Last Updated on June 13, 2022 by Fair Punishment Team
Have you decided to try your hand at running a business in the state of Nebraska? An LLC (which stands for limited liability company) is a great choice for small businesses due to tax benefits, as well as people who want to run a business while also being able to protect their personal assets.
The only question is, how do you start an LLC in Nebraska? This is where we come in to help you through the process of setting up your LLC.
Below, you will find a six-step process that will help you start your LLC by making sure that all the basics are covered. So, whenever you’re ready to start – just keep reading!
1. Name Your Nebraska LLC!
When starting up your very own limited liability company, the first and most important thing that you are going to need to do is to make sure that you have given your Nebraska LLC a name.
When you are picking a name for your LLC, you are going to need to make sure that you pick a name that not only provides customers with an insight into what your company is going to be offering, but you are also going to need to make sure that you are meeting the requirements set by the state of Nebraska.
To make sure that you don’t encounter any missteps in the naming process, here are the requirements that you are going to need to meet when naming your LLC:
Do Not Use Any Restricted Words
One of the biggest requirements you are going to need to meet when naming your limited liability company is to ensure that you are not using any restricted words.
These are words such as “bank”, “attorney” and “lawyer” and you will be unable to use them within the name of your LLC, as these types of words might lead your potential customers/public to confuse your business with a federal entity.
Do Not Copy Any Names Already Registered By LLCs In Nebraska
Along with making sure that you aren’t using any restricted words in the name of your LLC, you are also going to need to make sure that you aren’t using the names of any LLCs or business identities that are currently registered in Nebraska.
In order to double-check whether or not the name that you choose is not currently registered, we recommend that you run the name that you would like to use through this database.
Include LLC/Limited Liability Company Or L.L.C
Along with all of the above, you are also going to need to make sure that you include one of the following into the name of your company: LLC, Limited Liability Company, or L.L.C.
Even though it is a requirement for you to include one of these into the name of your LLC, it is entirely up to you which term you choose to use, as well as where it appears in the name of your business, too.
2. Choose A Registered Agent
Once you have named your limited liability company, you will then be ready to appoint something that is known as a “registered agent” to your company.
A registered agent will be either a person or an organization that will have the sole responsibility of receiving all legal and federal correspondence on behalf of your limited liability company, as well as service of process.
In addition to receiving all of the business mail that your LLC will receive, your registered agent will also serve as the first point of contact for any legal matters, and will have the responsibility of informing you of any notices or disputes that your LLC may be facing.
To follow on, anyone can be appointed as your registered agent (including yourself or even another member of your limited liability company) although keep in mind that there are some criteria that the chosen registered agent must meet. These are the following:
- The registered agent that you choose to be appointed to your limited liability company must be located in the state of Missouri and be able to legally practice as a registered agent.
- The registered agent that you choose to represent your LLC and accept all external correspondence on behalf of the LLC must also be able to be on-site or in office during standard business hours.
As a side note, it is becoming increasingly more common for new LLC owners to appoint an online company or organization that will be able to operate as the appointed registered agent via an online portal.
This method often ensures plenty of convenience to both parties and takes the stress of having to go down the lengthy process of hiring a person to serve as the registered agent.
3. File The Articles Of Incorporation
Next up, you are then going to need to move onto all of the important business documents that you are going to need to legally operate your business within the state of Nebraska.
The Articles of Incorporation are mandatory documents in the state of Nebraska, and will serve as a way to provide Nebraska with important information about your LLC business so that it can be approved for legal operation within the state.
Due to this, you will need to draft your Articles of Incorporation and then send them to the Nebraska Secretary of State for approval. In order to file your Articles of Incorporation, you will need to pay a fee of either $30 if you want to file them in-office, or $25 if you want to file them online.
These are some of the most affordable fees for filing the Articles of Incorporation in the country, as the average filing fee is typically anywhere between $50-$100.
Even though the Articles of Incorporation sound quite daunting, you will only need to include general information about your LLC to help establish it within the state.
As such, you will likely be required to include the following information within the Articles of Incorporation that you file for your limited liability company:
- The name of your limited liability company and the address that you registered it to upon creating it.
The names and contact information of all members of the LLC, including yourself.
- A statement that clearly states whether or not the memes of your LLC will be held personally liable for any debts that the LLC might infer.
- The management structure of your LLC.
- The name and contact information of the person or organization that you chose to be appointed as your registered agent.
