Starting a Business in Nevada
A new business in Nevada is not out of reach. So have you been wondering: how do I start a business in Nevada? And more importantly, can I do so no matter what the economic conditions are? Can I start a new business in Nevada during a recession?
New Business in Nevada: Pros and Cons
Business Insider says Nevada the third best place to start a business in the entire country, per a 2016 article. Also, the state’s startup activity score is the best in the nation.
Nevada also has the highest density of startup companies. There are also more than 100 startup companies per 1,000 firms. The state also has the highest percentage of available employees in the country.
In 2018, Forbes lists Nevada at a respectable number 21. Also in 2018, Fit Small Business brings Nevada crashing down to earth at number 46.
So, what’s right?
Of course, keep in mind the three sites all have dissimilar methods. But either way, these are some pretty steep declines.
Forbes praises Nevada for its third-best growth prospects and its good business costs and economic climate. It’s right in the middle of the pack for labor supply, but the regulatory environment is below average.
Fit Small Business says Nevada is fifth-best for taxes. The cost of starting a business is right in the middle. Cost of living is worse than the average. But every other measurement is in the bottom ten. These are: labor market (second worst), quality of life, startup activity, and access to capital (also second worst!).
Labor market is particularly telling, as it is a measurement of the desirability of an area and the number of people with bachelor’s degrees. Hence while there may be a decent pool of workers to choose from, don’t expect them to have bachelor’s degrees.
Entrepreneurs looking to start a business in Nevada will need to take these factors into consideration.
Start a New Business in Nevada – Nevada Top Industries
Per the Nevada Governor’s Office of Economic Development, the biggest industries in Nevada include aerospace and defense, agriculture, and energy. More top Nevada industries are health care, information technology, and mining. Nevada top industries also include manufacturing and logistics and operations. As one might expect, Nevada also has top industries in tourism, gaming, and hospitality.
Nevada Business Ideas
Smart business owners can find new opportunities. Work with bigger industries in the area. Offer goods or services such as food service, or also data and other computer support such as programming. More ideas are to develop safety equipment, or trucking for any industry. Even more ideas are also chemical and pharmaceutical support for health care.
It’s not all about casinos.
Here is how to start a new business in Nevada.
Start a New Business in Nevada – Nevada New Business Secretary of State Requirements
Register a Business Name
If the risks involved with a sole proprietorship seem overwhelming, consider registering as a limited liability company or corporation. Doing so will let business owner create a business name legally separate from their own.
It will also provide more protection for personal assets in case a lawsuit related to the business should arise.
Corporation names must be unique. Search online and other records to determine that a name is not already in use. Search the online database of registered corporations in the state of Nevada at the Nevada Secretary of State website.
It is not necessary to reserve a name before filing Articles of Incorporation in Nevada.
However, if a business owner is not planning to file Articles of Incorporation right away they may still want to reserve a name until they can file. Therefore they can submit a name reservation application to the office of the Nevada Secretary of State.
The application form can be downloaded or submitted online at Reserve a Nevada Corporation Name on the Nevada Secretary of State website. There is a $25.00 fee. Then the name will be reserved for 90 days.
Nevada Business Permits and Licenses
You can get a State Business License through SilverFlume. You can also get other licenses and permits you might need there.
Local Permits and Licenses
The Nevada Secretary of State website has a handy list of phone numbers for Nevada county clerks and reporters.
Start a New Business in Nevada – Business Registration
So your easiest option is to register by SilverFlume. It is the Nevada online business portal.
Get tax forms via the Nevada State Department of Taxation, But SilverFlume is going to be your best bet.
Start a New Business in Nevada – Virtual Offices
Alliance offers Nevada virtual business office space in Henderson, Reno, and Las Vegas. Go to Regus for more options.
For other areas of the state, business owners might want to ask local business owners. Or they can try computer user groups for help in this area.
Other options may be to look for virtual business office space in nearby states. These are Arizona, California, Idaho, Oregon, and also Utah.
Start a New Business in Nevada – Establish Business Credit
Business credit is credit in a small business’s name. It doesn’t attach to a business owner’s individual credit, not even if the owner is a sole proprietor and the solitary employee of the business.
Thus, a business owner’s business and consumer credit scores can be very different.
Due to the fact that company credit is separate from consumer, it helps to secure a small business owner’s personal assets, in case of court action or business insolvency.
Also, with two distinct credit scores, an entrepreneur can get two separate cards from the same merchant. This effectively doubles buying power.
