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Business Entity Conversion in Nevada

Date: 01/13/2020 | Category: | Author: Martin Pouzar

BUSINESS ENTITY CONVERSION IN NEVADA

There are different types of businesses that can be formed in the state of Nevada and each form of business has its own advantages as well as tax benefits. Now, the question if you want to change the type of business from say, an LLC to Corporation, is such an entity conversion Nevada possible?

What is Business Entity Conversion in Nevada?

An entity conversion in Nevada is a process that allows a specific form of business entity to change its jurisdiction or state of formation or incorporation as well as the type of entity it currently is. Let’s look at an example to understand what conversion is:

  • If the existing business entity is a Nevada LLC and you want to convert it into a corporation then that is possible in this state.
  • If the existing business entity is a foreign LLC or a corporation and you want to change it to a Nevada LLC or corporation then entity conversion in Nevada for a foreign entity will also be possible if the jurisdiction in the state of formation has a reciprocal statute that allows the conversion process to take place.

It is important to know that if you convert LLC to corporation in Nevada or vice versa then you are not required to dissolve the existing entity. Instead, this conversion to another form of business entity will be seen and accepted as a continuation of the entity undergoing conversion.

Types of conversion

The merger, conversion, exchanges and domestication of business entities in the state of Nevada is governed by Chapter 92A of the 2017 Nevada Revised Statutes. Entity conversion Nevada can be categorized under three specific types.

Statutory Conversion

This is a new and streamlined process of conversion available to business entities in Nevada. Statutory conversion in Nevada allows you to convert your existing business entity to a new form of business entity like LLC to corporation or vice versa. The rules for statutory conversion vary from one state to another.

Statutory Merger

The process of statutory merger to convert corp to an LLC in Nevada or vice versa is more complicated as compared to the process of statutory conversion. This method is opted for by foreign business entities where the original jurisdiction or state of entity formation does not allow statutory conversions.

Non-statutory Conversion

This is considered to be one of the most expensive and complicated process of conversion. If you were to convert an LLC to a corporation in Nevada using this process then you will have to form a new business entity first and then transfer the assets and liabilities of your existing company into the new company.

Converting Nevada Corporation to Nevada LLC

If you are planning to convert a corporation to an LLC in Nevada, what is the process? In order to help you understand the process, we have created a brief reference guide of this conversion. In the state of Nevada, a statutory conversion is governed by Nevada Revised Statutes § 92A.105 (2017). According to the statutes, one domestic business entity like a Nevada Corporation can convert into a different type of domestic entity like an LLC if a plan of conversion is approved.

The steps to convert a corporation to an LLC in Nevada are:

  1. Create a plan of conversion in writing
  2. The plan of conversion must contain the following information:
    • Name of the existing business entity (corporation) and the proposed name for the converted entity (LLC)
    • Jurisdiction of the law that governs the existing business entity (corporation)
    • Jurisdiction of the law that will govern the converted entity (LLC)
    • In order to convert a corporation to an LLC in Nevada, all terms and conditions pertaining to the conversion needs to be provided
    • Manner and basis, if there are any, of converting the owner’s interest in the existing entity into the owner’s interests and other securities in the converted entity
    • A full text of the charter documents of the converted entity or Limited Liability Company
  3. The directors of the said corporation need to approve this conversion to a limited-liability company
  4. The directors have to recommend the approval of this entity conversion in Nevada as well as the plan to the respective stockholders
  5. You need to earn a majority of votes from stockholders approving this conversion
  6. Upon approval of the plan, you will be required to file “articles of conversion” with the Nevada Secretary of state pursuant to NV Rev Stat § 92A.205 (2017).
  7. The plan of conversion should be attached with the articles and submitted along with the filing fee.
  8. You will also have to submit Articles of Organization to convert corp to an LLC in Nevada.

Once the conversion is approved by the state, you will be required to complete documentation necessary for forming the Limited Liability Company like submitted initial list, operating agreement etc.

NOTE: You will require social security number (SSN) or employer identification number (EIN) for filing all federal income tax for Nevada LLC.

Converting Nevada LLC to S Corporation

The most common reason to convert an LLC to an S Corporation is because of the tax benefits. If you are an owner of an LLC and are wondering how to convert an LLC to a corporation in Nevada then here is a brief reference guide that will provide you with an insight into the process.

The steps to convert an LLC into S Corporation in Nevada are:

  1. Create a plan of conversion in writing, which should include the following:
    • Name of the existing business entity (corporation) and the proposed name for the converted entity (LLC)
    • Jurisdiction of the law that governs the existing business entity (corporation)
    • Jurisdiction of the law that will govern the converted entity (LLC)
    • In order to convert a corporation to an LLC in Nevada, all terms and conditions pertaining to the conversion needs to be provided
    • Manner and basis, if there are any, of converting the owner’s interest in the existing entity into the owner’s interests and other securities in the converted entity
    • A full text of the charter documents of the converted entity or Limited Liability Company
  2. The members of the existing LLC need to approve the conversion to an S Corporation
  3. There has to be a conversion vote. According to Nevada laws, a majority of members or owners of the LLC have to agree to the business entity conversion in Nevada
  4. Upon approval of the plan, you will be required to file “articles of conversion” with the Nevada Secretary of state pursuant to NV Rev Stat § 92A.205 (2017).
  5. Upon approval of the plan, you will be required to file “articles of conversion” with the Nevada Secretary of state pursuant to NV Rev Stat § 92A.205 (2017).
  6. The plan of conversion should be attached with the articles and submitted along with the filing fee

NOTE: After you convert LLC to corp in Nevada, it is important to adjust the newly converted entity’s tax designation by the IRS.

Moving your business from another state to Nevada

Due to attractive business incentives and no corporate or personal tax, many entrepreneurs and small businesses like to locate or establish their business in Nevada. The question is how do you move your existing business to Nevada especially if your current jurisdiction doesn’t allow entity conversion in Nevada?

