If you want to start and run a Nebraska limited liability company (LLC), you'll need to prepare and file various documents with the state. This article covers the most important ongoing reporting and state tax filing requirements for Nebraska LLCs.
The State of Nebraska requires you to file a biennial report for your LLC in every odd-numbered year. You can file the biennial report by mail or online. You'll need your LLC's state-issued SOS Account Number to access the online filing system. Only a few pieces of information, such as the LLC's principal office address, and the name and address of the LLC's registered agent, are required to complete the statement.
The due date for the biennial report is April 1 of odd-numbered years. The annual report fee is $10. Reports filed online incur an additional $3 fee to pay by credit card.
When it comes to income taxes, most LLCs are so-called pass-through tax entities. In other words, the responsibility for paying federal income taxes passes through the LLC itself and falls on the individual LLC members. By default, LLCs themselves do not pay income taxes, only their members do. Some states impose a separate tax or fee on LLCs for the privilege of doing business in the state. Nebraska, though, is not one of those states.
However, in some cases, the owners of an LLC choose to have their business treated like a corporation for tax purposes. This choice is made by filing IRS Form 2553 with the IRS. (See the IRS website for the form.) Unlike the default pass-through tax situation, when an LLC elects to be taxed as a corporation, the company itself must file a separate tax return. The State of Nebraska, like almost every other state, has a corporate income tax. In Nebraska, the corporate tax generally is calculated at a small series of marginal rates. If your LLC is taxed as a corporation you'll need to pay this tax. The state's corporate income tax return (Form 1120N) is filed with the Nebraska Department of Revenue (DOR). For more details, check Nolo’s article, 50-State Guide to Business Income Tax, or the DOR website.
Does your LLC have employees? If so, you'll need to pay employer taxes. Some of these taxes are paid to the federal government (the IRS) and are not covered here. (But note that federal employer tax obligations start with obtaining a federal employer identification number (EIN).) However, Nebraska employers also must pay taxes to the state.
First, you'll need to withhold and pay employee income taxes to the DOR. Begin by filing DOR Form 20 to register your business. Once you've registered, you'll need to file withholding taxes on a periodic basis (typically monthly or quarterly). You'll also need to use Form W-3N each year to reconcile your LLC's tax withholding. For more details, as well as forms, check the DOR website.
In addition, you'll probably need to register to pay state unemployment insurance (UI) taxes. These taxes are handled through the Nebraska Department of Labor (DOL). You can register for these taxes online or on paper (UI Form 1). Then you'll need to file quarterly reports using one of several versions of Form UI 11-T. For more information about how to pay these taxes, check the DOL website.
If your LLC will sell goods to customers in Nebraska, you will need to collect and pay sales tax. This means you'll have to register for this purpose with Department of Revenue and then make annual sales tax payments. You can register using Form 20. After you've registered, you'll be issued a sales tax permit. Then you'll periodically have to file a Local Sales and Use Tax Return (Form 10). You can do this online or you can download Form 10 from the DOR website.
If you will be doing business in states other than Nebraska, you may need to register your LLC in some or all of those states. Whether you're required to register will depend on the specific states involved: each state has its own rules for what constitutes doing business and whether registration is necessary. Often activities such as having a physical presence (a business location) in a state, hiring employees in a state, or soliciting business in a state (such as by telephone, print ads, mail, or the Internet) will be considered doing business for registration purposes. Registration usually involves obtaining a certificate of authority or similar document.
For more information on the requirements for forming and operating an LLC in Nebraska, see Nolo’s article, 50-State Guide to Forming an LLC, and other articles on LLCs in the LLC section of the Nolo website.