Perhaps you are hoping to form a Nebraska LLC. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Nebraska.
On this page, you’ll learn about the following:
- Nebraska LLC Cost of Filing
- Taxes payable to the Nebraska Department of Revenue
- Cost Comparison Between States
- Other Costs
Nebraska LLC Cost of Filing
Here are the costs involved in forming an LLC in Nebraska.
Cost of Filing Formation Certificates
The Nebraska Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Nebraska Secretary of State.
Nebraska Domestic LLC
- Online Filing costs $100.
- Biennial Report filing costs $26
- Name Reservation fee costs $30
- By Mail: Fill out the Application Form PDF and submit it to the following address: Robert B. Evnen, Secretary of State, P.O. Box 94608, Lincoln, NE 68509 costs $110
Nebraska Foreign LLC
- Online Filing costs $100.
- Biennial Report filing costs $52
- Name Reservation fee costs $30
- By Mail: Fill out the application form, and send it to Robert B. Evnen, Secretary of State, P.O. Box 94608, Lincoln, NE 68509. Costs $110.
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.
Nebraska LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Nebraska, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Nebraska Department of Revenue for regulatory boards or agencies requiring licensing.
Taxes payable to the Nebraska Department of Revenue
For incorporating and registering an LLC in Nebraska, one has to pay taxes to both: State & Federal Government. Some of the important business taxes are enlisted below.
The Nebraska Department of Revenue levies two types of taxes on LLC:
State Income Tax
As the LLC owner, you have to pay state tax on any amount you earn via your LLC. All the earnings drawn by you are taxed through your personal tax return. The usual income tax rate in Nebraska ranges from 2.46% to 6.84%, depending on the amount you earn via your LLC.
State Sales & Use Tax
Any seller of tangible goods such as cars, electronics, etc. & any service provider company has to collect taxes at the time of the purchase and then has to pay those to the Nebraska Department of Revenue. The state sales & use tax rate on LLC in Nebraska is 5.5%.
Federal Self-Employment Tax
The Federal Self Employment Tax is often called Social Security or Medicare tax, is paid by all the LLC Business members or managers. The self-employment tax caters to the well-being of the members of the company. The Federal self-employment tax rate in Nebraska is 15.3 percent.
Federal Income Tax
The rate of the Federal Income Tax is calculated after carefully observing: your earnings, the income tax bracket your LLC falls, the deductions, & the manner/ mode of filing. Federal Income Tax is paid on all the profits your LLC makes in a year.
Employee & Employer Taxes
LLCs that have appointed a number of employees have to pay Employee & Employer Taxes too. The tax rate is calculated on the basis of the amount they earn, the number of employees, etc.
Cost Comparison Between States
Nebraska is surrounded by many states, namely Iowa, South Dakota, Missouri, Kansas, etc. Each of these states has a different rate of taxes levied on LLCs. Let us take a look at this comparative chart.
|States||Filing Fee||Annual/Biennial Fee||Sales Tax|
|Iowa||$50||None||0.36 to 8.98%|
Based on the kind of industry you LLC operated in, your LLC will be liable to some other taxes & duties. You should seek regional help to verify the tax rates or business costs of registering an LLC in Nebraska.
- Nebraska Name Reservation: $28 for online filing or $25 by mail
- Doing Business As (DBA): $100 for online filing or $110 if filing by mail
- Certified Document Copies: $15.00 for up to five (5) pages
- Certified of Good Standing: $6.50 for online delivery or $10 for a paper copy.
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Nebraska LLC: $30 for in-office or $25 for filing online
How Much Does It Cost to Maintain an LLC in Nebraska
To maintain an LLC in Nebraska you do not need to pay an annual fee. However, state income tax at 2.46% to 6.84% sales & use tax at 5.5% and federal taxes are levied.
The first step in maintaining your LLC in Nebraska is to register it. Then, you need to file a biennial report with the Secretary of State. This report costs $10 and must be filed on or before April 1 of each odd-numbered year. This report will contain information about the business such as its official name, its principal office address, and the names of the owners. You will also need to pay quarterly tax payments to the state.
If you have not filed your annual report with the Nebraska Secretary of State, you may be liable to pay additional taxes or fees. For instance, there are some industries that require license renewal annually, while others do not. In any case, you will have to pay the $15 annual report fee. Other fees can include web hosting, business domain name, and online workspaces. In addition, business insurance costs vary depending on your type of business.
As a business owner, you will have to choose a name for your LLC in Nebraska. You can also check the availability of the name in a business database in Nebraska. You may also need to hire a registered agent service. An online registered agent service will charge you a fee for this service. You will also need a registered agent in Nebraska. If you do not want to worry about this task, you can hire a registered agent service.
Once you’ve chosen your business name, the next step is to register with the state. Unlike most states, Nebraska does not require you to have a general business license to operate. However, some industries require certain licenses. You will need to pay for these as well, which will add up. You should not skip the registration fees if you want to keep your LLC registered and in good standing.
If you choose to use a newspaper, you will have to pay a certain amount for an advertisement. For example, if your LLC is based in a rural area, you can pay for the ads to be published in the county where you are located. The newspaper will send you a Proof of Publication, which you must file with the Secretary of State. This publication is a mandatory part of the formation process.
After registering your LLC in Nebraska, you will need to complete a few tasks. While some tasks are legal and essential, others are just more beneficial for your business. A business bank account will give you more control and flexibility over your finances. It will also make bookkeeping easier. When you choose a business name, you should research and acquire a business name, too. If you are concerned about the availability of a specific name, you should get a domain name and register it. A website domain name will cost you just $4.99.
Starting an LLC in Nebraska requires you to file a Certificate of Organization, which forms a separate legal entity. You will also need to pay a filing fee of $100 online or $110 by mail. The processing time for this document is generally two or three business days. Once your LLC is registered, you will have to publish a Notice of Organization in a newspaper of general circulation. The notice must list the name of the business, street address, and nature of the business.
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
The cost of Nebraska is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.