Nevada is one of only a few states in the country that offer no income tax contribution. With a great amount of its revenue coming from tourism, the state of Nevada provides a fantastic customer base for those who want to start a new business there.
How to Start a Business in Nevada:
1. Determine your business structure.
When starting a business, one of the most important decisions you make will be choosing the legal structure of your company. Your choice will have an impact on taxes, paperwork, personal liability, and your ability to raise funds.
You can choose from the following legal structures:
A sole proprietorship is the simplest structure and usually involves one individual who is solely responsible for the enterprise while a partnership is suitable for businesses with two or more owners. A corporation is a standalone entity with shareholders while a Limited Liability Company (LLC) is the most popular type because of minimal paperwork, flexibility, tax benefits, and simple implementation process. LLC business owners are not obligated to file a corporate tax return.
2. Write a business plan.
Your business plan is the foundation of your new business and will serve as an invaluable guide for how to structure, run and grow your company. The business plan must meet your needs and can fall into one of two common categories: traditional or lean startup.
The traditional plan is very detailed, takes more time to write, and is quite comprehensive while the lean startup plan is high-level and fast to write.
A strong business plan can help you to get funding and make the process of opening a new business easier.
3. Sign up for business banking.
A small business bank account is a necessity when you are starting a business. Your business finances must be kept totally separate from your personal ones in order to maintain accurate records. With a business bank account, you can easily obtain statements and access products that would not be available to you as an individual.
Best Banks for Small Business in Nevada:
4. Seek startup capital and/or loans.
If you are unable to fund your new business on your own, you will need to take out a loan. You can get funding for your business in three common ways: commercial loans, business lines of credit and small business loans.
A popular organization that can assist you with small business loans in Nevada is the Nevada Small Business Development Center.
5. Decide on a business name.
Make a list of the names that you like and perform a Google search to find any conflicts with other Nevada business names.
Once this is done, you will need to do a trademark search to ensure that the business name that you chose has not already been trademarked. You can perform the trademark search at the U.S. Patent and Trademark Office and the Trademark Electronic Search System. These databases have a comprehensive list of business names that are registered together with their classification.
After you have confirmed that your business name is not trademarked, you need to check the Nevada Secretary of State website to ensure that your business name is not the same or similar to another corporation registered in Nevada.
If you are satisfied that your business name is available, you can then register it on the U.S. Patent and Trademark Office website. You can check out our guide on How to Name a Business to assist you with naming your business.
Once you have found a suitable name, make sure to register the matching web domain and social media handles, should you wish to market your business online.
6. Request an Employer Identification Number (EIN).
Every business needs to have an Employer Identification Number (EIN). Registering for an EIN is very easy—all you need to do is go to the IRS website. You can complete the application online, and save your EIN confirmation notice once you receive a number from the IRS.
7. Acquire business licenses and permits.
The state of Nevada requires all businesses to have a business license, which costs $200.00 annually. This license can be obtained from the Nevada Secretary of State.
In addition, if you are selling physical products and offering specific services, you will need a Nevada Sales Tax Permit that costs $15.00 per business location. You can get more information about this here and you can apply for the sales tax permit here. If your business purchases inventory for resale, you can be exempt from sales tax for your purchase as your business will tax the final customer. Once you have applied for your sales tax permit and have obtained your seller’s permit number, you will need to fill out the Nevada Resale Certificate.
Your business may require additional permits depending on the type of business you decide to start in Nevada. You can get more information regarding permit requirements here.
8. Hire employees.
If your business plan included the addition of new employees to your business, it is time to start the hiring process. Compliance with labor laws in Nevada will ensure that your employees are treated appropriately at your business and their rights as employees are protected.
With reference to the pre-employment screening process in Nevada, an employer is entitled to view a job applicant’s criminal history and obtain the relevant records from the criminal justice system.
The Nevada Fair Employment Practices Act (NFEPA) prohibits employers with 15 or more employees from discriminating against applicants based on an individual's race, color, religion, sex, sexual orientation, age, disability, national origin, or lawful use of any product outside the workplace i.e. alcohol and/or tobacco. The state of Nevada also prohibits gender-based pay discrimination on jobs that require equal skill, responsibility and effort.
You can refer to the Nevada Office of the Labor Commissioner for more information.
9. Check your business employer requirements.
Business employer requirements are specific to the type of business that you are starting and include various labor, safety and tax obligations that need to be met. You should consider engaging in the services of a tax or business attorney to ensure your business is fully compliant with the laws in Nevada.
If you are starting a business in Nevada, you will need to take note of the following important items:
The Division of Industrial Relations in Nevada administers the Workers’ Compensation Act. It requires any employer in Nevada with one or more employees to provide workers’ compensation coverage. You can obtain more information at the State of Nevada Department of Business and Industry website.
Health insurance isn’t a requirement for small businesses in Nevada.
SilverFlume Business Portal
The SilverFlume Business Portal is free service offered to anyone seeking to start a small business in Nevada and is provided by the Nevada Secretary of State. The SilverFlume portal guides you on each step as you prepare your documents to register your new business.
The Nevada unemployment insurance program is designed to provide temporary economic benefits to eligible workers. The unemployment insurance rate is capped at 2.95% for each new business employee, up to the taxable wage limit. You can obtain more information regarding employer tax contributions here.
Every individual or entity engaging in business as a seller of tangible personal property in the state of Nevada must apply to the Nevada Department of Taxation for a sales tax permit for each business location. The once-off permit cost is $15.00 each.
Starting a business in Nevada FAQs:
How much does it cost to start a business in Nevada?
The Nevada LLC articles of incorporation costs $75.00 while a Nevada Corporation can cost anywhere from $75.00 to $375.00.
Nevada Formation and Registration Fees:
Certification of Documentation
LLC Articles of Organization
LLC Reintstatement Fee
LLC Certificate of Amendment
Corporation $75,000 or less
Corporation over $75,000 and not over $200,000
Corporation over $200,000 and not over $500,000
Corporation over $500,000 and not over $1,000,000
Corporation for the first $1,000,000
Corporation for each additional $500,000or fraction thereof
How do I register a business in Nevada?
How do I start a business in Nevada with no money?
- Use services to generate cash flow and fund a product-based business.
- Get creative to discover funding sources.
- Grind it out and look for business, even if you don't get paid for it.
- Use your current resources in different ways to generate income.
- Get a credit line to help with the early stages of your business.
- Locate an accelerator if you are able to hit the market swiftly.
- Crowdfund and allow the public to invest a small percentage of money in return for future buy-in.
- Use a business incubator to provide funding designed specifically to financially assist a startup company.
How can I protect the name and logo of my business in Nevada?
The easiest way is to register your business name on the U.S. Patent and Trademark Office website. Prior to registration, remember to check on the Trademark Electronic Search System and Nevada Secretary of State databases to ensure that your business name is not already registered by another company.
Do I need workers' compensation for my new business in Nevada?
Any employer in Nevada with one or more employees is compelled to provide workers’ compensation coverage.
Does my business in Nevada need to contribute to health insurance?
Health insurance isn’t a requirement for small businesses in Nevada.
Browse The SMB Guide for more helpful articles for small business owners, and be sure to download our How to Start a Small Business checklist.