If you’re thinking of moving your business or establishing a startup in Nevada, we’re here to acquaint you with the basics. It can be challenging to set up business in a state or an area that you’re hardly familiar with, so doing your research first is a wise choice.
You’re probably familiar with the fact that many businesses have already branched out or relocated to Nevada for their favorable tax climate. Moreover, the competitive sales tax rate and lack of imposed income tax in the state allow companies to maximize their profits. If you want those perks for yourself, get started with these key guidelines below:
- Determine Your Business Structure
Selecting the right business structure is of foremost importance because this choice has consequences – your legal and tax implications rest on it. The suitable entity type for you ultimately depends upon your business goals.
Let’s do an overview of a few commonly chosen business structures in Nevada:
- Sole Proprietorship
Sole Proprietorship is meant for a one-man business. If you are going to run your company singlehandedly, this is the appropriate option for you. Sole proprietors are not bound to any legal paperwork and they are entitled to 100% of their business profits.
- Limited Liability Company (LLC)
LLC is suited for a business co-owned by a few partners. This type of business is considered separate from its members, so their personal assets remain protected in case the company gets sued or bankrupt.
- Corporation
A corporation is a business entity owned by multiple shareholders. It is somewhat similar to an LLC, but it is designed for large-scale businesses. Corporations have a complex legal structure and are subject to a distinct tax rate. However, personal and corporate income taxes are not applicable in Nevada.
- Name and Register your Business
Before you lock in a name for your business, make sure that it’s not already in use. A unique company name helps prevent copyright infringement claims and lets you expand your business to other states with ease.
The next step is to register your business entity with the state of Nevada, which can be done through an online portal called Silverflume.
- Finalize Your Location and/or Internet Provider
If your clients or customers are to be served at a physical establishment, you need to secure an advantageous location. You must check in with legal government authorities to know of any rules and regulations that apply to the area of interest; also inquire about the eligibility for incentives to run a business in the locality.
In case you plan to operate virtually through a company website, Cox Nevada offers seamless connectivity to the region. A fast and reliable internet connection is integral to the success of an online business, so don’t settle for less.
- Set up Your Business Bank Account
Sole proprietors can use a personal bank account for business transactions, but other types of entities require an exclusive business bank account. You must have an Employee Identification Number (EIN) before opening the company account; this can be acquired from the IRS for free with a Social Security Number (SSN) or an Individual Tax ID Number (ITIN).
The business bank account lets you manage business and personal finances separately, which makes bookkeeping and tax payments easier. It also equips you with a safety net against notorious creditors.
- Obtain Funding
Starting a business requires financial investment, so you need to figure out where the money will come from. If you plan to take a bank loan or obtain funding from a private lender, you must put together a solid business plan.
In general, investors hesitate to lend money to a company that is not registered or fails to present an explanatory report of startup costs.
- Apply for Necessary Licenses and Permits
If you wish to keep legal troubles at bay, obtain all the compulsory licenses and permits for your business.
You may start by applying for the Nevada state business license via the Secretary of State’s office. If you’re not sure what other permits are applicable, take a look at the “New Business Checklist” on the SilverFlume portal.
- Get Insured
Every state including Nevada has some insurance requirements and recommendations, which are listed on the official government page. It is your duty to abide by business insurance policies to avoid legal conflict in the future.
Standard insurance policies obtained by businesses in Nevada include:
- Workers’ compensation insurance
- Professional liability insurance
- General liability insurance
- Commercial property insurance
- Networking and Marketing
Once you’re through with legal documentation and setting up your business front, it’s time to get things moving and reap profits. You may advertise your products/services through digital marketing and even implement some old-school strategies to get the word out. Networking is vital for building partnerships, seeking investors, securing long-term clients, and discovering new talent to join your team.
Final Word
Before you go, we want to let you know that all the information provided here cannot be a replacement for actual legal advice. State rules and regulations are regularly updated, so you must thoroughly read and review them on the official site.