According to the Nevada Revised Statutes, there are three options for moving your business from another state and they are:

  • Dissolve home business entity and establish a new business: You can move your business instead of entity conversion Nevada by simply dissolving your existing business in the state of formation and apply for a new business. Example: If you have an LLC or Corporation in New York then you will need to dissolve it and then apply for a new business in Nevada.
  • Domesticate: If the current state or jurisdiction doesn’t allow entity conversion in Nevada then domestication would be the best possible option. Domestication is another statutory process through which a foreign business entity is allowed to become a domestic business entity in Nevada.
  • Foreign Registration: You can also move your business to Nevada by registering it as a foreign entity. You will be required to apply for Qualification to do business in Nevada.

NEED HELP MOVING YOUR BUSINESS TO NEVADA?

Nevada Foreign Corporation

Date: | Category: | Author: Martin Pouzar

NEVADA FOREIGN CORPORATION

Nevada is a land of exciting business opportunities and with no corporate and personal income tax, it presents just the right environment for a small business. This is one of the many reasons why businesses based in any other state want to explore the Silver State for growth opportunities. If your business has been registered in another state, can you register in Nevada? Yes, it is possible by registering as a Nevada foreign corporation.

What is Foreign Corporation in Nevada?

A foreign corporation is a business entity that conducts its business in a jurisdiction or state other than where it had been originally incorporated. A Nevada foreign corporation will be a business entity that conducts its business in any other state except Nevada. The foreign corporation can be an existing corporation in any other state or any other type of corporate entity like a limited liability company (LLC). Such a business entity can be a domestic corporation incorporated in another state or corporation registered outside the USA. Let’s look at an example:

A business “ANBC Inc.,” was formed in 2010 in California and is looking to expand. If the said entity wants to conduct its business in Nevada then they will have to register with the state first. It is important to know that different states have different laws and requirements for registering a foreign business entity.

How to File a Foreign Corporation in Nevada

If you already have an established business corporation in another state but want to establish it in Nevada then it needs to be registered as a foreign corporation. The formation of foreign corporations in Nevada is governed by Chapter 80 of the 2017 Nevada Revised Statutes. You will be required to file a “Certificate of Authority” with the Secretary of State pursuant to NV Rev Stat § 80.010 (2017).

The process of forming a Nevada foreign corporation is not difficult but you have to be careful and provide specific information required by the office of the Secretary of State. In order to help you identify the process for filing a foreign corporation in Nevada, we have created a step-by-step approach.

Step#1

The first step is to download the “Qualification to do Business in Nevada” form available with the Secretary of State. You can fill the information required and process to be followed as mentioned in the following steps.

Alternatively, you can save time by ordering it through us! All you have to do is just provide the necessary information regarding your business and we will take care of the rest as your registered agent in Nevada. You can also be your own registered agent and order it directly from incparadise. Through this process, you will not be required to follow any of the steps mentioned below and your application will be submitted on the same day.

Step#2

You will have to provide specific information in the certificate of authority or qualification to do business in Nevada document pursuant to NV Rev Stat § 80.010 (2017). The information required includes:

  • Name of the foreign corporation
  • Original jurisdiction or state of incorporation
  • A declaration or letter of good standing of the corporation from the state of jurisdiction or incorporation
  • Details pertaining to being a registered agent in Nevada pursuant to NRS 77.310
  • If you are registering for Profit Corporation then information pertaining authorized stock including number of shares with par value has to be provided
  • The purposes of the said corporation
  • Name, title and signature of the officer preparing the certificate of authority or qualification to do business in Nevada
  • Signature of the Nevada registered agent along with the date signed on

Step#3

Once you have completed the certificate of authority or qualification to do business in Nevada application, you will have to fill out the customer order instructions. This document is used for indicating the payment method you have chosen to submit the required fee. You will have to provide the following information in the customer order instructions:

  • The type of processing requested by you – regular or expedited
  • Name of the business entity or corporation
  • A return address
  • Contact name
  • Phone number
  • Return delivery instructions like email, fax, etc
  • The total filing fee
  • Method of payment

Step#4

The final step for registering a Nevada foreign corporation is to make the payment. The filing fee for stock corporations is dependent on the total number of authorized shares.

What does it cost to register a foreign corporation in Nevada?

The cost of registering a Nevada foreign corporation can vary according to the total number of authorized shares that the entity has. The fee based on shares is as follows:

  • If you have shares worth $75,000 or less, the fee is $75
  • If the authorized shares are over $75,000 and less than $200,000 – Fee is $175
  • If the authorized shares are over $200,000 and less than $500,000 – Fee is $275
  • If the authorized shares are over $500,000 and less than $1,000,000 – Fee is $375
  • If the authorized shares are over $1,000,000 then the fee for the first $1,000,000 will be $375
  • For each additional $500,000 worth authorized shares or any fraction thereof will have a fee of $275
  • The Maximum fee applicable will not exceed $35,000

How long does it take for the state to process the Nevada Certificate of Authority?

The normal time it takes to process the certificate of authority or qualification to do business in Nevada application is around 30 business days. There is always the option to opt for expedited processing for which there will be an additional fee. Either option that is regular and expedited processing is available if you hire IncParadise as your Nevada resident agent.

Will I need a Nevada registered agent for Nevada Foreign Corporation?

The corporate laws in most states in the U.S including Nevada, requires each and every business entity formed or registered in the state, to designate as well as maintain a commercial or registered agent in that state’s public records. According to NRS 77.310, NRS 77.390 and NV Rev Stat § 80.060 (2017) of the Nevada Revised Statutes, a Nevada foreign corporation has to designate as well as maintain a registered agent in Nevada to enable service of process.

Will I need a Nevada annual report for my corporation?

