How to Start a Business and Form Your LLC in Nebraska

Nebraska Business Facts and Environment

NE Business Facts

Nebraska’s largest livestock product is beef, with about 19,000 cattle ranches feeding their cows grass before delivering to feed lots for the state’s trademark corn-fed beef. The Cornhusker State counts corn production as its leading crop and ranks third among the nation’s corn-producing states. Its “Golden Triangle” of livestock, corn, and ethanol production drives a thriving industry that also ranks high in grains purchased by distilleries.

Major Companies Headquartered in Nebraska

Nebraska is the headquarters of many major companies including Berkshire Hathaway, Union Pacific, Home Instead Senior Care, Nebraska.gov, and Nebraska Medicine.

Startup Environment

Startup businesses in Nebraska are currently on the rise. The low cost of doing business and the business-friendly environment are two of the contributing factors to this development. At 2.9%, the unemployment rate in Nebraska in 2017 was considered the lowest in the United States.

Step 1: Decide on a Business Structure

There are 3 basic options: a DBA, a Corporation or an LLC. Click here to learn more about business entities.

• A DBA or “Doing Business As” (also known as a “Fictitious Business Name” or FBN) is not really a separate structure, but just a different name that an individual or partners use as their business name.
• A Corporation is a separate entity (provides liability protection to the owners) that has a structure that includes shareholders, directors and officers. More complex than a DBA but the entity of choice for large companies and startups that intend to raise funding. Some professions are required to choose what is known as a “Professional Corporation” or PC (doctors, lawyers, architects, etc.).
• An LLC or “Limited Liability Company” is a newer type of business that is both a separate entity but provides very easy management (doesn’t require directors or officers) and taxation. Has largely replaced the DBA and Corporation in popularity recently as it provides liability protection but with much less complexity (and taxation) than a Corporation.

Step 2: Pick a Business Name

Choosing a business name is easier said than done – many legal and business problems can arise from picking the wrong name (you can always change it later but the less times you have to do that the better). In Step 3 we’ll show you how to search for the name in Arizona, but we highly recommend you do the following before searching Arizona state databases:

• Make sure you’ve covered the basics: unique, easy to understand/pronounce (practice saying it out loud: “Thanks for calling XYZ”) and can survive over time (“DVD World” is not timely). Here are some of our tips on business identity including logo and trademarks.
• Search the web for your proposed name. Search Google, Bing and DuckDuckGo as a “first sweep” for any potential conflicts, especially in your state or local jurisdiction. NOTE: If you intend to operate nationally or even internationally it will be even more important that your name be unique. This should cover many cases where a company name is being used but not officially trademarked (see next tip).
• Do a trademark search with the US Patent and Trademark Office (USPTO). This will be a very good indicator if your name will have any conflicts. There’s an art to trademark searches (trademark specialists will charge you handsomely to do a thorough search) but in our experience if you can use Google at a fairly advanced level you can reasonably clear a name yourself.
• Make sure your company name choice is available by searching the Nebraska Business Entity Database and doing a name search on the State of Nebraska website. NOTE: Make sure to search variations of spelling, plurals and misspellings as the state may reject a name that is too similar (then you have to start all over again, wasting valuable time).

Tip: Search misspellings, plurals, variations of spelling, sound-alikes and other versions of your chosen name to be sure it’s not already registered.

NOTE: Familiarize yourself with the Nebraska naming guidelines. LLC entity names need to contain the words Limited Liability Company or the abbreviation LLC, and certain words are restricted or prohibited.

Restrictions on Nebraska Business Name & Business Purpose

• Business names should be unique.
• Nebraska corporate names may have the following approved designations:
  • Co.
  • Company
  • Corp.
  • Corporation
  • Inc.
  • Incorporated
  • Limited
  • Ltd.
• The use of the following words and phrases in corporate names is considered “restricted” in Nebraska:
  • Bank
  • Architecture
  • Engineer
  • Olympic

Step 3: Register the Business

Each state has its own requirements for registering a business. Now that you’ve chosen a business structure and selected your business name, here are the requirements to register your business in Nebraska.

