The increasing number of companies formed in Nebraska has boosted the state’s economy and helped the businesses to achieve targeted growth. Forbes “Best States for Business” report ranks Nebraska among the top four and this is for the third straight year. This is good news for new businesses or start-ups and this is mostly because the state provides a business-friendly regulatory climate as well as low business operating costs. The economic center of the state is Omaha and is also the home to Berkshire Hathaway, founded by Warren Buffett, the 2nd richest man in the world.

We are one of the top Nebraska registered agents and are familiar with all incorporation processes pertaining to the Nebraska State and can provide information and assistance for successful set up of your business! Let’s take a look at how to go about company formation in Nebraska.

Nebraska LLC Registration and Formation

LLC company formation in Nebraska is governed by Nebraska Revised Statutes – Chapter 21, Nebraska Uniform Limited Liability Company Act. The procedure for registration and formation of LLC is as follows:

Step#1: Maintain a registered agent

If you are planning to form a Limited Liability Company in Nebraska then you will be required to designate and continuously maintain a registered agent in the state pursuant to Neb. Rev. Stat. §21-113. This law is applicable for domestic limited liability company as well as foreign limited liability company. We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Nebraska. We can assist you to form a Nebraska business LLC.

Step#2: LLC Name Reservation

One of the foremost steps towards company formation in Nebraska is identifying a name for your business entity. What is the process? The process is as follows:

• Identify a name for your business entity
• According to Neb. Rev. Stat. §21-108, the name should contain the phrase or words “limited liability company” or the abbreviations “L.L.C.”, or “LLC”.
• The chosen name should be distinguishable and should not be deceptively similar to the name of any limited partnership, corporation, or limited liability company
• Apply for reservation of name pursuant to the provisions of Nebraska Revised Statute, Chapter 21 Section 109.
• Submit the form through online or mail at the Office of the Secretary of State along with the applicable fee. An LLC can reserve its name for a period of 120 days.

Step#3: Certificate of Organization and Certificate of Authority

If you are planning to form a Nebraska business LLC then the most important step is to prepare and file the proper documents for a Limited Liability Company. The steps are:

• If you want to register a domestic LLC then you will be required to file “Certificate of Organization” governed by Nebraska Revised Statute, Chapter 21 Section 117.
• If your business entity is a foreign LLC then you will be required to file “Certificate of Authority” pursuant to Nebraska Revised Statute, Chapter 21 Section 158 (Neb. Rev. Stat. §21-156).
• The application or documentation for registration of LLC can be filed with the office of the Secretary of State, through mail or online.

We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the LLC registration.

In case, you have any questions regarding how to form a Nebraska business, feel free to call us on 702-871-8678.

Nebraska Corporation Registration and Formation

If you are planning to form a Corporation in Nebraska then the procedure for registration and formation is as follows:

Step#1: Maintain a Registered Agent

If you are planning to form a business or professional corporation in Nebraska then you will be required to continuously maintain a registered agent in the state pursuant to Nebraska Revised Statutes Chapter 21, Corporations and Other Companies § 21-2031. This law is applicable to domestic as well as foreign corporations. We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Nebraska. We can assist you to form a Nebraska business as we are in compliance with all regulations in the State of Nebraska.

Step#2: Corporate Name Reservation

In order to form a corporation in Nebraska, one of the key steps is identifying a name for your business entity. What is the process? The process is as follows:

• Identify a name for your business entity
• Conduct a business name search
• According to NE REV ST § 21-2028, a corporate name should contain the phrase or words “corporation”, “company”, “incorporated”, or the abbreviations “Corp.”, or “Inc.”
• The chosen name should be distinguishable and should not be deceptively similar to the name of any limited liability company, limited partnership, or corporation
• Apply for reservation of name pursuant to NE REV ST § 21-2029.
• Submit the form through mail or online with the Office of the Secretary of State along with the applicable fee. A business corporation can reserve its name for a period of 120 days.
• A foreign corporation would have to register their business name with the Secretary of State.

Step#3: Articles of Incorporation and Certificate of Authority

If you are planning to form a corporation in Nebraska, then the most important step is to prepare and file the proper documents for a business corporation. The steps are:

• If you want to register a domestic corporation then you will be required to file “Articles of Incorporation” pursuant to Neb. Rev. Stat. § 21-2018.
• If your business entity is a foreign corporation then you will be required to file a ” Certificate of Authority” to transact business in the state pursuant to Neb. Rev. Stat. § 21-20,168.
• The application or documentation for registration of a corporation can be filed with the office of the Secretary of State, through mail or online.