Another benefit is that even new ventures can do this. Heading to a bank for a business loan can be a recipe for frustration. But building business credit, when done properly, is a plan for success.
Consumer credit scores are dependent on payments but also additional factors like credit use percentages.
But for company credit, the scores actually only depend on whether a small business pays its debts punctually.
Establishing company credit is a process, and it does not occur automatically. A business will need to proactively work to develop company credit.
Nevertheless, it can be done readily and quickly, and it is much quicker than establishing personal credit scores.
Vendors are a big part of this process.
Accomplishing the steps out of order will cause repetitive rejections. Nobody can start at the top with business credit.
Start a New Business in Nevada – Company Fundability™
A company must be Fundable to loan providers and merchants.
That is why, a business will need a professional-looking web site and email address. And it needs to have website hosting bought from a vendor such as GoDaddy.
Additionally, company telephone numbers must have a listing on ListYourself.net.
In addition, the business phone number should be toll-free (800 exchange or the like).
A business will also need a bank account devoted purely to it, and it has to have all of the licenses necessary for operation.
Dealing with the Internal Revenue Service
Visit the Internal Revenue Service web site and get an EIN for the business. They’re totally free. Pick a business entity like corporation, LLC, etc.
A company can get started as a sole proprietor. But they should change to a variety of corporation or an LLC.
This is in order to reduce risk. And it will maximize tax benefits.
A business entity will matter when it comes to tax obligations and liability in case of a lawsuit. A sole proprietorship means the entrepreneur is it when it comes to liability and tax obligations. Nobody else is responsible. And never look at a DBA filing as being anything more than a steppingstone to incorporating.
Starting Off the Business Credit Reporting Process
Start at the D&B web site and get a cost-free D-U-N-S number. A D-U-N-S number is how D&B gets a business into their system, to produce a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.
Once in D&B’s system, search Equifax and Experian’s websites for the small business. You can do this at www.creditsuite.com/reports. If there is a record with them, check it for correctness and completeness. If there are no records with them, go to the next step in the process.
In this manner, Experian and Equifax will have activity to report on.
First you should build trade lines that report. This is also referred to as vendor credit. Then you’ll have an established credit profile, and you’ll get a business credit score.
And with an established business credit profile and score you can begin to get more credit.
These varieties of accounts tend to be for the things bought all the time, like shipping boxes, outdoor work wear, and office furniture.
But first off, what is trade credit? These trade lines are credit issuers who will give you preliminary credit when you have none now. Terms are generally Net 30, versus revolving.
So, if you get an approval for $1,000 in vendor credit and use all of it, you must pay that money back in a set term, such as within 30 days on a Net 30 account.
Vendor Credit – It Makes Sense
Not every vendor can help in the same way true starter credit can. These are vendors that will grant an approval with very little effort. You also need them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.
You want 3 of these to move onto the next step.
Start a New Business in Nevada – Monitor Your Business Credit
Know what is happening with your credit. Make certain it is being reported and fix any errors as soon as possible. Get in the practice of taking a look at credit reports. And dig into the particulars, not just the scores.
We can help you monitor business credit at Experian, Equifax, and D&B for 90% less than it would cost you at the CRAs.
Update Your Records
Update the info if there are mistakes or the relevant information is incomplete.
Fix Your Business Credit
So, what’s all this monitoring for? It’s to challenge any errors in your records. Mistakes in your credit report(s) can be taken care of. But the CRAs usually want you to dispute in a particular way.
Disputing credit report mistakes usually means you specifically spell out any charges you dispute.
Start a New Business in Nevada – A Word about Business Credit Building
Always use credit smartly! Never borrow more than what you can pay off. Keep an eye on balances and deadlines for payments. Paying on time and in full will do more to increase business credit scores than nearly anything else.
Growing business credit pays off. Excellent business credit scores help a business get loans. Your lender knows the business can pay its financial obligations. They know the business is for real.
The small business’s EIN links to high scores and lenders won’t feel the need to ask for a personal guarantee.
Business credit is an asset which can help your business in years to come.
Learn more here and get started toward opening a new business in Nevada.
Want to start a new business someplace else in America? Then check out our handy guide to starting a business in any state in the country.
Nevada’s Response to COVID-19
On March 17, Governor Steve Sisolak ordered a shutdown of nonessential businesses, including casinos and retail stores, for 30 days. The Gaming Control Board offered procedures for closing casinos. Also, low-interest loans will be available from the SBA for businesses to address debt, payroll or other bills.
On April 13, Nevada Senator Cortez Masto released a CARES Act FAQ on her website.