HOW TO START AN LLC IN NEBRASKA
No matter what state a person lives in, setting up and operating an LLC can feel daunting. But it does not actually have to be that way. Instead, it can be made much easier with some simple knowledge of that a particular state requires. In Nebraska it is relatively easy to set up and run an LLC, provided the rules and regulations for creation and operation are followed.
Naming the LLC
- Every LLC needs a name, and no matter what is chosen it has to be something that is not already in use. For any business owner, picking a name is often a very big deal. Once a name has been selected it can be hard to think about changing it, but sometimes that is what needs to be done. Searching online can help determine if a name is one that can be used. Additionally, there are some requirements that also have to be met. These include using Limited Liability Company, LLC, or L.L.C. in the name, and not trying to use prohibited words. These are words that federal or state agencies are already using. There are also restricted words that can sometimes be used, but it requires more paperwork to use them. Checking to see if the domain name is available is another good idea when choosing a name, as well.
Select a Registered/ Statutory Agent
- Registered agents are people or entities that can receive official correspondence for an LLC. While this type of agent isn’t always legally required, it is possible to lose good standing with the state if an LLC does not have one. That’s because it’s so important to be able to receive correspondence and documentation that someone should always be available for that. Not just anyone can be a registered agent, however. The state of Nebraska requires that only a corporation authorized to do business in the state or a person who is a resident of the state can be accepted as the registered agent of an LLC. Incfile offers FREE Registered Agent service for the first year with every package or as a $0 standalone service.
Filing Articles of Organization
- The Articles of Organization can be filed online. There is a $125 fee for the filing, and then a recording fee of $5 per page. Additionally, the LLC must publish a Notice of Organization in the newspaper for three weeks in a row. This has to be in a general circulation newspaper, and one that is in the LLC’s county of origin or where they have their principle office. The fee for this varies according to the newspaper, and proof that this step was completed can be submitted online.
Create Operating Agreement
- Like the majority of states, Nebraska doesn’t require an operating agreement for an LLC. That is one step that can be avoided, which saves the LLC time and money. An operating agreement can certainly be created if desired, but the state will not ask for or need proof of it.
RUNNING YOUR BUSINESS
Getting Your EIN
- An EIN is an employee identification number, issued by the Internal Revenue service. Sometimes it is also called a Federal Tax Identification Number. It’s a unique number issued to each business. You’ll need an EIN to open a business bank account; file Federal and State Taxes; and hire employees.
- Before you get your EIN make sure your new business has been properly formed before applying and be wary of paid sites. EINs are free direct from the IRS.
- The easiest way is to apply online for an EIN. Note, the IRS website has office hours, and is only available Monday through Friday, 7am to 10pm. Yes, we also agree this is one of the most ridiculous things we’ve ever seen. You can call 1-800-829-4933, between 7am to 7pm of your time zone, Monday to Friday. Snail mail: You can download the form and mail it in.
Keeping Business and Personal Accounts Separate
- Get a business bank account for your business. This will help you protect your personal assets from potential creditors and lawsuits, and will also make life a lot easier come tax time.
- Get a business credit or debit card. This will help you keep your expenses separate and easier to track.
- No matter what business you run, accounting software and processes is a must for any small business. If you have an accountant, ask them which software they work with and recommend. A good accounting system is necessary to track income and expenses, so you can easily see if you’re making money and make filing income taxes so much easier.
- Always try and find something that will: sync with all of your bank and credit card accounts automatically – not just downloads, but auto sync; auto-match vendors, customers and other accounts; and let you accept credit cards and ACH drafts with ease. This can be applied for online, as can unemployment.
- Any LLC that has employees needs to register for unemployment insurance tax.
- The State of Nebraska requires a setup for employee withholding tax.
- If the LLC is going to be selling any goods or services that are considered taxable by the state of Nebraska, the LLC must also register for sales tax.
- All applicable permits, whether federal, city, county, or state, must also be registered for.
Getting Insurance for your LLC
- Workers’ Compensation insurance is required for any Nebraska LLC. That doesn’t mean that other insurance cannot be purchased, though. Many companies have insurance that goes above and beyond what the state actually requires, because it provides them with an extra layer of protection. Each LLC will have to decide if that is right for them.
KEEPING YOUR LLC COMPLIANT
- Compliance is a very serious matter. In Nebraska, it involves the filing of a biennial report. This is due biennially on April 1st in odd-numbered years, and should be filed with the Secretary of State. Online filing is $13, while paper filing is $10. A Certificate of Good Standing is also available to be requested online. In addition to these compliance requirements, an LLC must make sure its employees are legal to work in the US and must report them to the state as new hires. They must also provide workers’ compensation insurance, withhold income tax, print compliance posters, and provide increments to employees.
FILING A FOREIGN LLC IN NEBRASKA
- The fee to file a foreign LLC in Nebraska is $120, and the LLC can file online.
ABOUT HOW TO START AN LLC
I'm an entrepreneur myself. When talking to others who want to start their own business, they often get wrapped up in the nitty gritty of paperwork and forming the company. They forget that what really matters is customers, sales, and profit. That's why I created How to Start an LLC.org: a simple resource and guide so you can spend less time on forming your company, and more time on building it.
My lawyers want me to remind you that I'm not a lawyer and that I'm completely unqualified to offer legal advice. This site is meant to serve as a reference for you on your journey. If you have questions or concerns, please contact a qualified lawyer (or accountant) to help you. Also, as a general rule, never take random legal advice on the internet.