We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the incorporation.

If you have any questions regarding Nebraska incorporation or LLC formation, you can simply visit the Nebraska Business Formation page.

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One of the salient aspects of establishing a startup company Nebraska is that you will be able to leverage the business-friendly climate and community. The Business Facilities magazine ranked Nebraska among the top 10 states in terms of business climate. It is one of the most competitive locations for businesses in the entire midwest because of the following:

• Transportation and Logistics: A strong transportation and logistics network that includes Interstates/Highways, Rail, Freight Services, Air, and even Waterways. The network enables businesses including manufacturing, agriculture, mining, and services to derive optimum results.
• Workforce and Training: If you register a new company in Nebraska, you can leverage a job-ready workforce. Your business can achieve high productivity levels as the workforce is well trained, has necessary skills for technical, service sector, blue collar, and white collar occupations.
• Business Resources: Whether you are planning a small start-up or a mid-size business establishment, you can access a variety of business resources made available by the state of Nebraska. The resources vary from learning how to start or do business in Nebraska to benefiting from funds, grants, and incentives offered by the state and counties.

Setting up an LLC or Corporation – Advantages

What type of start-up company in Nebraska should you opt for? If you are planning to form an LLC or a Corporation in Nebraska then would you derive any benefits in the state? Let’s look at the advantages of the most common forms of formal associations:

Advantage#1: Salient benefits of Corporation or LLC formation

Corporation

• Nebraska Tax Structure: One of the advantages of Nebraska Corporation is that the state has implemented a pro-business tax structure. If you establish a start-up company in Nebraska then these are some of the tax benefits:
  – No sales tax on raw materials used for manufacturing
  – No inventory tax
  – No state property tax
  – No sales tax on sales of energy used for manufacturing purposes
  – No personal property tax on intangibles
  – Sales and use tax credits on property that qualifies for specific investment incentives
• Independent Life: If you register a new business in Nebraska as an S Corporation then the most important advantage is that it will enjoy an independent life. The business entity will continue operation undisturbed even if it is faced with the death of one of its stockholders.
• Change in Ownership: If you have formed an S Corporation in Nebraska then sale, purchase, as well as gifting of stock can facilitate changes in ownership. The changes can take place without disturbing the ability of the corporation to conduct its business.

LLC

• Financial Incentives: If you are planning to register a new company in Nebraska as an LLC then you can benefit from the fact that Nebraska’s economic development, tax, and finance organizations provide a variety of incentive programs that aim at supporting new businesses during their start-up phase. The Nebraska Progress Loan Fund (NPLF) and the Angel Sidecar Fund are two programs that provide funding to start-up companies.
• Limited Liability: The owner of a Nebraska LLC will be able to enjoy limited liability protection, which means creditors can sue the LLC but not the owner or investors.
• Flexible Profit Distribution: When you register a new business in Nebraska as an LLC, it will enjoy the benefit of being able to select different ways of distribution of profits.

Advantage#2: Business Incentive Programs

Starting a business is not as difficult as sustaining a business and this is where you can take advantage of the several programs that are targeted at aiding growth and expansion of small and medium sized enterprises (SME’s). Let’s take a look at some of the top programs for a start-up company in Nebraska:

• Nebraska Enterprise Zones: The Nebraska Department of Economic Development has identified several areas considered as “economically distressed areas”. If you register a new company in Nebraska enterprise zone then you can apply for increased tax credits vis-à-vis regular tax credits under the Employment Expansion and Investment Incentive Act. Check the existing enterprise zone map.
• Nebraska Tax Incentives: Whether you form an LLC or a corporation in Nebraska, you can definitely benefit from a variety of tax incentives available in the state. The two most beneficial programs for businesses are the Nebraska Microenterprise Tax Credit and the Nebraska Angel Investment Tax Credit.
• Rural Enterprise Assistance Project (REAP): This is a program initiated by the Center for Rural Affairs and it focuses primarily on small business development. If your start-up company in Nebraska qualifies for this project then you will have access to:
  – One-on-one technical assistance
  – Cash flow and budget assistance
  – REAP Online Lending System
  – Quick GROW Loans up to $5,000
  – REAP Rapid Loan up to $10,000

Are there any Disadvantages of Incorporating in Nebraska?

If you are wondering if there are any disadvantages when you register a new company in Nebraska then it is important to know that the disadvantages are few as compared to the advantages or benefits. The disadvantages are specific to the type of business entity you form like a limited liability company has “Limited Life” while the process of incorporation takes more time than other forms of organization. The bottom line is that Nebraska is one of the best locations to start your business and help it achieve growth.

