Las Vegas may be famous for the strip. Many films and pop culture depict the city as a place where people go to gamble, get drunk, and party all night. While it is true for Las Vegas, it often overshadows the real glitter of Las Vegas, particularly for startups.
Unknown to many, Nevada consistently ranks as one of the U.S. most business-friendly states. In Forbes list of Best States for business, Nevada ranked 21st. In CNBC’s Top States for Business, Nevada took the 29th spot and for the U.S. News 10 Best States for Business, Nevada was in the 6th spot. If these are enough reasons for you to consider starting a business in Las Vegas, we’ll help you get started on your journey.
Here are the ten things new entrepreneurs in Las Vegas should know:
1. Affordable Cost of Living
Las Vegas has a low cost of living. Unlike well-known startups hubs like Boston, Bay Area, and New York, Las Vegas’ cost of living is way below the national average.
2. A Slew of Tax Breaks
Nevada is a business-friendly state because of its tax climate. Businesses find it liberating that they do not have to shoulder a slew of taxes. Nevada does not impose the following taxes:
- Personal income tax
- Business income tax
- Franchise tax
- Gift tax
- Inheritance tax
- Unitary tax
- Estate tax
3. Thriving Startup Scene
Las Vegas is fast-becoming a startup haven as more and more startup founders choose to do business in the state. Why? Because the state provides an excellent space for small businesses to thrive. Founders find the state cheaper to run a business since they can acquire cheaper office spaces and rental homes. Developer talent is also as bright as the strip.
4. Business Licences are Mandatory
While Nevada ranks highly in terms of providing an avenue for growth for small businesses, they are extremely strict when it comes to business licenses. So you would want to make sure that you have that figured out and settled before you start your operations.
5. Home-Based Businesses Need Licences
Even if you are operating your business from your home, you still need to have the necessary licenses to keep your business running. Note Nevada has restrictions when it comes to providing a license to businesses. For instance, it is illegal to sell home-cooked meals to the general public. If you want to start this kind of business, you have to make sure that you have access to a commercial kitchen.
Also, it might be useful to know that business addresses become public information. If you want to don’t want to expose your home address, you might want to use a mailbox for your business address. Before doing so, check local regulations first to know whether it is permissible.
Related: Top 10 Business Ideas in Las Vegas
6. Location is Important
When you head to Las Vegas to start a business, you should first scout the best area for your industry. If you want don’t want to be overshadowed by the competition, you might want to explore other areas than the strip.
Las Vegas’ area is so varied that to cop the best place, an entrepreneur has to scout each community to find the perfect fit. There are areas in Las Vegas where a particular business won’t work. You have to identify those to position your business effectively. If you get the right spot, it could mean valuable exposure. Take advantage of the regular local trade shows if you want to showcase your business.
It is also essential to know about the area’s crime statistics before settling.
7. Invest in Your Employees
Las Vegas has a fantastic talent pool. The city has a strong workforce willing to work for businesses. The absence of state income tax means that businesses can invest in their employees. However, this does not mean that employers have to be lax when it comes to their hiring process. New entrepreneurs in Las Vegas have to be wary about opportunists who only want to make money and get off quickly. Don’t scrimp on background checks.
8. Have Proper Amenities in Place
Las Vegas’ bright lights and the thriving city makes people forget that Nevada is a desert. So, entrepreneurs must have proper amenities in place. Air-conditioners in offices is a must. Make sure your employees can work despite the scorching heat outside. Invest in fire alarms and emergency security as well.
9. It is a Buyer’s Market
While Nevada’s economy is slowly improving, it is still a buyer’s market. Prices are yet to approach pre-recession rates, and this is what new entrepreneurs in Las Vegas can take advantage of, particularly if they are considering buying a commercial space or renting an office building for their business.
10. Gaming Tax
While the state does not have a slew of taxes, as mentioned above, it relies heavily on the gaming tax. Gambling sites in Nevada fall under two categories: restricted locations that have 15 or fewer gaming machines and unrestricted locations, which has more than 15 table games and machines. The jurisdiction falls under the Gaming Control Board and licenses under the Gaming Commission. Revenue taxes go directly to the state’s general fund. Tax rates are as follows:
- 7.75% effective tax rate
- 6.75% tax on gross gaming revenues
- 1% of taxes in fees
Now that you have the proper knowledge about Las Vegas as a business destination, it is time for you to begin the process of starting a Las Vegas business.