How to Start an LLC in Nebraska

This guide explains how to start a limited liability company (LLC) in Nebraska.

Nebraska is a well-known destination for outdoor adventures.

But that’s not all. Nebraska also boasts leading global billionaires, including Warren Buffett (aka the ‘Oracle of Omaha’) and Henry Davis, owner of the Omaha Steak meat delivery company.

The state also provides good infrastructure, favorable business laws, and active support for new businesses. The Cornhusker State offers a unique blend of opportunity, affordability, and a below-national-average cost of doing business.

Step 1: Choose a business name for your new LLC

Naming is a big decision for new businesses. Your company name must be brandable and reflect what you do.

Legally, your Nebraska LLC name must also be distinguishable from other registered business entities. To comply with Nebraska naming requirements, your business name must end with the phrase limited liability company or one of its abbreviations — L.L.C, LLC, or LC.

Use Nebraska’s Online Corporate & Business Search tool to do a name search and verify that the selected name is available and distinguishable.

Name reservations

If you’re not ready to file company formation documents just yet, the state allows you to reserve a business name for 120 days.

To place a reservation, complete the Application for Reservation of LLC Name online and pay the $30 filing fee.

A name reservation prevents other business owners from registering a company under the same name.

Also, consider getting a domain name. It’s best to buy one before incorporation to prevent domain squatters from snagging it.

Trade name

Similar to sole proprietorships, LLCs can do business under an alternative trade name, also known as a “Doing Business As” (DBA) or fictitious name. To register a trade name in Nebraska, file an application form with the Secretary of State online and pay the $100 filing fee. In-person applications cost $110.

You’ll also need to place a notice in a local newspaper that you’ll be using the trade name. And you’ll need to do this quickly because you only have 45 days to let the Secretary of State (SOS) know that you have completed the required publication.

Step 2: Appoint a registered agent

Nebraska requires every LLC to designate a registered agent to accept legal notices, service of process, and other official correspondence.

You can appoint an individual or a legal entity as your registered agent in Nebraska. The critical requirements are that appointee has:

At least 18 years of age
A physical address in the state (not a P.O. box)

They also must be present and available during regular business hours year-round to accept service of process.

You can be your company’s registered agent, common with single-member LLCs. But if you go this route, you’ll need to meet all the requirements for Nebraska registered agents. Your name and registered office address also become the public record.

Nonetheless, having lawsuits or subpoenas served at your office can negatively impact your business. You won’t be able to travel either. It may breach your privacy. Because of the above, many business owners hire a commercial registered agent service. Advantages of using a professional service:

Receive paperwork on your behalf discreetly instead of being served in front of your customers.
Available during regular business hours, you have the freedom to conduct your business meetings and run errands.
Professional assistance with ongoing LLC compliance and administrative matters.

Nebraska registered agent services charge $50-$300 per year. But the advantages significantly outweigh these costs.

Step 3: Draft and File the Nebraska LLC Articles of Organization

To form an LLC in Nebraska, you must file your Articles of Organization (also known as the Certificate of Organization) with the local Secretary of State.

The state has a convenient eDelivery service for online filings. To complete LLC formation, you’ll need to provide the following information:

Your LLC name and mailing address
Registered agent’s name and address
The preferred effective date for your LLC

You’ll need to create and upload your Articles of Organization as a PDF file. Nebraska doesn’t have a standard Articles of Organization form. Your Articles of Organization should comply with Nebraska statutes and outline the nature of your business and company management structure.

The state filing fee is $100 online and $110 by mail.

Notice of publication

Nebraska law requires a Notice of Publication for all new businesses, including LLCs. The notice must run for three straight weeks in a generally circulated newspaper in the county where you’ve registered.

The Notice of Publication must include your LLC’s name, address, date of establishment, and a short note on the nature of your business. Publication prices vary depending on the location of the newspaper. Most legal Nebraska newspapers charge per line with costs ranging from $40 to $250. After publishing the notice, a local newspaper must provide an affidavit or proof of publication.

Scan the affidavit of publication, save it as a PDF document, and upload it to the Nebraska SOS Corporate Document eDelivery site to file online. If you can’t scan the affidavit, mail it to the SOS with a money order or check. The state filing fee is $25 online and $30 by mail.

Once your LLC registration has been approved, you should request a Certificate of LLC Registration from the state of Nebraska. This will be beneficial as you open a bank account, pursue financing, etc. To request this, utilize the Nebraska Corporate & Business Search. The cost is $10.

Step 4: Create an LLC operating agreement

Next, you’ll want to create an LLC operating agreement.

While an operating agreement is not a legally required document for Nebraska LLCs, it helps you:

Define operating procedures for all members to follow
Outline a clear succession plan in case the owner or a member leaves the company
Build a reputational advantage for your new company
Resolve legal disputes without invoking Nebraska law
Secure funding from lenders and investors

You can create your operating agreement for your business, work with a corporate attorney to draft one for you, or buy a customizable online agreement template.

Nebraska LLC Operating Agreement Online Template. Source: esign.com

Step 5: Get an EIN (Employer Identification Number) from the IRS

You LLC may need a federal Employer Identification Number (EIN). This nine-digit number acts like a Social Security Number and helps the IRS get you set up to pay federal taxes and hire employees.

EIN registration is mandatory for multi-member LLCs. But it’s optional for single-member LLCs without employees. Use the Internal Revenue Service (IRS) website to apply for an EIN online. It’s the quickest way.

Enter information about your LLC
Select how you’d like to receive your EIN confirmation letter
Review and submit your application

You’ll get a message confirming that an EIN has been assigned to your LLC, and you can save or print a PDF copy of the confirmation letter.

EIN registration is free.

IRS EIN Assistant for Applying for an EIN Online. Source: IRS.gov.

Costs to set up an LLC in Nebraska

Filing for LLC registration in Nebraska costs $100 online or $110 by mail.

Additionally, you are required to cover the cost of publication in Nebraska, which entails a state fee of $25/$30, along with local newspapers charging approximately $80 to $150 on average. Other potential expenses that a business owner may encounter include business name registration ($30), filing for a trade name ($100 online and $110 for in-person filing), and hiring a third-party commercial registered agent (approximately $100-$150 per year). Business owners are also obligated to file a biennial report with the state of Nebraska every two years, incurring a fee of $25.

Last steps

After filing your registration, drafting an operating agreement, and obtaining an EIN, you might think you are all done! There are a few more steps you should consider completing. Business owners should create a business bank account in order to start receiving money from their customers. A separate business bank account prevents commingling funds and helps you maintain your personal liability protection.

Additionally, under Nebraska law, you’re required to register with two tax authorities if you sell goods and collect sales tax or you have employees.

Nebraska Department of Revenue. You need to register with them to get a state tax ID for paying sales tax, employee tax withholding, and other state business taxes.
Department of Labor. LLCs with employees need to register for unemployment insurance tax.

Both registrations are quick and can be done online.