Having an LLC in Nebraska is a better and cheaper option than having other business structures. A limited liability company (LLC) reduces the owners’ personal liability and protects their personal assets. One can start an LLC in two ways, domestic LLCs or foreign LLCs (LLCs in more than one state). By following some basic steps, you can easily form an LLC in Nebraska.
On this page, you’ll learn about the following:
- How to Start an LLC in Nebraska
- After Starting your Nebraska LLC
- Nebraska Foreign LLC
- Why an LLC in Nebraska
- Nebraska LLC Formation Review
How to Start an LLC in Nebraska
An LLC or a Limited Liability Company is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection. This section gives you a step-by-step guide on how to start an LLC in Nebraska.
Step 1: Decide a Name for Your LLC
Deciding on a business name is the first step to start an LLC. In Nebraska, before you name your LLC, it is important to note a few things. Firstly, make sure the name is available to use. If the name is available, then check if the name complies with all the Nebraska business naming requirements. Once you pass through them, you can successfully name your business.
Why do you need a proper business name?
If you want your LLC to have special identification, your company name is essential. However, many people face lots of issues by avoiding focus on choosing a business name for their LLC business formation filings.
Because of this, here are some of the major benefits of choosing the best LLC corporate names.
- To help establish a company’s presence in the market, a proper business entity type will help you. This also creates a new identity that will resemble your LLC.
- After you’ve properly chosen the name for your LLC, you will have no problems finishing the registration process.
- You can only get the EIN number when you have your name registration certificate with you.
Requirements when deciding a name for your LLC
LLC Name Search: A business name search is required to check if the desired name is available or not. If the name is available then the business owner has to fill up a name reservation form and send it to the Secretary of State, Nebraska. To do the name search, one has to visit the Business Entity Search page on the official Secretary of State website. Send the name reservation form to the below address by mail to reserve your LLC name in Nebraska. The cost of a name reservation is $15.
Important Quick Links:
Secretary of State
P.O. Box 94608
Lincoln, Nebraska 68509-4608
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Step 2: Assign a Registered Agent in Nebraska
A registered agent, or business entity, is a person that will act or work on your behalf. This person or business will receive significant tax forms, legal forms, formation documents, any internal document, a notice of lawsuits, and other official government correspondence in Nebraska. Choosing a Nebraska registered agent for service of process for your LLC is required.
Make sure your registered agents are residents of Nebraska having a physical street address. It could also be a business. Here are the recommended agent service provider list and professional employees for you:
Note that availing of the services of professional registered agents would be your best option since you are guaranteed that whoever is handling your legal affairs knows their stuff well. You will enjoy peace of mind and focus only on running your business, as the ‘professionals’ take care of all legal matters.
These five LLC formation services are recommended agents’ registered services as they are authorized to conduct business in Nebraska. Compare them to check the best yet cheapest option for you. Besides, these professional service providers can guarantee you services to their potential customers because they have been in the business for years.
Step 3: File Certificate of Organization in Nebraska
A Certificate of Name Reservation is needed to file a Certificate of Organization, as other states call it. You need to make reports of this certificate with the Nebraska Secretary of State, which costs $100. The cost of Nebraska LLC includes other fees and taxes. You may file them online or by mail.
This Nebraska Certificate of Formation is a legal document needed to form your business officially. It will indicate details about your LLC in Nebraska, like if it is a member-managed or managers-managed. LLCs with employees need to check Nebraska’s government portal for guidelines to hire employees in the state.
Before you start filings, you must already have your LLC name and registered agents or employees. You will attach a copy of your Name Reservation Certificate along with a list of the services that your Nebraska LLC will offer.
How to File Online
Go to the Secretary of State Online Service. Select “non-subscriber.” Fill out the online form. The website will alert you if your county does not support online filings after selecting your principal county. Check Nebraska Certificate of Formation to get the online filing process.
How to File by Mail
If you prefer filing real-life forms for your Nebraska LLC registration, then you can download the Nebraska Limited Company Certificate of Formation. Read the form thoroughly and fill it out. It will have to fill, among others, your name, city, state, zip code, and signature. You may also file in person by visiting the office on business days.
Mail To: Robert B. Evnen, Secretary of State
P.O. Box 94608
Lincoln, NE 685098.
