When most people talk about Nevada, the conversation can revolve around the entertainment and hotel industry in Las Vegas or Reno, the 5-star restaurants and epic buffets or the endless stretches of desert. But Nevada is much more than that. Nevada is one of the best states to start a business, and we will explain exactly why.
There are more ways than one to hit the jackpot in Nevada, and that's especially true if you are looking into starting a business. From its low tax rates and cost of living to the supportive business climate and strong talent pool, we will explore why Nevada is good for small business owners looking to set root to their entrepreneurial dreams.
Why Is Nevada the Best State to Start a Business?
It’s true that many people go to Nevada to try their luck in games of chance, but that doesn’t need to be the case if you’re looking to start a business. When it comes to starting a business in Nevada, there are a number of reasons why many out-of-state entrepreneurs register and move to the Silver State.
Considered one of the top vacation spots in the country, Nevada averages over 40 million visitors a year. Nevada’s real estate market is also super-charged, jumping 27 percent in 2022 compared to the previous year. In the last 10 years, Nevada’s population has seen a significant increase from 2.7 million to close to 3.2 million state residents. And taking the state’s population into consideration, Nevada is home to about 300,000 small businesses that employ over 500,000 people. All of these key indicators highlight the growth of the state and its continued viability as the place to form a business.
So how is Nevada good for small business? What truly stands out about Nevada is the support that businesses receive from the state government offices. A quick look at the Nevada Governor’s Office of Economic Development highlights numerous offerings to new businesses through incentive packages and programs. According to the Nevada Governor’s website, programs include, but are not limited to:
- Workforce development programs
- Business development and assistance covering tax incentives and opportunity zones
- Innovations-based economic development, providing funds for small businesses and startups
- International trade grants
- Emerging small business programs
Key Tax Advantages of Starting a Business in Nevada
In addition to the support offered by the state government in the form of incentive programs and grants and the lower cost of living when compared to other states, Nevada also gives small business owners a leg up when it comes to business formation and tax policies.
No Business Income Tax
Keep more of what you earn by not having to give back much of your hard-earned profits in the form of a business income tax.
No State Income Tax
Just like the benefit received by the corporation, employees that work in Nevada also get to keep more of their paycheck by not paying an individual state income tax. In fact, Nevada’s constitution prohibits this much-dreaded deduction that eats into workers’ pay.
No Inventory Tax
Whether your business is storing goods for transportation or you are a retail seller, Nevada does not tax inventory. This may be one key reason why retail giant Amazon was attracted to Nevada and continues to invest in fulfillment centers and delivery stations across the state.
No Franchise/Privilege Tax
While business owners in other states must pay for the privilege of conducting business through a franchise tax, this tax policy is not in place in Nevada.
No Estate/Inheritance Tax
Small business owners that want to leave what they built to their heirs will not need to contend with an estate tax, which would eat a huge chunk of the hard work and labor that went into the business.
No State Corporate Share Tax
Corporate stockholders in Nevada do not need to pay a state tax on their shares, though paying taxes on the federal level still applies.
Forming a Business in the Silver State
Nevada is home to a wide range of businesses from aerospace and defense, health, mining and, of course, tourism and gaming. It also attracts many major companies due to incentives, including tax breaks, deferrals and even opportunity zone programs.
Along with Amazon, another example highlighting opportunities for big businesses is Elon Musk’s Tesla Gigafactory located outside of Reno. Setting up shop in Nevada netted Musk $1.4 billion in benefits from Nevada! But don't despair, tax incentives are plentiful in Nevada and something that should be looked into by all businesses, big and small.
In addition to the monetary breaks afforded to business owners, and relaxed filing requirements, Nevada stands out from most of the other 49 states in that it has laws that offer more protection to businesses. This pro-business stance protects owners and managers of Limited Liability Companies (LLCs) from being held accountable for unpaid debts or lawsuits.
And if the reasons provided so far haven't made the point we set to prove here, don't worry — we're not done yet. Here are a few more points that will help prove that Nevada is a great state to start a business.
Looser LLC Requirements
Nevada does not require Limited Liability Companies (LLCs) to hold annual meetings. It also does not mandate that a business have an operating agreement.
Stricter Privacy Practices
You are not required to disclose ownership of the LLC. The names of the members or shareholders of a business are not part of the public record. It also does not share financial records with outside agencies such as the IRS.
Low Startup Costs and Business-Friendly State Government
Do yourself a favor and visit the Nevada Governor’s Office of Economic Development. There you can review all the programs and incentives to start a business in the state. You’ll be amazed at the opportunities and support provided by Nevada to new and existing businesses.
No Residency Requirement
Finally, you are not required to live in Nevada in order to form an LLC in the state.
One more reason why Nevada is a great place to start a business . . . it’s almost always sunny!
Starting a Business in Nevada
Whether it's the Silver State or any of the other 49 states, Incfile can help you when it comes to picking the right state for your business formation. Learn more about forming an LLC in Nevada or any other state through our easy-to-navigate map. Just click on the state you want to research and access our resource guide highlighting everything you need to know to help you get started on your journey as a small business owner.