Forming an LLC is easy. You don’t even need a lawyer. In fact, you can do it yourself. And there are no annual fees. But what about taxes? What happens if you sell your business? Will your personal assets be protected? How much does it cost? All those questions and more can be answered here.
Nebraska offers three types of legal entities: sole proprietorships, partnerships, and corporations. Each type of entity has different rules and requirements. If you want to protect your personal assets, start with an LLC. Here’s how to set one up.
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How to Start an LLC in Nebraska
Nebraska offers many benefits to start a limited liability company (LLC). There are no franchise taxes, nor sales tax, and you don’t have to pay corporate income tax. You’ll also save money on filing fees and state registration costs. If you’re looking to incorporate in Nebraska, here’s what you need to do.
1. Find Your Business Name
You must choose a legal name for your LLC. This name must include your LLC’s type of entity — either “corporation,” “partnership,” or “limited liability company.” For example, if you want to form a corporation, you’d use the word “company” in your LLC’s name. In some cases, you might even consider adding the suffix “-rty” to the end of your chosen name, such as “Company LLC.”
2. Find a Good Business Address
Your registered office address is where you receive mail sent to your LLC. This address is typically printed on your Articles of Organization filed with the Nebraska Secretary of states. However, if you plan to operate out of another state, you can register your LLC in Nebraska, but keep your registered office in another state.
3. Choose a Good Business Phone Number
A phone number is required by law for most businesses. You can use the same phone number for both your LLC and personal cell phones. But, it’s best to pick a different phone number for your LLC than your personal one.
Step 1. Name Your Nebraska LLC
There are many steps involved in opening a Nebraska limited liability company (LLC). If you want to start a business in Nebraska, here are some things you’ll need to do:
1. Register your LLC online. You’ll need to provide information about yourself, such as your full legal name, date of birth, Social Security number, and mailing address. You’ll also need to choose a name for your LLC. This name must comply with Nebraska law.
2. File Articles of Organization. Once you’ve registered your LLC, you’ll need to file articles of organization. These documents include basic information about your LLC, including how much capital you’ve invested in it. They also list your members, directors, managers, and officers.
3. Open a Business Checking Account. Before you open a checking account for your LLC, you’ll probably want to set up automatic payments for bills like rent and utilities. To open a business checking account, you’ll need to submit a Form SS-4 Application for Federal Employer Identification Number (FEIN), along with proof of identity and citizenship.
4. Apply for a Tax ID. A tax identification number (TIN) allows the IRS to identify your LLC. To apply for a TIN, you’ll need to complete Form W9, Request For Taxpayer Identification Number.
5. Get a Business License. In addition to filing articles of organization, you’ll need to obtain a business license. Depending on what type of business you plan to operate, you may need a general business license, food and beverage license, liquor license, or tobacco retail sales permit.
6. Set Up Bank Accounts. After you’ve opened a business checking account, it’s time to set up bank accounts for your LLC. You’ll need one personal checking account and one business
Step 2. Appoint a Registered Agent in State of Nebraska
Step separate legal entity. Corporations must file articles of incorporation with the Secretary of State’ s office. These articles include information about the name of the corporation, how much capital it has raised, and what officers are elected to manage the business.
Limited partnerships are similar to corporations. They allow people to form a separate legal person. Limited partners do not have unlimited liability like shareholders do. Instead, they are liable only for the amount of money they invested into the partnership.
LLCs are very flexible entities. Unlike corporations and limited partnerships, LLCs don’t require any formalities. All they need is a written operating agreement. If there isn’t a written operating agreement, then the members of the LLC can agree upon the rules that govern the business.
If you want to start a business in Nebraska, you will need to appoint a registered agent. The registered agent receives legal notices sent to your business address. He or she is responsible for accepting those legal notices and sending them to your attorney.
Step 3. File Nebraska Certificate of Organization
The Nebraska Secretary of State’s office offers a step-by-step guide to help you file for a Certificate of Organization. In addition to providing instructions for completing the forms, it provides information about how to complete the forms online. You can find the link to the forms here.
