If you set up an LLC in Nebraska, you can render a professional service or operate as a trading company or commercial business. Therefore, an LLC makes it easy for professionals and business people alike to protect their personal assets and avoid double taxation.
You’ll find that you’ll have several documents to fill out and processes to follow when you set up an LLC in Nebraska.
For example, your business is required to have a federal tax I.D. called an employer identification number or EIN. An EIN is like a social security number for a business. You need an EIN to pay employees and to open a business bank account.
You’ll also need to follow the state’s guidelines for sales tax registration. This registration is designed so businesses can meet the sales and use tax requirements for the state, county, or municipality where they operate.
In addition, you need to set up the proper tax withholding and unemployment accounts for paying employees.
It is your responsibility as well to check on licenses and permits – both of which are needed to run a Nebraska company.
Create a Business Plan
To ensure you stay on target with your financial forecasts, you should create a business plan. This plan will guide you when you establish an operating agreement for your LLC and submit your LLC paperwork.
The above information gives you an idea of some of the preliminary activities you need to keep in mind when setting up an LLC in Nebraska.
Chose a Name for Your Business
To begin the LLC formation process, you’ll need to choose a unique business name. The name should be a one-of-a-kind name, not already taken by another business in the state.
You can learn what you need to know by visiting the One-Stop Business Registration Information System in Nebraska.
Retain the Services of a Registered Agent
After you choose a business name, you’ll need to retain the services of a registered agent – someone or a company that can receive legal and tax information for your company. They should have a physical address in Nebraska and be available from 8:00 am to 5:00 pm during the business week.
File the Articles of Organization
Once you obtain the business name and find a registered agent, you’re ready to establish your LLC. Your next step in the process is to file the Articles of Organization.
What the Articles Should Contain
The articles should contain the following details:
- The registered agent’s contact name and address
- The company registrar’s name and address
- The principal location of the business
- The official company name
- Any doing business as (DBA) designations
- The reason for the business
- The business structure
- The names and addresses of the members, managers, and directors of the company
The Secretary of State will review the Articles of Organization and approve them. After they’re approved, they will form the legal foundation for the establishment of your LLC. Therefore, the articles are the main component needed to register as a business entity.
These articles also bound your business to the laws of the state under which they’re formed. You might liken them to a business charter. That’s because they outline the structure, governance, operations, and goals of a company. They also provide specific details about a business and its purpose.
Create an Operating Agreement
You should also create an operating agreement. While this document does not have to be filed with the Secretary of State, it is crucial to have one to mitigate any disagreements that may arise at a future date. This document should include the following details:
- The percentage of ownership
- Equity structuring
- Distribution and allocation of profits and losses
- The names of the managing members
- The voting rights of the individual parties
- Ownership transfer
- Buyout agreements
- Dissolution of terms and conditions
- Other specific guidelines for operating the LLC
Keeping this document on hand in-house will also be useful if you have people interested in joining your business as an owner or future partner.
In addition, you will need to get a certified copy of your state-filed documents for your LLC. These official copies can support you when setting up your business bank account.
Maintaining Your Nebraska LLC
Nebraska requires that LLCs do the following after becoming established:
- LLCs, to stay operational, must file a biennial report (every two years). They must submit the report from January 1 through April 1 of odd-numbered years. Currently, as of 2022, the filing fee is $10.00.
- Taxes are paid by the owner of the LLC on his or her individual tax return. This form of tax payment is called pass-through taxation, as the taxes pass through the corporation to the owner, thereby making an LLC a federal tax-free income entity.
- A state tax identification number is a requirement for LLCs that do business in Nebraska.
Contact the Corporation Center to Establish a Nebraska LLC
To ensure you do everything properly, it helps to have an advocate on your side. Learn more
about creating an LLC in Nebraska today. Call the Corporation Center at (800) 580-4870 for all the details now.