Looking to expand your law firm? This is the place to go
Another Western state is giving Colorado a run for its money
Lawyers looking to expand their solo law firms into small law firms need to examine their location options, ensuring that their new market will provide ample work for them while still being affordable.
Many attorneys will find that large metropolitan areas like New York and Los Angeles are too costly; however, there are a handful of states with large cities that are still affordable.
Nevada is one of the best options for a second location outside of Denver due to the plethora of businesses that call Nevada home, the seemingly endless amount of different industries in the state, and the low cost of living.
Excellent Economy and Tax Benefits for Businesses – More Work for Attorneys
Nevada’s recent job growth is 100% higher than the national average, while economists forecast their future job growth to be 33% higher than the rest of the United States.
Nevada was hard hit by the pandemic due to the shut down of the ever-popular hospitality industry. Still, past figures show that Nevada consistently has a lower than average unemployment rate when all businesses are up and running.
While all states’ economies were affected by COVID-19, Nevada saw a three-place rise in CEO’s annual Best and Worst States for Business study, from number 6 to number 3.
Some of the largest draws for business owners is the state’s lack of:
- Personal Income Tax
- Corporate Income Tax
- Franchise Tax
- Inheritance or Gift Tax
- Unitary Tax
Nevada also boasts some of the lowest annual fees for businesses in the nation and has based its business courts on the Delaware model, meaning that the state’s business court minimizes the time, cost, and risk of commercial litigation by prioritizing businesses to avoid disruption and active judicial participation.
A Hot Spot for Industries
Nevada hosts many of the same industries that Colorado does, like tourism, mining, aerospace, and technology. While it’s impossible to list every company based in the state, many brands are setting up an office or warehouse, including Amazon and Starbucks.
At the same time, industry leaders like Zappos, AMERCO Real Estate Company, Bigelow Aerospace, and Just like Sugar have their headquarters in the state. Nevada also boasts a booming tech industry with a seemingly endless number of tech start-ups launching every year.
Of course, tourism is the most significant industry in the state, generating $67.6 billion in 2018 alone. Colorado-based solo attorneys looking to create or expand a small firm with a specialization in the tourism industry will find a thriving market, with Las Vegas bringing in almost all tourism revenue, versus Denver, composing nearly half of Colorado’s $22.3 billion in annual tourism revenue.
Low Cost of Living
Due to the state relying on gambling for a large part of its annual revenue, Nevada has one of the lowest living costs in the nation.
The lack of personal income tax and corporate income tax means paychecks have a minuscule amount of payroll and federal income taxes removed.
Property taxes are some of the lowest in the United States as well. Some people will complain about the slightly elevated sales tax rate of 8.14%; however, that amount is still smaller than Denver’s 8.31% in addition to much lower housing and rent costs.
Those who choose to base their practice out of the Northern Nevada region, including Reno, will have a slightly higher cost of living. Still, it usually stagnates around the national average. Incidentals cost somewhat less than other states, meaning residents have more buying power than they do in other states. Commercial real estate costs are some of the lowest in the Western market for those who need designated office space.
Solo practitioners looking to expand their practice into other markets should give Nevada a second look. With its tax benefits, a plethora of different industries from tech to clothing to mining, and a low cost of living, the state has more than enough resources for a practice to expand into a profitable market.
Nevada’s ability to bounce back after financial markets take a severe hit is proven, and attorneys are always in demand in the city that never sleeps.
Jordan Deifik and Jay Kamlet are Colorado based commercial real estate professionals. They co-own LawBank, the largest and oldest shared office space for lawyers. LawBank has multiple locations in the Denver metro area and offers flexible leasing options to attorneys throughout the region. LawBank also assists larger law firms sublet their vacant office space with small law firm tenants. Learn more about LawBank’s amenities and Denver locations.