- Liability clauses.
- The duration of your LLC if it is not going to be perpetual.
- A statement that clearly states what your business is, as well as what services/products it is going to be providing.
If you would like to fill out your Articles of Incorporation, please click here for the form that you can use for the state of Nebraska.
4. Create An Operating Agreement
Another important document that you will need to make sure that you have filed when starting your own limited liability company is something that is known as the operating agreement.
Essentially, this is a type of document that is specifically designed to serve as an internal document for your LLC and will allow you to clearly outline the way that your LLC will operate.
In addition to this, your operating agreement will also contain information that will be useful for helping to settle any disputes or misunderstandings that may arise over the duration of your limited liability company.
At the time of writing this article, it is not a legal requirement or even mandatory within the state of Nebraska to have an operating agreement in place across any business entity.
However, it is highly recommended that you do create one, as without an operating agreement, your limited liability company will have no legal credibility.
This means that, if your limited liability company happens to face any legal disputes or problems, it will fall to the state of Nebraska to diffuse the issue and reach a settlement.
Not only will this mean that you will be unable to settle any disputes internally, but any decisions that are made by the state will be done so following the state law, and that might not always benefit your LLC. So, it’s important to make sure that you file for one that can be used by your LLC.
To give you an idea of what your operating agreement will need to include, here are some of the basic information that an operating agreement will typically consist of:
- A statement that declares how profits and losses will be shared between the members of the LLC.
- Information regarding your LLCs Articles of Incorporation.
- The purpose of your limited liability company.
- Who the members of your LLC currently are, as well as what their roles are within the business, too.
- The name and contact information of the person or organization that you have chosen to be appointed as your registered agent for the LLC.
- The procedure for hiring new employees, as well as what the exit process consists of.
- The management structure of your business.
- Any and all liability and indemnification clauses.
On top of all that, it is also currently free in Nebraska to create and file your own operating agreement for your limited liability company! Click here for the form that you can use to create your own operating agreement.
5. Get An EIN Number
Another important part of the set-up process is to make sure that you have filed for your LLC to have its very own EIN, which stands for Employer Identification Number. The IRS will need this so that they can easily track your LLC tax returns.
In addition to this, you will need to make sure that you have an EIN so that you will be able to hire new employees, open up business bank accounts, apply for business credit cards and even have the ability to apply for financial funding or aid. You can easily file for this via the IRS website.
6. Decide If You Need A Bin
Along with making sure that you have registered your limited liability company with its very own Employer Identification Number, you are also going to need to make sure that you have determined whether or not your limited liability company is going to also need a BIN – which stands for Business Identification Number.
Unlike the EIN which is used by the IRS as a way to track all general tax returns, the IRS uses the BIN for payroll taxation purposes. So, with that being said, you will only need to acquire a BIN if you are planning to hire employees to work for your limited liability company.
If you are going to be operating your limited liability company as a sole proprietorship, you will not need to assign it with a Business Identification Number.
Frequently Asked Questions
Do I Need A Business License?
When it comes to starting a limited liability company, the rules and regulations put in place for legally operating one are often unique to which state that the limited liability company is being formed.
Due to this, if you are planning to start your own LLC it is important to make sure that you are following all of the regulations and meeting any legal requirements put in place by the state that you are living in or planning to situate your LLC business within.
Currently, in the state of Nebraska, it is only a requirement for a limited liability company to have a business license registered to the LLC if the LLC is situated within a certain industry including human services, food services, and health services.
What Are Tax Requirements For LLCs?
As you will have seen from our answer to whether or not you will need to apply for a business license when setting up your very own limited liability company, the rules and regulations for legally operating an LLC are often dependent on the state – and tax requirements are no exception here.
To make sure that you are meeting all of your tax obligations as an LLC owner, it is important to make sure that you understand whether or not your LLC will be taxed as per the mandatory requirements of the state that the LLC has been formed in.
When it comes to the state of Nebraska, standard LLCs are considered to be a pass-through entity, which means that they are not required to pay any income tax to either the government or the state of Nebraska.
In addition to this, at the time of writing this article, the state of Nebraska has not made it mandatory for limited liability companies to have to pay any corporation occupation taxes, either.
However, while this might very well be the case, it is also important to note that if you are planning to open a limited liability company in the state of Nebraska, you will be required to file a biennial report for your LLC for every odd-numbered year.