2009 Legislative and Process Changes
Charging order Changes (Senate Bill 55) – Changes were made to the charging order provisions regarding number of stockholder requirements and the rights of assignees and the preclusion of a judgement creditor from participating in the management of a corporation or becoming a director of a corporation. While this will have no effect on the Secretary of State’s filing processes, it does offer additional protection to the shareholders of a corporation.
EFFECTIVE OCTOBER 1, 2009
Doing Business in Nevada Without Proper Registration (Senate Bill 350) – Foreign and domestic business entities and those businesses purporting to do business in the state without being filing organizational documents with the Secretary of State are subject to a fine of from $1,000 – $10,000. The Secretary of State now will contact the district attorney or the Attorney General to commerce action to recover the fine.
Payment & Insurance of State Business License Fee (Assembly Bill 146) - The State Business License (BLF) applications, renewals and related fees wil be collected and issued by the Secretary of State. Pursuant to AB 146 passed by the 2009 Nevada Legislature, the authority for the State Business License was transferred from the Department of Taxation to the Secretary of State. The due date of the application or renewal of the BLF is based upon the due date of the initial or annual list, whichever is applicable, required to be filed with the Secretary of State. Business entities that are not required to file organizational documents or an initial or annual list with the Secretary of State, such as sole proprietorships and general partnerships will also be required to file for the State Business License with the Secretary of State when they commence business in Nevada and renew every year by the end of the month in which the anniversary of their initial registration falls. NOTE: The State Business License fee increased from $100 to $200 as of July 1, 2009, however, the Secretary of State collection is not effective until October 1, 2009. The Department of Taxation will handle any new license application or renewals of the State Business License through September 30, 2009.
