Nebraska can be a good state for forming an LLC, mainly because it has a relatively simple and straightforward LLC formation process.
Before you can take steps to start a company in this state, it’s best to learn the cost you might incur along the way.
We teamed up with our LLC experts and business advisors to compile this Nebraska LLC cost guide and give you a better idea of what to expect and prepare financially.
Quick Summary
- An LLC in Nebraska pays $109 for the Certificate of Organization as its primary filing fee.
- The Secretary of State of Nebraska expects all LLCs to provide a biennial report on their business every 2 years since their establishment and pay $25.
- Nebraska law mandates that every LLC publish a notice for 21 days in a legal newspaper.
How Much Does an LLC Cost in Nebraska?
An LLC in Nebraska costs $109. Once formed, your LLC will incur additional costs that might include a name reservation fee ($30), registered agent service fee, biennial report, and more.
Here’s a detailed list of the costs you can anticipate.
Nebraska LLC Certificate of Organization Filing Fee
The initial Nebraska LLC filing fee is $100 online (plus an additional $9 portal and credit card fee) and $110 for in-house filing [1].
This is the state filing fee for the Nebraska Certificate of Organization, paid only once to the Nebraska Secretary of State.
After receiving your documentation, the total LLC processing time in Nebraska usually takes around 10 days for the state to complete.
Nebraska additionally permits the creation of Series LLCs, which comprise a "parent" LLC and several "child" LLCs.Â
You can create a Series LLC in Nebraska by submitting a Protected Series Designation and paying $110 for each child LLC created under your parent LLC.
Nebraska Registered Agent Fee
Under Nebraska law, any individual or company can act as a registered agent. It wouldn't cost you anything to operate as your own registered agent.
However, you must be accessible at your LLC's principal address throughout all regular office hours to serve as a registered agent. This is to ensure you are present when the LLC receives legal documents.
For this reason, it’s advisable to hire a Nebraska registered agent service and have an expert handle all the paperwork for a relatively low cost.
Registered agent service fees range between $40 and $125 a year, depending on the service you hire.
Nebraska LLC Publication Fees
Depending on the publication you select, the Nebraska LLC publication requirement costs within the $40 to $250 limit.
You're expected to issue a notice in a legal publication for 21 days after filing your Certificate of Organization with the state.
You will receive an Affidavit of Publication from the publication you publish with, which you must submit to the Nebraska Secretary of State for a charge of $25.
Nebraska Business License Fee
In Nebraska, LLCs do not require a state-wide business license, but certain professionals and establishments, such as eateries and electricians, must obtain a permit from their local governments.
Companies like debt collection and management agencies still have to apply for a license from the Nebraska licensing body that oversees their business sector [2].
For instance, debt management companies must submit a Debt Management License Application to the state and pay an initial charge of $200 and a $200 investigation fee.
Other Filling Fees
You may potentially incur further costs when starting an LLC in Nebraska, like name reservation and operating agreement, just to name a few.
1. LLC Name Reservation Fee
Reserving the name of an LLC in Nebraska costs $30. To book your name for 120 days, submit an Application for Reservation of Limited Liability Corporation Name to the Nebraska Secretary of State.
You should first look up an LLC in Nebraska to check the availability of LLC names since only authorized names can be reserved [3].
2. Nebraska Biennial Report Fee
Nebraska mandates businesses to file a biennial report every two years to maintain their LLC's current information.
As a result, your Nebraska LLC can continue to operate in legal status and in accordance with state law.
The Biennial Report is verified and filed with the Nebraska Secretary of State once the Biennial Report fee is paid.
The annual fee for the Nebraska LLC Biennial Report is $25. This charge is paid every other year for the duration of your LLC.
3. Trade Name
Registering a trade name (also known as a DBA or "doing business as") costs $100 if done online and $110 if done in person for an LLC in Nebraska.
The Nebraska Secretary of State will receive an Application for Registration of a Trade Name from you.
