Are you interested in establishing and running a small business in Nebraska? Then, you’ll want to learn how to form an LLC in Nebraska — and we’ve got just the guide for you!
This article will walk you through everything you need to successfully form your LLC in Nebraska, from brainstorming a name to obtaining business licenses and permits. Let’s dive in!
Choose a Name for Your Nebraska LLC
Choosing a company name is the first and most important step in forming an LLC in Nebraska. We recommend choosing a name that your customers and clients will find easy to pronounce and memorize. It’s also a good idea if your name relates to your business so customers get an instant feel for what you do.
There are also some general naming requirements and guidelines in Nebraska that you must comply with. These include the following:
- Your Nebraska LLC name must be unique and distinguishable from other LLCs.
- Restricted words (such as Attorney, Bank, University) may need additional paperwork and a licensed professional/individual, such as a lawyer or doctor, to be part of your Nebraska LLC.
- Your chosen LLC company name should not have words that may confuse your Nebraska LLC with a government agency.
- Your Nebraska business name must include one of the following phrases: “LLC,” “limited liability company,” or “L.L.C.”
You should also ensure that your chosen business name is available in Nebraska and that it isn’t already taken by another LLC. The easiest way to confirm this is by doing an LLC name search on the State of Nebraska website.
Finally, check if your LLC name is available as a web domain using a service like Namecheap. Then, purchase and trademark or reserve it to prevent other LLC owners from acquiring and using it.
Hire a Registered Agent
All LLCs in Nebraska are required by the Nebraska Secretary of State to nominate a registered agent.
A Nebraska registered agent is any individual or business entity designated to receive legal documents, tax forms, official government notices, and any other correspondence or documents from the government on behalf of your company.
A registered agent can be yourself, another member of your LLC, a family member, or a friend. You can also hire a registered agent company.
If you appoint a person to act as a registered agent for your LLC, they must meet the following requirements:
- Must have a permanent street address in Nebraska (a P.O. box address won’t be accepted).
- Be at least 18 years old.
- Be available at all regular working hours to receive and forward official and legal documents.
If you opt to hire a registered agent company, we recommend the following best registered agent companies in Nebraska:
Nebraska Registered Agent
If you are looking for the best and most affordable registered agent service in Nebraska, you can’t go wrong with the Nebraska Registered Agent.
For only $49, this registered agent company will give you access to email notifications, annual report reminders, pre-filled state forms, and online document storage.
Their pricing is transparent, with no unplanned costs or sneaky auto-renewals — it’s also one of the cheapest offerings on the market.
In addition to the registered agent services, you can hire a Nebraska Registered Agent for other LLC formation services, including writing an article of organization, operating agreement, or act of incorporation.
You can find the Nebraska Registered Agent offices in Lincoln.
Having assisted more than 800,000 entrepreneurs in staying compliant with business laws and regulations throughout the years, IncFile ticks all the boxes of a top registered agent company in Nebraska.
Their registered agent services include automatic mail forwarding, tailored text and email notifications, and access to a personal dashboard.
IncFile’s interface is intuitive, and users love their dedication to sending compliance notifications that will keep them up-to-date with all state deadlines.
The annual cost of their registered agent services is only $119, and no hidden fees or contracts exist. However, if you hire their LLC formation service, you will get a free year of registered agent services.
ZenBusiness is our third pick for Nebraska’s best registered agent company. Ranked #1 on MarketWatch and Investopedia, your Nebraska LLC will remain compliant with ZenBusiness.
Their services include fast turnaround, document scanning, email notifications, mail forwarding, and access to a personalized dashboard.
ZenBusiness is also popular for its generous $5K Grant Program that enables struggling entrepreneurs access to funding to launch and grow their businesses.
Their registered agent services cost $199 per year. You can also upgrade this service to include more perks, such as two free filing amends per year and annual support notifications.
File Articles of Organization
After hiring a registered agent for your Nebraska LLC, the next step is to register your business with the Nebraska Secretary of State.
The simplest way to register your Nebraska business is by filing an Article of Organization online with the Corporate Document eDelivery Unit. You will then be required to choose between forming a new entity or qualifying a foreign entity. The filing process entails creating a subscriber login with the name of your Nebraska business and an active email address. You will also need a credit card to pay for the state filing fee of $100.
If you do not want to register your Nebraska business via online filing, you can do it by mail. If you choose this option, you will be required to hire a professional lawyer who will create an Article of Organization for you according to the Nebraska Revised Statute. The submission process is the same as the online application. The filing fee is $110.
The online filing of your LLC’s Article of Organization in Nebraska will take 2-3 working days, while mail filing will take around one week.
Create an Operating Agreement
Creating a comprehensive Operating Agreement is not a legal requirement in this state. However, drafting one can be incredibly beneficial to your Nebraska LLC.
Your Nebraska LLC operating agreement defines the regulations and procedures for your business’s functions.
It can also help LLC members and managers settle disputes and prevent litigation. If you fail to draft an operating agreement for your LLC, your LLC will be governed by state laws.
A well-written Operating Agreement can include details about your LLC, including liability clauses, rules for admitting and removing members, rights & responsibilities of each member, ownership percentage, profit and loss distribution rules, and more.
