Start An LLC In Nebraska
If you’re interested in starting a small business in Nebraska, you might want to consider forming an LLC. It has several benefits, but the most noteworthy is the protection of personal assets.
As a business owner, you probably know that anything can go wrong, and the last thing you want is for creditors to take your personal assets to pay off your business debt.
Fortunately, you can set up an LLC. We’ll show you how to start an LLC in Nebraska in this beginner’s guide.
But first, let’s look at how Nebraska compares with its neighboring states as a place to start an LLC.
| State | Nebraska | Iowa | Kansas | Colorado | US Average |
|---|---|---|---|---|---|
| Population | 1,961,504 | 3,190,369 | 2,937,880 | 5,812,069 | 6,619,825 |
| LLC Filing Fee | $105 | $50 | $160 | $50 | $130.38 |
| LLC Annual/Biennial Fee | $10 (every 2 years) | $45 (every 2 years) | $50 (every year) | $10 (every year) | $89.34 (every year) |
| Corporate Tax Rate | 5.58-7.50% | 5.5-9.8% | 1.0-5.9% | 4.55% | 5.60% |
| Nominal GDP per capita | $76,584 | $68,849 | $65,530 | $72,597 | $64, 773.08 |
Before You Set Up An LLC In Nebraska
Before creating an LLC in Nebraska, there are a few things you should do. It is important to have direction before starting any company, so begin by drawing up a business plan to establish your business goals and describe your plan of action to help you reach those goals.
Next, determine who will be a part of the company. Make a list of the members, partners, and managers and acquire their details, so you have this information when submitting the Certificate of Organization.
To ensure that you follow regulations, go through the Nebraska state laws regarding LLCs and research federal laws that may apply.
How Much Does It Cost To Start An LLC In Nebraska?
Are you wondering how much to start an LLC in Nebraska? Many people want to know how to start an LLC in Nebraska for free. However, there are mandatory costs associated with forming a Nebraska LLC, which we will break down in the section below.
Firstly, to file the Certificate of Organization with the Secretary of State, you’ll need to pay a fee, plus an additional $5 per page.
To file an online application, you’ll need to pay $108, and to submit your Certificate of Organization via mail costs $105.
Moreover, you’ll be charged a $15 fee for filing an application to reserve an LLC business name.
Steps To Start An LLC In Nebraska
You can follow the simple step-by-step guide below to form your limited liability company.
Select A Name For Your LLC
The first step to creating an LLC in Nebraska is to choose a professional name for your business.
An LLC’s name must include the term “Limited Liability Company” or the acronyms “L.L.C.” or “L.L.C.” according to Nebraska legislation.
It should not be the same as other businesses’ names registered with Nebraska’s Secretary of State. You can use the Secretary of State’s company name registry to verify availability.
By submitting an application for an LLC business name reservation with the Secretary of State, you can secure a company name for up to 120 days. This application must be submitted via mail. The cost of this filing is $15.
Did You Know?
When doing business in Nebraska, you are not obligated to use the official company name listed in your LLC’s Certificate of Organization. Instead, you could adopt another name, commonly known as an assumed name, which is referred to as a “DBA,” or “doing business as.”
You must submit an Application for Registration of Trade Name with the Nebraska Secretary of State to establish your assumed business name. This application can be sent in the post or submitted online. The cost of filing this application is $100.
Find A Registered Agent In Nebraska
Every LLC in Nebraska must have a registered process agent service. This agent is a person or entity who agrees to receive official documents for the LLC should it be involved in a legal dispute.
A Nebraska citizen or a corporate body permitted to perform business operations in Nebraska can serve as the registered agent. The full name and physical street address are required for agents in the state.
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File The Certificate Of Organization
To make your LLC official in Nebraska, you must submit a Certificate of Organization to the Nebraska Secretary of State. There isn’t an official document or form for this, so you will need to create your own if you are mailing the application to the state.
The Certificate of Organization can be mailed or submitted online as a signed pdf document. You will need to pay a fee of $100, plus $5 for each additional page when filing this document.
It must include the following information:
- The business name and physical address
- Information about the registered agent, including the full name, address, and, if applicable, post office box number
- Suppose the company renders a professional service. In that case, the document must state the service that the LLC’s managers, members, and professional staff are authorized or licensed to conduct in the state.
Publish A Notice Of Organization
In Nebraska, all new LLCs must post a notice of organization to announce their formation in a local newspaper for three consecutive weeks. This notice could be published in the county where the registered agent is located if the LLC doesn’t have a location in Nebraska.
