A Step-by-Step Guide on How to Start a Business in Nevada

Owning your own business in Nevada might be difficult. To pursue your business plan successfully, you will need to invest enough funds, personal assets, time, support from friends and family, and expertise. If you wish to start a business in Nevada, it will allow you to control your professional path in a region noted for its innovative and successful business culture.

Why does Nevada appeal to business owners as a desirable state to start a business?

• Access to the California and West Coast markets.
• No individual income tax.
• No corporate income tax.
• State franchise tax exempt.
• Employers can receive financial rewards through the Siver State Works initiative.

It's essential to understand what you need to do to begin and run a Nevada business that complies with the state's regulations, whether starting a small business in Nevada or having a massive operation there.

The primary steps to starting a business in Nevada are listed below.

Steps to start a business in Nevada

1. Select a suitable business plan or idea

Choosing what kind of Nevada business to launch is the first step toward business ownership. Find a concept that aligns with your hobbies, objectives, and talents. This one business idea might significantly increase your chances of success and help you stay motivated through your business plan when things become challenging.

Some of the most common businesses in Nevada:

• Start a Consulting Business.
• Start a Construction Business.
• Open a Restaurant.
• Start a Trucking Business.
• Open a Retail Business.
• Start a General Contractor Business.
• Start a Professional Service.

2. Pick a business structure

It is essential to carefully weigh your options and get advice from an accountant and/or lawyer when you make this choice. There will be legal and tax repercussions depending on the corporate type you choose for your company. The ideal business and complex legal structure will depend on your circumstances and objectives.

Available business structures in Nevada include:

• Sole Proprietorship.
• General partnership.
• Limited Liability Company.
• Limited Partnership.
• Limited Liability Limited Partnership.
• Domestic Corporation.
• Close Corporation.
• Professional Corporation.
• Nonprofit Corporation.
• Nonprofit Cooperative Corporation.
• Cooperative Association.

Some of Nevada's most popular entity types and their basics.

Nevada sole proprietorship and general partnership companies

However, in addition to state or local licensing and permit requirements relevant to their location and type of business, sole proprietorships and general partnerships are still required to get state business licenses. No legal or tax distinction exists between business owners and the business in a sole proprietorship or partnership. Business owners must pay self-employment taxes (12.4 percent Social Security Tax and 2.9 percent Medicare Tax) and income tax.

Limited Liability Companies (LLC)

The tax duties of a Limited Liability Company pass through to the owners or members, just as those of sole proprietorships and partnerships. The owners of an LLC are given some liability protection even for their assets (homes, bank accounts, etc.) if the company is sued or has financial difficulties because an LLC is considered a different legal entity from its members.

Eligible LLCs can apply for S Corporation tax status if they seek to reduce their self-employment tax burden. With the S Corporation election, the members-only pay self-employment taxes on their remuneration in wages and salaries rather than having all of their income subject to Social Security and Medicare taxes. They do not have to pay self-employment taxes on any profits distributed to them.

Limited Partnerships (LP)

General partners and limited partners make up limited partnerships. Owners regarded as general partners do not have a legal separation from the company. Limited partners are only personally liable for their share of the company's debts up to the amount of their investment. LPs are taxed similarly to ordinary partnerships, with the owners sharing all profits and losses.

Chapter 87A of the Nevada Revised Statutes (NRS) or Chapter 88 of the NRS may be used to govern limited partnerships (LPs) in Nevada. The main distinction is the degree of separation between the functions of general and limited partners.

For-Profit corporations

For-profit The legal and tax-paying entities known as corporations, or C Corporations, exist independently from their owners (shareholders). A C Corporation declares and pays federal income tax on a corporate return. To raise money, corporations may sell stock. If a shareholder is given a salary or wage by the company (and they are employees), they must record this income on their tax filings. Suppose a corporation satisfies the requirements set forth by the IRS. In that case, it may elect to get S Corporation tax treatment to avoid the default double taxation, which results in some firm income being taxed twice when distributed to shareholders as dividends: once at the corporate level and again at the individual level.

3. Name your business in Nevada

Registering a business name is an essential part of a successful business plan. Once a business name is selected for your company, be sure no other Nevada businesses in the state have already taken it (or have reserved it). Online search is helpful if you anticipate using your company name in additional states.

Your name will be given formal status once you register your entity with the state. The state permits business owners to hold onto a company name for 90 days. You can book a name for 90 days if you already have it but aren't ready to start your business.

Suppose a corporation intends to promote itself under a name other than the entity's legal name. In that case, it may additionally file a Fictitious Firm Name Form in the counties where it conducts business. Another name option for this is Doing Business As (DBA). If owners want to use a business name that is more creative than their legal name (must include the first and last name), DBAs can be filed for sole proprietorships and general partnerships.

For example, suppose Clark Kent decides to operate his new firm, which provides legal consulting services, as a sole proprietorship. He must submit a DBA if he wants to have an informal business structure go by the name "Justice Associates" instead of "Clark Kent Legal Consulting."

4. Designate a registered agent

The state of Nevada requires all registered business entities, such as LLCs and C Corporations, to choose a registered agent (an authorized person or registered agent services provider).

The registered agent must acquire a physical office address in Nevada, where he/she can receive correspondence from your company.

5. Find a business location

The location you select will directly affect your success if your firm services clients at a physical location. Conduct a thorough study of the jurisdiction's zoning, licensing, and permit requirements. Talk to the local government representatives to see if any programs offer credits or incentives for locating your firm there. By clicking on the links on the map, the Nevada Department of Business and Industry will help businesses to get in touch with municipal governments all around the state.

For information on local Zoning rules and codes, you must follow your business's location; check with your county and zoning district. Similarly, there are a few other factors you should consider:

• Zoning laws
• Property Values
• Reduced excise taxes
• Business Insurance Rates
• Industrial park or center
• Minimum Wage laws
• Opportunity zones
• Enterprise zones
• Government licenses and fees
• State and Local Taxes
• State and Local Business Incentives

If you are looking for a location to register your Nevada business, you may choose sixteen counties and one city. They are as follows:

1. Churchill County
2. Clark County
3. Douglas County
4. Elko County
5. Esmeralda County
6. Eureka County
7. Humboldt County
8. Lander County
9. Lincoln County
10. Lyon County
11. Mineral County
12. Nye County
13. Pershing County
14. Storey County
15. Washoe County
16. White Pine County
17. Carson City

6. Register your business

Entrepreneurs must register their business as a separate legal entity with the state after adopting a business structure, selecting a business name and confirming that it is available for use, and designating a registered agent. Nevada has a website, " Silverflume," which manages all business licenses and registration.

There may be additional state reports and paperwork in addition to filing the correct company formation documents. For example - Articles of Organization or Articles of Incorporation.

*Nevada state business filing fees:

Limited Liability Company

• Articles of Organization = $75
• Initial List of Managers or Managing Members = $150
• Nevada Business License = $200

Limited Partnership (Chapter 87A and Chapter 88)

• Certificate of Limited Partnership = $75
• Initial and Annual List of General Partners = $150
• Nevada Business License = $200

Limited Liability Partnership

• Certificate of Limited Partnership = $75
• Initial and Annual List of General Partners = $150
• Nevada Business License = $200

C Corporation

• Articles of Incorporation = $75
• Initial List of Officers = $150
• Nevada Business License = $500

7. Get an EIN (Employee Identification Number)

Businesses require an Employee identity Number (EIN), a unique nine-digit identity, to either hire employees and staff, create a business bank account, or submit specific reports. The Internal Revenue Service (IRS) offers free EINs to anybody who has a Social Security Number (SSN) or an Individual Tax ID Number (ITIN). You can obtain your business' EIN by completing and submitting IRS Form SS-4.

8. Create a business bank account

You can open the bank and credit card accounts. You'll need to deposit your business income and pay costs once your EIN is in place. You may keep your personal and professional finances separate by doing this. Failure to keep those funds separate can result in issues with bookkeeping and credit accounts as well as with the law. Suppose you begin utilizing business funds for personal expenditures or otherwise mingling finances. In that case, a judge may rule you've "pierced the corporate veil" that protects owners of LLCs and corporations from liabilities of the business.

