- Nevada
What Do Therapists Need to Know About Taxes in Nevada?
Nevada doesn’t have a state income tax — which makes it sound simple — but that’s not the whole story. Annual state fees, licensing rules, and the way you structure your practice still have a direct impact on how much you keep and how much you owe. This guide covers what Nevada therapists need to know to stay compliant and maximize earnings.
Who this guide is for
This guide is for:
- Licensed Nevada therapists (LCSWs, MFTs, CPCs, psychologists, etc.)
- Solo and group private practice owners
- Professionals working online, in person, or hybrid
- Anyone trying to stay above board and avoid unnecessary taxes or penalties
Step 1: Pick the right structure for your practice
Your entity determines liability protection, tax treatment, and annual requirements.
Sole Proprietorship
- No formal filing unless you use a trade name
- No liability protection
- All profits taxed as self-employment income (federal only)
- Simple, but risky and not ideal long term
PLLC (Professional Limited Liability Company)
- Nevada allows licensed professionals to form PLLCs
- Provides legal separation between business and personal assets
- Default tax treatment: pass-through entity
- Can elect S Corp once income justifies it
- Register with Nevada Secretary of State and notify the licensing board
S Corporation
- Reduces self-employment tax by allowing salary + distributions
- Requires payroll, accounting systems, and corporate compliance
- Becomes tax-efficient around $75K+ in net income
- No state income tax on distributions, but federal rules still apply
Professional Corporation (PC)
- Available but uncommon for most therapists
- Can elect S Corp treatment
- More admin and rigid requirements than PLLCs
Step 2: Know your state tax obligations
No personal income tax
- Nevada doesn’t tax earned income or pass-through profits
- You’ll still owe federal income and self-employment taxes
- Business profits from PLLCs and S Corps flow directly to your federal return
Business license and annual filings
- All businesses must maintain a Nevada State Business License — even sole props
- $200/year fee, plus a $150 Annual List filing for entities like PLLCs and S Corps
- File annually with the Secretary of State to remain in good standing
Local business registration
- Cities like Las Vegas, Reno, and Henderson require separate city business licenses
- Zoning approvals often required for home-based offices
Step 3: Pay taxes throughout the year — not just in April
Estimated taxes
- Nevada doesn’t collect income tax, but the IRS still wants their share
- If you’ll owe $1,000+ federally, make estimated payments
- Due: April 15, June 15, Sept 15, Jan 15
- Sole props and PLLCs file quarterly via IRS
- S Corps pay federal estimates and run payroll throughout the year
Self-employment tax
- 15.3% applies to net income from sole props and default PLLCs
- S Corp status reduces this — only W-2 salary is subject to SE tax
Filing requirements
- Sole prop: Schedule C on 1040
- PLLC: File annual report + pay $200 state license + federal personal return
- S Corp: IRS Form 1120-S + payroll filings + Nevada state filings
Step 4: Track and claim your deductions
Just because you’re not paying state income tax doesn’t mean you can ignore deductions — they still lower your federal liability.
Deductible expenses for therapists
- HIPAA-compliant EHR and telehealth systems
- Office rent or home office
- Liability and malpractice insurance
- CEUs, license renewals, supervision fees
- Marketing, advertising, and online directories
- Business software, phone, internet
- Self-employed health insurance
- Retirement plan contributions (Solo 401k, SEP IRA)
Step 5: When it’s time to consider an S Corp
S Corp is worth a serious look once you’re making consistent money.
- Pay yourself a reasonable salary and file W-2s
- Take remaining profit as a distribution — not subject to self-employment tax
- You’ll still pay payroll taxes and federal income tax
- Works well once net income hits $75K+
Step 6: Common mistakes therapists make
- Forgetting to renew their Nevada business license
- Skipping city-level licenses or zoning approvals
- Not filing an Annual List or paying state fees
- Electing S Corp but not setting up payroll
- Missing quarterly federal tax payments
- Mixing personal and business finances
Step 7: Our recommendations by income level
Net Income Range Suggested Action
Under $50K Sole prop or PLLC is fine; pay state license fees and track expenses
$50K–$100K Consider S Corp election; set up payroll; maintain clean books
Over $100K Full S Corp setup; contribute to retirement; work with a tax pro quarterly
Disclaimer: This guide is for informational purposes only and does not constitute legal, tax, or financial advice. While we make every effort to keep the content accurate and up to date, state laws and regulations can change without notice. You should consult a licensed professional in your state before making any decisions based on this information. Leichter Accounting Services is not liable for any errors or omissions, or for any actions taken based on the contents of this guide.
Need help figuring this out?
We help Nevada therapists keep their license filings up to date, make smart tax decisions, and save time by structuring their practice the right way.
Book a consult or email us at david@leichtercpa.com