- [Narrator] How to form an LLC in Nebraska.
Nebraska is an excellent place to form a new LLC.
With the second highest business survival rate
and plenty of economic prospects,
Nebraska ranks fourth in the country
for ease of doing business in the US.
Every state has slightly different requirements
for forming an LLC.
Follow along closely to learn the required steps
for creating your own limited liability company
in the state of Nebraska.
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There are two ways to form an LLC in Nebraska.
You can form one yourself or you can hire a service
to do it for you.
Let's start by looking at the six basic requirements
to form an LLC in Nebraska on your own.
You can also find these steps in more detail
on our website linked in the description below.
One, name your LLC.
Every state has its own rules
about what kind of names are allowed for LLCs.
In general you will need to observe these naming guidelines.
Your name must include the phrase limited liability company
or one of its abbreviation, LLC, or L.L.C.
with a period following each letter.
Restricted words such as bank, attorney,
law office, etc., require additional paperwork
and may also need a licensed professional
to be part of the LLC.
Your name cannot include words
that can confuse your LLC with a government agency
such as FBI, treasury, State Department, etc.
You cannot use a name that has already been registered.
To see if your name is available in your state,
you'll need to do a name search.
This free service is available
on your state Secretary of State website.
Check out our free guide
for finding the direct link to your state.
We also recommend that you check
to see if your business name
is available as a web domain.
Even if you don't plan to make a business website today,
you may want to buy the URL
in order to prevent others from acquiring it.
Two, choose an agent for service of process.
Nebraska requires that you nominate
an agent for service of process,
otherwise known as a registry agent for your LLC.
They are your business's point of contact with the state.
The registered agent can be an individual
within the company, including yourself,
or you can hire a professional service
authorized to do business in Nebraska.
They will send and receive legal papers on your behalf.
These documents include official correspondence
like legal summons and document filings
which your registered agent will receive
and forward to you.
Your registered agent will help remind you
to file the necessary reports.
Failure to properly maintain your LLC
can result in fines and dissolution
so this assistance is valuable.
Three, file the Certificate of Organization.
To register your Nebraska LLC,
you will need to file the Certificate of Organization
with the state of Nebraska.
Unlike most states,
Nebraska does not provide entrepreneurs
with a standard Certificate of Organization.
Instead, you must create
your own Certificate of Organization
and file it online with the Secretary of State.
You must also member-managed or manager-managed.
Member-managed means all members
of the LLC manage the company.
This is good for small organizations
where everyone is involved in the day-to-day operations.
The second option is manager-managed
where individuals are appointed to manage the LLC.
This is appropriate for larger organizations
where not everyone is involved
in the day-to-day affairs of the business.
Four, complete publication requirements.
Nebraska requires LLC to publish a notice of organization
for three consecutive weeks
in a newspaper of general circulation
in the county in which
the LLC's principle office is located.
Then you will receive an affidavit of publication
from the newspaper you can file with the Secretary of State.
The notice of organization must include the name of the LLC,
the street address of the designated office,
and the nature of the LLC's business.
Five, create an operating agreement.
Although not every state requires it,
you should always create an operating agreement
to establish ownership terms
and member roles for your LLC.
This foundational document is the core of your LLC
and will help you maintain your organization
as well as further establish your LLC
as a separate legal entity.
There are six main sections of an operating agreement.
Organization outlines when
and where the company was created,
who the members are, and how the ownership is structured.
Management and voting addresses
how the company is managed
as well as how the members vote.
Capital contributions covers
which member's financially support the LLC
and how more funds will be raised in the future.
Distributions outlines how the company's profits
and losses are shared among members.
Membership changes describes the process
for adding or removing members
as well as if or when members
can transfer their ownership shares.
And dissolution, which explains the circumstances
in which the LLC may be dissolved.
An operating agreement is an internal document.
It does not need to be filed with the state.
However, it should be updated every time
there is a change in membership
or management at the company.
You can download a free sample operating agreement
or create a custom one using
our free operating agreement tool
at howtostartanllc.com.
Six, obtain an EIN.
Lastly you'll need to get an employer identification number
or EIN from the IRS.
Also known as a federal tax identification number,
your EIN is like a social security number for your LLC
and is how the IRS tracks your business for tax purposes.
An EIN is also necessary to open a business banking account
and legally hire employees.
EINs are free of charge
and can be obtained from the IRS online
or through the mail.
And with that, you have formed a Nebraska LLC on your own.
Option two, hire a professional service.
The second way to create a Nebraska LLC
is to hire a professional service
to create your LLC for you.
Hiring a professional service to file your forms
and act as your registered agent for the LLC
will cost you an additional $50 to $150.
However, there are several benefits to working with a pro.
A hired registered agent helps with getting
your reports filed on time,
helps you stay organized
by keeping your business mail separate,
and is available at all regular business hours
to accept official mail and legal papers
on your LLC's behalf.
A final and important additional benefit
of using a service is privacy.
A professional service will provide
a level of privacy by withholding your personal name
and home address from the LLC's contact information.
There are many reasons why you might not
want your personal information easily accessible
and associated with your business.
Hiring a professional LLC formation service
is an easy way to accomplish this.
Now that you have seen the different requirements
and ways you can form an LLC in Nebraska,
visit our site and take some time
to research your options and establish a solid foundation
for your business activities.
Click on the links in the description below
to research the top five professional formation services
or get more information on how to form
a Nebraska LLC on your own.
Now you know all the steps
to form an LLC in your state.
For a more detailed guide, go to howtostartanllc.com.
You can also create an operating agreement
and use our business plan too free of charge.
Give the video a like if you found it useful
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If you have questions
or encounter any roadblocks,
leave a comment below.
Good luck in starting your small business.
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