Step 4: Create Your Nebraska LLC Operating Agreement
An operating agreement is a document that legally outlines the proprietorship and operating procedures of your LLC This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
When it comes to an LLC operating agreement Nebraska does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all your details of business operation. This document would be useful if you decide to dissolve Nebraska LLC later.
Step 5: Filing a Nebraska LLC EIN
The Employer Identification Number or, simply, the E.I.N. is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify types of business for tax purposes and taxes in general. It is like a Social Security number dedicated to a business’ taxes. The EIN is necessary for any active business or any form of business for that matter.
EIN is needed when the LLC hires employees. Hiring employees in Nebraska LLC requires specific rules and regulations. One should know about them before hiring employees. EIN for Nebraska foreign LLC should be obtained if your LLC is based in other states.
To obtain EIN (aka FEIN) one has to fill up a form (Online or by mail) and submit it to the IRS. Before sending the form, ask for EIN Assistant. Enter details of your LLC, and finally complete the form and send it to the address given.
Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999
Fax: (855) 641-6935 | Fee: Free
Note: You don’t need a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.
And that’s all! Congratulation, you are now done with all the necessary steps to form your Nebraska LLC. If you still haven’t used a professional service from here, I strongly recommend having one to handle the remaining tasks.
After Starting your Nebraska LLC
After forming your LLC, there are still some things that you will need. Take note of the following:
- Get a company business bank account
- File Nebraska business permits & licenses
- Get liability for business and professional liability insurance with coverage for employees
- File a Nebraska LLC annual report or biennial report
- Already existing LLCs that wish to operate in Nebraska must register as Nebraska foreign LLC.
This page has provided you with steps to LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings to make sure your LLC is up-to-date.
Nebraska Foreign LLC
To register a Nebraska foreign LLC, one has to file the foreign LLC formation certificate with the Secretary of State, Nebraska. Forming a foreign LLC allows you to operate your business in more than one state in the USA as a single business entity. Check Nebraska Foreign LLC to know more about having a foreign LLC.
Why an LLC in Nebraska
If you start an LLC in Nebraska, you automatically choose a state under a continuous growth phase. For new firms, the tax environment that is present in Nebraska is the best as ranked by the US Chambers of Commerce. This means that there are many reductions in tax liabilities provided regularly to the newly incorporated business. Alongside, various business funding options are available. Read more on Nebraska’s classification of LLC tax.
You can get a business credit card in Nebraska while running your business. Also, you can easily get rid of a paper form and go online for government filings. It is easier to get a registered agent service in Nebraska to take care of filing and such work.
Detailed agreements can save from future conflicts
If you go through the agreement formed while making an LLC in Nebraska, you will come through one of the best-formed agreements in the United States LLCs. All the duties of the loyalty of members and managers are fixed under the LLC Law Act under sections 21-110. A person has to perform those duties assigned to them for the betterment of the LLC.
But along with that, the act provides the freedom under which people can opt-out from the duties under special conditions. The act can narrow down their duties a bit. Section 21 provides a chance of safe harbor under which all the transactions between an LLC and member for smooth transitioning and opportunity benefit both parties.
Financial Incentives for the business
There is a whole list of financial benefits that are waiting for a new Nebraska Limited Liability Company. The government is appreciating the efforts that businesses are making towards the betterment of society and, for that, is giving special income and sales tax incentives. Moreover, there is a loan program named Nebraska Progress Loan Funds, which provides funds for new businesses.
The Rural Enterprise Assistance Project
REAP is initiated by Nebraska’s Rural Affairs center, which is basically focusing on small business development. All the LLCs have to register for the REAP program to check whether they are eligible for the program or not. Amid eligibility, the benefits that they are going to enjoy if they get approved for REAP are:-
From time to time, personal technical assistance for the LLC is provided by the government to get over all the technical issues faced in the industry.
- Assistance in maintaining a proper cash flow in the company along with budgeting of the LLC.
- LLC in Nebraska also gets access to the online lending system of the state.
- Grow and Rapid loans up to $5000 and $10,000 are provided to the LLC, respectively.
Best Businesses Established in Nebraska
If you want to form an LLC in Nebraska, you are about to make the best decision. But wait, do you have the knowledge of top businesses in Nebraska? If not, then you should know about the economy and its contributors in detail.
