In Nebraska, you may incorporate a S corporation (S corp) by founding a limited liability company (LLC) or a corporation and then choosing S corp status from the IRS when applying for an EIN.
An S corporation is a tax categorization, not a company structure, according to the IRS. The S corp classification is used to lower a company’s tax burden.
In our How to Start a S Corp in Nebraska tutorial, we’ll walk you through the steps.
You must examine the following things before founding a S corporation:
S corporations are restricted to one class of stock and 100 stockholders, among other things. For more information, see our What Is a S Corporation? guide.
As entrepreneurs, we feel that incorporating a S corporation via an LLC is the best option since the benefits of founding a corporation are offset by S corp limitations. LLCs are also less difficult to manage than corporations.
You must determine if the S corp tax status is preferable to the default LLC tax status for your company. Read our LLC vs. S corp tutorial to fully grasp the tax benefits of a S corp.
There are two major methods to form a S corporation:
We do not advocate forming a company with the S corp tax status since it undermines all of the advantages of forming a corporation.
Forming an LLC and Choosing S Corp Status in Nebraska
To form an LLC and elect S corp status, follow these six simple steps:
Step 1: Give Your LLC a Name
Step 2: Select a Registered Agent.
Step 3: Submit the Organizational Certificate.
Step 4: Fulfill All Publication Requirements
Create an Operating Agreement in Step 5
Step 6: Obtain an EIN and complete Form 2553 to elect S Corporation Tax Status.
The first and most significant step in forming an LLC in Nebraska is deciding on a name.
Make sure your name conforms with Nebraska naming regulations and is readily searched by prospective customers.
1. Follow the Nebraska LLC naming guidelines:
2. Does the name exist in Nebraska? To determine whether your chosen LLC name is available, utilize the corporate and company search on the Nebraska Secretary of State website.
3. Is the URL accessible?
We suggest that you check to see whether your company’s name is accessible as a web domain. Even if you don’t intend to construct a company website right away, you may want to purchase the URL to prevent others from gaining it.
Your Nebraska LLC must have a registered agent.
A registered agent for your LLC will accept legal papers and tax notifications on your behalf. When you submit your LLC’s Certificate of Organization, you will name your registered agent.
Many company owners opt to use the services of a registered agent. Many of these firms will incorporate your LLC for a modest price and provide free registered agent services for the first year.
The Nebraska Certificate of Organization is needed to properly establish a limited liability company (LLC)
In Nebraska, all new LLCs must publish a Notice of Organization in a broad circulation newspaper. The newspaper must be published in the county where the LLC’s major office is situated, and the Notice of Organization must run for three weeks in a row.
Your Organizational Notice must contain the following information:
You will receive an affidavit of publication from the newspaper after you have published your Notice of Organization for three weeks in a row, which you can file with the Secretary of State. Use the form below to submit an affidavit of publication.
An LLC operating agreement is a legal document that defines your LLC’s ownership and member responsibilities.
An EIN is a number assigned by the US Internal Revenue Service (IRS) to companies in order to identify and tax them. It is basically a business’s Social Security number.
When you apply directly with the IRS, EINs are free.
