There are few places in the United States that are more conducive to business than Nevada. The State offers a multitude of incentives that make business formation in Nevada a very inviting prospect to many entrepreneurs both big and small.
Why Las Vegas Nevada?
Nevada is a truly special place. Having first gained prominence for its abundance of silver, it now boasts of being the largest gold producer in the U.S. Nevada is also known for thriving casinos, hotels, resorts and this makes it a popular destination for both local and international travelers.
From a business standpoint, Nevada offers perks and incentives to entrepreneurs that are hard to ignore. With no corporate or personal income tax, inventory tax, franchise tax, unitary tax, special intangible tax, or corporate capital gains tax and has among the lowest property taxes in the U.S. This has made the state one of the most attractive destinations for established businesses as well as entrepreneurs hoping to make a great start in business.
Like anywhere else, setting up a business in Nevada can be an exercise in patience. More often than not, you’d have to navigate through a confusing and complex maze of laws and regulations just to stay out of trouble. Quite frankly, setting up your business’s paperwork can become extremely complicated and as such, would best be accomplished by someone who is familiar with the system.
Having said this however, it is still well advised, to get an understanding of how it’s done. It is good idea to at least know the fundamentals of getting a business set up in Nevada.
Naming your Company
It starts with a name. The name you choose for your company should be as effective as it is distinctive. Take your time and consider many alternatives. Doing so not only gives you a better chance of landing a unique name for the registry, it also gives you the chance to develop something that resonates well with your customers.
This is something you must determine beforehand. Do you have partners? Are you doing this alone? Do your growth plans include being listed? These questions help you decide how to go about setting up your company. Your business can be registered as a corporation, as a limited liability corporation or as a sole proprietorship. Let’s go through each of them:
Corporation – In essence a corporation is its own person. It is an entity that is distinct from its owners and has rights and duties just like a normal individual. Among others, it has the power to enter contracts, sue, borrow and lend money and pay taxes. This type of business is the hardest to set up and would require legal assistance.
Sole Proprietorship – This is the fastest and simplest way to set up a business. A sole proprietorship assumes you and your enterprise to be one and the same thus entitling you to all profit earned by the company and making you responsible for all taxes and liabilities your business might incur.
Limited Liability Corporation – An LLC, as it is known, is a hybrid between a corporation and a sole proprietorship. An LLC basically gives the company the protection afforded a corporation by separating the company’s liabilities from that of its owners. However, an LLC is a less stable platform due to the fact that if one of the LLC’s members go into bankruptcy or dies, the whole company will have to be dissolved.
Nevada Registered Agent
A company intending to do business in Nevada is required to retain the services of a registered agent. A Nevada registered agent by definition should have a physical address in Nevada and should be able to accept service of process on a company’s behalf during normal business hours.
A company should be able to keep track of all pertinent information. Therefore, a corporate record book should be on hand to memorialize items such as by-laws, minutes of meetings, articles of incorporation, stock information and so on.
While not required, having these records will definitely help preserve information that is vital to the corporation as it becomes the “master list” of everything that is important to your company. Ideally, the records should be kept together in the company’s principal office.
Every corporation needs to establish by-laws. Though not required by the government, these by-laws govern how a company functions and form the basis of the company’s rules and regulations. By-laws are also the hallmark of any legitimate corporation so having them in place adds to the validity of any company.
By-laws however, can be quite tedious to make and have to be carefully crafted. They also involve quite a bit of legalese so it is advised that drafting these by-laws be done with the help of competent law practitioners.
Among the most important components of starting a venture is opening a bank account. Choose a reputable bank and open a checking account under your company’s name. Especially relevant in sole proprietorships, a business owner must separate personal and business accounts as this lessens the credibility of your company and may disrupt your company’s financial records.
As mentioned earlier, setting up a business in Nevada, or anywhere for that matter, is a major undertaking. There are many things that require specific knowledge and striking out blindly could cause a great deal of problems down the road. As such, having a competent attorney to back you up is something to seriously consider.
A competent legal presence can be invaluable in helping you set up your business as well as forewarn you of any legal challenges that you might encounter. A good lawyer can give you sound advice on everything from zoning issues to formal compliance with the requirements for incorporation. A lawyer can also give you added peace of mind by taking care of any problems before they occur. For instance, a lawyer can review any contracts you plan to enter into and steer you away from any potential traps that you may have overlooked. Essentially, a lawyer acts as an extra layer of security for your business and lets you, the business owner, concentrate on the important task of getting the business of the ground.
However, waiting until the last minute to retain the services of a lawyer is ill-advised. Your counsel should be just as familiar with your operations as you are so that he or she can mount an effective defense in case of a suit. Hiring a lawyer when after a suit comes your way generally makes for a less effective counter as the lawyer will need to take time to become familiar with your company as well as the case.
Starting a business in the state of Nevada is a smart move, but you need to have all your bases covered. Having competent counsel as part of the team is one of the best things a company can invest in.
Empire Law Group
1212 S. Casino Center Blvd.
Las Vegas, Nevada 89104
9580 W. Sahara Avenue, Suite 180B
Las Vegas, Nevada 89117