Starting a transport business in Nevada
Transportation is a vital infrastructure that drives the growth of all types of businesses as well as the economy. It is one of the most competitive industries in the US today with foreign direct investment in the transportation and logistics industry totaling $1.5 billion in 2018. The biggest benefit that you can gain by starting a Nevada transportation business is that you can facilitate the flow of goods and cater to a variety of consumer needs. Your transportation business ideas can vary from providing a local taxi service to a more luxurious limousine service and you can even focus on trucking within the United States.
Introduction to transport business in Nevada
Transportation both public and private is vital to the growth of any city, business, and economy of a state and country on the whole. The principal role of modern day transport is to improve access between several locations within a city, state or country for the larger benefit of individuals and businesses. Transportation is an important contributor of the Nevada economy and the Nevada Department of Transportation (NDOT) is responsible for improving all current and future transportation needs of the state. If you are planning to start a transportation business in Nevada, this guide will help answer all your queries pertaining to starting a new business taking into account type of transportation business, transportation business plan, Choosing a business name, and getting a tax ID (EIN) among others.
Nevada Transportation Industry
There are several benefits to starting a Nevada transportation business. These include strong infrastructure, several types of business options, excellent business climate, favorable tax situation and small business incentives. Whether you want to establish a small moving business or a trucking company, you will need to know the exact transportation business requirements as this can assist with proper operation of your business.
Transportation industry and its major sectors
The location of the silver state is excellent when it comes to starting a Nevada transportation business. The transportation industry has come a long way in the last decade with new road construction projects taking place and there are some projects in the pipeline as well. The infrastructural projects like the I-15 North Corridor project under the Capital Transportation Improvement Projects and the US 95 Northwest Corridor Improvements Project are some of the ambitious projects that are focused on improving traffic conditions making transportation business ideas very feasible.
A strong road infrastructure has made it possible for entrepreneurs to start transportation businesses in Nevada. There are approximately 30 billion vehicle miles that are driven each year in the state of Nevada. There is 5,000 miles of state road across Nevada that includes 4,428 miles of rural highway, 718 miles of urban highway, and 2,195,379 passenger vehicles accessing the roads in the state. According to a report by Nevada Department of Transportation (NDOT) trucking businesses have covered 1.7 billion miles in 2018 while public and private vehicles have traveled approximately 27.1 billion miles. There is a plan to create an 11-state Western States Freight Coalition, so that all types of businesses including manufacturing can enjoy the benefit of fast transportation of goods and access to other states in the country. The American Transportation Research Institute has ranked Nevada as the 6th best in the country when it comes to freight infrastructure planning.
Nevada is also home to economic regions and trade corridors, which provide multidirectional access to local and national markets. These corridors provide several advantages to freight-related industries and businesses as a result, it is also beneficial for a Nevada transportation business including trucking companies. The two sectors that are connected to the transportation industry are Manufacturing and Logistics sectors. Some of the key industries linked to these sectors include natural resources, mining, gaming, tourism and construction. One of the key drivers of the Nevada economy is production of consumer durable as well as non-durable goods and they are moved across Nevada and to other states using road transportation. Logistics and operations sectors include distribution, logistics, transportation, and internet fulfillment operations. Nevada is definitely the right destination for a transportation business as there are plenty of opportunities for growth but at the same time it is important to ensure that you fulfill all transportation business requirements for smooth operation.
Steps to start a transportation business in Nevada
If you are planning to start a transportation business in Nevada then it is extremely important to first identify the possible types or categories of transportation that your business can focus on. In order to do so, you need to create a proper business plan so that your transportation business ideas can be implemented. There are several requirements specific to a transportation business that you need to fulfill. So, let us take a look at the steps that you need to follow to set up your transportation business.
Choose type of Transportation Company
One of the most important aspects of any business is defining the type of business activity and when it comes to a Nevada transportation business, you need to determine the type of Transportation Company you want to operate. This will be largely dependent on which segment of the industry you want to cater to like other commercial businesses or individuals. The different classification of transportation businesses that you can incorporate and operate in the Nevada area are:
- Private Transport: This is purely for use by individuals and is most commonly known as a cab or taxi service. These days, cab services can be basic services like Uber and luxurious services like limo service. This is a Nevada transportation business that is perfect for small businesses as well as independent contractors.
- Business Transport: You can start a transportation business in Nevada targeting small, medium, and large businesses that need transportation of their personnel, time-sensitive and fragile items, and goods or merchandise among others. The transportation business ideas in this category can also include airport transfers, moving companies, courier delivery services etc.
- Transport for Trucking Operations: Starting a trucking company requires big capital and an in-depth understanding of the trucking operations. There are also different types of transportation business requirements like commercial driver’s licenses (CDLs), USDOT number, motor carrier (MC) number, and Unified Carrier Registration (UCR) among others. This type of transportation is often categorized as transport and logistics business.
- Specialty transportation: This type of Nevada transportation business can be a small or medium sized enterprise and focuses on transportation of specialized items. This is one of the popular modern day transportation business ideas and can be used for transporting a variety of things right from airplane parts to refrigerated perishables.
There are other types of transportation business ideas that you can opt for like livestock transportation, marine shipping, container transport, and senior services.
Prepare your business plan
The transportation and Logistics industry is considered to be a big game both in local or national markets as well as international markets. Today, things of daily usage are being shipped and delivered across Nevada and some of those things reach the consumer directly while others are sent to warehouses and stores. There is a lot of opportunity in this sector as you can choose what type of Nevada transportation business you want to operate. It is important though to prepare a strong business plan prior to starting the business as it will help in identifying all areas of your business including capital, funding, and operational aspects. Some of the aspects to consider in a transportation business plan include:
- Executive Summary: This is the first section of any transportation business plan and should provide an insight of the business itself, goals and objectives, type of transportation service you plan to offer, and the customer segment being targeted.
- Services: When you start a transportation business in Nevada, customers will vary according to the type of services you offer. This section of the business plan will indicate the variety of services you are able to provide. Let’s look at an example: if you opt for a public transport service then you can provide normal taxi services, luxurious taxi services, rent-a-car options, airport pick-up or drop, and even shuttle services.
- Initial Capital and Funding: One of the foremost transportation business requirements is initial capital and in case you don’t have the required capital, the top options available for funding. This stage of your business plan will provide you with an insight into expenditures involved before you start a transportation business in Nevada. The expenditures could be towards registration of the business, leasing or buying vehicles, registration of vehicles, and staff. You can also benefit from small business grants offered by the local state government in Nevada.
- Marketing: One of the final sections in your transportation business plan is marketing and promotions of your company. Depending on the type of business you will have a different customer base. Business transport may have an audience similar to private transport but the target audience for specialized transport will be completely different. Your marketing strategy should take into consideration these factors.
Choose name and right business structure
One of the important transportation business requirements is naming your business. The business name is also the brand and your customers will be able to identify your company with the name. The name has to be unique and distinguishable from any other name that exists in the state of Nevada. The Secretary of State has also issued a list of certain name restrictions that cannot be used. You can identify a list of names and then check for availability of that name with Nevada SOS. This is an important step because if the name is unavailable, you will not be able to reserve or register it. The name will also be dependent on the business structure for example; if you start a transportation business in Nevada as an LLC then the name will be “XYZ LLC”. Business structure is also important from several other perspectives like determining tax liability, asset protection, etc.
Form your business entity in Nevada
Whether you are starting a Nevada transportation business as an individual or with partners, there are several forms of businesses to choose from in the state of Nevada. Once you have chosen the desired business structure, you will need to register and form a new business by submitting relevant documents to the office of the Nevada Secretary of State. The process will require you to submit several forms and can be overwhelming, which is why IncParadise as one of the top incorporation specialists can assist you with the process. You can use our platform to form your business with ease and thus move onto the operation stage of the company.
Start a transportation business in Nevada today!
Get an EIN
The Employer Identification Number (EIN) also known as the Federal Tax Identification Number or Federal Employer Identification Number (FEIN) is one of the most important transportation business requirements. This is a nine-digit unique number that is assigned to businesses by the Internal Revenue Service (IRS) and is primarily used for tax reporting. You will have to apply for the EIN before you start a transportation business in Nevada and we at IncParadise can assist you with the process. We also have a team of professionals who can help answer any queries you may have pertaining to this Taxpayer Identification Number.
Get the necessary license and permits
When you start a transportation business in Nevada, you will need to apply for a business license or permit in order to operate in the state. The first requirement is a state business license for which you will need to apply with the office of the Nevada Secretary of State. The state business license has to be renewed annually. Apart from the state business license, you may require local permits in the county or city that your business is based in or operating from.
If you are planning to start a trucking company then this is a heavily regulated industry and in order to start operations, you may have to apply for different types of registrations like FMCSA operating authority or Standard Carrier Alpha Code (SCAC) from the National Motor Freight Traffic Association (NMFTA). Some of the transportation business requirements for operating a cab company in Nevada are driver licenses and a driver permit that is approved by the Taxicab Authority.
Depending on the type of Nevada transportation business, you may require a single or multiple licenses. One of the best ways to identify your licensing requirements is through our Business License Check services.
Open a bank account
An important requirement of any business including a Nevada transportation business is opening a business bank account. You may have a personal bank account but it is recommended not to mix business and personal earnings or expenditures as this may lead to confusion during annual tax filing. Opening a business bank account will be extremely helpful from a purely financial perspective and will necessitate the following:
- It will be easier to maintain your books
- It will ensure accurate bookkeeping as personal and business expenditure and earnings are separate
- It will be easier to file taxes
Choose the right vehicle
Since you are planning to start a transportation business in Nevada, you need to choose the right type of vehicles based on several factors. Let’s look at an example to understand this – if your transportation business ideas revolve around starting a cab service then you will need to choose a vehicle that offers high fuel efficiency, less annual maintenance cost, sufficient passenger and foot space, and more boot space among others. Similarly, if you are starting a trucking company then the most commonly used trucks in logistics services worldwide include semi trailer trucks, tail lift trucks, jumbo trailer trucks, flatbed trucks, refrigerated trucks, and straight trucks. If you choose the right vehicle, it will not only help in providing high quality service but also help save money through higher fuel efficiency and lesser maintenance.
Whether you are starting a small Nevada transportation business or a medium sized transportation and logistics enterprise, this is a sector where employees can be quite the help. You can hire people to assist in several areas of operation like part-time drivers, subcontractors, bookkeepers, and an office manager among others. You can reach out to prospective candidates through advertisement in local and regional newspapers, online job sites like craigslist, and also word of mouth. It is important to consider the fact that hiring the right employees, especially those who fulfill your transportation business requirements can ensure business growth from a long-term perspective.
How can IncParadise help you?
There is no better time to start a transportation business in Nevada than now because the state is undergoing infrastructural development that will make its access to other states much better. You can also choose from a variety of transportation businesses depending on the capital available, the market you intend to target, and the location. In order to make your company operational you will have to fulfill several transportation business requirements that may be governed by Federal and state laws but the first step is registering your business.
IncParadise can assist you with the entire process of new business formation as we have the experience of assisting more than 10,000 businesses in fulfilling their state requirements and getting transportation business ideas into life. We have a team of experienced professionals who can help you to choose the best entity or business structure for your transportation company. As a part of our services, we ensure your Nevada transportation business is able to meet the annual compliances as required by the state.