How Much Does an LLC Cost in Nebraska (What Fees to Pay)
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.
As a Mergers and Acquisitions specialist, I assisted businesses and individuals in forming their limited liability companies and creating joint organizations.
We teamed up with our LLC experts to compile this Nebraska LLC cost guide and give you a better idea of what to expect and prepare financially.
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.
Quick Summary
- An LLC in Nebraska costs \$100 if you file online and \$110 if you file by paper. This covers the filing fee for the Certificate of Organization, but there is also a mandatory publication fee of \$25.
- Additional expenses include licenses and permits, biennial reports, taxes, operating agreements, and other business documents.
- The federal self-employment taxes on your income are deducted at 15.3%, 12.4% for Social Security, and 2.9% for Medicare, according to the Internal Revenue Service (IRS).
- Nebraska is one of the states that does not require annual reports. LLCs file a biennial report for their business.
Cost to Start an LLC in Nebraska
Before an LLC can legally conduct business in the state, there are mandatory and optional expenses that have to be shouldered.
1. LLC Formation Filing Fee (\$100/Online - \$110/Paper filings - Mandatory)
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]. According to the Nebraska Secretary of State, this streamlined fee structure has led to an increase in online filings, with over 75% of all business filings now submitted electronically, demonstrating the efficiency and convenience of the online process.
This is the state filing fee for the Nebraska Certificate of Organization, paid only once to the Nebraska Secretary of State.
When clients want their businesses to be operational as soon as possible, I file the application online since the documents are processed within 1-2 business days.
Expedited service is available. However, you’ll need to contact the Secretary of State to determine the actual fees.
2. Publication Fees (\$25 filing cost + \$40-\$250 Publishing Expenses - Mandatory)
Depending on the publication you select, the Nebraska LLC publication requirement costs within the \$40 to \$250 limit.
A client of mine had to issue a notice in a legal publication for 21 days after filing their 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.
3. Registered Agent Service Fee (\$80-\$300 Annually – Optional)
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 \$80 and \$300 a year, depending on the service you hire.
"A Nebraska Registered Agent, either an individual or a company, is responsible for accepting legal documents and state notices on behalf of your LLC and must have a physical street address in the state, being available during standard business hours."
- Jon Morgan, CEO, Co-Founder & Editor-in-Chief of Venture Smarter
4. Name Reservation Fee (\$22 - Optional)
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.
Before filing a reservation form, I always look up an LLC in Nebraska to check its availability since only authorized names can be reserved [2].
Expenses Following the Approval of Your LLC
Once the LLC has been approved, additional costs that may have to be covered include the following:
1. Local Business License Costs (Depending on Line of Business - Mandatory)
In Nebraska, each jurisdiction has its licensing policies, conditions, and costs.
For instance, I have clients in Omaha who are electrical trade experts. They were required to apply for a license through the city clerk’s office and paid fees ranging from \$10 to \$90 [3].
2. Biennial Report Fee (\$25 - Mandatory)
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 fee for the Nebraska LLC Biennial Report is \$25. This charge is paid every other year for the duration of your LLC.
Our team ensures clients to pay their biennial reports before the due date to prevent penalties.
3. Taxes (Depending on Income Bracket - Mandatory)
Most LLCs fall under the category of "pass-through tax entities" for purposes of income taxes.
The federal self-employment taxes on your income are deducted at 15.3%, 12.4% for Social Security, and 2.9% for Medicare, according to the Internal Revenue Service (IRS) [4].
Read our article for more information about how to file taxes for an LLC in Nebraska.
4. Operating Agreement (\$100 - \$200 - Optional, but Recommended)
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.
For clients who have budget to spare, I advise them to employ an attorney to ensure the legality of the document.
5. DBA Name (\$100/Online - \$110/In Person - Optional)
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 Secretary of State will receive an Application for Registration of a Trade Name from you.
The law also stipulated that all LLCs must publish a declaration of their trade name in a local newspaper.
6. Certified Document Copies (\$10 + \$1 per additional page - Optional)
When forming an LLC, I obtain certified copies of my company's records currently on file with the state to confirm the accuracy and validity of the documents.
A certified copy costs \$10 plus an additional \$1 per page.
7. Certificate Of Good Standing (\$10/Mail-\$6.50/Online - Optional)
A Certificate of Good Standing confirms your company's legal registration and ability to transact business with the state. It costs \$10 if you file by mail or \$6.50 if you file online.
I advise clients to acquire a Certificate of Good Standing since the document can be used to open a business bank account and apply for loans.
8. EIN (\$0 - Optional, but Recommended)
The Employer Identification Number is issued by the Internal Revenue Service (IRS) and is necessary for paying taxes, opening business bank accounts, acquiring loans, and hiring employees.
You can apply for an EIN on the IRS website free of charge.
FAQs
Is There a Yearly LLC Cost in Nebraska?
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?
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.
References:
- https://sos.nebraska.gov/business-services/new-fees-effective-july-1-2021
- https://www.nebraska.gov/sos/corp/corpsearch.cgi
- https://permits.cityofomaha.org/licensing-information
- https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes