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Nebraska has long survived on agricultural economy and slowly has transformed into an economy that is not just reliant on agriculture but also on other sectors like financial services, manufacturing, transportation, meat processing, biomedical research, and information technology among others. The state offers businesses a favorable climate and a variety of incentives and support to aid in their overall growth. As a result, there has been an increase in the number of new businesses formed and incorporated in Nebraska.

Why Choose Nebraska for Incorporation?

Is company incorporation in Nebraska a really good business option? The number of start-up and small businesses increased in Nebraska in the last 5 years. The construction industry topped the Nebraska Small Firms by Industry in the 2013 list and moved to 4th rank by 2015 as Health Care and Social Assistance, Accommodation and Food Services while Retail Trade jumped up the table.

Now let’s take a look at some of the salient benefits that are responsible for fuelling growth of small businesses:

• Enterprise Zones: This program initiated by the Nebraska Department of Economic Development is aimed at small and medium sized enterprises. If you set up company in Nebraska enterprise zone then your business would be eligible for a variety of business incentive and funds or grants. Nebraska Enterprise Zone Application
• Rural Assistance Enterprise Project (REAP): The program has been initiated by the Nebraska Center for Rural Affairs and focuses on small business development by providing access to business management training, networking, technical assistance, and credit (micro-loans).

How do you incorporate in Nebraska?

What is the process of company incorporation in Nebraska? Do you require any specific documents? How can you submit or file these documents? These are some of the questions that you will be confronted with and hence the following steps will provide you with information on how incorporation works in Nebraska:

Type of Business

What type of business would you like to form in Nebraska? There are a variety of businesses you can form in the state of Nebraska and these include Domestic and Foreign Business Corporation, Nonprofit Corporation, General Partnerships, Limited Partnerships, Limited Liability Partnerships, and Domestic and Foreign Limited Liability Company among others. If you are planning company incorporation in Nebraska or forming an LLC then it is important to first identify the type of business you want to set up.

Business Entity Name

What is the next step towards incorporation in Nebraska? The next step is to identify and reserve a name and this can be done as follows:

• Naming Requirements: The naming requirements in the state of Nebraska are governed by Neb. Rev. Stat. §21-108 (LLC) and NE Rev. St. § 21-2028 (Corporation). The name of each limited liability company must contain words like “Limited Liability Company” or abbreviations like “L.L.C.” or “LLC”. A corporate name must contain words like “corporation”, or “incorporated” or abbreviations like “corp.” or “inc.”
• Business name search: You need to search for a business name that is not in use currently. You can conduct name search here.
• Name Reservation: Once you have identified a business entity name, you can reserve the name with the Secretary of State for a period of 120 days.

Name Registration

If you are foreign entity planning to set up a company in Nebraska then you will be required to register the business name with the Secretary of State.

Choose a Registered Agent

Each Business or Professional Corporation and Limited Liability Company in the state of Nebraska is required to maintain a registered agent pursuant to Neb. Rev. Stat. §21-113 (LLC) and NE Rev. St. § 21-2031 (Corporation). We are one of the respected registered agents in Nebraska and will be responsible for initiating company incorporation in Nebraska through processing of all your documents including “Articles of Incorporation” for domestic corporations and “Certificate of Authority” for foreign corporations.

Articles of Incorporation and Certificate of Authority

If you are planning to form a domestic corporation (For profit), then you will have to file “Articles of incorporation” pursuant to Neb. Rev. Stat. § 21-2018. If you are planning to form a foreign business corporation in Nebraska then you will be required to file a “Certificate of Authority” pursuant to Neb. Rev. Stat. § 21-20,168. In order to streamline the process we can file documents on your behalf through the online process or through an expedited process.

Date Stamped Copies

As a part of the process of company incorporation in Nebraska, we will ensure, you receive date-stamped and filed copies that verifies that the state has filed as well as formed your corporation.

Costs and Fees associated with Nebraska Incorporation

What would it cost to set up a company in Nebraska? Check Fees here!

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Once you have registered your new business in Nebraska, what is the next step towards making it operational? The only way your business can operate in the state of Nebraska is if you have a proper business license or permit. It is important to know that not all businesses in Nebraska require a license or permit to operate. The permits or licenses, their fee, and issuing authority vary according to the type of business or industry and the physical location of your business.

Nebraska Business License Requirements

Some businesses require state-wide business licenses while others have to apply for a license issued by the city or county within which the business is situated or planning to operate from. Some of the general categories for which permits and business licenses in Nebraska are issued include:

• Food Establishment Permit
• Health and human services
• Real Estate
• Liquor Control Commission Licensing
• Agricultural licenses and permits
• Firework Distributor or Retail License

What are the requirements for obtaining a business license in Nebraska? Which business entities require a license and which requires permits? Who is the issuing authority for these licenses? These are some of the important questions that you might be confronted with.

Here is a step-by-step approach towards acquiring a business license in the state of Nebraska.

Step#1: The Industry or Business Type

How would you know what type of business or professional license is required to operate in Nebraska? The type of industry or the activities of a business entity helps in identifying the type of business license required.

Let’s look at an example to understand this well.

• Animal Control or Animal Shelter – You will require a business license pursuant to the Nebraska Commercial Dog And Cat Operator Inspection Act. Sample License
• Livestock Auction Market – You will require a market license issued by Nebraska Department of Agriculture, Bureau of Animal. Sample license application
• Liquor Retail – You will have to apply for a Nebraska company license along with the required application fee. The license is issued by Nebraska Liquor Control Commission. Sample License Application

The above example clearly shows that different businesses need to approach different state agencies to get their Nebraska company license. It is also important to note that a specific business type may require more than one license or permit to operate in the state.

Step#2: Licenses issued by City/County

If your business or industry type doesn’t fall under a statewide license then you will have to check with the local city or county office. A business license in Nebraska can also be issued by local counties or cities in which the business is located.

Let’s take a look at an example to understand this better.

City: Lincoln Nebraska

If you are planning to start a food establishment in Lincoln City, Nebraska then you have to apply for and acquire a Nebraska Department of Agriculture business license through Lincoln-Lancaster County Health Department (LLCHD).

You may also require LLCHD food establishment permits in the City of Lincoln

The type of license or permit as well as the required fee is determined by the type of food establishment and the number of facilities.

You will have to apply for license and permits with the Health Department, Environmental Public Health, City of Lincoln.

The license fee can vary from $80 to $1,000 – Download the application

City: Omaha, Nebraska

The city of Omaha does not issue general business licenses.

The City Clerk’s Office of Omaha processes and issues applications for a business license related to selling liquor and fireworks permits.

If you plan to become a retailer or seller of fireworks in the City of Omaha then you will be issued a permit valid from June 28th through July 4th each year. You will not require a business license in Nebraska for selling fireworks.

You will have to contact the Permits & Inspection Division of the Planning Department at least ten days prior to June 28th for an inspection.
The permit fee is $2,500 – Download the application

Step#3: Issuance of a Business License

How is a business license in Nebraska issued? You have to identify the following to complete the process:

• The type of business or industry
• Do you need a license or a permit?
• Will it be issued by the state or the county?

Once you have identified the above, all you need to do is either download the application online or contact the concerned state department or city’s clerk office.

It is important to note that a business license or permit will have to be renewed annually unless specific dates have been mentioned, to keep the business operational.

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Business Information & Rankings

• Nebraska is the only state that offers a 100% public power system which provides customers with electrical power at some of the lowest rates in the nation.
• Nebraska was 1 of only 11 states that increased the number of manufacturing establishments in recent years. (Business Facilities Ranking Report, 2005)
• Nebraska is strategically located in the center of the country. Seven national highways run north south across the state, making Nebraska an ideal location for companies looking for access in the NAFTA trade corridor.

Cost of Living Index

Crime Rate

Nebraska has the 26th lowest overall crime ranking in the U.S. (FBI, 2004)

Fees & Taxes

Business Inventory Tax
Business inventory is exempt.

Corporate Income Tax
Nebraska’s corporate tax structure consists of two brackets. The first $50,000 is assessed at a rate of $5.58%, and anything over $50,000 is taxed at 7.81%.

Personal Income Tax
Nebraska’s personal income tax system consists of four separate brackets with a top rate of 6.84% starting at an income level of $46,750.

Personal Property Tax
Taxable. Nebraska is one of the 38 states that collect property taxes at both the state and local levels. Nebraska does not levy an intangible personal property tax.

State Sales and Use Tax
Base Rate: 5.5 %
Machinery Rate: 5.5 %

A credit is allowed to any taxpayer engaged in a qualifying business who increases the employment of the business in Nebraska by two new full-time employees and who makes an increased investment in the state of at least $75,000 during a taxable year.

Unemployment Insurance
Nebraska’s new employers’ rate is 3.5% for 2 years.