State guide · Nevada · 2026 rules

S corporation in Nevada: what the election changes

Nevada has no income tax, so the S-corp math is mostly federal. The state change is payroll: your salary brings unemployment tax and a quarterly business tax return.

Updated October 24, 20267 official sources

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You’ll need: last year’s Schedule C (line 31) and the W-2 from any job you also hold. Everything else starts at a typical value you can change.

State where the business is Each state treats the election differently. The check shows only the questions that matter there.

Net profit for the year, before paying yourself Your business's profit after expenses. Money you take out for yourself does not lower it.

Where do I find this?

Schedule C, line 31 (“Net profit or (loss)”) on last year’s return.

For this year: sales minus business expenses so far, scaled to a full year. Owner draws are not an expense.

Salary you would pay yourself as an S corporation What you would pay yourself through payroll. The IRS expects a reasonable salary for the work you do.

Where do I find this?

No form shows this yet: you choose it. It should be about what you would pay someone else to do your work.

The salary finder just below shows what employees in your job earn in your state or metro area. What the IRS looks at.

Salary finder: what people in your job earn (BLS)

Your job Pick the job closest to what you do most of the week.

Area Pick your metro area if it is listed. Pay varies by area.

Another job I also earn W-2 wages from a job outside this business

Typical values: change them if you know yours

Payroll service, per year typical value Published one-person prices: $492 to $684 a year (October 2026).

Where do I find this?

Your payroll provider’s price page or quote, for one employee: you. Published prices compared.

Extra tax-prep cost for the S-corp return typical value A survey average: the fee for Form 1120-S minus the fee for Schedule C (2020 fees).

Where do I find this?

Ask your preparer what a Form 1120-S (the S corporation’s own return) would cost, then subtract what you pay now for Schedule C.

Your top federal income tax rate Not sure? Keep 22%. It changes line 5 only.

Where do I find this?

Your taxable income is on Form 1040, line 15. Find the rate for that income and your filing status in the IRS rates and brackets table.

Filing status Changes the result only above $200,000 of earnings ($250,000 if married filing jointly, $125,000 if married filing separately).

Where do I find this?

The box checked under Filing Status at the top of your Form 1040.

Choose a state and enter your profit and salary to see the comparison.

The state

Nevada has no personal or corporate income tax, so the election has no state income tax effect and there is no pass-through entity tax. The Commerce Tax applies only above $4 million of Nevada gross revenue, to every kind of entity alike.

The state business license fee follows the entity type, not the tax election. An LLC that elects stays an LLC and keeps paying $200 a year. A business that incorporates under chapter 78 pays $500.

Payroll taxes on your salary

A sole proprietor’s draws and profit are not wages, so there is no unemployment tax on them today. After the election your salary is wages: Nevada treats pay to corporate officers, S-corporation officers included, as wages.

Unemployment insurance: 2.95% for a new employer on the first $43,700 of wages in 2026. The employer also pays the 0.05% Career Enhancement Program on the same wages.

The Modified Business Tax is 1.17% of wages above $50,000 a quarter, about $200,000 a year, so a one-owner salary rarely owes it. The business still files a quarterly return even when no tax is due.

Worked examples

A single-member LLC owner, single filer, 22% federal bracket, default payroll and return costs. The figure is total tax and added costs as an S corporation compared with staying as you are.

Profit / salary	Statewide
$80,000 / $45,000	$145 higher
$120,000 / $60,000	$2,256 lower
$200,000 / $90,000	$7,036 lower

Starting payroll in Nevada

Register for unemployment insurance with the Employment Security Division through Employer Self Services. The state business license is through SilverFlume, and the Nevada Department of Taxation handles the Modified Business Tax. There is no state income tax withholding.

New hire paperwork for Nevada

Other states

All state guides and the map

Sources

Federal figures: IRS Publication 15 (2026), Schedule SE and Form 2553 instructions. Every figure was read on an official page and checked a second time. Checked October 24, 2026. How we check facts.

An estimate from public rules, not tax advice.

Ready to elect? See the Form 2553 steps.

Electing S corp status