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Starting a Construction business in Nevada

The commercial real estate industry in Nevada is thriving with the commercial developers and builders reporting a full workload. In a way, it can be said that the Nevada construction industry is on the upswing with new projects coming up in a variety of sectors including retail, industrial, recreation, hospitality, manufacturing, medical, restaurant and multi-family housing sectors. This indicates that the market conditions are perfect if you want to start a construction business in Nevada.

Introduction to Starting a Construction Business

Construction is a broad term that encompasses several areas right from developing buildings and infrastructure to dismantling or decommissioning of buildings or infrastructure. If you plan to start a construction business in Nevada then you need to identify which segment of construction you will be focusing on and that will also determine the licenses or permits required. You may have several queries pertaining to starting a business or how to register a construction company and this guide will provide you with an insight into Nevada state requirements and business requirements.

Nevada Construction Industry

The Nevada construction industry can be categorized under building construction (residential and non-residential or commercial), infrastructure and heavy construction, and industrial construction. You can start a construction business in Nevada as the industry has shown positive upward improvement off late. The industry employment in the Southern Nevada region has also doubled since 2012 due to availability of skilled labor. There has even been an outmigration of labor from California to Nevada making it easier to start your own construction business without having to worry about labor shortages.

Construction business is a booming industry in Nevada

The commercial as well as the residential real estate market in Nevada is on the upswing because of new projects coming up. There were a lot of construction projects that had been put on hold during the period of the “Great Recession” and those projects are now slowly coming back to life. You can start your own construction business in Southern Nevada, which is witnessing a lot of growth in construction of stadiums, sport complexes, and state of the art arenas. Today the Nevada construction market is considered highly active with investors and contractors alike. If you want to take up construction projects in this booming industry then the foremost requirement is to apply for and obtain a contractor license in Nevada.

Top construction projects that changed Nevada

Although Northern Nevada economic development has been responsible for diversifying the economy of the region by opening its doors to advanced manufacturing and IT companies, construction is still considered as the pillar of Northern Nevada’s economy. There have been several new construction projects that have and will be changing the Nevada economy and you can start a construction business in Nevada to be a part of such mega projects. The top three projects in Nevada are:

  • The Las Vegas Stadium: There are several mega-projects that are expected to have a positive impact on Nevada economy and the construction market. The Las Vegas stadium also known as the Allegiant Stadium is one such mega project. The construction of the stadium began on November 13, 2017 with an estimated budget of $1.8 billion with approximately $1.33 billion spent on construction. Due to the mega construction process, many new businesses got their contractor license in Nevada to work on this project.
  • The Las Vegas Convention Center: It is commonly referred to as the LVCC and is considered as one of the largest in the world. The Las Vegas Convention Center has exhibit space of 1,940,631 sq ft (180,290.5 m2) and can host 200,000 participants. In 2018, expansion plans valued at $890 million were sanctioned and this opened the doors for many to start a construction business in Nevada. It will undergo 500,000 sq ft of expansion with construction projects focusing on a meeting room, grand concourse, a signature facade in front, and a $53 million twin-tunnel Loop system.
  • AREA 15: One of the top construction projects in Nevada is the AREA-15 project, which is a new immersive art, entertainment, event and retail complex. It is a 126,000-square-foot building situated two miles from the famous Las Vegas Strip. You can start your own construction business to take advantage of the several commercial and residential construction projects planned in the near future.

Steps to start a construction business in Nevada

Whether it is the I-15 Tropicana Project construction project by Nevada Department of Transportation (NDOT) or the construction of a 2,000-unit, 20-block development featuring hotels and restaurants in downtown Reno, this is the best time to start a construction business in Nevada. Of course there are certain important aspects of starting this business and you will definitely need a construction company startup business plan to identify all your requirements. The following steps are necessary to ensure smooth setting up of your business in Nevada.