How to form an LLC in Nebraska

• File the “Articles of Organization” with the Nebraska Secretary of State.
• Once the articles are filed and approved you will then need to properly organize the LLC (this also applies to “1-person LLC’s”) by holding an “Organizational Meeting” which takes contributions from the members, issues Member Certificates, adopts the company Operating Agreement and more.

How to Incorporate in Nebraska

• File the “Articles of Incorporation” with the Nebraska Secretary of State.
• Hold an “Organizational Meeting” to determine the percentage of ownership for each shareholder as well as resolve to do tasks like open a company bank account, pay back pre-incorporation expenses, elect S-Corporation status and more.
• Corporations can elect S-Corporation status with the IRS by filing IRS Form 2553. Click here to learn more about S-Corporations.

NOTE: When registering a new company the Secretary of State can take several weeks to file the paperwork. You can expedite the process by hand delivering the documents directly to them or one of their field offices and paying an additional fee.

TIP: Check our order form to see how long Nebraska is currently taking to process regular and expedited orders.

How to File a DBA in Nebraska

• Check the state database of business names.
• Complete the DBA registration form.
• Notarize and submit the form
• Pay $100 for the filing fee.

Considerations when registering a Nebraska business

• Hire a professional Registered Agent. Many people list their home or business address on the Articles of Organization or Incorporation. This can cause issues because it becomes public record (you’ll get lots of junk mail). A professional Registered Agent will provide their address and forward any important documents to you, this is also convenient if you have to move (you don’t have to file forms or pay fees, just update your address with your agent).

Ready to register a business in Nebraska?

• We specialize in registering businesses in Nebraska.

Ready to Start Now? Let Us Do The Work

Sure, you could do all the steps above or you could spend 5-10 minutes on our order form and let us take care of it while you work on more important things.

• Learn more about our business formation service
• Read our verified reviews and 100% Satisfaction Guarantee
• Contact our friendly support team if you have any questions

Step 4: Obtain Your Federal Employer Identification Number

Your EIN is like your Social Security Number for your company. It’s required for Corporations and LLC’s and optional for DBA’s (if you don’t have any employees, then it’s required). However, if you are a DBA and don’t obtain an EIN you will be forced to use your Social Security Number on many documents so it’s typically recommended you obtain the EIN to prevent identity theft.

To obtain an EIN you can apply online with the IRS or via IRS Form SS-4.

TIP: We will obtain your EIN for you if you we form your company.

Step 5: Open Company Bank and Credit Accounts

To keep business and personal expenses separate, you should open a separate account for your business. In addition, getting business credit cards is how you begin to build a company credit profile (corporation or LLC required) and can later qualify for larger loans and lines of credit. To open the account simply call your chosen bank and inquire on the steps to open a business bank account. Typically you’ll need a) your filed paperwork, b) your EIN and c) a company resolution authorizing your company to open the account (signed by the owners, members, officers or directors, etc.).

Top 5 Major Banks in Nebraska

• Pinnacle Bank
• U.S. Bank
• Great Western Bank
• First National Bank of Omaha
• Wells Fargo Bank

Click here to view a list of our recommended banks in our Vendor Network.

TIP: Our business formation service includes a free banking resolution for your use.

Step 6: Set-up An Accounting System

Setup your Accounting and Record-keeping system and learn about the taxes your new company is responsible for paying.

Company documents generally are required to be kept for 3 years, including: a list of all owners and addresses, copies of all formation documents, financial statements, annual reports, amendments or changes to the company. All Tax and Corporate Filings should be kept for at least 3 years. View our “Accounting & Financial Management” section for help with setting up an accounting system and purchasing accounting software.

Review our list of Accountants, Accounting Software and Bookkeepers in our Vendor Network.

Step 7: Obtain Licenses and Permits

To keep business and personal expenses separate, you should open a separate account for your business. In addition, getting business credit cards is how you begin to build a company credit profile (corporation or LLC required) and can later qualify for larger loans and lines of credit. To open the account simply call your chosen bank and inquire on the steps to open a business bank account. Typically you’ll need a) your filed paperwork, b) your EIN and c) a company resolution authorizing your company to open the account (signed by the owners, members, officers or directors, etc.).

