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Nebraska—with its vast prairies and spacious farmlands—has much to offer budding entrepreneurs. The stateranks国家和最亲商boasts an array oftax incentive programs, a high quality of life, a growing job market, and low real estate prices. With arelatively small population—less than the city of Houston—Nebraska presents excellent opportunities to carve out a competitive niche. Here’s how tostart a businessin Nebraska in eight steps.
Start a business in Nebraska
1. Choose a business idea
The first step toward building your Nebraska business is settling on a viablebusiness idea. A solid concept lays the foundation for your business. You may want to sell a product, service, or combination. You might improve an existing offering or come up with something entirely new. Regardless, ask yourself the two following questions before pursuing your project:
- Who is your customer?Knowing what you want to sell isn’t much use if you don’t know who you’ll be selling to. Identify your target customer. Analyze businesses and marketplaces where similar products or services are sold (like Amazon or Wayfair), and research industry trends. Will you selldirectly to consumers (B2C) or business-to-business (B2B)? Online or through atraditional storefront?
- What is your projected profitability?Any business must turn a profit to survive—small businesses in Nebraska are no exception. Several elements can affect your profitability, including pricing,packaging,distribution, andbundling models. Will you offersubscription options? What’s yourbreak-even point—i.e., how much do you have to sell to cover your costs?
2. Name your business
Once you’ve settled on a business idea, choose a name. Coming up with a catchy and memorable name is a critical decision you’ll make as a small business owner. A goodnameconveys your company’s purpose and attracts the right clientele. Consider the following guidelines for picking a business name in Nebraska:
- Be original.Your Nebraska business name must be different from any other business registered in the state.Search内布拉斯加州的部长State’s website to see if your preferred name is available.
- Include certain words.Nebraska LLC namesmust containthe word “Limited Liability Company,” “Limited Company,” “L.L.C.,” “LLC,” “L.C.,” or “LC.”Nebraska corporationnames must contain the “Corporation,” “Incorporated,” “Company,” “Limited,” or an abbreviation thereof.
- Exclude certain terms.Your Nebraska business name cannot contain words that may confuse it with a legitimate government agency, like the FBI or Nebraska State Police. Nor can the name imply an illegal business purpose—like “Stolen Car Parts Resellers Inc.”
- Reserve your name.Name reservationsin Nebraska must be submitted in writing and, if approved by the Nebraska Secretary of State, remain in effect for 120 days. There’s a $30 filing fee for reserving acorporateorLLC name.
- Adopt a DBA.If you want to operate under a different name than the business entity you registered with the state, file for a DBA or “doing business as”—sometimes called a trade name or assumed name. To adopt a DBA in Nebraska, file anApplication for Registration of Trade Name. It costs $110 to apply by mail or in person or $100 to file online.
- Secure a domain name and social media handles.Potential customers should be able to find you online easily. When deciding on a business name, check to see if a relevantdomain name(URL)可用,然后储备社交媒体用户names that align with your business name or DBA.
3. Create a business plan
Every small business owner, in Nebraska or elsewhere, needs abusiness plan. Your business plan should reflect your overall goals and give potential investors a sense of how you intend to run the company in the near and long term. A good business plan contains the following:
- An executive summary andmission statement
- A detailed company description
- Amarket analysis
- Yourorganizational structure
- A list of products or services
- A customer segmentation report
- Amarketing plan
- A logistics and operations plan
- A financial plan
You can craft your plan using afree business plan templatetailored to meet your needs, or consultbusiness plan examplesfor inspiration.
4. Choose a formal business structure and get started
Before formally registering your business in Nebraska, decide whatlegal structureit will take. There are four primary types available to business owners in Nebraska: sole proprietorships, general partnerships, LLCs, and corporations. Each offers different benefits for personal liability, ownership, taxation, and funding. Here’s how they differ:
- Sole proprietorship.Sole proprietorshipsare owned and run by a single individual. They are the default designation for individual-run businesses in the US. There’s no legal distinction between the proprietor and the business. Both are taxed as “pass-through” entities, meaning earnings are assessed once at the proprietor’s personal-income tax level. The owner is personally liable for most debts or legal damages incurred by the business. Sole proprietorships and partnerships pay self-employment state taxes (15.3% in Nebraska). There are no fees or registration requirements to set up a sole proprietorship.
- General partnership.General partnershipsare formed by two or more partners and are taxed similarly to sole proprietorships. Like sole proprietors, there’s no legal distinction between a general partner and their business.
- LLC.Alimited liability company(LLC) is formed by one or more owners, known as “members” Like partnerships and sole proprietorships, LLCs can elect to be taxed as “pass-through” entities—i.e., taxed once at members’ personal-income levels. LLCs differ from sole proprietorships and partnerships in that they enjoy liability protection, because the LLC is considered a separate legal entity from its members. This added layer of protection makes LLCs a bit more complex and costly to set up.
