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 resource is built 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

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

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.