Why businesses move to Nevada | NevadaAppeal.com

Why businesses move to Nevada

What makes Nevada attractive to California businesses:

• Overtime accrues for more than 40 hours worked in a week

• No corporate income tax, inventory tax, estate or gift tax or franchise tax

• Workers’ compensation is a fraction of the cost. For example, Modern Stainless & Design paid about $50,000 a month in California versus $10,000 here

• Payroll tax is .65 percent of total gross payroll for most businesses. There is an allowable deduction for any health insurance costs incurred by the employer. Banks and financial institutions are taxed at a rate of 2 percent.

Source: Nevada Commission on Economic Development and Nevada Power Economic Development at http://econdev.nevadapower.com/nvp/state/taxes/

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California:

• Overtime pay accrues for more than eight hours worked in a day

• The Franchise Tax Board administers an 8.84 percent tax on net corporate income, called the bank and corporations franchise tax

• No inventory tax

• Average payroll tax rate is 4.64 percent

Source: California Business Investment Services at http://www.edd.ca.gov/calbis

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