STEP 1: PLANNING OF BUSINESS IDEA
A business concept is a bridge between the business idea and the business plan. In fact, there is no business formula for writing a business plan, because every business idea is unique. Without having proper road-map for doing business in Nevada, your business plan is nothing more than an overnight dream.
If you feel that opening a business is a child’s play and its success is based entirely on luck and the chances you get, this is like playing poker even if you have no idea about the rules and probably might lose at the end. Opening a Nevada LLC is not a simple task, you need to put all your struggles, hard-boiled money, time and become a professional in your niche until you achieve the best and grow your business.
There’s one thing above all that increases your odds, and that’s professional business planning. So, write a business plan, get financial forecasts in proper line, nail your pitch, conduct thorough market research on the field and the demographics of potential clientele in order to make the business plan a virtual reality.
STEP 2: CHOOSE LEGAL BUSINESS STRUCTURE AND INCORPORATE IT
By now, you are done with your research work on the business plan and with the market analysis. The next step is to select a business entity in order to start a business in Nevada. The legal business structure affects everything from how you are filing your taxes to how you are doing business.
The second thing which makes this step important is for registering your company in Nevada so that you can secure a brand name and protect your personal assets. There are four business entities from which you can choose as per the benefit offered by each and your needs. These four business entities include the corporation (C-Corporation, S-Corporation), LLC, Sole proprietorship, and partnerships.
But most of the business people prefer to form their business as an Nevada LLC because of its hybrid structure that has all the legal protections of a corporation and the tax benefits like that of a partnership. On the other hand, a corporation is a separate entity that has a legal business structure that includes officers, directors, and shareholders. This type of entity is preferable for the entrepreneurs who are looking to raise their substantial capital funds.
STEP 3: NEVADA TAX OBLIGATIONS
The third step for starting a business in Nevada is to follow all the tax rules and regulations. As a matter of fact, Nevada does not impose any franchise tax, although it does collect modest fee along with LLC’s official reports. There is no personal or corporate income tax, and it also offers a tremendous degree of privacy to the owners of the company.
Along with this, owners of the Nevada LLC and shareholders of the corporation don’t need to identify them in front of the public record which is the game changer for many entrepreneurs. It also provides shelter from the prying eyes of the government, the unscrupulous creditors and frivolous litigation. However, it is vital to maintain the track records of your taxes, as it is a compliance requirement so that you wouldn’t expect anything wrong with your business.
STEP 4: OBTAIN PERMITS AND LICENSES
After you have completed the initial tasks of opening a business, incorporating it and following the necessary tax obligations that authorizes your company to do business with easily in Nevada, the next step is to obtain the specific licenses and permits. These business licenses and permits are a part of initial and annual report filing in Nevada, making this step an important part of opening a Nevada LLC.
There many other permits and licenses that might apply to your business depending on the type of services or product that you are about to offer through your business. Check out the government website for learning more about the various permits and licenses as per the services/products offered by your company.
STEP 5: OPEN COMPANY BANK ACCOUNTS
Keeping your personal and business finances separate is not only a practical idea but it’s essential in order to stay away from any legal system problems. In fact, it is the one of the most natural step for starting a new business in Nevada. All you need to do is just search for the best banking institution which will assist you in boosting your finances.
There is a lot of competition in the banking market, but you have to choose the right bank institution for your Nevada LLC. Opening a separate bank account for your company will also help you in maintaining clear and accurate bookkeeping for your finances and in presenting a professional picture in front of the public record with more ease. Moreover, it will also provide your business with more credibility for both customers and creditors which is especially important when you are starting a Nevada LLC.
STEP 6: CHOOSE A BUSINESS LOCATION
Setting up a place for your business entity is another critical point for starting a business in Nevada. Location decisions also have significant impacts on the costs and revenues. You need to think about your overall setup, location, and equipment, and make sure you are selecting the right place for your business according to the demands of your goods and services.
Of course, it’s not easy to pick up a location especially in Nevada, when there are astounding nightlife along with the tourism and gaming industries in Las Vegas. Nevertheless, areas around Reno and Carson City, with Phoenix and Salt Lake City and more importantly, Battle Mountain to the north makes the choices more complicated.
