The process of starting your LLC in Nebraska requires paying specific expenses to complete the official registration of your business with the state.
Beyond the initial formation costs, there are additional ongoing expenditures and various business-related expenses to consider, including the use of a registered agent service, website development, obtaining business insurance, and more. So, the question arises: what is the total cost associated with setting up an LLC in Nebraska?
Within this comprehensive guide, we will provide a detailed breakdown of the expenses connected with establishing your LLC. This encompasses everything from the Nebraska LLC filing fee to the costs associated with maintaining your LLC, including various essential business-related expenditures.
Costs Associated with Creating an LLC in Nebraska
When starting the process of forming your LLC, there are several distinct expenses to consider. These encompass the filing fee, the cost of utilizing an LLC formation service, the drafting of an operating agreement, and the charges for securing a registered agent.
Nebraska LLC Filing Fee
To initiate the LLC formation in Nebraska, you must submit a Certificate of Organization to the Nebraska Secretary of State. This document incurs a filing fee of $100 when completed online or $110 when submitted by mail. This fee is commonly referred to as the “state fee” or “filing fee.”
If you opt for the services of an LLC formation service, you will need to pay the state fee of $100 or more in addition to their service fee. Typically, these service fees commence at approximately $29 and may increase depending on the supplementary services you choose to avail.
Nebraska Registered Agent and Registered Office
In the formation of every Nebraska LLC, the appointment of a registered agent is a mandatory requirement. A registered agent serves as the designated individual or entity responsible for receiving essential documents such as tax forms, legal notices, and government correspondence on behalf of your LLC. The utilization of registered agent services typically comes at an annual cost of approximately $130 or potentially higher.
Options for your registered agent include:
- A registered agent service (the most prevalent choice).
- Yourself (although not advised).
- Another member of your LLC.
- A business attorney.
Nebraska LLC Operating Agreement
An operating agreement plays a pivotal role in outlining the roles and duties of your LLC’s members or managers, serving as a valuable tool in preventing and resolving potential business disputes down the road.
When it comes to the expenses associated with the operating agreement, they are primarily linked to the document’s drafting. In the case of single-member LLCs and uncomplicated multi-member LLCs, many individuals opt to create the agreement themselves.
It’s worth noting that there is no requirement to file this document with the Nebraska Secretary of State. By utilizing a free operating agreement template or a document builder, you can create this crucial document at no additional cost, keeping your total expenses at $0.
Nebraska LLC Publication Obligation
In Nebraska, LLCs are obligated to carry out a publication requirement by issuing a Notice of Organization. This publication must span three consecutive weeks and occur in a local county newspaper that has received approval from the Nebraska Secretary of State.
Upon the successful completion of the three-week publication, you will obtain an affidavit/proof of publication from the newspaper. This document must then be submitted to the Nebraska Secretary of State, incurring a filing fee of $25 when completed online or $30 through mail submission.
It’s essential to note that the actual costs associated with the newspaper publication may vary significantly, ranging from approximately $40 to $250, contingent upon your county of operation.
Optional Costs Associated with Nebraska LLC Formation
In addition to the mandatory fees tied to forming an LLC, there are several optional expenses that you may encounter during the process.
- Reserving a Name for Your LLC:
- Prior to officially registering your business name in Nebraska, it’s essential to perform a business entity name search to ensure its uniqueness. The name reservation fee, which amounts to $30, is applicable if you wish to reserve the name but are not yet ready to proceed with the LLC formation.
- Doing Business As (DBA) Name:
- If you intend to operate your business under a name different from your LLC’s legal name, you’ll need to file a DBA or trade name. This filing incurs a fee of $100.
- Certified Document Copies:
- Requesting certified copies of your Nebraska business documents that are already on file with the state serves to validate the accuracy and authenticity of these documents. The fee for obtaining a certified copy is $10, with an additional charge of $1 per page.
- Certificate of Good Standing:
- A Certificate of Good Standing confirms that your business is correctly registered and possesses the legal authorization to conduct business within the state. This document is frequently required by banks and lenders. The fee for acquiring a Certificate of Good Standing is $6.50 when requested online or $10 via mail submission.
Nebraska LLC Expenses and Obligations Over Time
To maintain your LLC’s good standing with the state year after year, there are several key responsibilities, each accompanied by associated costs and fees.
Biennial LLC Fee in Nebraska
Every two years, Nebraska LLCs are required to submit a biennial report. The fee for filing this report is $13. It’s important to note that these biennial reports must be filed during odd-numbered years and are due by April 1. Failure to meet this deadline, with a grace period extending until June 2, will result in the automatic dissolution or revocation of your LLC by the Nebraska Secretary of State Business Division.
Registered Agent Fee
When you utilize the services of a professional registered agent, you will be responsible for their annual fee. The precise cost may vary depending on the chosen service provider, but it typically amounts to approximately $130 per year. Employing a registered agent service offers the advantage of saving you time and the complexities associated with managing essential legal documents and ongoing filings over the long term.
It’s worth noting that while acting as your own registered agent incurs no maintenance fees, it is generally not recommended for reasons related to privacy and compliance.
General Business Expenses to Consider
Running a business entails more than just accounting for LLC-specific costs. Here are some additional expenses you should be aware of:
Business Bank Account
Establishing a dedicated business bank account is essential. An LLC provides a clear separation between your personal and business assets, often referred to as the corporate veil. This separation safeguards your personal assets from potential liabilities if your business faces lawsuits or debts.
Commingling Risks: It’s crucial to avoid commingling, which refers to mixing your personal bank account with your business finances. Doing so can pierce your LLC’s corporate veil, eliminating the protection it offers. Maintaining a separate bank account for handling payments and business expenses is the only way to prevent commingling of funds and maintain the integrity of your LLC’s corporate veil.
Business Permits and Licenses in Nebraska
The legal operation of your business in Nebraska hinges on obtaining the necessary permits and licenses, which can vary depending on the nature of your business.
In addition to the general permits, specific industries may necessitate specialized licenses to ensure lawful operation. These may include licenses such as the Nebraska real estate license, Nebraska insurance license, Nebraska adjuster license, and others, tailored to the specific requirements of your business type.
The Importance of a Business Website
In today’s business landscape, having a website is an essential necessity. It provides a powerful platform to engage with your customers, establish and strengthen your brand presence, and drive the growth of your business.
The good news is that over the years, the cost and complexity of creating a business website have significantly decreased. Building websites has become more straightforward, and the ongoing maintenance costs are now quite affordable.
Business Insurance
Having the appropriate insurance coverage can be the linchpin that saves your entire business in the event of a loss, accident, or legal dispute.
Several of the most prevalent business insurance policies include:
- General Liability Insurance:
- This policy offers protection against claims encompassing personal injury, physical harm, property damage, and more. It ranks as the most commonly utilized business insurance policy.
- Professional Liability Insurance:
- Geared towards businesses operating in the “professional” sphere, this insurance shields against claims related to inaccurate or negligent work, particularly in scenarios where businesses offer services or advice to other businesses or consumers.
- Commercial Workers’ Compensation Insurance:
- Designed to safeguard your employees from on-the-job injuries or illnesses, this coverage is mandated when you employ one or more individuals.
It’s crucial to note that the cost of business insurance can fluctuate significantly, influenced by factors such as your business type, size, location, and other pertinent variables. To ascertain the precise cost of insurance tailored to your LLC, seeking a customized quote is the most reliable approach.