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Committee Hears SB 240 to Cut Initial State Business License Fee for Small Businesses
Summary
Senate Bill 240 would reduce the initial state business license filing fee from $200 to $100 for entities with fewer than 50 employees for their first year, with the fee reverting to $200 on renewal. Supporters argued it lowers startup costs and encourages entrepreneurship; no committee vote was recorded.
Carson City — The Nevada Senate Judiciary Committee took testimony on Senate Bill 240, a proposal to lower the initial state business license filing fee to $100 for new sole proprietorships, LLCs and partnerships with fewer than 50 employees.
Senator Julie Pizzina, sponsor of SB 240, said the bill "helps small businesses succeed in Nevada" by reducing a barrier to entry. The measure would apply to initial filings with the Secretary of State; an amendment on NELIS deleted corporations from the reduced fee and clarified that the $100 rate applies only to the first-year filing, with renewals and other filings subject to the existing $200 fee.
Why it matters: Supporters said the change would ease upfront costs for startups and micro-businesses and help encourage entrepreneurs to form businesses in Nevada rather than favoring out-of-state registrations. Paul Moratkin of the Vegas Chamber described the proposal as a "strategic approach to support small business entrepreneurs," noting that the state uses 50 employees as the definition of a small business. Multiple chambers, city economic development representatives, trade associations and unions testified in favor. Trey Abney of NFIB Nevada said he would prefer the $100 fee be permanent but supported the amendment as a first step.
Supporters also cited competitiveness with other states that charge lower fees for business registration. Committee members noted the state's history with business license fees; Senator Hansen recalled when the state business license was a one-time $25 fee and several members said lowering initial cost could help new enterprises survive their first year. Testimony from Nevada Policy and the Nevada Small Business Development Center highlighted that licensing fees and registration requirements are barriers for founders, especially in rural areas.
Opposition and neutral testimony: No hearing testimony in Carson City or Las Vegas opposed the bill, and callers offering neutral testimony included Clark County staff. The transcript shows wide organized support from business groups, local governments and trade associations; no formal committee vote or amendments were recorded on the transcript beyond the amendment already posted on NELIS.
Outcome and next steps: The committee closed the hearing after broad support and no opposition in person; staff indicated updated fiscal notes were being worked with the Secretary of State. No committee vote on SB 240 was recorded in the hearing transcript.
Ending note: Proponents asked the committee to adopt the measure to reduce startup costs and encourage more new business formation across Nevada; some witnesses urged broader future reductions to remain competitive with states that charge lower registration fees.
