Las Vegas is the number one business relocation destination for companies leaving Southern California, according to the annual “Kosmont-Rose Institute Cost of Doing Business Survey” presented by the Rose Institute of State and Local Government.
To appreciate why California businesses, as well as those from other states, are finding the pro-business climate in Southern Nevada to be advantageous, one only has to crunch the numbers.
According to information readily available through the City of Las Vegas Economic and Urban Development and the Las Vegas Global Economic Alliance (LVGEA), Nevada offers a tax climate of zero percent. That means there is:
By comparison, corporate income tax in Los Angeles is 8.8% and individual income tax is 13.3%.
Furthermore, organizations like the LVGEA have in place a multi-year plan to attract industries that provide the most growth potential and help diversify the economy of Southern Nevada. Among the industries targeted are manufacturing, financial services, clean technologies, transportation and logistics technologies, information technologies, and healthcare services.
Among the numerous tools being employed to attract new businesses are incentive packages.
For example, businesses in key industries that make multiyear commitments to jobs and capital investments may qualify for incentives through the Governor’s Office of Economic Development to aid with business relocations and expansions as well as expenses.
The City of Las Vegas also offers corporations multiple opportunities for new development, renovation, creative use of space, and out–of–the–box thinking. The city has multiple incentive programs to assist and encourage new business growth in the community. In fact, ver 10,000 businesses and more than 180,000 jobs have been created in Clark County, Nevada since 2011, according to the LVGEA.
Economic development organizations aren’t the only ones touting Las Vegas as the place to do business. According to Bloomberg’s “Las Vegas Gets Ready for Its Next Act” tech industry leaders like Teddy Liaw, CEO of NexRep, who was once a California booster, now closely collaborates with the Las Vegas Department of Economic and Urban Development to attract tech companies and entrepreneurs to Las Vegas.
Liaw spoke at a September 2022 tech summit held in Summerlin designed to position Las Vegas as an up-and-coming technology hub and that included a group of about 124 venture capitalists, tech founders and startup CEOs.
Per Bloomberg, “Liaw says he’s already convinced about a dozen friends and founders to move out here [Las Vegas]. Among them are Jason Lin, a managing partner at the venture fund Super Capital Group and a co-host of the summit, and Nan Wang, the CEO of social gaming platform Sleeper.
For Wang, relocating to Vegas was necessary as the company got deeper into the esports space. ‘It was like pulling teeth to get people back in the office,’ at Sleeper’s LA and San Francisco locations, which have since been closed. ‘The moment we relocated our headquarters to Nevada,’ he said, ‘I didn’t have to push any more. People were pulled here.’ Many of his employees from across the country fly in for meetings two or three times a year.”
With nearly perfect weather, an even better tax climate, exquisite dining experiences, top shopping, entertainment venues, professional sports, and abundant activities galore, it’s no wonder that large and small corporations are finding a new home in Las Vegas.