An annual report is also known as an annual list in the state of Nevada. Each foreign corporation conducting business in this State has to submit an annual list with the Secretary of State pursuant to NV Rev Stat § 80.110 (2017). This list has to be filed annually on or before the last day of the anniversary month or the month in which the qualification to do business application or Certificate of Authority was filed. So, if you had filed for qualification in December 2018 then you will have to file the annual list by December 31, 2019.

The annual list or report should contain the names and addresses, of the entity’s secretary, president, treasurer, or all of its directors. The annual list for a Nevada foreign corporation has to be signed by an officer of the corporation or any person authorized by the entity to sign the report.

How IncParadise helps you with Nevada Foreign Corporation

Sometimes, filing of paperwork and the entire process of qualification of a Nevada foreign corporation can be overwhelming. It is important to know that incorrect information or lack of details in the Nevada foreign incorporation application can lead to the Secretary of State rejecting the documents. This is where IncParadise can provide its expertise and a team of experienced professionals to ensure you are able to submit your incorporation documents on time and it contains all the information as required.

If you hire IncParadise as the registered agent for your Nevada foreign corporation then your business can benefit from the following services:

  • Service of process i.e., accepting any legal notices from the state on behalf of your foreign corporation including summons and subpoenas
  • Help your foreign corporation to file their certificate of authority or qualification to do business in Nevada application
  • Provide information on how best you can form a Nevada foreign corporation and what information and documentation is required to be submitted with the state
  • You can benefit from our highly secure dashboard that will help you to submit your annual report online
  • You will also get annual report due date alerts so that the report is submitting on time thus avoiding penalties
  • Provide additional services like filing of annual report, getting EIN or Tax ID, application for a business license etc.

EXPAND YOUR BUSINESS IN NEVADA WITH FOREIGN QUALIFICATION!

Nevada Business Tax

Date: | Category: | Author: Martin Pouzar

NEVADA BUSINESS TAX
– ALL YOU NEED TO KNOW

Whether you are an entrepreneur planning a start-up in Nevada or an individual with a medium sized business idea; the state is a tax haven for all types of businesses. Does this mean you will never have to pay any type of Nevada business tax? Although there is no corporate or personal income tax, there are specific taxes that may be applicable depending on the type of business and revenue generated.

Informative Guide to Nevada Business Taxes

Most states in the US have a tax structure under which business income derived from the activities in the state are taxed. How a Nevada commerce tax will be levied is normally dependent on the legal form of the business.

It is important to know that corporations in most states are subjected to a corporate income tax and pass-through entities like limited liability companies (LLCs), S corporations, sole proprietorships, and partnerships are subjected to a personal income tax or some form of state tax on personal income. The tax rate for corporate and personal income can vary from one state to another. Currently, businesses are not required to pay Nevada business tax or corporate and personal income tax and this is applicable for 5 other states, namely Texas, South Dakota, Ohio, Washington, and Wyoming.

However, Nevada does have a form of gross receipts tax to be paid by corporations registered in the state. In order to ascertain the type of Nevada business tax you may have to file in the state, it is important to understand that taxes exist in the form of federal, state, and local tax.

Taxes for Nevada LLC

A Nevada limited liability company is considered to be a pass-through tax entity. An LLC can choose the type of Nevada business tax treatment from the following options:

  • A Nevada limited-liability company can elect to be taxed as an S Corporation. In such a scenario, the LLC will be required to file Form 8832 and Form 2553 for Nevada business tax. What is Form 8832 and Form 2553? The IRS Form 8832 is known as the “Entity Classification Election” form. If an LLC doesn’t file the form then it will be provided a default tax classification status and this can lead to paying higher taxes. The Form 2553 is required for confirming that the LLC wants to be taxed as an S Corporation.
  • A Nevada limited-liability company can also elect to be taxed as a C Corporation. It will be required to file Form 8832 for the same. The LLC will also be required to file a form 1120 for corporate tax return and pay Nevada commerce tax on its profits at the corporate tax rate. If the limited-liability company has profits distributed as dividends to the LLC owners then those dividends will be taxed too.

Most often than not, in order to avoid the double taxation of a C Corporation, a Limited Liability Company opts to be taxed just like an S Corporation. It is important to know that if a Nevada LLC chooses the above Nevada business tax treatment then they will not be able to change their tax treatment for a period of five years.

Federal Taxes for Nevada LLC

When it comes to federal taxes, a Nevada Limited Liability Company needs to consider several aspects so that it is not taxed incorrectly. In reality, the Internal Revenue Service (IRS) does not recognize a limited-liability company as a taxable entity but it is also a standard for the IRS to tax an LLC based on the number of owners or members in the company. The Nevada business tax for a limited-liability company can be that of a sole proprietorship if there is a single member or owner and that of a partnership if there is more than one member.

  • Single Member LLC: A single member LLC is also known as a disregarded entity. This simply means that an LLC will retain its protection from liability clause but at the same time the business will be treated like a sole proprietorship and the activities of the member or business will reflect on the federal tax return. Apart from this, all items pertaining to Nevada business tax like income, gain, deduction, credit and loss have to be reported on Schedule C, E or F of the said individual or member’s personal income tax return.
  • Multi-Member LLC: If the LLC has multiple members, what would be the Nevada commerce tax? Partnerships are considered to be flow-through business entities when it comes to federal tax. The partnership will not be subject to taxes but individual items like income, gain, deduction, credit and loss will flow through to the individual member’s or partners personal tax return. The member’s will be taxed at the personal income tax rates. The LLC would be required to file a Form 1065 – Return of Partnership Income and also report income and loss in Form 1040 – Individual Income Tax Return.

NOTE: You will require social security number (SSN) or employer identification number (EIN) for filing all federal income tax for Nevada LLC.

