Recently some big name corporations have discovered doing business in Reno might be the smartest business move since some guy “discovered” and promptly monetized the Paleo diet. Tech giants and start-ups alike have made Nevada their second home to take advantage of the easy transition offered by the state. When big fish hop to a new pond, it’s no surprise smaller ones follow suit, and we want to be sure you have all the info you need to swim your way to profitable business. Alright, enough with the fish metaphor. Whether you’re a major international corporation or a small business looking for new horizons in Nevada, there are a few pretty cool things to know about moving your business to the Silver State.
Move Over, Silicon Valley
Tech Giants are migrating to Nevada, specifically doing business in Reno, to take advantage of the wide open spaces and beautiful sunsets (and by beautiful sunsets we mean tax abatements and incentives … though our sunsets are really pretty breathtaking). The arrival of Tesla and Elon Musk’s massive Gigafactory brought thousands of jobs to the area, not to mention Switch Data Center, Google and Apple becoming next door neighbors with Tesla over in the Tahoe Reno Industrial Center. The arrival of these tech companies has boosted jobs tremendously, dropping the unemployment rate from the terrifying 13.9% in 2011 to 3.9% in May of 2017.
The Forefront of Renewable Energy
From the silver rush at our start to our old “Divorce State” days, Nevada has quite the pioneering spirit. Today, Northern Nevada is taking advantage of our natural solar, geothermal and wind energy resources. The city of Reno has also implemented the Energy Efficiency & Renewable Initiative, which has consistently reduced the carbon footprint of the city as a whole. Most of the tech centers are also focusing on sustainability and renewable energy, so if your business is even remotely interested in the planet, Reno is the optimal spot to deepen your roots.
A New Era of Culture & Entertainment
Although tech companies happened to pave the way for the big migration to Reno, there is plenty of room for business in other industries as well. Reno has transformed into a foodie town, with new restaurants and bars popping up all the time. From Korean to Ethiopian cuisine as well as increasing vegan and small plate restaurants, there’s room for competition and expansion. The same could be said for Reno’s entertainment industries. As a city built on casinos and gaming, much of the world class entertainment we attract is hosted in the casinos. A significant portion of the citizens in Reno do not consider the casinos as a primary spot for local entertainment–casinos are more for tourism. As the population continues to grow and local arts, music and culture burgeons, a demand for alternate venues, agencies and other resources are wholly welcome.
I’m Doing It! I’m Moving To Nevada!
Moving or expanding to Nevada is much easier than moving to other states. When moving your business to Nevada, you really have three options:
- Continue doing business in the old state and file for a “foreign qualification” in Nevada. Unlike other states, this option is relatively smooth sailing for Nevada, since there is no tax for doing part of your business in other states (i.e. unitary and franchise taxes).
- Dissolve operations in your old state and start up new in Nevada. While you still have to go through the formalities of dissolution in your old state, Nevada welcomes you with expedient processes to make your move official quickly.
- Go the reorganization route, or merge the old state corporation with the new Nevada corporation.
Finding the right space
According to Diversify Nevada, there is an abundance of affordable commercial real estate available for companies looking to move or expand to Nevada. Plenty of companies including Amazon, Wal-Mart, Levi Strauss & Co., Barnes & Noble, and Urban Outfitters have moved to Nevada for warehousing and distribution facilities.
Location & Transportation
Between Las Vegas, Carson City, Reno and Sparks, moving to Nevada means moving less than a day’s drive to over 60 million consumers and five major U.S. ports serving the Pacific Rim. Plus, the McCarran Airport in Las Vegas has consistently been ranked in the top 20 airports for the past five years. The Reno/Tahoe International Airport is consistently considered one of the more efficient and friendly airports.
For corporations willing to commit to a multi-year contract in Nevada, the Governor’s Office of Economic Development provides some pretty sweet incentives, including certain personal and business tax reductions, opportunity to reap benefits from the Catalyst Fund, and training program grant opportunities.
According to the Tax Foundation’s 2012 Business Tax Climate Index, Nevada ranked third, with California ranking 47th, Arizona 27th, Idaho 21st, Oregon 13th and Utah 10th. Other notable rankings include:
- Ranked 2nd in the nation for lowest state and local tax burden (about 7.5% of income)
- No Franchise Tax
- No Unitary Tax
- No Inventory Tax
- No Estate Tax
- No Inheritance Tax
Nevada is a Right-to-Work State
In legal terms, a right-to-work state means citizens are allowed to work in union jobs without becoming a member of the union or paying the dues associated with union membership (possible exception would be nonunion employees having to pay dues for representation during grievances).
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