- Corporation.A corporation is a separate legal business entity from its ownership ranks, meaning owners’ personal assets are protected in case the company goes bankrupt or faces a lawsuit. Corporations can issue stocks to shareholders for an ownership stake in the business.Corporationsare subject to corporate taxation, meaning the government taxes business income and the personal income of owners and shareholders. Nebraska corporations must file corporate income tax returns with the state.
Obtaining a federal employer identification number (EIN)
Once you’ve decided on a structure for your Nebraska business, apply for a federal employer identification number (EIN) through theInternal Revenue Service (IRS) website, free of charge. An EIN is a nine-digit number assigned to businesses by the IRS for tracking tax obligations—like a Social Security number, but for companies. An EIN also helps secure credit accounts for business expenses.
Incorporating in Nebraska
To formally launch your business in Nebraska, you may have to pay fees andfile specific documentswith the Secretary of State’s office. (Some structures, like sole proprietorships and general partnerships, don’t need to go through this formality.) Here’s how to incorporate in Nebraska:
- LLCs.File yourCertificate of Organizationwith the Secretary of State’s officeonline, by mail, or in person. There’s a $100 filing fee for online processing and a $110 filing fee for mail or in-person service.
- Corporations.FileArticles of Incorporation and Domesticationwith the Secretary of State’s officeonline, by mail, or in person. The fee for online processing is $100, and $110 for mail or in-person service.
Consider opening abusiness bank account. It’s not required, but theIRS recommendsthat all small business owners maintain business bank accounts separate from their personal assets.
5. Obtain business licenses and permits
While Nebraska doesn’t require a general, statewide business license, businesses that sell products or services are subject to sales tax and must register for a sales tax permit with the NebraskaDepartment of Revenue. Your business may also have to obtain specific licenses if it deals inparticular trades, such as selling cigarettes, tobacco products, or motor fuels.
6. Examine business insurance options in Nebraska
Unforeseen losses can be catastrophic for new businesses. While some business structures like corporations and LLCs offer degrees of personal asset protection, you may still want to purchasebusiness insuranceto cover your products, vehicles, and other property from unpredictable events. Standard insurance plans for Nebraska businesses include:
- Workers’ compensation insurance.Nebraska lawrequiresall businesses with one or more employees to carryworkers’ comp(companies with independent contractors are exempt). This policy covers injuries and illnesses employees may suffer on the job.
- General liability insurance.General liability insurancecovers some financial losses (like no-fault property damage) and injuries like a customer slip-and-fall. While Nebraska law does not require this policy, you may need it to rent an office or storefront.
- Professional liability insurance.Professional liability insurance—i.e., errors and omissions insurance—covers financial losses from malpractice suits claiming that advice or high-competency services caused harm. For example, a real estate agent who fails to note mold in a basement can be liable for damages.
- Business owner’s policy.Abusiness owner’s policy (BOP)is a small business insurance package deal. The specifics vary based on your company’s needs and your insurance company’s offerings.
The federal Small Business Administrationmaintains a listof more insurance policies your new Nebraska business may need.
7. Understand financial considerations
In addition to purchasing insurance, you’ll likely have to make other investments to get your Nebraska business off the ground. These include rentingbrick-and-mortar retail space, setting up aprofessionally designed business website和购买广告,equipment, and software. You may also want to hire lawyers, accountants, and otherprofessionalsto support your endeavors.
These initial business costs can quickly add up. Luckily, there are accessible resources—likeShopify Capital—to help you obtain the necessary startup funds. New Hampshire also offers avariety of programs, including grants and microloans, to assist small business owners.
8. Market your business
Crafting a good marketing strategyis essential for getting the word out about your new Nebraska business. Yourmarketing planmight include several of these critical elements:
- Market research.Thoroughmarket researchis critical to understanding your target market and can give you a better sense of how to stand out in the Nebraska business landscape.
- Advertising.Design andlook for freeor purchase print or digital ads—or hire an agency to do it on your behalf.
- Social media.Every successful business must maintain a solidsocial media presenceon platforms like Facebook, Instagram, YouTube, and TikTok—especially if you want to appeal to younger audiences. Consistently publish content that aligns with your brand to up customer engagement.
- Public relations.Identify and cultivate relationships with media outlets—both in Nebraska and across the U.S.—to increase your visibility organically.
- Customer retention.Buildgenuine relationshipswith customers that keep them returning to your business—and spread the word to friends, family, and colleagues.
Start a business in Nebraska FAQ
How much does it cost to start a business in Nebraska
It costs at least $100 to incorporate a corporation or LLC in Nebraska—provided you file your formation documents online.
Does Nebraska require a business license?
Nebraska does not issue a general statewide business license, but businesses in specific trades or that engage in taxable retail must acquire the appropriate permits.
Is Nebraska a good place to start a business?
Nebraska consistently ranks among the country’s best places to conduct business. Low corporate taxes, tax incentive programs, high quality of life, a growing job market, and low real estate prices make the state an attractive place to set up a small business.