You do not need to pay anything to file the application. However, there are fees associated with registering a trade name, trademark, or doing business under another person’s name.
4. Create an Operating Agreement.
Creating an operating agreement is essential to any new company. You must understand how it works and what it covers. If you don’t have one, you’ll likely end up drafting one yourself. This guide will help you avoid common mistakes when creating an operating agreement.
5. Apply for an EIN
If you are planning to start a business, you must register it with the IRS. This includes filing tax returns, paying taxes, and reporting income and expenses. If you don’t do this correctly, you could face penalties and fines. To avoid problems, you’ll want to file your federal return electronically. But how do you know if you qualify for an electronic filing option? And what happens if you already filed paper returns in the past?
We’ve put together this guide to applying for an Employer Identification Number (EIN) to find out.
Open a Business Bank Account
Opening a business bank account allows you to keep your personal funds separate from those used for operating your business. This way, you won’t have to worry about misusing your business cash for personal use. Plus, it gives you access to tools like online bill payment, mobile banking, and free check deposit.
You can easily track your expenses and prepare your tax returns. ZenBusiness Money has no limits on how much you can spend. Simply log into your account and start sending invoices. Your customers can pay via credit card, PayPal, Venmo, Apple Pay, or ZENPay. Once paid, you’ll receive an email confirmation. We offer paperless billing if you’re looking for something even easier.
With ZenBusiness Money, you don’t need to wait for checks to clear before depositing them into your account. We make deposits every day, so you never miss out on any revenue. And since you can do everything online, you can avoid costly fees.
Step 6. Meet the Nebraska LLC publication requirement
An LLC is a popular business formation choice for many entrepreneurs. In fact, there are over 3 million registered businesses in the United States that are classified as LLCs. If you want to form an LLC in Nebraska, it is important to understand how the state regulates small businesses. This article explains the registration requirements, why they exist, and how to meet them.
In Nebraska, every person or organization must register with the Secretary of State’s office. They do this by filing Articles of Organization, known as the LLC’s operating agreement. The articles include information about the name of the LLC, the date it was formed, the number of members, the address where the LLC operates, and the purpose of the LLC.
The next step is to file Articles of Amendment. These documents update the information in the original articles of organization. For example, if the LLC changes its name, the articles of amendment change the name of the LLC. Also, if the LLC adds additional members, the articles of amendment add those members. Finally, if the LLC expands into another location, the articles of amendment update the address.
Once the articles of organization and amendments are filed, the LLC is officially recognized by the state. At this point, the LLC becomes a legal entity separate from its owners. However, the LLC still needs to pay taxes to the IRS. To do this, the LLC files a federal income tax return. The return includes information such as the total amount of revenue earned during the year, the total expenses incurred, and the net profit or loss of the LLC.
Nebraska offers several tax benefits to individuals who form an LLC. First, the LLC pays no corporate tax. Instead, each member of the LLC is responsible for paying individual income tax. Second, the LLC does not have to pay social security taxes. Third, the LLC is exempt from Medicare taxes. Fourth, the LLC is able to deduct certain business expenses on its personal income tax returns. Fifth, the LLC is eligible for employee retirement plans. Lastly, the LLC is considered a pass-thru entity for sales and use taxes.
Frequently Asked Questions
What is a Registered Agent?
A registered agent (also known as an “agent for service of process”) is the person or company that accepts legal documents and processes them on behalf of another party. In other words, it is the person who receives your mail, notifies you when something important happens in court, and keeps track of all the paperwork related to your business.
What is LLC membership interest?
An LLC membership interest (also known as a member interest) is the right to participate in an LLC. It’s like owning stock in a company, but it has some important differences. For example:
You can own multiple memberships at once. You can sell your ownership of one or more memberships without having to sell all of them.
James Rourke is a business and legal writer. He has written extensively on subjects such as contract law, company law, and intellectual property. His work has been featured in publications such as The Times, The Guardian, and Forbes. When he’s not writing, James enjoys spending time with his family and playing golf.