Modified Business Tax

MBT or Modified Business Tax is a type of Nevada commerce tax that is applicable to two types of categories and they are:

General Business

General business is considered as any employer who will be required to pay a contribution to the Department of Employee Training and Rehabilitation/Employment Security Division pursuant to NRS 612.535, in any calendar quarter. Businesses excluded in this category include Indian tribes, nonprofit organizations, financial institutions, and political subdivisions. The Nevada business tax as defined for the general business category is pursuant to NV Rev Stat § 363B (2017).

The tax rate is 1.475% on wages. This is after the deduction of any health benefits paid by the business or employer. One of the salient aspects is that the first $50,000 of gross wages will not taxable.

The Nevada business tax returns are normally due by the last day of the month following the calendar quarter in which the limited-liability company is required to pay the Unemployment Compensation pursuant to NRS 363B.110. It is important to note that there is a late filing penalty of 10% pursuant to NRS 360.417 and the interest will be calculated at .75% per month on the entities unpaid tax balance.

Financial Institutions and Mining

A Financial institution from the perspective of the MBT category is an entity that is required to pay a contribution pursuant to NRS 612.535 for any calendar quarter towards any type of business activity of the said institution. Mining under Modified Business tax category is pursuant to NV Rev Stat § 363A.030 (2017) and is an individual subjected to the Nevada business tax on the net proceeds of minerals in accordance with the provisions of NRS 362.100 to 362.240. Businesses excluded in this category include Indian tribes, nonprofit organizations, credit unions pursuant to NRS 678, and political subdivisions.

The Nevada business tax rate for financial institutions is 2% on the gross wages including financial institutions and net proceeds of minerals entities. This is after the deduction of any employee health care benefits that have been paid by the business or employer.

It is important to note that there is a late filing penalty of 10% pursuant to NRS 363A.130 and the interest will be calculated at .75% per month on the entities unpaid tax balance.

Commerce Tax

Nevada commerce tax is a type of business tax applicable on the privilege of engaging in business in the state. The term “engaging in business” stands for conducting, commencing or continuing a business. The term also takes into account business activities like exercising franchise or corporate powers as well as liquidation of a business entity.

The Nevada commerce tax return has to be filed by any business entity whose gross revenue within a taxable year is more than $4,000,000. A business would be taxed irrespective of the type of entity and hence a limited-liability company (LLC), limited-liability partnership, C- or S-corporation, sole proprietorship, and business or professional association will be required to file the return.

There are certain entities that are exempted from Nevada commerce tax and the list of such entities is available with the Nevada Department of Taxation.

Payroll Taxes

Nevada is one of the few states that do not have personal income tax. The types of Nevada commerce tax that businesses normally have to pay include modified business tax (MBT); employer paid state unemployment tax, and Nevada Bond Factor Tax also known as new employer tax. Payroll tax imposition in Nevada is governed by NV Rev Stat § 363A.130 (2017).

Payroll tax is a type of excise tax that is levied on each employer in Nevada. The rate of this type of Nevada business tax is different for general business category and for financial institutions and mining.

General Business

Imposition of excise tax at the rate of 1.475% of the wages paid by an employer. This tax is paid by the employer during a calendar quarter on amounts that exceed $50,000 and this is pursuant to NV Rev Stat § 363B.110 (2015). There is an allowable credit of 50% of the amount of Nevada commerce tax paid by business entities or employers in the preceding taxable year.

Financial Institutions and Mining

Imposition of excise tax at the rate of 2% of the wages paid by an employer pursuant to NV Rev Stat § 363A.130 (2017). There is an allowable credit of 50% of the amount of Nevada business tax paid by business entities or employers in the preceding taxable year.

A NEVADA BUSINESS ENTITY ENJOYS SEVERAL TAX BENEFITS!

Startup Resources for Nevada Entrepreneurs

Date: | Category: | Author: Martin Pouzar

STARTUP RESOURCES
FOR NEVADA ENTREPRENEURS

Is Nevada the right place for entrepreneurs? Yes, most definitely! The state does offer several advantages to small or start-up businesses like incentives, no corporate or personal income tax, strong and flexible regulatory framework, protection and privacy. Apart from these advantages, an entrepreneur would require Nevada startup resources and this is where the Silver State stands apart from the rest – it provides the perfect “start-up ecosystem!”

All You Need to Know about the Nevada Startup Ecosystem

What is a start-up ecosystem and how does it work? A start-up ecosystem is a type of Nevada startup resources platform that is formed by people as well as start-up business that interact in the form of a system to further create new startup businesses. A startup ecosystem may constitute a variety of Nevada start-up resources including research organizations, funding organizations, service providers including legal services, support organizations like incubators, and government organizations like trade departments.

A healthy startup ecosystem finds ways to provide Nevada business resources to any start-up or entrepreneurs. Some of the components of such an ecosystem include:

  • Entrepreneurs and Entrepreneurship Education
  • Ideas and inventions
  • Research
  • Startup events
  • Intellectual property rights
  • Startups existing in various stages
  • Angel investors
  • Startup advisors and mentors
  • Different types of business focused people
  • Other organizations or individuals providing start-up activities

There are several advantages of a startup ecosystem especially for an entrepreneur or new business.

1. Financial Advantage

Financial advantage is one of the key factors that ensure a start-up ecosystem is strong and sustainable. There are several Nevada startup resources that provide a financial advantage to new businesses planning to register in the state.

The financial advantage lies in several venture capital programs designed as a part of Nevada start-up resources. These programs provide the capital necessary to jumpstart a project, business venture, or simply bring an idea to life. Some of the top financial programs that businesses can benefit from in Nevada are:

  • Battle Born Venture Program: This is a “Growth Escalator Venture Program” targeted at startups or small businesses. It is a venture capital program that is being overseen by the Nevada Governor’s Office of Economic Development (GOED) and falls under the US Treasury’s State Small Business Credit Initiative (SSBCI). It is one of the best Nevada business resources as it provides financial assistance to Nevada start-ups in industries like agriculture, aerospace & defense, healthcare, water, energy, logistics & operations, IT, manufacturing, tourism & gaming, and mining.

Some of the other top venture capital options for start-ups in Nevada include “VegasTechFund” by VTF Capital, Redhills Ventures LLC, and SilverRidge Ventures.

2. Business Advantage

Nevada start-up resources provide a strong business advantage and sustain the start-up ecosystem in the form of collaboration with other new businesses or start-ups sharing of experiences, accessibility to entrepreneurship training.

Most entrepreneurs face moderate to severe challenges in the emerging markets and this is where business advantages in the form of Nevada business resources help them to sustain their venture amidst the competition and challenges. Financial resources are important and second to that are a variety of business resources professional mentorship, networking opportunities, and facilities like co-working spaces. Let’s take a look at some of the business resources that entrepreneurs will have access to:

  • Adam’s Hub: This is a business collaboration hub situated in Carson City, Nevada with a mission to inspire entrepreneurs and start-ups to find ways to turn their big innovation or ideas into smart businesses. The initiative provides businesses with a state-of-the-art facility consisting of a collaborative workspace. Entrepreneurs can access educational tools, business services, and get valuable insights from hub advisors & strategists to successfully launch, accelerate, and grow their start-ups.

There are several other valuable Nevada business resources that entrepreneurs can benefit from like:

  • Asset protection for businesses of all sizes
  • Strategic location including proximity to California and the West Coast markets
  • Different types of industries that small businesses or start-ups can be a part of
  • Availability of highly skilled workers
  • Availability of a variety of services like mentoring, government contracting, business financing, certification assistance, sourcing bid and procurement opportunities among others.

Key Industries in Nevada

The state of Nevada is considered to be a major innovation hub and according to a report by Fortune, the Silver State has rapidly emerged as an “Energy Tech Hub.” The Tesla Gigafactory outside Reno has been joined by several other high-tech businesses involved in energy technology like electric cars, battery recycling, and futuristic transportation. This is where Nevada business resources play an important role in providing the necessary assistance to push tech or any other innovation.

Of course, there are several industries that entrepreneurs can consider for their start-up like manufacturing, which is considered to be the fastest growing industry especially in Northern Nevada. The key industries that will help a start-up business to grow and be sustained include:

  • Manufacturing Industry: One of the fastest growing industries, it provides businesses with 80 million square feet of affordable commercial or industrial real estate. One of the prime Nevada start-up resources in the manufacturing industry segment is the Foreign Trade Zone that helps in reducing or deferring duties.
  • Logistics, distribution and e-commerce: This is one of the leading industries that a start-up or any entrepreneur can venture into. There are distinct advantages that can assist with business growth and expansion like extensive transportation network, Air Cargo options, 65 trucking firms providing overnight delivery, and Opportunity Zones in the Greater Reno-Sparks area.
  • Clean Energy: This is another area where entrepreneurs can find a variety of Nevada business resources to assist them with a start-up. There are opportunities in different areas of clean energy like Geothermal Power, Bio-fuels, Wind and Solar power.

An idea is not limited to a specific industry and entrepreneurs can bring their idea to life in just about any industry because Nevada offers a strong platform and generous resources to help sustain such ideas.

Important Resources for Nevada Entrepreneurs

Start-up ecosystems are an important catalyst that helps entrepreneurs in exploring different business ideas and options. Nevada start-up resources help in keeping start-up ecosystems alive by providing entrepreneurs with necessary assistance and a platform to kick start their business. The question is where to find the right resources for Nevada entrepreneurs.

The Nevada business resources for entrepreneurs can be categorized as under:

  • Entrepreneurial Meetups: This is a type of platform that helps entrepreneurs meet up with other entrepreneurs, action groups, marketing professionals, funders, and other start-up owners. A start-up or small business can use this platform to access required Nevada business resources like the “Las Vegas Entrepreneur Business Network” brings together entrepreneurs and business owners so that they can create contacts and form strategic alliances.
  • Entrepreneurial Events: Events are quite an integral part of the Nevada start-up ecosystem as they provide the opportunity for entrepreneurs to work forward on their ideas. Entrepreneurial events help in providing Nevada start-up resources in the form of networking and other events that:
    • Help create contacts for business and funding
    • Provide planning, advising, and counseling services
    • Focus on maximizing business value through informative lectures
    • Help in the development of entrepreneurial capacities
    • Promote mentoring workshop to help start-ups in growing, scaling up, or expanding
    • Showcasing how to increase cash flow
    • Enable entrepreneurs through marketing workshops
  • Startup Competitions: This is quite different from any other Nevada start-up resources as it provides entrepreneurs with the opportunity to win cash and other prizes. One example of such a competition would be the “Business Pitch Competition” organized as a part of the Governor’s Conference and where-in Nevada based start-ups have the opportunity to make a two-minute pitch and win $16,000 in cash and prizes. The CES 2020 at the Eureka Park is one such event that comprises of start-up competitions or pitch competition.

Grants and Incentives for Nevada Entrepreneurs

Nevada with a growing economy is a hub for futuristic innovation. It provides an interesting environment and strong platform for small businesses. It is never an easy path to walk, especially when an entrepreneur decides to flow with their idea. There are several areas that may worry an entrepreneur like finances or starting up cost and its sustenance as well as growth. This is where Nevada business resources for start-ups matters as it provides the necessary boost to any start-up idea.

One of the most important types of Nevada start-up resources are grants and incentives that Nevada entrepreneurs can access. The most popular grants and incentives programs for Nevada start-ups include:

Grants

It is important to understand that there are two types of grant options available to entrepreneurs and they are borrowing of funds (debt equity) or selling ownership interest in exchange for capital (equity financing). Of course, as an entrepreneur in Nevada, you can also choose from different types of grants that can be categorized under Federal grants, state and local grants, and industry specific grants. Some of the top Nevada business resources in terms of grants include:

  • Grants under Small Business Innovation Research (SBIR) program
  • Grants under Small Business Technology Transfer (STTR) program
  • Federal and State Technology Partnership (FAST) Program
  • The Small Business Administration (SBA) federal financial assistance program
  • The Zach Grant
  • The National Association for the Self Employed (NASE) Grants for small business

Incentives

There are a variety of incentive programs available for Nevada entrepreneurs and most of them are being provided by the Governor’s Office of Economic Development (GOED) and the Nevada Department of Business & Industry. These incentives are important Nevada start-up resources that will aid with the growth of a small business. Some of the top incentive programs that entrepreneurs can consider include:

  • Sales and Use Tax Abatement on equipment purchases
  • Modified Business Tax Abatement
  • Personal Property Tax Abatement
  • Data Center Abatement
  • Silver State Works Employee Hiring Incentive
  • Opportunity Zone Incentives
  • New Markets Tax Credit Program
  • Workforce Innovation for the New Nevada (WINN) program

IncParadise – Incorporation & Registered Agent for Nevada Business

The possibilities are infinite when it comes to transforming an idea into a self sustaining business model in Nevada. As an entrepreneur, you will find an abundance of Nevada start-up resources that you can access with ease. Nevada is a rapidly growing economy that provides just the right platform for start-ups and investors alike. We at IncParadise believe that once you form a business in Nevada, you will be able to benefit from the resources, incentives, grants, entrepreneurial workshops, and networking events. We will assist you with the entire process of incorporation or registration of your startup. Since, we are one of the top registered agents in the Silver State; we can help you to transform your idea into reality in the minimum possible time.

IncParadise offers entrepreneurs and start-ups with a portfolio of additional services that support Nevada business formation. Some of the additional services include filing of Nevada Initial List & Annual Report, Nevada Mail Forwarding services, Certificate of Good Standing, Foreign Qualification, and filing of DBA – Fictitious Name among others. Check our full range of additional services to derive maximum benefit for your business.

FROM YOUR STARTUP BUSINESS IN NEVADA WITH EASE!

Friendly State

Date: | Category: | Author: Martin Pouzar

NEVADA A BUSINESS FRIENDLY STATE IN THE USA

The primary driving force behind the rise in the number of small businesses in Nevada registration is its “business-friendly state” tag. Surely, Nevada offers a host of benefits to small businesses and medium sized enterprises (SME’s) but the low-regulation environment and streamlined new business documentation approval process lays the foundation for the pro-business environment.

Introduction – About Nevada

The state of Nevada enjoys a strong economy and is home to 254,337 small businesses. The Real Gross Domestic Product (GDP) of the state was $146.22 billion in 2018 and the economy grew at an annual rate of 3.3%. The city of Las Vegas is one of the most popular business locations in the state and is home to 55,856 companies. Why start a business in Nevada? There are several reasons why Nevada is a favorite among entrepreneurs and start-ups and this includes the various advantages the state offers.

Advantages of Incorporation in Nevada

The first question you would probably be faced with is – why start a business in Nevada? Nevada, like any other state in the U.S has its own advantages and disadvantages but there are several benefits that support overall business growth. Let’s look at some of the advantages:

Nevada Tax Benefits

State and Federal Taxes are applicable to startup Nevada businesses as well as existing businesses. What makes the state of Nevada different is the variety of tax benefits that new and existing businesses can derive. The benefits can be classified as under:

  • Pro-Business Tax Structure: The state of Nevada has been attracting new businesses and one of the catalysts is the pro-business tax structure. It has experimented with different business policies to ensure entrepreneurs and start-ups face minimal hiccups in forming and conducting their business. It is almost a “No tax” state and a start-up Nevada business can benefit from the following:
    • No Personal Income Tax
    • No Corporate Income Tax
    • No Inventory Tax
    • No Estate Tax or Gift Tax
    • No Unitary tax
    • No Franchise Tax
    • No Special Intangiable Tax
    • No Inheritance Tax
  • Tax Abatement Programs: If you have a “why start a business in Nevada” list then the tax abatement programs offered by the Nevada Governor’s Office of Economic Development (GOED) should be on the list. Tax abatements are applicable on different aspects and expenses of a business like capital equipment purchases and real or personal property. Tax abatement programs help you bring down the overall operating costs of your business leading to savings. Some of the top programs include:

Privacy and Anonymity

One of the finer aspects of the why start a business in Nevada list is the amount of privacy and anonymity that a start-up can enjoy. The best way to enjoy privacy is by hiring a reliable Nevada registered agent as they will ensure the business is able to avoid embarrassing situations especially in front of their clients. This is possible as an agent will receive any notices from the office of the Secretary of State as well as meet any state department officials like sheriffs on your behalf. As a result, a business in Nevada will also be able to maintain anonymity. Thus it is one of the greatest benefits of the privacy protection as it helps towards protecting business owners from creditors and litigation.

Whether you form an LLC or a business corporation, the state of Nevada ensures privacy to all shareholders, corporate officers, directors, vice-presidents, managers, and members among others. As a result, identities of primary members or directors of a Nevada business remain undisclosed.

Limited Liability and Statutory Protection

Why start a business in Nevada? There are several benefits and the pro-business law of Nevada makes it easier for businesses to form and operate in the state. A highly attractive state for new businesses, the state provides excellent limited liability protection and asset protection options to business owners.

A private corporation in Nevada can benefit from NRS 78.225 on stockholders liability. According to the statute, there is no individual liability applicable for a Nevada business except for payment for which the shares in question were authorized for issue or as specified in the subscription agreement.

Further, Nevada Statutes NRS 78.747 states that a director, stockholder, or officer of a business corporation will not be individually liable for any liability or debt of the said corporation unless such an officer or director is the alter-ego of the Nevada business entity.

One of the salient aspects of forming an LLC business in Nevada is that the business entity will not be liable for any personal debts of the members. Hence, any property or bank accounts of the limited-liability company cannot be taken by creditors thus providing the LLC with protection.

No IRS Information Sharing

The Internal Revenue Service (IRS) is a federal agency and it has an Information Sharing Agreement (ISA) with almost 33 states but Nevada is definitely not one of them. This is one of the salient aspects of the why start a business in Nevada list and benefits. It is important to understand though that the sole purpose of the Information Sharing Agreement (ISA) is to fight abusive tax avoidance.

Nevada, unlike other states has no information sharing agreement with the IRS and hence corporate or personal financial records are not provided to IRS. This is more so because Nevada does not have any corporate or personal income tax. This definitely provides anonymity and privacy to any Nevada business.

Stock Flexibility

One of the advantages that a Nevada business corporation has over other forms of businesses is the stock flexibility. This refers to the fact that corporate obligations towards real estate or services can be easily handled through the issuance of stock and the value of such stock can be determined by the director.

When you think about starting a business in Nevada; stock flexibility is definitely a reason to consider. In fact, a Nevada Corporation can issue a variety of stocks with different values and these stocks can be sold or exchanged for real estate, goods, cash etc. The information pertaining to the stocks have to be mentioned in the articles of incorporation.

There is another aspect that is beneficial to a Nevada business and that is the existence of stocks or shares in the form of “bearer shares”. Such a share provides direct ownership of the said stock by any individual currently holding the shares. This is quite beneficial in emergency situations like hostile litigants wherein it eases the temporary transition in ownership.

One of the highlights of bearer shares is that it provides privacy as well as asset protection.

Fast and Super Easy Incorporation Process – How IncParadise helps

If you have decided to register a Nevada business corporation then IncParadise makes the registration an easy process. In the state of Nevada, a business corporation can be formed by one or more persons and it is legally recognized under the 2010 Nevada Code-Chapter 78 Private Corporations.

IncParadise has been assisting several start-ups with the formation of Nevada Business Corporation. As one of the most reliable agents in the state, we provide an easy and transparent process. We can help you form a corporation by providing the following services:

  • Assist with the process of business name reservation
  • Assist with the filing of the articles of incorporation
  • Provide online assistance regarding any information pertaining to formation of a Nevada Business Corporation
  • Assist with the application process for a Nevada certificate of good standing for an additional fee
  • We can file the Nevada Initial List and apply for a Business License on your behalf
  • We can help you obtain an EIN (Tax ID) from IRS on your behalf at an additional fee
  • We will provide you with file stamped copy of Articles
  • We also provide company bylaws and ready to fill Stock Certificates

Apart from the standard incorporation services, you can benefit from our Nevada mail forwarding and other additional services accessible through a secure online account.

Enjoy Tax Advantages in Nevada for your Business!

Cost of Doing Business in Nevada

The state of Nevada is considered as one of the most competitive markets for new businesses. If you want to know why you should start a business in Nevada then the answer lies in one of the factors that make this state so attractive. That factor is low overall cost of setting up a business. Apart from the zero inventory tax, Nevada boasts of a strong transportation infrastructure and a favorable geographic location.

The Nevada laws are pro-business and it is fairly easy to set up a Nevada business. Some of the factors contributing to the low overall cost of doing business include:

  • Low licensing fee, annual fee, startup fee, and regulatory fee
  • The state has an abundance of highly economical commercial and industrial real estates
  • The utility rates for business or commercial operations are highly competitive and there are several incentive programs that provide rebates for electric utility customers like the Solar Energy Systems Incentive Program (SESIP).
  • A Nevada business will benefit from lower shipping and storage costs due to the state’s proximity to California or west coast markets.
  • Entrepreneurs and businesses can take advantage of the foreign trade zones (FTZs) in Reno and Las Vegas as such zones provide logistical benefits, duty reduction and elimination on specific goods and projects.
  • The state provides really competitive air cargo costs that will benefit those businesses that require shipping by air.
  • A Nevada business can benefit from the fact that the state doesn’t have any personal income tax, corporate income tax, unitary tax, and franchise tax.
  • The state and county provide start-ups the opportunity to save costs and grow by utilizing a variety of Nevada business incentives.

Nevada Government Support for Businesses

The Nevada economy and markets have been changing and evolving constantly while providing positive outcomes. Due to the low cost of doing business, the number of start-ups being formed in the state have increased. Businesses are flourishing thus creation of new Nevada businesses or industrial hubs like the City of North Las Vegas are also experiencing rapid economic development. Amidst all this, the support structure provided by the Nevada State to small businesses are playing a key role.

Some of the key factors in the “why start a business in Nevada” list are the numerous incentive and pro-business programs being implemented by the state of Nevada, Department of Business and Industry. Let’s look at what type of support infrastructure is

  • Procurement Assistance & Outreach (POP): Selling the products or promoting specialized services offered by a start-up Nevada business to the government can be quite an overwhelming process. Hence, the Procurement Technical Assistance Center (PTAC) implemented the Procurement Outreach Program (POP) with cooperative agreement with the Department of Defense (DOD) and Defense Logistics Agency (DLA) to provide assistance to small businesses in their efforts in contracting federal, state and local government projects.
  • Financial Resources: If you are checking your why start a business in Nevada list or how is Nevada different, then financial support is definitely a driver of businesses in this state. The support is being offered by Nevada Governor’s Office of Economic Development (GOED) through accessibility to various financial resources. Some of the popular financial resources include Industrial Development Revenue Bonds (IDRBs), the Silver State Opportunities Fund (SSOF), the Nevada Microenterprise Initiative (NMI), State Small Business Credit Initiative, Nevada Catalyst Fund, and the U.S. Small Business Administration (SBA) loan programs.
  • Nevada Opportunity Zones (OZ): Nevada Governor’s Office of Economic Development is responsible for implementing the Opportunity Zone program for new and existing Nevada business. The program is a type of tax incentive that has been designed to encourage long-term investments especially in low-income communities. There are specific areas that have been designated as opportunity zones and you will need to form your business in such a zone to derive benefit.