You must adopt a DBA or trade name to lawfully conduct business under a name other than the one you listed on your documents of incorporation,
The law also stipulated that all LLCs must publish a declaration of their trade name in a local newspaper.
4. Taxes on Nebraska LLCs
Most LLCs fall under the category of "pass-through tax entities" for purposes of income taxes. In other words, the individual LLC members are responsible for paying federal income taxes, not the LLC.
The federal self-employment taxes on your income are deducted at 15.3%, 12.4% for Social Security, and 2.9% for Medicare [4].
Remember that an Employer Identification Number is required to pay federal taxes. An EIN can be filed for free with the IRS.
5. LLC Operating Agreement
Operating agreements are not required for LLCs in Nebraska, although it is usually best to have one.
By drafting an operating agreement, you establish the rules governing your company instead of letting state law take over by default.
An operating agreement costs $100 to $200 if you hire an LLC formation service to do it for you.
6. Statement of Change
A Statement of Change is the most straightforward approach to notify the Secretary of State if you change your office address or registered agent.
It must be filed for a sum of $30 in person, $25 online, or $30 by mail.
7. Certified Document Copies
Obtaining certified copies of your Nebraska company's records currently on file with the state confirms the accuracy and validity of the documents.Â
A certified copy costs $10 plus an additional $1 per page.
8. Certificate of Good Standing
A Certificate of Good Standing confirms your company's legal registration and ability to transact business with the state. It costs $10 by mail or $6.50 online.
The bank usually requires a Certificate of Good Standing when you're opening a business bank account.
9. Nebraska Local Business License Costs
In Nebraska, each jurisdiction has its licensing policies, conditions, and costs. For instance, Omaha requires electrical trade experts to apply for their licenses through the City of Omaha and pay fees ranging from $10 to $90 [5].
10. Nebraska Professional Licensing Fees
To practice their professions legally in Nebraska, practitioners like nurses, physical therapists, and veterinarians must get professional licenses.
Nursing practitioners, for example, must receive several licenses, degrees, and experience hours and are subject to regulation and licensing by the Department of Health and Human Services.
11. Premiums for Business Insurance
Most LLCs must legally maintain workers' compensation insurance in Nebraska, which typically costs companies between $1.09 and $100 per payroll period.
However, the amount you ultimately pay will vary depending on the votes you make and other elements, like the risk of workplace harm or the location of the business.
A state-issued workers' compensation and liability insurance plan from the Nebraska Department of Insurance is available to employers.
Foreign LLC in Nebraska
As a foreign LLC in Nebraska, you must submit your Certificate of Authority online or on paper to be eligible.
The filing fee is $100 online and $110 in-person, which is a little more expensive than the Certificate of Organization.
But this is a one-time file, similar to the Certificate of Organization, so you are set to go once it is approved.
FAQs
Is There a Yearly LLC Cost in Nebraska?
No, there is no yearly LLC cost in Nebraska; instead, you must submit a biennial report. The Nebraska Secretary of State's Online Filing System can be used to pay this report for a $25 filing fee.
Does My Nebraska LLC Have to Pay A Franchise Tax?
No, your Nebraska LLC doesn't have to pay a franchise tax. However, you will be under the obligation to pay income tax and sales tax, among others.
Do You Need Professional Help with Your Nebraska LLC?
Although creating an LLC in Nebraska is a straightforward process, many business owners seek professional help to avoid making costly mistakes.
If you think your own level of knowledge and experience isn’t enough to get your LLC off the ground, make sure to go through our list of the best LLC services in Nebraska that will help you ensure your LLC is filed appropriately.
Apart from handling your LLC's tax obligations and legal requirements, these companies can help you solve liability issues, fulfill registered agent duties, follow the filing procedures, and more.
References:
- https://sos.nebraska.gov/business-services/new-fees-effective-july-1-2021
- https://sos.nebraska.gov/licensing/debt-management-agencies
- https://www.nebraska.gov/sos/corp/corpsearch.cgi
- https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes
- https://permits.cityofomaha.org/licensing-information