Prepare a business plan

The first and foremost step towards starting a construction business or any business is to prepare a business plan. A construction company startup business plan will include certain important aspects of the business so that you are able to identify the strong and weak areas and the initial finances you may require. Some of the important components of the business plan to start a construction business in Nevada are:

  • Business description: This is the most important area as this will define your construction business. There are several different types of construction companies based on the type of activity. For example, small renovation contractors with a contractor license in Nevada work on home modification or remodeling projects. Similarly, package builders have expertise in both designing and constructing buildings. This area will also include the mission, vision and values of your company.
  • Detail of Services Provided: Once you have defined the type of construction business you are planning to operate, you need to identify the services you will provide under that area of activity. As a part of the construction company startup business plan, you have to provide detailed descriptions of all the business related services. Let’s look at an example: If you plan to start a construction business in Nevada as a small renovation contractor then some of the common services offered are installing modular buildings, office build-outs, renovation and expansion, full-scale remodeling and renovations, remodeling of multi-dwelling unit, replace or repair plumbing, floor installation, and HVAC services among others.
  • Market Analysis: One of the key components of a construction company startup business plan is the market analysis. This analysis will provide you with various aspects of the target market, the target audience and existing competition. When you start a construction business in Nevada; your advertising and branding strategies will be based on market analysis.
  • Suppliers and vendors: When you start your own construction business, one of the important areas to focus on is the suppliers and vendors you will choose and what would be the cost of opting for their services. You will have to ensure the chosen suppliers and vendors provide you with high-end skill sets and materials at a cost that fits your budget. Some of the skills to look for in suppliers and vendors include work experience, area of expertise, safety performance, required insurances, and contractor license in Nevada.
  • Financial Information: This is integral to any construction company startup business plan as it will help you to identify the areas and amount of initial investment. You can also create a separate section for your assets, cash flows, loans, debts, and income projections.

Register your business

It is important to understand how to register a construction company and start a business activity in Nevada. It is important to first choose a business name and type of business you want to operate. You can form different types of businesses in Nevada like sole proprietorship, general partnership, private corporation, and limited-liability company (LLC) among others. The incorporation or formation of a new business is governed by the Nevada Revised Statutes. You can start a construction business in Nevada by submitting the necessary application form with the office of the Nevada Secretary of State. The process can be quite confusing but we at IncParadise can make the entire process simple and quick for you. As one of the top incorporation specialists and experienced registered agents in the state, we have helped incorporate several thousand businesses.

Incorporate your construction business in Nevada!

Get necessary licenses and permits

You will be required to apply for a Nevada state business license for your construction company. A state business license has to be renewed annually in Nevada. Some businesses may require multiple licenses or permits depending on the type of business. If you are starting a construction business in Nevada then finding the right business license or local permits may be perplexing but you can take advantage of our Business License Check service to help you identify the same with ease.

Apply for contractor licenses in Nevada

A contractor license in Nevada is one of the primary requirements for starting a construction business in the state. A contractor license will allow you to bid on construction projects, supervise any construction jobs, and basically run the business on your own. The biggest benefit of having a license is that it will create a professional image, which will strengthen your reputation in the long-term. There are mainly three types of contractor licenses required to start your own construction business in Nevada and they are:

  • General Engineering License (Class A)
  • General Building License (Class B)
  • Specialty License (Class C)

Insure your business

There are several types of insurance that have been specifically designed to protect commercial or residential property developers, contractors, and construction businesses. It is important to check out the available insurance options and what such insurance covers before you start a construction business in Nevada. Some of the most common types of construction insurance available include the following:

  • Builders Risk (Course of Construction) Insurance
  • Commercial and Contractor General Liability Insurance
  • Commercial Auto Insurance
  • Professional Liability Insurance

How can IncParadise help you?

The construction industry in Nevada has a huge potential for growth as there are several mega projects in the pipeline. This is the right time to plan and start a construction business in Nevada and starting a new business is never an easy task. There is a lot of documentation that needs to be worked upon and submitted and this is where IncParadise can provide assistance through its business relevant services. As one of the top registered agents in Nevada, we have experience of incorporating a variety of startups right from construction businesses to restaurants and home-based businesses.

At IncParadise, we will not only provide a range of additional services in Nevada including assistance with the process of new business registration with Nevada SOS but also effectively handle all your annual business compliances so that your business can enjoy a good standing in the state of Nevada. Get in touch with us today to know how we can help you and your business!

Are you ready to start a construction business in Nevada?