Starting an LLC in Nebraska is a great way to protect your assets while running a business. It provides limited liability protection and a corporate structure and allows you to take advantage of the tax benefits an LLC can offer.
In this article, I’ll explore the steps you need to take to form an LLC in Nebraska. Additionally, I'll cover important information on costs you may incur when setting up an LLC, helping you budget accordingly.
Permits And Licensing Requirements
Before launching operations, however, it’s essential to understand what permits and licenses are required for businesses depending on the type of business and location.
Filing Requirements
To register as a foreign LLC in Nebraska, you must submit an Application for a Certificate of Authority. This application can be submitted online or through the mail. The filing fee starts at $100 when submitting online and $110 when submitting via mail. You’ll then have to file a biennial report which costs $13.
Permit & Licenses Requirements
Before launching operations, it is essential to obtain the necessary federal/state permits & licenses depending on your business type and location. The types of permits may include but are not limited to sales tax permits, employer identification numbers (EIN), zoning permits, health department permits, sign permits, etc.
Depending on the structure of your business, you may also need additional local government-issued licenses that allow you to operate within their jurisdiction. Before embarking on this process, you should consult with an attorney or other professional with experience in Nebraska-specific regulations.
LLC Certificate Of Organization
One of the most important documents you will need to submit is a Certificate of Organization, which contains all the necessary information about your organization. To fill up this document, you’ll first need to choose a name for your LLC that complies with state regulations. The name must include “LLC” or “L.L.C.,” and it cannot be similar to any other business entity registered in the state. It must also not contain words that indicate professional services, such as an attorney or medical doctor. Once you have chosen a suitable name, you can file your Certificate of Organization with the Secretary of State’s office by mail or online.
Apart from your LLC name, the Certificate of Organization must include, the duration period (the length of time your business will exist for), and the manager/member structure (outlining who is responsible for running operations on behalf of the company). Additionally, the professional services offered need to be listed too. You will also need to provide contact information, such as addresses and phone numbers for each member or manager included in the filing.
Once the secretary of state has carefully reviewed everything and approved it – congratulations: You just turned your business idea into reality with recognized legal status. The official process usually takes 2-3 weeks from submitting your document but may vary depending on how busy the state is at any given time.
Publishing A Notice Of Formation In Nebraska
One crucial task you must do to ensure your business is compliant and ready to go is to publish an official notice of formation. This is a requirement for all registered companies in Nebraska and can be done through the local newspaper.
The information that must be included in your notice of formation includes the name and address of the LLC, plus any names and addresses of registered agents in Nebraska. You also need to list any professional services offered by your LLC, such as accounting or legal services, so potential customers can see what your business has to provide them with. Once all this information is collected, you are ready to publish your notice.
You must publish your notice of formation within 45 days of registering it with the Secretary of State. It must appear in two separate newspaper issues in the county where it was registered. After two issues have been published, contact the newspaper for confirmation and file this documentation with the Secretary of State for completion.
Naming Your Nebrasksa LLC
A sticking point that some business owners find is with naming their LLC. Not only does the company name have to be unique and different from other existing businesses registered with the state, but there are also restrictions on certain words and phrases - such as “bank,” “lawyer,” or “attorney.”
All LLCs in Nebraska must include either "Limited Liability Company," "LLC," or “L.L.C." at the end of their name. This helps distinguish the company from other entities, such as corporations and partnerships. Furthermore, you may not use any existing names already registered with the state, so check before selecting one. Additionally, if you wish to use restricted words such as 'bank,' 'lawyer,' or 'attorney,' additional documentation and licensing paperwork may be needed for approval by the Secretary of State's office.
Once you have settled on a name for your LLC, it is essential to ensure that no one else reserves it first. You should also double check the domain name is available for your company’s website. This means going online and checking whether the domain name is available. If it is available, secure it immediately so no one else can claim your desired URL before you do. It's also possible that someone has bought the domain before you. If this happens, consider altering your proposed LLC name slightly until you find one available online and offline.
Finally, once all these steps are completed successfully, and you are happy with your choice of an LLC name for your business in Nebraska, either submit the necessary forms and fees to reserve it for 120 days and go ahead and start your business with the chosen name.
Appointing A Registered Agent For Your Nebraska LLC
A key step to business success is finding the perfect Registered Agent. A Registered Agent is an individual or entity responsible for receiving any legal documents and notices on behalf of your LLC.
When picking a registered agent, you have two options: appoint someone within your LLC or choose an external service provider. Regardless of which option you choose, they must meet some basic qualifications. First and foremost, they must have a physical address in Nebraska and be available during regular business hours.
That way, any legal documents and notices sent to your LLC can be delivered there safely and promptly. Additionally, whoever you decide on should be reliable, organized, and have excellent communication skills - since this person or entity will represent your LLC.
You can also name yourself, another member of your LLC, or even an employee as the registered agent for your Nebraska business. Make sure that whoever you appoint has a physical address in Nebraska that can accept delivery of legal notices during regular business hours - usually 9 am - 5 pm local time, Monday through Friday (excluding state holidays).
If appointing someone within your LLC isn’t an option, don’t worry - plenty of qualified registered agent service providers are ready to help! When researching potential providers look for those who offer quality services at affordable prices, provide helpful customer support, and have good reviews from past customers. Doing so will ensure you get exactly what you need without breaking the bank while still having access to additional support when needed.
The Importance Of An Operating Agreement For Your Nebraska LLC
Trying to get a business to work on a project can be frustrating and challenging when it’s all chaotic. For new and established businesses, having no plan or structure can have serious consequences. When starting an LLC in Nebraska, the same principle applies – having an operating agreement is essential to provide clarity and direction.
An operating agreement is a document that outlines the rules and regulations for your LLC. It will include information such as who owns the business, how profits are divided among members, how decisions are made, definitions for various roles within the company (e.g., manager, member), and other essential details about how your LLC will operate. Operating agreements clarify roles and responsibilities between members while protecting everyone involved from potential legal fallout down the line.
When creating your operating agreement, it's essential to include all the necessary information about your Certificate of Organization (COO), the purpose for doing business, who'll be managing things at the LLC level, clauses around indemnification/liability that help protect everyone involved from legal fallout down the line, etc. Additionally, it would be best to consider including additional details affecting operations, such as meeting procedures or voting rights among members. Having these explicit expectations laid out helps ensure everyone involved with the business is on the same page and reduces confusion when making decisions.
Applying For An EIN In Nebraska
One of the most critical steps to a Nebrasks LLC is getting an Employer Identification Number (EIN). This 9-digit code assigned by the Internal Revenue Service (IRS) helps manage your business taxes, open up bank accounts, and hire employees.
When applying for an EIN, you have two options: online or via mail. If you choose the online option, head to the IRS website and fill out Form SS-4 with all required information; once complete, click “submit” and wait for confirmation that your application was successful—you should receive confirmation within minutes!
If you choose the mail route, print off Form SS 4, fill out all required information, put your signature where necessary, then mail it off to the address provided on the form. Whichever method you choose should take no longer than 5 minutes to complete.
Conclusion
Knowing the basics behind forming a Nebraska LLC is essential when forming a business in the state. With this information and the costs and benefits associated with such entities, you’ll be ready to start your LLC in no time.