Top 5 Major Banks in Nebraska

• Pinnacle Bank
• U.S. Bank
• Great Western Bank
• First National Bank of Omaha
• Wells Fargo Bank

TIP: Our business formation service includes a free banking resolution for your use.

Step 8: Hire Employees (if applicable)

If you intend to hire yourself or others as a full or part-time employee of your company, then you may have to register with the appropriate State Agencies or obtain Workers Compensation Insurance or Unemployment Insurance (or both). View our “Employees & Payroll” section for help with hiring employees and processing payroll.

Review our list of recommended Payroll Providers in our Vendor Network.

Step 9: Obtain Business Insurance

There are many types of insurance for businesses but they are usually packaged as “General Business Insurance” or a “Business Owner’s Policy”. This can cover everything from product liability to company vehicles. A decent policy can run as little as $300/year and offers a great extra level of protection.

Click here to view our list of insurance providers in our Vendor Network.

Step 10: Systemize and Organize

Prepare the business as if someone needed to take it over and run it for you. This means have a method to process orders, pay bills, pay employees, pay taxes, maintain your permits, etc. Basically, try to make the operational aspect of the business as automated and efficient as possible so you can concentrate on growing your business. View our “Manage Your Company” section for help with systemizing and automating your business.

Step 11: Branding and Marketing

Now that you’ve set-up the company for success, you need to get the word out. Create a marketing plan for your products and services that targets your ideal customer. View our “Marketing & Sales” section for help for more information.

Step 12: Annual and Ongoing Requirements

DBA: Your Fictitious Business Name should be valid for 5 years (unless you change company name or other information listed on the FBN) at which point you’ll need to renew it with the county.

LLC: Nebraska corporations are required to file a Periodic Report with the Nebraska Secretary of State on or before April 1 every odd year, in addition to general taxation. The filing fee is $13. Information on your business’ taxes can be found here.

Corporation: Business in Nebraska should file a report on or before March 1 every even year with the Secretary of State of Nebraska. The filing fee is $29.

Click here to view our MyCompanyWorks Premium™ service which can automate most or your ongoing compliance tasks.

Important Nebraska Contacts

Nebraska Secretary of State

Business Services Division (for Corporation and LLC filings)
Corporate, P.O. Box 94608,
Lincoln, NE 68509-4608
Metro Area Phone: (402) 471-4079

Nebraska Taxation Departments

• Nebraska Department of Revenue

Nebraska Labor and Employment Departments

• Department of Labor

Nebraska Startup Resources

1. Small Business Administration (SBA) Nebraska District Offices

• Nebraska District Office

2. SCORE Nebraska

• SCORE Omaha Chapter 40 provides the following services for soon-to-be and current entrepreneurs. In most cases, services are provided free of charge or at very little cost.

3. Nebraska Legal Statutes

• Nebraska Business Corporation Act – defines Corporation or Domestic Corporation as a corporation incorporated for profit and not a foreign corporation subject to the provisions of the Business Corporation Act.  
• Nebraska’s New Limited Liability Company Act – the specific act that applies to Nebraska LLC’s.

4. Nebraska Chambers of Commerce

• Nebraska Chamber of Commerce & Industry
• Lincoln Chamber of Commerce
• Imperial Chamber of Commerce
• Ord Area Chamber of Commerce

5. USA.gov

• Find information to help you do business in Nebraska. Learn how to start a business, find funding, win government contracts, and more.

6. Nebraska Angel Investors

• List of Angel Investors in Nebraska

7. Nebraska Business News

• Lincoln Journal Star
• Nebraska City News-Press
• Omaha World-Herald

8. DED

• Since 1967, the Nebraska Department of Economic Development (DED) has been focused on growing and diversifying the state’s economic base, bringing new dollars, new businesses, and new people into the state.

9. Nebraska Small Business Development Center

• NH SBDC has offered confidential business management advising and educational programs to more than 94,000 Nebraska entrepreneurs, helping them to start over 2,000 businesses and create more than 7,000 jobs since 1984.

10. Cleaner Greener Lincoln

• The Lincoln Environmental Action Plan is Lincoln’s community blueprint for the actions needed to sustain a healthy environment.