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Choosing your business location in Nevada

Nevada is considered as one of the best locations for starting a new business and the Revolutionary Tax Code is just one of the compelling reasons. It is known as the “Silver State” although both gold and silver mining play an important role in its economy. The state is geographically bordered by California, Arizona, Idaho, Utah, and Oregon. One of the important reasons why entrepreneurs choose a business location in Nevada is because of its strong transportation infrastructure within the state and connecting to the rest of the nation.

Introduction to Choosing a Business Location

On October 31, 1864, Nevada became the 36th state and thus opened its door to new businesses. The Silver State always had a rich environment that has been shaping its history as well as culture and somewhere that has played a key role in developing its business base. If you choose a business location in Nevada then this guide will provide you with relevant information regarding why business location is important and the business location factors to consider.

How to choose a business location?

When you start a business in Nevada, one of the most important aspects to focus on will be business positioning. This type of positioning includes marketing and promotion but one factor that entrepreneurs often fail to address is the location of your business. Every new business should have a business plan and within that should be the business location strategy as it plays an important role in defining your customer base and accessibility of your business.

Why is business location important?

When you start a business in Nevada especially as a new business or startup, you want to create a maximum impact and a positive customer experience. The location of any new business is a part of a strong marketing strategy as it will not only help in attracting the targeted customers but also help in attracting the right talent as well as business partners, vendors, and associates.

A business location strategy can help you with the process of identifying the right type of business space taking into consideration the following factors:

  • Type of business: The type of business activity is a great determinant for space and location. Let us look at an example to understand this: If you plan to start a business in Nevada in the restaurant industry then you will require space depending on the type of restaurant. A fast food joint will require less space as compared to a fine dining restaurant but the location for either businesses has to be prime. A restaurant has to be located in places where people visit frequently or in the office district. On the contrary, a manufacturing unit will have to be in an entirely different location because it will not have direct customers and will require large spaces
  • Cost of business space and location cost: When you choose a business location in Nevada, the cost is also an important factor. Businesses that are completely online can opt for Nevada virtual offices along with mail forwarding but if your business deals with customers and business associated through physical contact then having a business space is necessary. There is no best way to choose a business location especially because space will be costly in the central districts of a city including shopping districts and malls. Some of the factors that influence cost of business space include proximity to local amenities and services, and the type of lease terms. The traditional route of taking a storefront or brick and mortar space on rent can be expensive depending on its location.

How a good location helps your business?

There are many factors that have an important role to play when you choose a business location in Nevada. A good location influences the ability of a business or startup to market itself but more than that it also helps in determining competition, total operational cost, taxes a business is required to pay, regulations and zoning codes, and lastly, convenience and safety for consumers. There is always a best way to choose a business location and most importantly, a location should always look at long-term advantages for the business vis-à-vis short-term gains. Let’s look at some of the benefits of a good location for your business.

  • Customer accessibility: The greatest advantage of a good business location strategy is that it will help you identify a location that is highly accessible to your customers, business associates, suppliers, and vendors. When you choose a business location in Nevada that is convenient for customers to access especially if you are selling products or services then it sets a clear path towards achieving long-term growth and success.
  • Ease of transportation: One of the important business location factors is transportation of goods especially for businesses that are dealing in finished products, dairy, food and beverages etc. If your business is located close to primary access points for public transport this will ensure timely delivery.

Factors to consider when choosing a business location in Nevada

Business location matters! You may have a great business idea and are planning to launch the most innovative product or service but if you are unable to choose a business location in Nevada that can target the intended audience then the startup may not generate the required profits. This is exactly why you need to have a business location strategy or a business location analysis. Let us look at some of the factors to consider when choosing a business location in Nevada.

Style of Business Operation

This is one of the best ways to choose a business location as the style of business essentially refers to the type of business activity. Some of the most common styles of business include:

  • Service business: If you start a business in Nevada in the service industry then it will revolve around providing customers with mostly intangible goods like consultation, transportation, repair, accountancy, home improvements etc.
  • Hospitality Industry business: This is a huge industry and your startup can be in any segment of the industry like restaurants, travel agencies, hotels, inns, event management, catering, motorway services, takeaways, and much more. The segment will be the determinant of business location.
  • Merchandising business: If you start a business in Nevada in the merchandising industry then it will involve selling of tangible goods. Merchandising businesses can be either retailer or wholesaler classifications and the business location strategy will be different for retailers and wholesalers.
  • Manufacturing Industry: You need to choose a business location in Nevada to set up a manufacturing facility. The space will be dependent on the type of manufacturing, staff employed, and equipment. Such businesses normally take advantage of Foreign Trade Zones (FTZ) as locating businesses in such zones offer such businesses many tax based and other incentives.

Start your new business in Nevada!

Accessibility and Convenience

One of the most important business location factors is accessibility and convenience. Accessibility and convenience is also determined by the type of business activity. For example, a restaurant in a business district will be highly accessible and convenient for the long-term and walk-in customers while a retail store should be in a location where heavy footfall will not be a problem and it will be accessible by all modes of transportation. When you start a business in Nevada, location is considered as a highly competitive factor especially if your business is in the service or retailing industry.

At the same time, it is important to understand that high-traffic and convenient locations are prime real estate and hence highly costly. So, the best way to choose a business location is by conducting research on location convenience while keeping the cost factors in mind.

