Starting a Business in Nevada: The Endless Benefits

Starting a business in Nevada has the benefit of no personal or corporate income tax as demonstrated by a no income tax sign next to a white piggy bank.

The brainstorming is over and you’ve decided on starting a business in Nevada. Congratulations…you’ve made an excellent decision! Whether you’re a Nevada resident or simply looking for a business-friendly state to get started in, you’ve come to the right place. Many companies prefer to incorporate in Nevada to take advantage of our legal and tax-friendly nature.

Nevada allows you to form a Limited Liability Company (LLC) which lets you establish your own business that limits personal liability while avoiding double taxation, offers flexible profit-sharing, and reduces administrative hassles like onerous paperwork.

Why Do Businesses Use Nevada for Licensing?

By forming your LLC in the state of Nevada, you won’t have to pay a franchise tax or personal income tax on your business. Although Delaware is considered one of the top states in which to start a business, our state is working hard to attract new LLCs which are not subject to stock transfer or corporate share taxation and we have no personal income tax, nor franchise, business, occupation, or gift taxes.

Nevada also offers privacy protection for anonymous owners, lower business registration fees and fast approval, permissive rules on share creation, and a judicial system that relies on case law when settling disputes. It also offers single-person corporate formation, no operating agreements or annual meeting requirements, strong corporate veil protection, and no information sharing with the Internal Revenue Service (IRS).

Our state ranks as the seventh most favorable state for doing business, according to the 2021 Tax Foundation’s Business Tax Climate Index. However, as easy as it seems, you’ll still need to know all the ins and outs of forming your LLC here, and that’s why we encourage you to use a registered agent service like Forward Nevada.

Nevada has low business tax burdens.

Besides the awesome weather, friendly atmosphere, renowned entertainment, palm trees, and swimming pools, a major draw for business owners or those thinking of starting a business is the friendly tax structure which makes this one of the best states in the country for businesses. Many taxes you might be obligated to pay in other states don’t exist here or are far less burdensome.

Although Nevada isn’t entirely tax-free, we have lower tax burdens than many other states. This is a big draw for new arrivals, particularly those coming from our expensive neighbor, California. While you should always consult a Certified Public Accountant (CPA) for any tax questions, utilizing a Nevada registered agent can help give you a better picture of these advantages and how they can increase your chances of success.

Here are just a few of the benefits when you start a business here:

  •       No corporate or personal income tax
  •       No admissions, inventory, or unitary tax
  •       No franchise, estate, or gift tax
  •       No IRS information sharing
  •       Low commerce tax rate

Nevada doesn’t have a minimum capital requirement.

The concept of “minimum capital” stipulates the minimum assets an organization must hold and is commonly used in banking regulations and corporate law. You won’t have to worry about a minimum capital requirement because you don’t need to file a list of company assets when starting a business in Nevada. This essentially assures there won’t be a record of any assets linked to you except in the case of what you file federally with the IRS.

Nevada has strong limited liability protections for asset protection.

When you are starting a business in Nevada such as an LLC, you’ll enjoy very strong liability protection for your assets. Whether you’re an officer, manager, or director of the company, you won’t be held responsible for any corporate liability except in the case of unlawful activity (which hopefully won’t be a problem).

Nevada has low business registration costs and expedited approval.

Another big advantage of Nevada is low costs for business registration and expedited approval. Incorporation costs are low, and the process is very easy. An initial expense for Articles of Organization filing with the Secretary of State ranges from around $75 to $200. Your business must also obtain a license issued by the state through a registered agent with a permanent Nevada address.

Some states also require an operating agreement, but Nevada does not, although it’s advisable to create a written operating agreement so that all members’ contributions to the company are clearly stated. You should also state on the form what part of the profits and losses are assigned to each member when applicable.

Nevada may pay you to relocate your business here.

By starting a business here, you may be able to take advantage of valuable tax incentives through the Nevada Governor’s Office of Economic Development (GOED). These incentives, which include sales and use tax abatement, are offered to companies relocating to the state of expanding their businesses. They are subject to meeting certain criteria such as average wage, job creation, medical benefits, and capital investment.

Nevada pays businesses to hire employees.

The Silver State Works Hiring Initiative can provide you with as much as $2,000 for every state-qualified employee you hire. The program was designed to provide opportunities for employers to strengthen the state’s economy by offering lucrative incentives for hiring qualified, pre-screened workers to staff local businesses. A positive effect of this program is to encourage Nevada employers to hire more workers with disabilities.

Nevada has a business-friendly Business Court.

One major advantage to starting a business in Nevada over one of the other “business-friendly” states is our court system. Nevada’s business court handles several lawsuit issues that may affect your company such as copyright infringement, ownership disputes, contracts, and stockholder vs. public company cases.

Our model is based on Delaware’s Court of Chancery, a non-jury trial court designed to help make fair, expeditious business decisions. This type of streamlined court system makes Nevada very attractive to LLCs and is a primary reason why we’re one of the best places in the country to do business.

Nevada doesn’t have an information-sharing agreement with the IRS.

When opening up a business here, you can rest assured there is no information-sharing agreement with the IRS. Information sharing programs are partnerships between the IRS and state or municipal government agencies meant to save government resources, intending to enhance voluntary tax law compliance.

When you register your business here, you can sleep well knowing our privacy levels are extremely high. A Nevada LLC doesn’t have to list its members/owners with the state so any investor can remain anonymous, and you won’t have any state agencies sniffing around your business.

A few other benefits along these lines are that in general, the corporate veil can’t be pierced, the state prohibits bearer shares, and you don’t have to reside in the state if you wish to register a new company. By the way, this is also a benefit of working with Forward Nevada because we can set up your business address and manage all your corporate postal communications for you.

To take advantage of our tax benefits, you’ll need to establish a physical location here and hire a designated agent to represent your business. Forward Nevada offers both at a very competitive price. You can also obtain a Nevada street address through us, which, unlike a standard post office box, adds far more legitimacy to your business.

Nevada is a strategically beneficial location.

Not only is Nevada perfectly located next to a major economic influencer like California, but it also offers so many advantages that our bigger neighbor can’t. For one, we have a huge pool of skilled workers. There’s no shortage of talent here, and we seem to gain more every day as people relocate from costlier nearby states in search of a better life.

One attraction is our low cost of living. Unlike Los Angeles, New York, and San Francisco, we’re quite inexpensive. That’s one reason Nevada is a hotspot for businesses to relocate, where prices aren’t rising so fast as to drive out quality workers. This is the perfect place to start a business, make good money, and enjoy life without barely scraping by. 

Ready to Start a Business In Nevada? You Need Registered Agent Services to Unlock the Benefits

Doing business in Nevada requires you to designate a registered agent for your LLC, partnership, corporation, and limited partnership arrangement. A registered agent service has a physical Nevada address and provides the state with a local, official contact for the company.

A registered agent, like Forward Nevada, handles all necessary receipts, including annual filings and entity changes. Furthermore, we help you establish a physical location here in Nevada, and we offer mail forwarding so that you can enjoy a Las Vegas-based business mailing address and have your mail sent to your out-of-state location.

Our confidential mail forwarding is expedited, and you can purchase six-month or 12-month packages to save on your forwarding and registry services.

To reap the benefits of doing business here in Nevada, hire our registered agent services here at Forward Nevada online or call us at 702-220-6245 now.