Starting a Business in Nevada
Known as the Silver State, Nevada has historically been recognized for its hospitality and tourism industries. As of late though, it has a growing trend for big business to move in, while smaller businesses have met many challenges. Nevada’s largest industries are in Mining, Information Technology, Defense Contracting, Aerospace, Manufacturing, Healthcare, and Logistics. To help those at all levels, Nevada offers businesses different incentive programs that provide opportunity for growth and expansion. The most common are incentives that are given through tax abatements, initiatives, and grant/loan programs. To qualify for many of these programs you must first make sure you have the right business licenses in place.
STEPS TO STARTING A BUSINESS IN NEVADAThe Nevada Secretary of State facilitates corporate filings along with appropriate documents needed for compliance. Sales tax collection policies and the procedures that enforce them are governed by the Nevada Department of Taxation. One of these procedures is a company’s ability to collect sales tax from its customers and remit them through the appropriate channels. This sales tax collection is performed with a specific license known as a Seller’s Permit. This license will be absolutely necessary if you sell taxable products or perform taxable services. You can apply online for a Nevada Sales Tax Permit. A Nevada Sales & Use Tax Permit is only one kind of special document in a larger group which are known as Business Licenses. You must know where to find the correct Business Licenses for your business. After filing for Nevada Business Registration and finishing with your Nevada business license requirements, you could start researching Nevada sales tax rates. If you make taxable sales outside of your domiciled state, you may also be required to apply for SST streamlined sales tax. This would occur if you are what is known as a remote seller and meet certain economic nexus thresholds or have physical presence in the state. Nevada businesses can benefit from a variety of programs that can help them expand and grow their enterprises faster. Here are some of the incentives programs provided:
- Nevada has an abatement program for companies that already have or relocate a qualified data center into the state. There are two options both are based on time frames to qualify. A qualified data center is any company that invests a minimum of $25,000,000 and hires 10 new employees at full wage for a ten year period. The second option is for a company that invests a minimum of $100,000,000 and hires 50 new employees at full wage for a twenty year period. Sales Tax abatements are given at a 75% reduction for personal property as well as for Sales and Use Tax on any qualified equipment and machinery.
- The state has a Job Expansion Program incentivizing businesses that can train and give new jobs to people who are currently unemployed. A company has three options based on level of commitment needed. The first is a paid training option for people who are actively looking for employment and currently receiving unemployment benefits. These individuals can receive partial pay and must work a minimum number of hours a week to qualify. Employers are only responsible for the partial pay to the trainees. The second program option is for companies who want to engage into a paid training contract agreement with an employment seeker. The contract would have certain specifications such as job duties and requirements, pay and compensation, and the number of minimum work hours a week. The last program option is for companies that hire full time employees and provide a wage and training compensation that is based on length of employment. Employers are required to meet these obligations and in turn are given compensation after every 30 day period of employee retention.
- Nevada offers a partial Sales Tax abatement of Sales and Use Tax for companies that expand a business already situated in Nevada or out of state companies that relocate their operations to the state. The abatement can be used towards qualified equipment or machinery involved with the business. Tax abatements are offered for a two year period from the effective date. Additionally, there is an abatement given towards the Nevada modified business tax for companies that expand their current in state operations or who relocate their business to Nevada. Currently Nevada employers must pay this tax which is about 1.5% of taxable wages that exceed $50,000 per quarter. The abatement would provide a 50% reduction of the tax liability for up to a four year period.
- The State has a bond program to help foster growth for companies through financing activities. Industrial Development Bonds are offered to private companies for financing of processing and manufacturing facilities. To qualify, applicants will have to meet certain workforce development and wage requirements as well as show some ability to be able to pay back the loans.