LLC Cost in Nebraska – How Much to Pay for an LLC


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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.

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.

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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.

StatesFiling FeeAnnual/Biennial FeeSales Tax
Nebraska$125None5.5%
Iowa $50None0.36 to 8.98%
South Dakota$150$504.5%
Missouri $105None6.25
Kansas$165None6.5%

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.

Other Costs

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 initial set up and maintenance of an LLC in Nebraska are relatively inexpensive. There are some costs involved, however. You will need to hire a registered agent to handle important documents. In Nebraska, registered agents must be located in Nebraska and have a physical address where they can receive the legal paperwork. You can be the registered agent yourself, or you can hire a registered agent service to handle these duties for you. Depending on your needs, you may need to spend anywhere from $50 to $300 per year on this service.

As an LLC, you will need to pay taxes, including federal and state self-employment taxes. In addition, you may also need to pay payroll taxes. You can find more information on taxes for your business by visiting the Nebraska Department of Revenue. Also, you will need to open a business bank account.

An LLC must file annual and biennial reports with the state. These reports cost around $10 each. Filing these reports is crucial for the state’s records. An LLC must also appoint a registered agent. This person is responsible for receiving and processing important legal documents. Registered agents typically cost $130 per year.

In addition to paying fees, LLCs must publish a notice of organization in a local legal newspaper. In Nebraska, this publication must last at least three weeks. If you fail to do so, your business can be administratively disbanded or face harsh penalties. If you do not wish to pay these fees, an alternative is a sole proprietorship.

Filing an application for an LLC in Nebraska is very easy. You can complete the process online or at a state office. Both online and in-office filing fees are around $100. If you decide to file online, you will have a faster processing time. The Secretary of State will also require you to hire a registered agent. The registered agent will also charge an additional fee.

An LLC in Nebraska is required to file a biennial report every two years. The report deadline is April 1 of each year. The next reporting period will begin January 1, 2021. An LLC can file its report online or through the mail. The report form will contain the fee for filing.

When forming an LLC in Nebraska, it is important to create a comprehensive operating agreement, which clarifies duties between the members and prevents any legal pitfalls. Moreover, the State requires a notice of organization in a local newspaper of general circulation. The notice of organization must also be published in a county in which the registered agent is located.

In order to operate an LLC in Nebraska, the owner must get a business license from the state as well as a local city. You can learn more about obtaining these licenses from the Nebraska Business Licensing website. Also, it is important to choose a name for your LLC that will be unique from other businesses in Nebraska. The name must also include the phrase “Limited Liability Company” or “L.L.C.”

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

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.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

In Conclusion

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.

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