This sector has grown rapidly in the state and has become a significant economic driver with $12.05 billion of contribution. The manufacturing units in the state are related to electronics, chemical products, and mineral production.
The ranking of Nebraska State in terms of cattle products is 2nd in the USA. More than 2/3 of the total agriculture income of the state is earned through livestock and cattle. Despite increasing, the manufacturing and service sector agriculture sector have a considerable contribution of around $9.53 billion to its GDP.
Due to the diversity of rail routes and different interstate highways present in the state, the transportation sector is also booming. Due to so many routes, there is a huge demand for warehousing in the state. Companies start storing their manufactured products in Nebraska warehouses as it is one of the best transportation links for various parts of the country. Due to this boom, the industry’s total contribution to the state’s GDP is $8.66 billion.
Finance Related Services
The finance services include the services related to finance directly, like the bonds, license, and tax filings. Along with that, there are some indirect financial services of which insurance is the most prominent example. It is noticed that in the past 5 years, the Finance industry of the state has doubled its size. The sector is the upfront player of the state’s economy, contributing around 8% of the total GDP of $8.3 billion.
Also, it is employing around 35,000 workers in the state, due to which the tax paid by the industry is about $54.4 million.
Other than these big bulls of the industry, some small businesses that have immense scope in Nebraska are:-
- Trucking company
- Elderly care home
- Travel agency
Nebraska LLC Formation Review
Time needed: 5 minutes.
Just to recap, here are the simple steps again when forming an LLC in Nebraska. Click on the steps in this list to read the full detail.
- Name your Nebraska LLC
The first thing you must do is to choose a company name, which should be unique, easy to find, and available in the state.
- Choose a registered agent
In Nebraska, it is mandatory to select a registered agent for your LLC. You can check out our list of our 5 Best LLC Services in the United States.
- File a formation certificate
Filing a formation certificate is necessary when forming an LLC. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
- Create operating agreement
An operating agreement is not a strict requirement but something encouraged when you start an LLC.
- Get an EIN
The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
How Fast Can I Form an LLC in Nebraska
How fast can I form an LLC in Nebraska? The fastest way to form a limited liability company is to register with the Secretary of State of Nebraska. The state website includes a tool that helps you find the availability of names. Once you find a name, you should register it as soon as possible. If you wait too long, you could face a lawsuit. You must list the registered agent when you file your LLC paperwork with the state.
If you have a limited budget, consider using the free Nebraska LLC Operating Agreement PDF provided by TRUiC. This document is comprehensive enough for most single-member LLCs and can also be customized if your setup is more complex. While Nebraska does not require an operating agreement, a comprehensive one will be valuable when it comes time to dissolve the LLC. Moreover, it will ensure that your business is operating correctly and avoid any misunderstandings.
If you have decided to file your Nebraska LLC paperwork yourself, you should first check the state’s requirements before filing. You can file your document by mail or electronically through their website. Be sure to include your business purpose and future effective date. Also, make sure to provide your mailing address in Nebraska so you can easily send it to the Secretary of State. In the meantime, you can wait until the state accepts your document.
If you are a resident of Nebraska, then you can file your LLC by yourself. However, it is always worth having a professional than doing it yourself to handle legal complexities, paperwork, and other documentation.
Apart from the formation fee of $105 (domestic LLC) and $100 (foreign LLC), LLC costs in Nebraska include $10 for Annual Reports every 2 years. LLCs are liable to pay sales tax of 5.5% every year
It takes 3-5 business days to get an LLC in Nebraska if you file it online. For the mail filing, it takes 1-2 business days to get an LLC.
Every year all the LLC have to submit an Annual Report and pay $10 (one in two years) to the Nebraska Secretary of State and renew the LLC. It is mandatory to renew your LLC every year.
Generally, for the LLCs, it is a default tax structure. Once you will obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose S Corp to reduce federal tax burdens.
LLCs are easier to establish than other business structures. Small businesses, especially start-ups can easily start their LLC in Nebraska at a bare minimum cost. LLCs have a ‘pass-through taxation’ advantage for which they are excluded from certain taxes. The formation of limited liability companies requires much lesser documents and legal processes. Share your queries with us, leave a comment below.