You can easily create your LLC’s operating agreement by downloading and filling out an online operating agreement sample. You can also purchase an LLC formation package with an operating agreement as a feature/service.
Obtain all Licenses and Permits
When it comes to state-level licensing in Nebraska, the only licensing and permit requirement you need to worry about is the tax permit or the seller’s permit. For instance, any LLC in Nebraska that leases or sells taxable goods or services must obtain this permit/license before they can do any business. You can get this permit/license from the Nebraska Department of Revenue.
Certain professional service providers are also required to acquire other state-level licenses. You can find a complete list of these professionals and their licensing requirements on the Nebraska One Stop License and Inspection Portal.
You may also need further licensing at the city or county level (local governments). These may include local seller’s permits, business licenses, and professional licensing at your local government.
Acquire Federal and State Tax IDs
A Federal and State Tax ID, also known as an Employee Identification Number, is used by the IRS to identify your Nebraska LLC for tax purposes.
Whether or not your Nebraska LLC is legally required to obtain a Federal and State Tax ID depends on how your LLC is taxed and whether you have hired employees for your LLC. If your LLC has employees and is taxed as a separate business entity, you will be legally required to acquire a Federal and State Tax ID.
The application for a Federal and State Tax ID is done via the IRS (Internal Revenue Service) website. The application process is straightforward and free of charge.
Even if you own an LLC (such as a single-member LL) that is not required by law to obtain a Federal and State Tax ID, many benefits come with acquiring one. For example, you will need it to open a business bank and credit account. It can also help in preventing identity theft.
Open Business Bank and Credit Accounts
As a business owner in Nebraska, it is essential to maintain a separation between your LLC finances and personal ones. For instance, if you are found intermingling LLC and personal finances, the liability protection offered by your LLC will be eroded, leaving you responsible for your LLC financial obligations.
Opening a business bank and credit account also simplifies accounting and tax preparation.
A checking bank account is often the best place to begin, as all your income and expenses will be in one place and specially allocated to the LLC.
Opening a business bank and credit account is straightforward. You just need to visit your preferred bank and inquire about the fees and requirements for opening an account. However, the standard requirements are an Article of Organization, Federal and State Tax ID, and an Operating Agreement.
Here are three banks in Nebraska you can open a business bank and credit account with:
Purchase Nebraska Business Insurance
If your Nebraska LLC has more than one employee, including members, Nebraska state laws require that you purchase a workers’ compensation insurance policy. This insurance covers employees who may get injured or fall ill because of their work.
Together with workers’ compensation insurance, most Nebraska LLCs choose to purchase a general liability insurance policy in place. This insurance protects your LLC in the event of lawsuits for things like personal injuries and property damage, where your LLC is at fault.
Additionally, if your LLC provides professional services, such as accounting, you must buy a professional liability insurance policy to protect against negligence and malpractice suits.
Buy an LLC Formation Package to Speed Up the Process
Forming an LLC in Nebraska can be a time-consuming and daunting process. However, purchasing an LLC formation package can streamline and speed up the steps listed above.
Many LLC formation packages are available for entrepreneurs, some of which are free of charge.
One such example is ZenBusiness. Their comprehensive Stater LLC formation package is free and has all the tools required to form your LLC in Nebraska. You will only be asked to pay the state filing fee.
In addition to the free Stater LLC formation package, ZenBusiness also offers two extra formation packages: the Pro package ($199) and the Premium package ($299). These paid packages come with added perks, such as expedited processing, worry-free compliance, etc.
LegalZoom is another top LLC formation service provider that offers impressive packages. Like ZenBusiness, their basic formation package is free of charge, except for the state filing fee. If you don’t mind spending a little cash on LLC formation, consider their Pro or Premium packages.
FAQs About Forming an LLC in Nebraska
How Long Will It Take to Form My Nebraska LLC?
You can form your Nebraska LLC in 2-3 working days if you file your Article of Organization online. Or around one week if you file it by mail. Nebraska doesn’t have expedited processing for online and mail filing.
How Much Does It Cost to Set Up an LLC in Nebraska?
It will cost you $100 to form your Nebraska LLC online and $110 to file it by mail. This is the state fee for filing the Article of Organization. In addition, there are other costs you should be aware of when forming your LLC in Nebraska. These include the cost of obtaining licenses, hiring a registered agent, business name reservation fee, insurance fee, etc.
Can I Act as my Own Registered Agent in Nebraska?
Yes. Nebraska has no restrictions regarding who can be your LLC’s registered agent. You can nominate yourself as your registered agent if you meet the official requirements of being a registered agent in this state. These include being a Nebraska resident, being at least 18 years of age, and being available during regular working hours.
Can I Form a Single-Member LLC in Nebraska?
Yes. The state of Nebraska allows entrepreneurs to form single-member LLCs as long as they comply with the state’s requirements and guidelines. The formation process is straightforward, as you only need to follow this guide or hire an LLC formation company.
That is all about forming your LLC in Nebraska. The formation process is fairly straightforward, and you can complete it in only a few steps. The Nebraska State website offers ample resources and tools, such as template forms, to simplify the paperwork. Hiring a reputable LLC formation service provider can further streamline the process.