How to Register a Business in Nebraska

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TLDR

Nebraska has a supportive, bright entrepreneurial ecosystem. The state is dubbed Silicon Praire.
When you register your startup in Nebraska, you'll need to satisfy several legal requirements to register your business correctly. However, before registering your startup, it's a good idea to plan ahead, for example, researching the market and potential competitors, mapping out your financing, planning for operations and personnel, and creating a business plan. Nebraska provides various resources to help you start a business, helping you identify what resources you'll need as you launch your startup.
You must also determine your organization's legal ownership structure. Popular structures include sole proprietorships, general partnerships, limited partnerships, limited liability companies (LLCs), C-corporations, and S-corporations.
When you're ready to register your startup, depending upon your chosen business structure, Nebraska requires you to choose a unique business name, differing from any other registered businesses in the state. In addition, you must follow Nebraska's business naming conventions, which help make your startup's name distinguishable.
You'll also need to select and continuously maintain a registered agent who is "designated by law as the entity's agent for service of process and official government communications." You can specify an individual or an entity as your registered agent, as long as the entity can conduct business in Nebraska. Further, your entity itself can serve as the registered agent.
Depending upon your chosen business structure, you'll need to register with the Nebraska Secretary of State before commencing operations in the state. You may file your formation forms by US mail, in person at Nebraska's Secretary of State's Office, or online through Nebraska's online portal. Additionally, you'll need to file the appropriate filing fee along with your formation documents. Paying the wrong amount can result in the return of your documents, further delaying your startup's formation.

Home to the Nebraska Cornhuskers, the birthplace of Kool-Aid, and the third top producer of corn (right behind Iowa and Illinois), Nebraska has a supportive, bright entrepreneurial ecosystem. In fact, the state is dubbed Silicon Praire. Numerous entrepreneurial programs and incubators exist in Nebraska, including UNeTech, gerner8tor / NMotion, The Combine, Beeso Studio, the Startup Collaborative, and the Nebraska Founders Institute.

Nebraska is also small business-friendly, with over 180,000 small businesses, employing over 415,000 people, according to the U.S. Small Business Association (SBA). Top small business industries include construction; health care and social assistance; professional, scientific, and technical services; accommodation and food services; administrative, support, water management, and transportation and warehousing.

As a startup founder, if you consider registering your business in Nebraska, this article will walk you through what you need to know.

How to Register a Business in Nebraska

When you register your startup in Nebraska, you'll need to satisfy several legal requirements to register your business correctly. However, before registering your startup, it's a good idea to plan ahead, for example, researching the market and potential competitors, mapping out your financing, planning for operations and personnel, and creating a business plan. Nebraska provides various resources to help you start a business, helping you identify what resources you'll need as you launch your startup.

The creation of a business plan is critical to your startup's growth. Think of it as the foundation of the house you're building. In drafting your business plan, you'll want to consider marketing, advertising, sales, location, and ownership, to name a few categories. To help guide you, you can check in with the U.S. Small Business Administration, providing additional guidance for creating a business plan.

Once you've identified some of your business's operation basics, it is then time to register your startup. Below, we'll walk you through the steps necessary to register your business in Nebraska.

Determine Your Business's Entity Structure

Before you register your startup in Nebraska, in addition to creating a business plan, you must also determine your organization's legal ownership structure. Popular structures include sole proprietorships, general partnerships, limited partnerships, limited liability companies (LLCs), C-corporations, and S-corporations.

Let's look at some structures more specifically. A corporation, for example, is a "separate legal entity apart from the owners (shareholders) of the corporation. The owners of a corporation have limited personal liability from the debts and actions of the corporation. A corporation is managed by a board of directors who can delegate management of the day-to-day affairs of the corporation to corporate officers."

On the other hand, an LLC is "similar to a corporation in that the owners (members) have limited personal liability for the debts and actions of the company, but it has the tax advantages of a partnership in that the profits and losses of the company can be passed through to the owners. The members of management can manage a limited liability company that can be delegated to one or more managers. Generally, limited liability companies have less formal requirements than corporations and more freedom in the company's management."

In Nebraska, certain businesses are not required to be registered with Nebraska's Secretary of State: sole proprietorships and general partnerships. A sole proprietorship, for example, is "a form of business in which an individual owns the business with no other owners. A sole proprietorship is not a separate legal entity apart from the owner. The owner of a sole proprietorship is personally liable for all of the business's debts and obligations. Few formalities are required to form a sole proprietorship."

Your chosen business entity determines the next steps in registering your startup. Read on to learn about the next steps.

Choose the Name of Your Startup

When you're ready to register your startup, depending upon your chosen business structure, Nebraska requires you to choose a unique business name, differing from any other registered businesses in the state. In addition, you must follow Nebraska's business naming conventions, which help make your startup's name distinguishable.

