LAS VEGAS (KLAS) — In February alone, the U.S. Census Bureau reported 429,800 new businesses were created across the nation. Thousands of them chose Nevada to set up shop, which was ranked the cheapest state to start a new business by a recent study.
Simplify LLC, a small business publication, analyzed cost-related factors for starting a new business in each state. Released last week, it found that Nevada requires the least amount of money to start, on average.
According to the data, the average annual salary in Nevada is $51,885 and a monthly commercial electric bill is $463.41. Other states were listed with averages hundreds to thousands of dollars above these.
Additionally, Nevada has a corporate tax rate of 0%. In comparison, Minnesota was reported with the highest corporate tax rate in the nation at 9.8%.
Sydney Edwards and her husband, like many, lost their jobs in early 2020, only to emerge 3 years later as new business owners after pursuing gig work to make ends meet. The pair chose to open DaVine Finds Las Vegas, a home and goods outlet store, in February despite family and business prospects in Utah.
“To get your business license and get all of your tax stuff done with the state of Nevada, it’s actually pretty reasonable,” Edwards said next to a wall full of Squishmallows and toys inside her store Thursday morning.
The study comes after business woes from pandemic closures and restrictions. But, as the economy recovers, Vegas Chamber Chairman Paul Anderson said incentive programs through the state, municipalities, and the chamber are helping to cover other costs.
“The Vegas Chamber is the first of its kind to open up opportunities for retirement and insurance plans. It’s an important piece of the puzzle because those things are so expensive for any employer to be able to provide to their employees. So, we’re hoping, as we get more and more people into those groups, it’s going to make it even cheaper for them,” Anderson said inside the organization’s Downtown office.
The end of the study also ranked Nevada the fourth state with the highest survival rate by net business birth rate. Colorado and Arkansas followed Nevada as the other most inexpensive states to start a new business.
The full study can be found on Simplify LLC’s website.