the complaint form; and

     (b) The person who is alleged to be subject to the fine set forth in NRS 76.180 at the last known address of the person or through the person’s registered agent of record.

     (Added to NAC by Sec’y of State by R081-13, eff. 2-26-2014)