If you are not able to figure out the perfect place choice for your business entity, you can easily hire an expert firm such as the Inc Paradise for assisting you with preparing the permits and licenses for your Nevada LLC.
STEP 7: FINANCES YOUR BUSINESS STRUCTURE
Since Nevada is a western U.S. state defined by its 24-hour casinos and entertainment for which its largest city, Las Vegas, is famed, it is well known for being economically strong. As a matter of fact, starting a small business does not require a lot of money, but you would still need some amount to open up the business due to the legal obligations that come from both the state and the federal government.
But you don’t need to worry about finances in Nevada since there are many banks and investors that can help you by providing capital to your business. Using the internet and networking with entrepreneurs in Nevada would help you find the right investors as per the requirements of your company.
Do a proper research work before applying to any business institution and investors because your goal is to work through the options and create a plan for setting up the capital you need to get your business off the ground.
STEP 8: DESIGN A BUSINESS WEBSITE
The next step is to give your brand a digital presence via a website. Although it can cost you a substantial amount of funds, investing in website design can generate an outstanding profit for your business.
Moreover, it helps to set apart your business from the competitors, and the logos usually identify it. It will also help you in establishing the credibility for your business. As it is the best and easiest way to reach your customers nowadays. Many customers now search for the online information before purchasing anything, and your site may get the first chance in making a good impression on buyers.
STEP 9: BRAND YOURSELF AND ADVERTISE
Before starting a Nevada LLC, you need to start attracting customers and clients to your business. Your only real challenge is establishing real connections with your niche. You can choose any traditional and conventional way of marketing your products and services.
The very first thing that you should do is create a logo that will help people in identifying your brand. Moreover, it is advised to use the same logo to be consistent while using it across all the social media platforms, as well as on your website. Make sure to keep all the digital assets up-to-date with compelling content about your business and industry.
STEP 10: CONTINUE LEARNING & STAY ENCOURAGED
In order to maintain your success, you need to embark all your dreams, time, struggle, and hard-earned money. If somehow you lose hope on half of the way, motivate yourself every day, or employ someone to do so, but you need this to keep you going and your business going as well.
CONCLUSION
So, once you have completed all these steps for starting a Nevada LLC, keep this thing in mind that success doesn’t happen overnight. You need to work hard for your company in order to increase the chances of your progress. Start with the plan you’ve created to work on your business consistently, as mistakes are going to happen, and you have to learn from them.
If you can learn from your mistakes and keep a balance in limiting your mistakes and moving forward as soon as possible, then you will become a sensation in no time. If you are ready with the business plan for starting Nevada LLC, contact Inc Paradise for the business registration and for incorporating your business.
Do you have a great business idea, but you’re not quite sure how to get from the idea phase into owning and operating your own business in Nevada? You’ve come to the right place! There are many important aspects to running a company, and like any other state, Nevada has its own rules and regulations to consider.
In this guide to starting a business in Nevada, we’ll discuss all the relevant details to business ownership in this state. By the time you’re done reading, we think you’ll have a strong grasp on the necessary steps involved.
1) Create a Business Plan
The first step to creating any business in any state is to plan what products and services you’ll sell, set your operational budget, and figure out how you want to market your company.
When you are creating your business plan you will need to do market research. The market research that you do will help you determine your marketing and sales strategies. It will help you define who is the target audience, the current demand for your product or service, the market size, location, and pricing. It is important to do this before or in conjunction with your business plan, because you need to make sure you have direction and a foundation for your business. You often will use your business plan to try and get investors or loans, so you want to make sure your market research and business plan are thorough.
Your business plan doesn’t have to be fancy at all, you just need to make sure you spend enough time considering these important aspects before you actually launch your business. To get started, SBA.gov has a great free tool that can walk you through writing a business plan.
2) Choose a Name
The name of your business is an extremely important attribute because it’s often how you make your first impression to potential customers. It also will determine the direction of your branding.
Name Search
Before you decide on a name you must make sure it is still available. In Nevada, you can run a business name search to confirm that your desired business name is still available via the Secretary of State’s website. If your desired name is available, but you are not ready to file the formation paperwork yet, you can reserve the business name using this link. Name reservations cost $25 and last for a period of 90 days.
