A convenient location doesn’t just mean setting up shop near where you live. You should also consider factors such as the working-age population, taxes, utility costs, and competition. Does the state government offer financial help or resources? Do startups last long?
Consider Nevada as a great place to start your business, with the startup activity in the state being one of the best in the country. Nevada also has one of the highest densities of startups, with a recent report from Startup NV showing that the state has 100 startups for every 1,000 firms. The state has been experiencing a growth in its working-age population, and an equally impressive growth in GDP, making it the sixth fastest-growing state economy. Nevada is more than the desert or Las Vegas and its high-class life, and here’s why:
Utility costs for businesses in Nevada are low compared to the national average. Electricity is only at 6.48 cents per kilowatt hour, and water can cost as low as $2.37 per 1,000 gallons. Even for residents, the cost of living here is low, so you can use this to convince a potential employee from a different state to work for your company. They would also be very pleased to know that the minimum wage in Nevada is now at $9 an hour and is still set to increase by $.75 yearly until 2024. Moreover, there’s actually very little need to try and bring in a workforce from out of state, as there are many young professionals in the state already. Despite a high minimum wage, low utility and living costs can help you start and maintain a business without causing you financial issues.
Plenty of state-wide resources to help you get started
Other states help startups by offering financial assistance, but there are state-wide resources for those starting a business in Nevada. Among them are SilverFlume, which provides a new business with a simple checklist to make the process seem less intimidating. Similarly, the Stat Pack gives statistics on things such as employment, job growth, and visitor influxes in the state. Nevada Site Locator lets you search for sites and buildings, and analyze demographics. On the other hand Nevada Small Business, as the name implies, supports small businesses, giving them tips on starting, growing, and managing their business. The state is already very friendly to startups, but the resources are especially aimed at making the process relatively easier and faster. These tools can also be helpful to established businesses that need a bit of help staying on track.
Tax breaks for LLCs and Corporations
Arguably the biggest draw for many companies is that Nevada’s tax structure is unique. Anyone forming an LLC in Nevada or incorporating their business will owe no state tax on any income they make from the business, as the state has no personal income tax and no corporate income tax. Instead, they have what is called a “Modified Business Tax” (MBT). This equals the gross wage of an employee minus the healthcare benefits that the employer pays. The MBT structure is divided into two: general business and financial institutions. General businesses have a 1.475% tax rate, while financial institutions are charged with 2%. Financial institutions are defined by the Nevada Revised Statutes (NVS), which also lists 19 different categories. Essentially, they are companies that involve money such as banks, savings and loan firms, and collection agencies.
Nevada is a big state, but with a comparatively small population, so outside businesses and professionals are very welcome to start doing business here. Moreover, Nevada makes the deal even sweeter by paying companies $2,000 per state-qualified employee they hire, and also funding chosen businesses who want to relocate and expand in the state.
There’s no doubt about it: Nevada is a great place for startups.