9. Look for funding for your Nevada business

You shouldn't be surprised that you'll need money to launch your Nevada business and pay off all the business expenses. Starting with a more complex legal structure for your business will be based on how you want to finance your company, so it's crucial to calculate your startup expenditures correctly in advance. If you need to raise capital for your business in Nevada, ensure an effective, thorough business plan, including financial projections, apart from your personal finances. Remember that some lenders, investors, and corporate officers may hesitate to lend money to businesses wrongly registered with the state as corporations when you choose your business structure.

Several options for funding your startup costs and business finances:

• External investments

  Entrepreneurs and venture capitalists are potential sources of finance, usually in exchange for a portion of ownership. You may plan to create a corporation and use this method to raise money.

• Small business loans

  To help you in starting your firm, several banks and lenders will grant you a small business loan. Create your business plan carefully before applying for a small business loan. Calculate the interest rates before signing the agreement, and read all the terms & conditions carefully.

• The loan from your close ones

  Getting loans from your close ones, like family and friends, can be a good option. This way, you may cut down on the overall interest paid. These loans supplement or replace standard bank loans. This money can be used to file taxes, pay expenses for personal liability protection, and personal tax returns, pay the modified business tax, or pay charges against the state business license. Do not ask for more funds than you can repay within a fair amount of time, and always get the repayment terms in writing before taking any loans.

• Bootstrapping

  Bootstrapping is the practice of financing the initial costs of your firm using only personal savings and reinvested early earnings. Keeping ownership is a benefit of the self-financing method. It makes a perfect option for startups with minimal initial business expenses.

  In addition to banks, credit unions, and individual investors, you may find the following resources helpful while you hunt for funding:

  • Nevada Microenterprise Initiative Program.
  • Nevada Government Grants and Incentives.
  • SBA Funding Programs.

10. Obtain licenses and permits from the state

Nevada state business license

Every company must get a state business license yearly, including partnerships and sole proprietorships. Businesses in Nevada must pay a $500 yearly charge, while all other business entity types must pay a $200 filing fee. The final day of the month that the business license was first submitted marks the deadline for renewal each year.

Determining the county and nearby city license requirements is also essential for every legal business entity. You might need to apply for a county license, one or more city licenses, and a state business license, depending on your business' location and type. The cost of obtaining a state business license varies by jurisdiction and industry.

Nevada's Licenses and permits by Industry:

Additionally, the state mandates that companies in specific industries seek special state licenses and permissions.

• Building Contractors – State Contractors Board.
• Public Transportation – Nevada Transportation Authority.
• Eldercare and Related Services – State of Nevada Department of Human Resources Bureau of Licensure.
• Childcare – Nevada Division of Public and Behavioral Health.
• Businesses with stationary or mobile sources of regulated air contaminants – Nevada Division of Environmental Protection.
• Restaurants and Other Food Service – Nevada Division of Public and Behavioral Health.

Nevada's professional licenses

Additionally, small business owners and employees will need a professional license approved by the state or an independent board to lawfully maintain their business entity and services.

11. Create the required tax accounts

Maintaining compliance with all federal, state, and local taxes is crucial for running big and small businesses. Along with personal income tax, business owners may also be required to pay state, local, and federal taxes.

• Find out if you need a resale certificate, an exemption certificate, or if you have to pay use tax by contacting the Nevada Department of Taxation.
• Nevada sales tax permit allows a rate of 6.85% and other local tax rates.
• The state occasionally demands that firms get surety bonds to ensure they will complete the required payments on schedule.

All businesses operating in Nevada, whether they are sole proprietorships, LLCs, or corporations, are required to collect and submit sales tax to the state. The Nevada Secretary of State can provide a sales tax exemption certificate to nonprofit organizations, which is the only exception. Nevada business law says that if your company is divided into two distinct legal entities—one for-profit and one nonprofit—only the nonprofit corporation is free from levying sales tax for inquiries of all other Nevada Secretary of State sections, call (775) 684-5708 or email SOSmail@sos.nv.gov.

