Checklist for Starting a Business in Nevada:
It would be nice if forming a business was as easy as picking a name and selling products or services. Unfortunately, there are a lot of state and federal laws that go into the formation of a business. Here are 8 steps to keep in mind when starting a business in Nevada:
1. Form a Business Entity
There are a several business entities to choose from when starting a business. It is very important to consider which entity will best suit the type of work your business will be doing. Moreover, it is crucial to identify which type of business you intend to license, so you can avoid wasting both time and money
Available business structures in Nevada include:
- Sole Proprietorship
- General Partnership
- Limited Liability Company
- Limited Partnership
- Limited Liability Limited Partnership
- Domestic Corporation
- Close Corporation
- Professional Corporation
- Nonprofit Corporation
- Nonprofit Cooperative Corporation
- Cooperative Association
2. Name Your Business
After identifying a name you want for your business, check to ensure that it is not already in use (or reserved by) another business in Nevada. Further, if you would like to expand your business to another state, you need to understand what type of registrations are required. It is important to consult with professionals (attorneys and accountants) to understand the legal and tax implications of the business entity you select. Furthermore, you will need the appropriate governing documents for your entity.
3. Designate a Registered Agent
When registering for a business entity, you will be asked to include a “registered agent’s” information. A qualified business attorney is your best bet to make sure that you handle things correctly and get your business off to the right start.
4. Determine a Business Location
If your business serves customers at a physical location, the location will ultimately impact your success. It is important to carefully research the zoning, licensing, and permit requirements of the jurisdiction that you are interested in.
5. Obtain a DBA
A DBA, otherwise known as “doing business as” or a Fictious Firm Name (FFN), is an official registration of your business name. If you plan on using a name other than your legal name to file a DBA, you must file the DBA with the County Clerk’s office to identify the business owner(s).
6. Obtain an EIN and a TID
Many businesses in the state of Nevada are required by law to have an Employee Identification Number (EIN) from the IRS and a TID from the Nevada Department of Taxation. EIN’s are essentially Social Security numbers for your business. It is a unique nine-digit identification number that identifies your business for tax purposes, allows you to open a business bank account, file taxes, and apply for business licenses.
After obtaining an EIN and a TID, it is important to open a business bank account because any businesses operating as a separate legal entity from the owner should keep the business transactions separate from personal transactions.
7. Apply for a State Business License
In order to operate a business in the state of Nevada, it is required that you have a state business license or receive an exemption. Nevada has an online portal, called “Silverflume”, where you can apply for a license or an exemption. You or your attorney will need to do all the appropriate filings and pay the requisite fees.
8. Obtain Other Licenses and Permits
After the legal structure of your business has been established, it is time to determine if your business needs any additional permits or licenses including local jurisdiction business licenses. Additionally, depending on the location of your business, it may be required that you obtain an occupancy permit, building permit, signage permit, seller’s permit, health permit, or even a resale certificate.
This checklist is just about the basics of what goes into creating a company under Nevada business laws. If you don’t have a thorough understanding of the rules, regulations, and laws in place, it can be easy to make a mistake. That is why Connor & Connor is here. We have a legacy of helping businesses of all sizes ensure they follow all laws and regulations, both state and federal.
Sources:
https://connorpllc.com/business-licensing-and-business-law/
https://www.corpnet.com/blog/starting-a-business-in-nevada/
https://nevadadiscountregisteredagent.com/types-of-business-entities/
https://nevadasbdc.org/obtaining-a-business-license-in-nevada/
https://www.chase.com/business/knowledge-center/start/why-bank-account
