Starting a New Business in Nevada
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Frequently Asked Questions
- Do I need to register the name of my business? If so, how do I go about it?
- What is a Tax I.D. Number? Do I need one?
- Do I need a license to operate my business?
- Should I incorporate?
- Should I use a payroll service?
- Which business expenses can I deduct for income tax purposes?
- Do I need special insurance for my business?
- What is OSHA?
Do I need to register the name of my business? If so, how do I go about it?
If you are doing business under any name but your own, you are required to register with the Nevada Secretary of State. This requirement enables people to identify who is operating a particular business. For information on how to register your name, visit the Secretary of State's website at http://sos.state.nv.us/, for an index of all forms. You can also call 775-684-5708. The Nevada Secretary of State's office is located at 101 North Carson Street - Carson City, NV 89.
For assistance with registering your name using a cost-effective, efficient, online service, visit www.BizFilings.com
What is a Tax I.D. Number? Do I need one?
A Business tax I.D., also referred to as a Federal Employer Identification Number (EIN), is issued by the Internal Revenue Service for the purpose of identifying employers. If you have employees, you will need an EIN. EIN's are not issued by the State. Many small businesses obtain a tax I.D. for use in purchasing merchandise and supplies at wholesale prices.
Here is more information about obtaining an EIN, or you can refer to IRS publication: Starting a Business & Keeping Records, (page 3).
There are several methods to easily obtain an EIN, you may either apply by mail or phone using Form SS-4, or you may be eligible to apply online.
The IRS provides online access to most IRS forms, including forms and publications for small business. You may also call your local IRS office (refer to your phone book) or contact your CPA or tax preparer's office.
Do I need a license to operate my business?
Obtaining a license to operate a business depends on the type of business as well as the location of the business. To learn if your business requires a license, visit the local town hall to learn what the requirements are. The State of Nevada also requires that certain occupations and businesses be licensed. For information and an alphabetical listing of licensed occupations, visit http://www.budgetcorporaterenewals.com/.
Should I incorporate?
There are several forms of business organizations: sole proprietor, partnership, corporations, and limited liability companies. Legal liability, income taxes, protection of assets, and ease of transfer are some of the issues affected by the form of business organization. In order to decide upon the best solution for you, you may visit an online business filing service at www.BizFilings.com. For a brief overview of the different forms of business organizations, view the Business Entity Matrix.
Should I use a payroll service?
Using a payroll service can save time, money and avoid penalties associated with processing errors. For less than you'd think, a payroll service provider can process and report employee wages, withholding taxes, vacation pay, sick pay, and deductions for employee benefit contributions. For a small business, employing an individual in-house to perform these functions can cost much more. To obtain a quote, many payroll service providers feature a quote service on their web site. For example, visit www.sbs.adp.com to provide your zip code and number of employees.
Which business expenses can I deduct for income tax purposes?
Generally, all the expenses you incur to start and operate your business are deductible. However, many are subject to various IRS rules. For example, start-up costs, vehicle expense, meals and entertainment, and use of a home office are subject to various guidelines. Start by reading IRS publications, such as the Small Business Resource Guide, CD-ROM 2004, which you can view online through the Nevada Small Business Development Center, or order online through the IRS. If you are a sole proprietor, the tax return is a Schedule C. For a complete list of IRS publications available on-line, go to www.irs.ustreas.gov/formspubs/index.html.
There is also a section of the IRS web site devoted to small businesses, or you may call them at 1-800-829-3676. A local CPA (certified public accountant) office is also typically a valuable resource on this topic.
It is very important to set up a good bookkeeping system immediately upon going into business. Depending on the size of your operation, a manual bookkeeping system, such as the Dome Simplified Monthly Bookkeeping System, or the One-Write Bookkeeping System, can be a productive approach. Both of these options are available at most office supply stores. One Write is also available in a computer-based format along with other options, such as Quick Books. It is highly recommended that you become familiar and stay in tune with the bookkeeping characteristics of your operation before you consider outsourcing this function to a local or Internet-based bookeeping service.
Do I need special insurance for my business?
It is wise for any business to possess a general business insurance policy, which includes liability and other standard coverage. Your place of business, if you own it, should be insured; and if you rent, you still should possess your own coverage. Don't rely on the landlord's insurance.
If you have one or more employees, you are required to have worker's compensation insurance. Depending on your industry -- for example, food service requires product liability insurance -- you may need additional types of insurance. If you already have insurance coverage, begin investigating coverage options and requirements with your present agent. Obtaining quotes from several agencies is also recommended, being sure to compare both coverage recommendations AND price.
The State of Nevada Department of Insurance protects consumers by administering and enforcing the insurance laws and in the most responsive and cost effective manner to ensure the financial reliability and responsibility of all regulated entities. Contact and other agency information may be viewed at http://www.doi.state.nv.us.
What is OSHA?
The U.S. Department of Occupational Safety and Health Administration (OSHA) is a federal agency that oversees workplace safety. All employers are required to provide a safe and healthy workplace and are subject to safety and health inspections by OSHA without prior notice. Employers with more than ten (10) employees are required to maintain a record of injuries on the OSHA 200 form, which must be made available for inspection for a period of five years. For more information about workplace safety and OSHA requirements, contact the Indiana Department of Labor Occupational Safety and Health Administration at 317-226-7290, 46 East Ohio Street, Room 423, Indianapolis, IN 46204. For OSHA's web site goto www.osha.gov, which provides specific links to a variety of regulations and compliance information.
Note: This information is presented to provide a general overview of small business options and related services. It is not intended to be an exhaustive representation. Data has been compiled by the Knowledge Institute for informational purposes only. Content is provided on an "as is" basis and is not intended to, nor does it, provide advice or create a customer relationship between the Knowledge Institute, BUZGate and/or any other organization named herein, and any reader.
