Perhaps you are hoping to form a Nebraska LLC. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Nebraska.
On this page, you’ll learn about the following:
- Nebraska LLC Cost of Filing
- Taxes payable to the Nebraska Department of Revenue
- Cost Comparison Between States
- Other Costs
Nebraska LLC Cost of Filing
Here are the costs involved in forming an LLC in Nebraska.
Cost of Filing Formation Certificates
The Nebraska Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Nebraska Secretary of State.
Nebraska Domestic LLC
- Online Filing costs $100.
- Biennial Report filing costs $26
- Name Reservation fee costs $30
- By Mail: Fill out the Application Form PDF and submit it to the following address: Robert B. Evnen, Secretary of State, P.O. Box 94608, Lincoln, NE 68509 costs $110
Nebraska Foreign LLC
- Online Filing costs $100.
- Biennial Report filing costs $52
- Name Reservation fee costs $30
- By Mail: Fill out the application form, and send it to Robert B. Evnen, Secretary of State, P.O. Box 94608, Lincoln, NE 68509. Costs $110.
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.
Nebraska LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Nebraska, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Nebraska Department of Revenue for regulatory boards or agencies requiring licensing.
Taxes payable to the Nebraska Department of Revenue
For incorporating and registering an LLC in Nebraska, one has to pay taxes to both: State & Federal Government. Some of the important business taxes are enlisted below.
The Nebraska Department of Revenue levies two types of taxes on LLC:
State Income Tax
As the LLC owner, you have to pay state tax on any amount you earn via your LLC. All the earnings drawn by you are taxed through your personal tax return. The usual income tax rate in Nebraska ranges from 2.46% to 6.84%, depending on the amount you earn via your LLC.
State Sales & Use Tax
Any seller of tangible goods such as cars, electronics, etc. & any service provider company has to collect taxes at the time of the purchase and then has to pay those to the Nebraska Department of Revenue. The state sales & use tax rate on LLC in Nebraska is 5.5%.
Federal Self-Employment Tax
The Federal Self Employment Tax is often called Social Security or Medicare tax, is paid by all the LLC Business members or managers. The self-employment tax caters to the well-being of the members of the company. The Federal self-employment tax rate in Nebraska is 15.3 percent.
Federal Income Tax
The rate of the Federal Income Tax is calculated after carefully observing: your earnings, the income tax bracket your LLC falls, the deductions, & the manner/ mode of filing. Federal Income Tax is paid on all the profits your LLC makes in a year.
Employee & Employer Taxes
LLCs that have appointed a number of employees have to pay Employee & Employer Taxes too. The tax rate is calculated on the basis of the amount they earn, the number of employees, etc.
Cost Comparison Between States
Nebraska is surrounded by many states, namely Iowa, South Dakota, Missouri, Kansas, etc. Each of these states has a different rate of taxes levied on LLCs. Let us take a look at this comparative chart.
|States||Filing Fee||Annual/Biennial Fee||Sales Tax|
|Iowa||$50||None||0.36 to 8.98%|
Based on the kind of industry you LLC operated in, your LLC will be liable to some other taxes & duties. You should seek regional help to verify the tax rates or business costs of registering an LLC in Nebraska.
- Nebraska Name Reservation: $28 for online filing or $25 by mail
- Doing Business As (DBA): $100 for online filing or $110 if filing by mail
- Certified Document Copies: $15.00 for up to five (5) pages
- Certified of Good Standing: $6.50 for online delivery or $10 for a paper copy.
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Nebraska LLC: $30 for in-office or $25 for filing online
How Much Does It Cost to Maintain an LLC in Nebraska
To maintain an LLC in Nebraska you do not need to pay an annual fee. However, state income tax at 2.46% to 6.84% sales & use tax at 5.5% and federal taxes are levied.
If you are considering forming an LLC in Nebraska, you should know that there are several fees to consider. For example, if you are not a resident of the state, you will need to pay a foreign qualification fee. You also need to file a biennial report with the Secretary of State. This will allow you to receive your EIN, or Employer Identification Number, which is used to identify your LLC when you do taxes. The cost of these reports is $10.
Other costs associated with operating an LLC in Nebraska include sales and use tax. To learn more about these costs, check out the Nebraska Department of Revenue website. It will also tell you about the penalties for late payments on your tax accounts. These penalties are typically assessed at a 10% fee of the amount owed. In addition, if you fail to file a biennial report by April 1, you may be subject to dissolution by the state.
Before you can form an LLC in Nebraska, you must first choose a business name. If you are a new business, you will need to publish a notice of organization in a legal newspaper for three consecutive weeks. There is also a requirement for a Certificate of Good Standing, which is a document that confirms that the business is a legal entity and has the right to conduct business in the state.
Depending on the type of business you are planning to operate, you may need to pay a registration or filing fee. These can vary between one-time charges and annual maintenance. A registration fee is a one-time charge, while the filing fee can be an ongoing expense.
While you can file the operating agreement yourself, you should consider the help of a professional company that offers LLC services. By using a registered agent service, you can rest assured that your LLC will be set up correctly. Also, you can be confident that all your important documents will be delivered to the correct address. Some of the best registered agent services offer a variety of helpful services for your business.
Your registered agent will also serve as a point of contact for any legal documents that you might need for your LLC. You should make sure that your agent has a physical address in Nebraska. Ideally, your registered agent will be available during regular business hours to receive any legal documents. You should also ensure that your agent has a local mailing address, as well.
In order to file an LLC in Nebraska, you will need to obtain a business license and other permits. Additionally, you must file a biennial report with the Secretary and make quarterly tax payments. Using a registered agent service can save you a lot of time and hassle.
You can also get your LLC approved in as little as 3-4 days if you file it online. However, you will need to pay an initial filing fee of $28. On top of that, you may need to pay a convenience fee of $2.
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
The cost of Nebraska is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.