If you plan on creating a website for your business (we discuss this in Step 6) you may also want to make sure that the domain name you want is available. Even if you don’t plan on creating your website right away, it may be a good idea to go ahead and purchase it so no one else can take it.
Legal Considerations
Depending on whether you choose to form a corporation or a limited liability company, there are some legal aspects as well (for example, an LLC must include “LLC” or “limited liability company” in the business name, and a corporation must include “incorporated,” “corporation,” “Inc.,” or “Corp.”).
Stylistic Considerations
Beyond the basic legalities, you should focus on clearly identifying what your company does in your business name. You can also consider incorporating your values into your business name, like using the word “green” to denote environmental friendliness.
Finally, choose a name that you personally like and take pride in, and one that both sounds good when spoken aloud and looks good on paper.
One big piece of advice we have for naming a business is that you shouldn’t get too focused on one idea until you either form your company or reserve the name.
3) Decide on a Registered Agent
A Nevada registered agent is the person or service in charge of receiving your important government documents, and forwarding them to you.
There are three kinds of registered agents for businesses in Nevada:
This position is vital to any Nevada business because without a registered agent, you could lose your good standing with the state, see your business dissolved by the state, or even remain unaware of a lawsuit proceeding against your company.
4) Choose a Structure and Form Your Business
It is important to choose a proper business structure that works best for you and your business goals. Most entrepreneurs choose to form either a Limited Liability Company (LLC) or Corporation. Setting up either an LLC or Corporation creates a completely separate entity from yourself and provides liability protection.
If you’re just operating a sole proprietorship or general partnership, you don’t need this step (or several of the others in this guide, including selecting a registered agent), because those business structures don’t require any sort of formal formation process.
This leaves two main options: the corporation or the limited liability company (LLC).
Limited Liability Company (LLC)
The LLC is the more common option, partially because it’s much simpler. There’s not much paperwork involved, and the maintenance requirements basically amount to an annual report.
An LLC is a combination of the flexibility that comes with managing a general partnership and the protections afforded to corporations. An LLC is easy to start, you will need to register your company with the Nevada Secretary of State. You will fill out the certificate of operation which requires you to provide general information, such as your business name, your registered agent, and your management style. You will need to pay some fees and create an operating agreement.
If you are considering forming a Nevada LLC we have a comprehensive guide to walk you through the process of forming your LLC and what needs to be done after your LLC’s formation. Furthermore, LLC owners still receive the personal asset protection that makes a corporation so attractive as a business type in the first place.
Corporation
For some entrepreneurs, the corporation is the better choice. There’s find out here now involved both in forming one and in maintaining it with the state of Nevada. To form a Nevada Corporation you will have to file your Articles of Incorporation with the Nevada Secretary of State, it requires similar general business information but you also have to give information concerning authorized shares.
In addition to registering your business you must also create bylaws, create a board of directors, and hold annual meetings. Corporations are normally the better option for larger businesses as they allow for more growth and investment than LLCs generally do. If you are considering forming a Nevada Corporation we have a comprehensive guide to walk you through the process of forming your Corporation.
If you would like to know more, check out our “LLC vs Corporation: What Is the Difference?” article. No matter which business structure you choose to form, you can find all the relevant forms on the Nevada Secretary of State’s website or have a professional business formation website do it for you.
5) Get an EIN
The vast majority of businesses operating in Nevada will need an employer identification number (EIN). It is free to get and is required for many different aspects of your business.
Whoever will be the responsible party for the company should register for the EIN. A responsible party is “the person who ultimately owns or controls or who exercises ultimate effective control over the entity.” It must be an individual and may not be another entity.
The EIN is required if your business is required to pay federal taxes. The EIN number can be used for your business licenses and permits which are filed through the Nevada Department of Revenue and will determine if you pay certain Nevada state or city taxes.
You will also need an EIN if you plan to hire employees, open a business bank account, or take advantage of a self-employed retirement 401(k). It is also a good idea to get an EIN for privacy purposes, so you are not constantly filling out paperwork using your social security number.
Getting an EIN takes about 5 minutes. You just have to visit the IRS website and can get your EIN almost instantly.
6) Develop a Business Website
In this day and age, even strictly local businesses should have a website, because the internet is your first point of contact for many of your customers. Your site doesn’t need to be fancy, but you should put some thought into your domain name, and make sure it’s something memorable and easy to type without misspellings.
