Last year, the state of Nevada enacted Senate Bill 483, which imposed an annual commerce tax on any entity engaged in business within the state whose gross revenue in a fiscal year exceeds $4,000,000. That said, even if your business does not make that amount or is exempt from Nevada business license fees, it is still required to file the Commerce Tax Return—even though there is no tax liability due.
The Department of Taxation has been alerting businesses (via snail mail) that they are pre-registered for the commerce tax based on business license information provided to them by the Nevada Secretary of State. If you have received this notification from the department, you will find it provides you with a pre-approved code for use on the Nevada Tax Center’s online system.
The Commerce Tax Return is due 45 days following the end of the fiscal year ending June 30. This year, the first return is due on August 15, 2016, and can be filed electronically or on a hard copy.
To file electronically beginning in August, go to: https://www.nevadatax.nv.gov/
Additional information can be obtained by contacting the State of Nevada Department of Taxation’s call center at 866.962.3707
or by visiting http://tax.nv.gov
Due to a failure of the HVAC systems, the Delaware Division of Corporations closed at 3pm EST today (July 21, 2016). 30-minute, 1-hour and 2-hour filings will not be processed after 4:30pm EST.
Please note, Parasec is directly connected to the state’s system and will be able to continue to secure today’s date for all filings submitted today.
The Division of Corporations anticipates that the HVAC system will be fixed this evening and that the office will reopen at 8:00am EST tomorrow (Friday, July 22, 2016). If you have any questions about how this closure may impact you, please contact our Delaware office at 888.372.7273.
Effective July 6, 2016, the Ohio Revised Code underwent some changes thanks to Senate Bill 181—which passed both the senate and house with flying colors. The intent of the bill is to improve Ohio’s corporate law and eliminate ambiguities by defining the responsibilities of corporate officers. The changes specifically impact sections of both “Chapter 1701: General Corporations Law” and “Chapter 1705: Limited Liability Companies,” and include amendments to existing laws as well as new laws. Below are the sections to note, along with links to each:
Chapter 1701: General Corporations Law
- 1701.56: Number and qualifications of directors – provisional directors (amended)
- 1701.64: Officers – authority and removal (amended)
- 1701.641: Fiduciary duties of officers (enacted)
Chapter 1705: Limited Liability Companies
- 1705.081: Effect of operating agreement (amended)
- 1705.161: Withdrawal of member (amended)
- 1705.281: Members duties to LLC and other members (amended)
- 1705.30: Relying on Information (amended)
- 1705.48: Personal liability (amended)
- 1705.031: Contracts involving members, managers, or officers (enacted)
- 1705.291: Officers (enacted)
- 1705.292: Fiduciary duties of officers (enacted)
To read the bill in its entirety, click here.
West Virginia Secretary of State Natalie E. Tennant recently announced that any business impacted by the June 23 floods within the state’s twelve FEMA federal disaster declaration counties that has been unable to file its 2016 annual report will not be penalized by late fees. The original deadline for annual report filings was midnight on July 1; however, Secretary Tennant asked Governor Tomblin to approve a late-fee waiver under his emergency powers, and he obliged.
The twelve counties that impacted are: Clay, Fayette, Greenbrier, Jackson, Kanawha, Lincoln, Monroe, Nicholas, Pocahontas, Roane, Summers and Webster.
Late-fee waivers are not available online, and should be obtained by calling the West Virginia Secretary of State’s office at 304.558.8000. Businesses must file by October 31 in order to remain in good standing with the state.
Parasec is proud to be participating in Volunteers of America’s Operation Backpack® for the third year, helping children in need succeed in school by providing them with backpacks and grade-specific supplies. Each year, Operation Backpack® helps thousands of homeless, at-risk, and foster children from preschool to high-school levels throughout the San Francisco Bay Area, and Sacramento and Reno regions. At Parasec, we truly believe that we can all make a difference in these children’s lives by helping prepare them for school, and essentially encouraging them to be excited to learn. Visit this website to help us reach our goal.
Listed below are the state government closures scheduled for July, August and September. This information may change without our knowledge, so please be sure to check with your state office for added closures/updates that may not be included below.
Additionally, beware that the following countries may take longer to process legalizations and other documents during this time of year due to religious holidays. If you have priority filings in Egypt, Lebanon, Saudi Arabia, Qatar, Iran, UAE, Kuwait, Iraq, Djibouti, Afghanistan or Bangladesh, we highly recommend that you submit these orders well in advance to account for delays. If you have specific questions regarding a filing, please contact Ashley Bougherbi or Edna Keena in our Los Angeles office at 888.672.7273.
- July 4 – Independence Day: All states, all Parasec offices
- July 25 – Pioneer Day: UT
- August 8 – Victory Day: RI
- August 16 – Bennington Battle Day: VT
- August 16 – Statehood Day: HI
- September 5 – Labor Day: All states, all Parasec offices
Delaware recently enacted a new business tax code with the signing of House Bill 235 (HB 235), also known as the Delaware Competes Act. Currently, corporate income tax in Delaware is calculated based on a company’s total nationwide sales, payroll, and property holdings. Starting in 2017, the corporate income tax will be calculated based solely on a corporation’s percentage of in-state sales.
The change will take place gradually over a four-year period, moving from 50 percent in 2017 to 100 percent by 2020. Companies with their headquarters based in Delaware will receive the full benefits of HB 235 in 2017. In the past, neighboring states including Pennsylvania, New Jersey, and New York have all made similar adjustments to their tax calculations–leaving Delaware at a disadvantage.
Other changes associated with the Delaware Competes Act include simplifying the tax filing process for small business by allowing them to pay 25 percent of their estimated taxes per quarter, instead of having to pay 70 percent by June 1.
In total, changes to the Delaware business tax code are said to make vast improvements in the following ways:
- Incentivize job creation and investment
- Make Delaware’s tax structure more competitive with other states
- Support small businesses
- Remove disincentives for companies to create new jobs in Delaware and invest in Delaware property
If you have any questions regarding HB 235, please give us a call at 888.372.7273. To read the bill in its entirety, visit http://tinyurl.com/DEHB235.