Nevada law requires a person to provide workers' compensation coverage for employees but also subcontractors, independent contractors and their employees. Such contractors are deemed to be employees of the prime contractor unless the subcontractor is an “independent enterprise.”
Despite the broad exclusion of workers' comp for 1099 employees in Nevada, there exists a notable exception within the construction sector. The State of Nevada Department of Business & Industry Industrial Relations mandates that 1099 independent contractors working in construction are entitled to workers' compensation.
WHO NEEDS A BUSINESS LICENSE? If you receive a 1099 form for any work performed in Nevada, or if you are an owner of a business, you need a state business license.
However, if there are any employees working for the sole proprietor, then the sole proprietor must maintain workers' compensation insurance on them. In addition, sole proprietors who are contractors as defined in NRS 624.020, operating within the scope of their license, must secure coverage.
WHO NEEDS A BUSINESS LICENSE? If you receive a 1099 form for any work performed in Nevada, or if you are an owner of a business, you need a state business license.