Creating websites has become easier than ever. Many softwares out there are very intuitive and can be learned with a little research. If you’re not comfortable designing a site yourself ― and if you also don’t have the budget to hire a professional designer ― there are plenty of website builder tools that can help you put together a solid website. GoDaddy is very easy to use.
All you have to do is get the domain (below) and then you’ll have the option to build the business website whenever you’re ready.
7) Take Care of Tax Obligations
The state of Nevada does not have a corporate or individual income tax. To take care of your federal income taxes you will need to use your EIN and go through the IRS.
The majority of Nevada businesses are subject to the Modified Business Tax, which taxes most business income at 1.475%, though financial institutions will need to pay a higher rate. Additionally, there are a variety of business tax requirements that may or may not apply to your company, depending on the nature of your business.
Thankfully, Nevada taxes are made easy with the SilverFlume tool. This tool not only helps businesses register and file their taxes, but also offers assistance with business licensing, labor law requirements, and insurance.
Keep in mind that your city and/or county may have taxation requirements as well, so make sure to check with them to make sure you aren’t missing anything.
Here are some business resources for each of the largest cities in Nevada:
8) Acquire Business Licenses and Permits
Nevada is one of the few states that requires a general business license for every business within the state. According to Nevada state law, “a person shall not conduct a business in this State unless and until the person obtains a state business license issued by the Secretary of State.” For more information on the Nevada state business license, check out this link.
In addition to the statewide business license, there are hundreds of industry-specific licenses and permits that may apply to your company depending on the nature of your business. For a complete breakdown of professional licensing in this state, consult the SilverFlume tool.
Much like with taxation issues, there’s also the matter of local licenses to consider. You can learn more about county-level occupational licenses right here.
9) Obtain Required Insurance Policies
According to the Nevada Department of Business & Industry, “Nevada law requires business owners with one or more employees in the State of Nevada to obtain and maintain workers’ compensation coverage. There are few exceptions to this requirement.
Business owners failing to comply with this law face fines up to $15,000, may have their business ordered closed until the insurance has been obtained and be held financially responsible for all costs associated with an employee who sustains a work-related injury. In addition, the uninsured business owner may be subject to civil litigation brought about by an injured employee.”
You can learn more about this insurance type and how it applies to Nevada businesses by visiting the Division of Industrial Relations website.
It is the employer’s responsibility to get these policies to protect your employees, regardless of what line of business you’re in. Of course, it’s probably a good idea to acquire industry-specific policies to protect your company in other ways, but unemployment and workers’ comp are the ones strictly required by law.
10) Open a Business Bank Account
Whether you start a limited liability company or a corporation, you’ll need to keep your business and personal assets separated.
This is where opening a business bank account comes in. While having a separate checking account for your company isn’t a legal requirement, it makes separating your assets considerably easier, and we always advise that any business owner does so.
To open a business bank account you will need to provide the bank certain documentation in order to qualify. Some documentation varies depending on the type of entity that you create. This information includes, but is not limited to:
Conclusion
While there are several vital steps in the process of starting a business in Nevada, taken individually these steps aren’t terribly complex.
It can seem overwhelming if you consider the entire process all at once, but if you break down these steps and take care of them one at a time, they’re all quite manageable. Keep in mind that you don’t need to go it alone with the DIY option ― if this process becomes overwhelming, or if you simply don’t have the time and energy to devote to these steps ― assistance is available.
11) Don’t Be Afraid to Ask for Help
If you run into problems with any of the steps outlined in this guide, remember that you can always find help.
In this state, the Nevada Small Business Development Center exists solely to (in their own words) “increase business startups, create and retain jobs, and increase access to capital.” With locations in 13 districts across Nevada, the SBDC is ready and willing to help if you need assistance.
Another excellent resource is the Nevada chapter of the U.S. Small Business Administration. Their website has information regarding small business events, business resources, press releases, SBA programs, and more.
In addition, here are more resources that are incredibly helpful to new entrepreneurs:
For many Nevada businesses with a physical address, it is simpler to just designate the business or a member of the LLC as the registered agent. However, if you wish to have a third party as your registered agent, you can find more information here.