An affidavit to confirm publication must be filed with the Nebraska Secretary of State. It can be mailed or submitted online, and the fee for filing this affidavit is $10, plus $5 for each additional page.
Operating Agreement
An operating agreement is the basic internal document specifying the members’ powers, rights, responsibilities, obligations, and liabilities to one another and the company. This agreement is implemented internally and not filed with the state.
If your LLC fails to implement an operating agreement, the company’s current articles of incorporation, operating agreement, or bylaws, as well as its membership control or LLC agreement, will serve as the operating agreement.
Get An EIN
Suppose your LLC has multiple members. In that case, it will have to acquire an Employer Identification Number (EIN) from the IRS.
If you organize a single-member LLC, you will only need to get an EIN if it will have workers or if you choose to have it taxed as a corporation rather than a sole proprietorship. An EIN can be obtained by filling out an application on the IRS website. There is no charge for filing.
The Forms You Need To Register An LLC In Nebraska
Although most applications can be submitted online, you may need or prefer to mail documents. In that case, here are the most important forms you’ll need when setting up your LLC in Nebraska:
- Application for Reservation of Limited Liability Company Name
- Certificate of Organization
- Form for the application on an EIN
- Registration as a foreign business
LLC Taxes In Nebraska
Standard LLCs are pass-through entities, which means they don’t have to pay income taxes to the state of Nebraska or the federal government. They are likewise exempt from the corporate occupation tax in Nebraska. However, sales or employment tax may apply.
Sales Tax
If you’re selling tangible products, you must apply for a vendor’s permit on the Nebraska Tax Center site. A company can use this certificate to collect tax on taxable goods.
Sales tax, sometimes known as “Sales and Use Tax,” is a tax imposed by counties, states, and municipalities on financial transactions between customers and businesses.
Employer Tax
If you hire workers in Nebraska, you must apply for unemployment insurance on the state Department of Labor’s website. You’ll also need to register with the Department of Revenue for Employee Withholding Tax.
How Long Does It Take To Form An LLC In Nebraska?
Your LLC application will be processed relatively quickly. If you choose to mail your Certificate of Organization, processing will take three to five days. However, if you submit the application online, it will be processed within one to two days.
How Much Does It Cost To Run An LLC In Nebraska?
The cost for submitting biennial reports when running your business varies based on the type of LLC you have formed. You can file your report online, and the amount you’ll have to pay will be listed on the online form.
These fees start from:
- $26 – domestic enterprises
- $52 – foreign businesses
- $10 – domestic and foreign companies
Did You Know?
Limited liability companies didn’t come to be until 1977.
What To Do After Formation?
- Create a logo. To help your business stand out, you’ll need to create a memorable logo. You can get a graphic designer to help with this.
- Build a website or eCommerce store. Establishing your online presence is essential for reaching potential customers and growing your business. If you sell products, setting up an online store can help drive sales.
- Bank account. To ensure that the business’ assets remain separate from your personal assets, you must set up a business bank account.
- Business insurance. This is an important step to ensure that your business is protected if something should go wrong.
- Biennial reports. Every alternate year, you’ll need to file a report detailing the performance and operation of the business in the previous two years.
Resources To Start A Successful LLC In Nebraska
Are you looking for essential resources for starting an LLC in Nebraska? You’ll likely find what you need in the list below.
- EIN application
- Secretary of State’s online portal
- Mailing your Certificate of Organization
- Resources for small businesses in Nebraska
- LLC laws in Nebraska
Start Marketing Your LLC In Nebraska
Once you have set up your LLC successfully, it is time to focus on marketing. Most businesses sell products or services, and the only way to ensure that you get customers is to focus on marketing.
A good marketing strategy incorporates traditional and SEO-based approaches to help you reach your target market. You will need to ensure that your website receives organic traffic, so optimizing it to include links, keywords, and more will help your business feature at the top of search results.
This is a lot easier said than done, so you may need to enlist the help of a professional marketing company.
How To Dissolve An LLC In Nebraska
If you need to dissolve your LLC, you can do so in a few simple steps.
- Vote to ensure that all the members are in agreement on dissolving the LLC.
- File the Statement of Dissolution that can be found on the Nebraska Secretary of State’s website.
- Cancel any out-of-state registrations.
- Obtain tax clearance if necessary.
- Tie up any loose ends.
Conclusion
Creating an LLC is a simple and rewarding process. You can enjoy several tax benefits and grow a sustainable business if you have the determination. Follow our step-by-step guide to have your limited liability company up and running in no time!
Would you like to know how to set up an LLC in another state? Please browse our list of articles to find the information you’re looking for.