Nevada is one of the most fascinating states to satisfy your business interests. While most people think of Nevada as nothing more than miles and miles of cactus and desert, it’s actually an exceptionally appealing investment opportunity for business owners.
The Battle Born State has firmly established itself as one of the go-to states for new enterprises in the United States, from the entrepreneur establishing a business in Nevada to the major corporation seeking to benefit from Nevada laws and taxation, the state has a lot to offer and is a modern-day rendition of the old west—a place where fortunes are made.
Here are a few small business statistics that should help you understand the state’s business landscape.
Quick Nevada Small Business Statistics for Entrepreneurs
- Small businesses account for 99.2% of all private enterprises in Nevada.
- Approximately 42.9% of Nevada employees work for small businesses.
- Veterans make up 6.4% of workers and own 7.5% of small businesses.
- Women own 45.3% of small businesses.
- The per capita disposable income in Nevada is $49,176.
- Small firms exported goods worth $1.9 billion in 2019.
- The 2021 CNBC “Top States for Business” report ranks Nevada 40th out of 50 states.
- The per capita consumption expenditure in Nevada is $41,458.
- Racial minorities own 21.9% of small businesses.
- Between March 2019 and March 2020, there were 10,912 new Nevada businesses and 8,544 closures, for a net gain of 2,368.
Nevada Small Business Statistics
1. What is considered a small business in Nevada?
The definition varies by sector, but according to the US Small Business Administration, a small business is one with fewer than 1,500 workers and a maximum annual revenue of $38.5 million. Going by this definition, there are 297,183 small businesses in the state of Nevada that represent 99.2% of all private enterprises in the state.
Nevada accounted for 73,430 of all new business applications submitted nationwide (5.8 million) from January 2021 to January 2022, ranking 24th among states. Adjusting for population, Nevada had 2,384 applications per 100,000 people, which was more than the national average and ranked 5th among states.
If you wish to establish a business in Nevada, you need to find a reputable LLC (limited liability company) formation service that will handle the registration process on your behalf so that you have enough time to concentrate on more important business activities. Read my review of the best LLC Services In Nevada to find out more.
2. How many people are employed by small businesses in Nevada?
There are 523,771 Nevadans currently working for small businesses, and they represent 42.9% of the entire state workforce. Nevada’s current minimum wage is $9.75 per hour. It was last revised in 2008, when it was increased from $6.85 to $9.75.
There are a few exceptions to this minimum wage. For example, the minimum wage for employers that do not provide qualified health benefits is $9.75. If an employer provides qualified health benefits, the minimum wage is reduced to $8.75.
Nevada has enacted legislation that provides for a gradual rise in the minimum wage over the next few years. The next increase will take effect on July 1, 2022, when the minimum wage will be raised to $9.50 for employers who provide health benefits. For employers who don’t provide health benefits, the minimum wage will increase to $10.50.
3. Nevada small business statistics by industry
The professional, scientific, and technical services sectors cumulatively account for the largest single industry in terms of small business investment with a total of 42,783 small businesses currently working in these sectors. Approximately 34,383 of these firms are nonemployer businesses, 7,809 have 1–19 employees, and 591 have 19–499 employees.
The utilities industry is the smallest in the state, with only 129 small businesses operating within it.
4. Nevada small business ownership by ethnicity
The Sagebrush State has a population of 3,143,991 residents. White/Caucasian Americans represent the major racial group 73.9%. They are followed by Hispanic/Latino Americans (29.2%), Black/African Americans (10.3%), Asians (8.7%), Native Americans and Alaska Natives (1.7%), and Native Hawaiian and Other Pacific Islanders (0.8%).
Here’s how small business ownership is distributed among these ethnic groups:
- White/Caucasian — 211,703
- Hispanic — 45,918
- Asian — 32,208
- Black or African American — 23,820
- American Indian and Alaska Native — 1,200
- Native Hawaiian and Other Pacific Islander — 1,075
5. Nevada small business ownership by gender
Women own 107,773 small businesses in Nevada. Approximately 97,000 have no employees while another 10,773 have employees. Men own 148,083 small businesses, 119,000 have no employees, while 29,083 have employees on payroll. There are also 14,624 small businesses that are owned equally by both groups.
6. Business taxes in Nevada
Nevada has a unique taxing structure. There are no corporate income taxes, individual income taxes, or franchise taxes. This does not, however, imply that no Nevada businesses are required to pay any significant state taxes. More specifically, every company that employs people and reports gross pay to the Nevada Employment Security Division (ESD) is liable to the state’s Modified Business Tax (MBT). In other words, the MBT applies to the vast majority of Nevada enterprises with employees.
The MBT is a state payroll tax that is levied quarterly. The tax is due on the final day of the first month after a payroll quarter ends. The current MBT rate is 1.475% as of July 2015.
The state of Nevada takes tax compliance very seriously. Failure to report your MBT tax could land you and your business in serious legal trouble. However, you can acquire the services of a qualified registered agent in Nevada who’ll work with the state (on your behalf) to make sure that your business is tax compliant. Read my review of the best registered agents in Nevada to learn more.
7. How COVID-19 affected small businesses in Nevada
Based on the percentage of employees in sectors with a high or medium-high degree of exposure to COVID-19, Nevada has the 13th greatest economic exposure to COVID-19 of all states in the US.
In Nevada, 55% of all employees, or 899,963 people, work in industries with a high or medium-high degree of economic exposure to COVID-19. A total of 200,952 employees work in industries with a low or medium-low degree of economic exposure to COVID-19, accounting for 12% of all employees in Nevada.
8. Small business financing in Nevada
The Community Reinvestment Act (CRA), passed in 1977, compels the Federal Reserve and other federal banking authorities to encourage financial institutions to assist in meeting the credit requirements of the communities in which they operate, especially low- and moderate-income (LMI) neighborhoods.
Large banks are required by the Community Reinvestment Act to disclose new small business loans. In 2019, reporting banks paid out $621.7 million in loans to Nevada firms with less than $1 million in sales. Total reported new lending to firms with loans of $100,000 or less was $910.1 million, while total reported new lending to businesses with loans of $1 million or less was $1.8 billion.
9. Nevada small business export statistics
In 2019, 3,493 identified enterprises exported items worth $7.8 billion from Nevada. Small businesses accounted for 2,991 (or 85.6%) of those exporters. Small enterprises shipped items worth $1.9 billion, accounting for 23.8% of total identifiable firm exports.
The Final Word
Nevada is a beautiful state to visit and a fantastic location to live. It captivates tourists and residents with everything that Las Vegas has to offer as the hub of tourism, conferences, meetings, and special events, but it also provides natural beauty and year-round recreational possibilities, including skiing, golfing, hiking, fishing, and swimming at Lake Tahoe.
It is a business-friendly state with little regulation, simplified license and approval processes, and a favorable tax climate for business and industry. Nevada is a state that has the manpower and infrastructure to support your expanding business.