Competition

Proximity to your competition can actually make or break your business and hence it is one of the key business location factors. Competition has both advantages and disadvantages but it mainly prepares your business in a way that you are able to focus clearly on your core audience. When you choose a business location in Nevada, it pays to be one step ahead of your competition especially if they are situated in the same vicinity because they can affect your overall operating costs as well as sales. For example: If you have chosen to establish your business in a populous area then the probability of competition is higher but then so is the probability of getting more customers. If you want to stay away from competitors then you need to ensure your location is not too far away from your target audience.

Business Expenses

Business expenses can be overwhelming at times and hence a strong business location strategy will be helpful in ensuring certain unnecessary location expenses are curtailed. If you choose a business location in Nevada that is prime or real estate then the rent will be much higher as opposed to commercial property in other areas. Let’s look at an example:

If you are planning to start a business in Las Vegas, Nevada then lease on commercial space can vary from $14.4/Sq Ft per year in Renaissance Drive, Paradise, Las Vegas to $35.4/Sqft per year in Downtown Las Vegas. Small office spaces can vary on the lease rates from $6 – $28/Sq Ft per year.

Apart from lease payment, you will also be required to pay utility bills and taxes in your chosen area. The bottom line is that you don’t want to start your new business with high expenses.

Availability of Talent

One of the important business location factors is talent or employees. Most small to medium sized startups will require employees initially and hence, you need to ask yourself: Am I choosing a business location that will enable me to find good talent?

Demographics play a key role in business location and two different aspects of demographics that will drive your business location strategy are customers and employees. If you start a business in Nevada and your perceived customer base is local then employees can be selected from the local community as they will play a strong role in generating customer loyalty. Simultaneously, you need to also focus on the skills that your work force will require. Some of the questions that you need to ask and address are:

  • What skills do your prospective employees need?
  • Can you find people with required skills or talents in the chosen location or community? Once you choose a business location in Nevada, you need to find out if there is sufficient housing available for employees in a price range they can afford
  • Are affordable public transportation options available for your employees to bring them to the place of work?

Local zoning ordinance

Sometimes, you will not be able to choose a business location in Nevada that addresses your specific needs due to zoning laws. According to the laws some areas may be defined as strictly residential and hence any commercial activities from such premises would be deemed as illegal. The zoning code will be different for different states and can be viewed under the Unified Development Code for the city of Las Vegas, Nevada. The best way to choose a business location is by following the local zoning code and finding out which are the best locations for your type of business. The zoning code may also include information pertaining to subdivision regulations, landscaping, signage, urban design, and basic architectural standards.

State and Local taxes

Nevada has the distinction of being the state with the 2nd-highest rate of startups or new business owners in the nation. If you are planning to start a business in Nevada, one of the important requirements is state and local taxes. It is a known fact that state and local taxes paid by new businesses each year can have a significant impact on the bottom line of the business but at the same time, these taxes also have a positive influence on economic growth and employment. Nevada does not have corporate income tax but it does have gross receipts taxes. To ensure tax compliance, you will be required to apply for a unique 10-digit ID called the Taxpayer ID. It is assigned to a new business entity by the Nevada Department of Taxation and you can find information pertaining to taxation requirements with the help of this informative guide to Nevada business taxes.

Infrastructure

One of the important business location factors is good infrastructure. Infrastructure consists of transportation available for customers, staff, and delivery or receipt of goods, banks and ATM, parking space, and the building itself where your office or retail outlet will be located. These important components of a business infrastructure can be beneficial to any business in determining long-term sustainability. It is always recommended to choose a business location in Nevada that has good road connections, proper power and water supply, special access for people with disabilities, and parking place for employees.

State and Local Government Incentives

One of the reasons for Nevada being such a popular destination for entrepreneurs is the availability of numerous state and local government incentives especially for startups or new businesses. If you start a business in Nevada, your business will be able to benefit from local government incentives offered by the Governor’s Office of Economic Development (GOED). These business incentives include sales tax abatements and deferral on capital equipment purchases, abatements on modified business tax (MBT), and employee training grants among others. In fact, one of the best ways to choose a business location and enjoy incentives is through locating your business in the Opportunity Zones and the Foreign-Trade Zones (FTZ). You can find detailed information on various business incentives on our Nevada Page.

Federal government incentives

There is a long list of state and local government incentives that your business can benefit from and that is not all; there are Federal incentives as well. These incentive programs are offered by the U.S. federal government that can vary from general workforce development to industry-specific incentives and energy efficiency grants. The federal incentive programs are offered by different federal agencies like U.S. Trade and Development Agency (USTDA), Export-Import Bank of the United States (EXIM), Overseas Private Investment Corporation (OPIC), U.S. Department of Agriculture (USDA) and the Office of Textiles and Apparel (OTEXA) among others. If you choose your business location in Nevada then you can take advantage of the following federal incentive programs:

How can IncParadise help you?

When you choose a business location in Nevada, it is important to understand that a good location can play a crucial role in boosting the long-term performance of your business significantly. In this modern technology driven market, businesses:

  • Can operate completely online
  • Can be home based
  • Can operate from traditional brick and mortar space

Home based and online businesses will not require a business location strategy and in case they do need an office address then there is always our mail forwarding service and virtual office program to opt for. If your business activity will involve leasing commercial space then IncParadise can help you with registering and incorporating your startup at your preferred location in Nevada. We are specialists in handling various facets of a new business registration process and providing several business specific additional services.

Do you want to register a business in Nevada?