12. Get necessary business insurance coverage

The Nevada Department of Business & Industry outlines the state's insurance requirements and suggestions in its online FAQs section.

Workers' compensation insurance must be purchased by all businesses (regardless of their organizational form), although the state does not require other insurance, such as liability. It is advantageous for LLC owners to carry insurance coverage that safeguards their business and assets.

Typical business insurance plans in Nevada include:

• Workers' compensation insurance - Insurance for workers' compensation benefits employees who suffer an injury at work. The state of Nevada mandates that you acquire and have a workers' compensation policy whether or not you have a big or small business with at least one employee.
• Commercial automobile insurance - You must get a commercial auto insurance policy if you use a car for business purposes.
• Professional liability insurance - It is popular as errors and omissions insurance guards your LLC against accusations that the advice or services you provided to a client caused them financial harm.
• Commercial general liability insurance - often known as CGL, helps shield corporations, LLCs, and sole proprietorships from financial claims, including bodily harm, property damage, deceptive advertising, libel, and slander. Additionally, CGL coverage can shield your company from the costs of lawsuits, on-site injuries, property damage to others, and fire and water damage.
• Commercial property insurance - Commercial property insurance plans compensate businesses for lost or damaged property.

All small enterprises, including those operating from home, are advised to buy general liability insurance. Businesses providing professional services or advice, including accountancy and consulting, must conduct market research and purchase a professional liability insurance policy.

13. Begin your network marketing efforts

To be successful in business, you must publicize and raise awareness of your enterprise. Combine "old school" and modern media tactics to develop your brand.

You can meet people in the business community through networking and training events listed on Nevada's Department of Business and Industry calendar. Face-to-face networking events are a great approach to establishing and maintaining business contacts that can lead to reliable referrals. Additionally, consider sending press releases to regional media outlets like newspapers, radio stations, and TV stations. This could pique their interest in featuring your company in features and news segments.

Utilize digital marketing's power as well. Create a website that can act as the digital hub for your business and the go-to place for learning more about your services. Maintain social media accounts that are lively and interesting. I recommend you look into some of the social media advertising alternatives. For instance, businesses may advertise on Facebook and target specific populations relatively cheaply.

14. Create a website for your business

You must define a brand logo before building a business website as a business owner. Developing a website is a crucial first step for starting a business today, and you can do it even if you don't have prior experience. Online technology has advanced significantly in recent years, greatly simplifying the lives of small business owners.

All reputable companies have websites. When it comes to starting a business online, it makes no difference what size it is or what industry it is in. A simple website is now relatively easy, thanks to website builder tools like GoDaddy.

Apart from starting a business website, Facebook pages and LinkedIn business profiles are also two useful social media platforms. They are not a substitute for a company website, but they help a lot to make a social presence.

15. Employ staff

The human resource department is one of the most crucial components of your legal business entity, similar to your personal assets. If your company requires staff, create job descriptions and choose the credentials and talents you will seek in applicants. Ensure you are familiar with all payroll obligations and employment and human resources legislation. Numerous tools for hiring personnel are available online, and it may be beneficial to seek advice from a lawyer, accountant, or human resources professional.

16. Further assistance and resources

Other resources have information about starting a business in Nevada, acquiring Nevada state business license, or how get a unique business name that you may use in addition to lawyers, accountants, tax advisers, business consultants, and other experts who can assist you in making a crucial business plan/decision. A few of them are as follows:

• Nevada Secretary of State.
• SCORE Northern Nevada.
• SCORE Las Vegas.
• SCORE (National website).
• SBDC (Small Business Development Center) Nevada.
• Nevada’s Women’s Business Center.
• State of Nevada Department of Business and Industry.
• Local area chambers of commerce.
• Nevada Governor’s Office of Economic Development.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Please consult a qualified attorney for advice on your specific situation.