In Nevada, 2020 saw 503,144 small business employees represent a healthy portion of the state’s workforce.

The state of Nevada is not only home to what some call the Entertainment Capital of the World in Las Vegas, but it is also a terrific place to start a small business.

Some of the compelling reasons people are becoming business owners in Nevada:

  • Home to no tax on shares of Nevada corporation
  • Zero state corporate income tax
  • No state personal income tax
  • Zero franchise tax in the state depending on your organization structure
  • Easy registration for businesses

Let’s get into how to become a small business owner in the great state of Nevada.

 

Choose Your Business Structure

Deciding on a business structure is pivotal in becoming a business owner. A finance professional or accountant can help make the best decision for your circumstance and goals.

Each entity type of business structure has legal and tax considerations of its own. Nevada has a host of options to choose from, including:

  • Sole Proprietorships where a single person takes the lead for the business and also bears the legal liability
  • A general partnership where more than one person agrees to run a business
  • Limited liability companies are also an option and have tax benefits and financial protections for owners
  • Limited partnerships which enjoy ZERO personal income tax in the state of Nevada
  • A domestic corporation could be a C-corp or S-corporation doing business solely in Nevada

You will need to research numerous other structures to find your fit. These have their benefits and responsibilities that every business owner should consider before starting.  

 

Give Your Business a Name

A business name should be a unique one. In Nevada, no other business may share the one that you choose. Therefore, checking the state’s free name search on their business portal is always a suggestion to ensure the name is original.

In Nevada, business owners may register a name for 90 days. This option may allow you to reserve your business name if you have an idea but are not ready for your grand opening.

Nevada also presents the option to form a DBA (Doing Business As). This benefit allows a newly incorporated business to market its company under something outside its business name.

 

Nominate a Registered Agent for Your Business

In Nevada, business owners have a requirement to dedicate a registered agent. This party will carry the responsibility of receiving legal paperwork on behalf of the business.

The registered agent must be a resident or have a physical address within the state. Some registered agent services will allow business owners to shield their home address from the public.

 

Decide on a Location

In addition to the impact of zoning and permit requirements, deciding on a location has other effects on your success. For example, customers, prospective employees, and other businesses will associate your site with your footprint in the community.

Connecting with local government resources can help identify the requirements in terms of zoning. The Nevada Department of Business makes it easier than ever to contact these local entities. The online portal makes it quick and painless.

 

Register Your Business with the Secretary of State

Once you have decided on your business structure, complete verification that the name is not in use, and select a registered agent, you will have to register for licensing.

You can file the Articles of Incorporation or Articles of Organization or even partner with a service provider to file them for you. Again, you can find these state reports online at no charge. However, the actual filing of those documents does come with a fee based on the organization’s structure.

Owners can file Articles of Organization/Incorporation for $75 for Limited Liability Companies and Corporations. In addition, entrepreneurs can secure a business license for $200 for Limited Partnerships and LLCs, and for $500, they can obtain a Nevada Business License for a corporation.

 

Obtain an EIN from the IRS

As with many states, the IRS also provides an employer identification number to business owners in Nevada. There is an essential fact to remember for tax filing purposes. In the case of sole proprietorships and 100% of profits going to the owner, so does 100% of the tax responsibility.

 

Open a Business Bank Account

Businesses need funding and financial tools. That’s why opening a business bank account with Small Business Bank can put you in the lead in the marketplace.

Online tools available when you need them mean banking on your schedule. There’s no more running to a branch to make a deposit when you don’t have time. Opening a business bank account is more straightforward and helpful with Small Business Bank.

Your business income and expenses are more manageable when visible, and record-keeping is top-notch.

 

There are countless reasons why so many business owners choose Nevada to be home to their business. This state has something for the entrepreneurial spirit, whether a limited liability company, partnership, or sole proprietorship.

Meet with a financial professional if you have questions about making the most effective steps into your business path. You can dictate your future on a whole new level when you take charge of your financial future after opening a small business in Nevada.

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