Nevada business formation dramatically declined in 2009, but picks up in 2010

According to a report from the SBA, economic hard times may be among the best times to start a new business. Yet, this is not proving the case in the state of Nevada, which usually rivals Delaware as one of the best places in the country to incorporate based on favorable tax structures.According to a report from Northern Nevada Business Weekly, business formation in Nevada is down and many state officials blame the economy. The main hindrance for entrepreneurs in the state has been finding startup funds.

The source says many Nevada-based entrepreneurs who are forming entities are funded by friends and family more than venture capitalists and banks.

Inc. magazine says entrepreneurs should not be discouraged against business incorporation if they can only receive funds from family and friends. Instead, they can structure these finances as convertible debt to make it easy for other financiers to jump on board later.

Perhaps this is what many Nevada startup business owners realize, as the source claims business formation has recently increased and looks to improve steadily through 2010.

Regardless of where their startup funds come from, entrepreneurs in Nevada and elsewhere can save money by using inexpensive incorporation services offered online.