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.
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 |
Nebraska | $125 | None | 5.5% |
Iowa | $50 | None | 0.36 to 8.98% |
South Dakota | $150 | $50 | 4.5% |
Missouri | $105 | None | 6.25 |
Kansas | $165 | None | 6.5% |
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.
Other Costs
- 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
F.A.Qs
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.
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.
One of the key expenses associated with maintaining an LLC in Nebraska is the annual report fee. In Nebraska, LLCs are required to file an annual report with the Secretary of State and pay a fee in order to remain in good standing. This fee is typically due by a specific deadline each year, and failure to file the report or pay the fee on time can result in penalties and potential dissolution of the LLC.
Additionally, LLCs in Nebraska are also responsible for paying state and local taxes. This includes any income taxes that the LLC may owe, as well as potentially other taxes such as sales tax or municipal taxes depending on the nature of the business. Ensuring that all tax obligations are met in a timely manner is crucial to avoiding fines and penalties.
Another cost to consider when maintaining an LLC in Nebraska is the cost of insurance. While LLCs provide limited liability protection to their owners, it is still important to have appropriate insurance coverage in place to protect against unforeseen risks and liabilities. This may include general liability insurance, property insurance, or professional liability insurance depending on the nature of the business.
In addition to these ongoing costs, LLCs in Nebraska may also incur legal fees for any necessary legal counsel or assistance with compliance issues, contract negotiations, or other legal matters that may arise. Hiring a qualified attorney to help navigate the complex legal landscape can help protect the interests of the LLC and its owners.
Lastly, it is important for LLC owners in Nebraska to budget for any other miscellaneous expenses that may arise during the course of business operations. This may include costs for business licenses and permits, business development or marketing expenses, or other necessary operational costs.
In conclusion, maintaining an LLC in Nebraska involves several costs and responsibilities that business owners must be prepared for. By understanding and budgeting for these expenses, LLC owners can help ensure that their business remains in good standing and compliant with state regulations. being proactive and diligent in managing the financial aspects of their LLC, business owners can help avoid potential issues and position their business for long-term success.
In Conclusion
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.