NEED HELP STARTING A BUSINESS IN NEVADA?

Nevada Doing Business As

Date: | Category: | Author: Martin Pouzar

NEVADA DOING BUSINESS AS
– EVERYTHING YOU NEED TO KNOW

One of the important considerations to be made while registering a business entity is identifying if you require a Nevada doing business as (DBA) registration. DBA refers to an entity that is said to be “doing business as” when the name they are operating under is different from their registered name.

Nevada DBA – Doing Business As

A Nevada doing business as (DBA) name is also known as an “assumed name”, “trade name” or “fictitious business name”. A business entity can assume any number of DBAs as there is no defined limit in the business laws. It is also important to note that unless you file for a DBA, you will not be able to conduct your business in any other name.

What is a DBA?

In order to understand Nevada doing business as (DBA), we need to understand what type of businesses requires DBA registration. A Nevada business would require a DBA registration if they want to transact business with any other name except for their registered name. In other words, every new or existing business has a “true name” also known as the legal name.

The legal name of a partnership or sole proprietorship would be the name of the business owners. The case is not the same for a business corporation, limited-liability company (LLC) or any other statutory business entity. The business name for such entities would be the name that has been mentioned or approved in their formation or incorporation documents. If and when a business entity requires a trade name, they will have to file a DBA or fictitious business name in Nevada. For example, if the owners of a start-up business named “Black Hat” want to conduct business as “Cryptic Linux” then they will have to file a DBA.

When you need a DBA?

If you are planning to register a new business in Nevada or have a business in any other state but are planning to start in Nevada using a different name then you will need to file for a Nevada doing business as (DBA).

It is important to understand that registering a fictitious business name in Nevada is not the same as incorporating your business and both have different processes. If you register the DBA without forming or registering your business entity in the state then the business will not be recognized under the law.

There are several reasons why a business entity or owner may need to register a fictitious business name in Nevada and some of these are:

  • New Name: The foremost reason for adopting a Nevada doing business as (DBA) name is if the owners don’t want to conduct business under their personal name. This is true for partnerships and proprietorships. If you are planning to register an LLC or business corporation then also the reason would be the same, which is not to use the legal name or registered name of the company.
  • Privacy: If you or your business requires privacy then you can opt for a fictitious business name in Nevada. In Nevada, once you register your business name or personal name for business purposes, it will automatically go on public record.
  • Distinctive Name: There are times when a business may register a name and realize that the name has no connection with the business. For Example: If you have a Plant Nursery and you have registered it as Joe Fish (owner name) or Green Leaf LLC then you can file for a Nevada doing business as (DBA) as Potting Plants. The name would provide a clear insight at what the business offers or its activities.
  • Bank Requirements: A bank may require an entity to register a DBA to facilitate the opening of a business account. This is true in cases of sole proprietorships and general partnerships. You may be required to show the bank copy of documents for a fictitious business name in Nevada filing or even assumed name certificates as proof.
  • Expansion: If your existing business is expanding into another area that is completely different from the current business activity then filing a Nevada doing business as (DBA) name will definitely be a distinct advantage.

Do you want assistance with DBA in Nevada?

How to choose a fictitious business name

There are specific laws in place when it comes to adopting a fictitious business name in Nevada. It is important to note that there are some limitations applicable to adoption of certain fictitious names pursuant to NV Rev Stat § 602.017 (2017). In order to choose the correct DBA for your Nevada business entity, you need to consider the following:

  • A person or individual cannot adopt any Nevada doing business as (DBA) name that has “Corporation,” “Incorporated”, “Corp.,” “Limited Liability Company”, “L.L.C.” or “LLC” in its title unless they own a business corporation or Limited-Liability Company.
  • You can brainstorm concepts or ideas pertaining to a DBA in the same way that you would choose a standard business name.
  • You need to ensure that the chosen fictitious business name in Nevada is distinguishable from any other name that exists in the records of the County Clerk. You can conduct your search with the county where you are planning to operate your business from. For example: If you are planning to form a business in Clark County then you can search for a DBA in their Records Search System.

How to file a Nevada DBA

It is important to know that in Nevada, a DBA is not filed at the state level and instead you will have to file it with the County Clerk’s office. The filing requirements as well as fictitious business name in Nevada requirements may vary from one county to another.

Nevada DBA Forms

If you plan to establish your Nevada business in Clark County you can file the DBA directly or We at IncParadise can assist you with the filing to save time. The fee for the Nevada doing business as (DBA) filing with the Clark County Clerk’s Office would include the following:

  • NV Clark County DBA filing – $75
  • USPS Shipping of Certificate – Free
  • USPS Express Mail Shipping of Certificate – $30.50
  • USPS Express International Shipping of Certificate – $74.25

Your Nevada DBA will expire 5 years from the date of filing and you will have to renew same from the respective county clerk office.

How IncParadise can help you with Nevada DBA

IncParadise is one of the most reputable registered agent in Nevada and we can assist you with the process of business formation as well as Nevada doing business as registration. We provide DBA filings in Clark County, Nevada and this ensures you are able to use your fictitious name for conducting business in cities like Las Vegas, North Las Vegas, Henderson, Boulder City, and Laughlin.

We can also provide assistance with finding the right fictitious business name in Nevada and thus help you avoid using any names that the state of Nevada may find to be deceptive. This will ensure timely filing of the DBA.

GET YOUR DOING BUSINESS AS!