To confirm if your startup's name is distinguishable from other registered businesses, you can use Nebraska's online corporate and business search tool.

Remember, this is only a preliminary search for a similar business name. Once you file your startup's registration, another name availability search will be conducted when your application is processed.

Suppose you're not quite ready to register your startup, but you'd like to preserve your startup's name. In that case, you can file a name reservation application with Nebraska's Secretary of State's office. You may keep your business name reserved for 120 days.

Identify Your Registered Agent

You'll also need to select and continuously maintain a registered agent who is "designated by law as the entity's agent for service of process and official government communications." You can specify an individual or an entity as your registered agent, as long as the entity can conduct business in Nebraska. Further, your entity itself can serve as the registered agent.

In Nebraska, the founder must list the registered agent's name and address in its entity formation documents. If the startup does not maintain a registered agent, then the startup may be administratively dissolved.

Submit Your Formation Forms

Depending upon your chosen business structure, you'll need to register with the Nebraska Secretary of State before commencing operations in the state. You may file your formation forms by US mail, in person at Nebraska's Secretary of State's Office, or online through Nebraska's online portal.

Additionally, you'll need to file the appropriate filing fee along with your formation documents. Paying the wrong amount can result in the return of your documents, further delaying your startup's formation.

Nebraska's Secretary of State provides all business registration forms for your startup. For example, for an LLC, you can use the sample forms provided on the site for your certificate of organization, which also notify you of the required filing fee. In addition, you'll file articles of incorporation and domestication for corporations, and for limited partnerships, you'll file a certificate of a domestic limited partnership. All forms can be filed online.

What to Do Next

After you submit your formation forms, registering your startup with the state, you'll also need to obtain a federal employer identification number for banking and tax filings. Additionally, you'll need to check in with the State of Nebraska and your local city and county to see if there are any additional business registrations required, such as a business license.

How Long Does It Take to Register a Business in Nebraska?

With online filing options, you can register your Nebraska startup in as little as a few hours. However, if you mail in your registration forms instead, you may have to wait a few days for your startup to be up and running officially.

Like any other task, preparation is vital. The more you prepare, the faster you'll complete your registration. By researching your business's services or products, determining if your startup name is unique, and choosing your ownership structure, you'll be better prepared to complete the necessary registration forms.

How Much Does It Cost to Register a Business in Nebraska?

Depending upon your chosen entity for your startup, you will have filing fees due when registering your company. For example, if you register as a corporation or an LLC, you'll pay a filing fee of $100 if filing online.

You'll also need to file biennial or annual reports for your startup. You'll need to budget for these filing fees as well.

After submitting your registration forms, you need to learn about any required state or local licenses, such as a business license.

Also, depending upon your entity, you may be liable for Nebraska's business taxes, such as withholding, sales tax, and corporate tax. To better understand your state tax obligations as a startup, you can check with the Nebraska Department of Revenue, or you should consult with an accountant familiar with Nebraska tax laws.

How Do You Register as a Woman-Owned Business in Nebraska?

In Nebraska, if you are a woman-owned business, you have access to several certificate programs and resources, such as the GROW Nebraska Foundation, the Metro Omaha Women's Business Center, the Nebraska Enterprise Fund, and the GROW Nebraska Women's Business Center (GNWBC) as well as the Office of Women's Business Ownership, part of the U.S. Small Business Administration.

In addition to the state certification, you can also explore national certifications, such as those offered by the Small Business Administration (SBA). For example, the SBA offers three types of certifications for women-owned businesses, including the Women's Business Enterprise (WBE), the women-owned small business (WOSB), and the Economically Disadvantaged Women-Owned Small Business (EDWOSB). To learn more about these certifications, visit the SBA's website.

The Benefits of Registering a Business in Nebraska

Here are some benefits of registering your startup in Nebraska:

Favorable tax climate, including no state property tax, no raw materials sales tax when used in manufacturing, no personal property tax on intangibles, and no inventory tax.
Numerous incentive programs include Nebraska Progress Loan Fund (NPLF), the Angel Sidecar Fund, and the Nebraska Seed Investment Fund.
The Nebraska Department of Economic Development has identified numerous "economically distressed areas," which offer tax credits for those founders wishing to locate there.
Numerous tax incentives were offered to founders, such as the Nebraska Microenterprise Tax Credit and the Nebraska Angel Investment Tax Credit.

The Limitations Associated with Registering a Business in Nebraska

Here are some limitations of registering your startup in Nebraska:

Lack of diversity
Not much for the outdoor enthusiast
Freezing winters and hot summers
Tornados

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