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Doing business in

Nebraska

Navigate Nebraska’s business landscape with ease—whether you’re incorporating, expanding, or managing tax compliance. Commenda helps you stay ahead with automated solutions for incorporation, compliance, and tax filings.
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nebraska

Business Overview

Nebraska offers a stable business environment with strengths in agriculture, finance, transportation, and manufacturing. The state provides low operating costs, reliable infrastructure, and programs supporting workforce development. Its central location benefits distribution and logistics operations.

Key Facts & Figures

Category Details
Capital Lincoln
Major Cities Omaha, Lincoln, Bellevue, Grand Island, Kearney
State Sales Tax Rate 5.50%
Local Sales Tax Rate Up to 2% additional local option
Corporate Income Tax 6.75% flat rate
Physical Nexus Threshold Physical presence through property, employees, or representatives
Economic Nexus Threshold $100,000 in annual sales or 200 transactions

Did you know?

Nebraska is a major agricultural technology hub, with innovative farming techniques and significant corn and beef production.

Setup & Compliance

Nebraska provides streamlined business registration with moderate regulatory requirements.

Setting Up a Nebraska Business:

  1. Select Your Business Structure: Consider tax implications and liability protection needs.
  2. Register Your Business: File formation documents with the Nebraska Secretary of State.
  3. Register for Tax Accounts: Register with the Department of Revenue for sales tax and withholding.
  4. Obtain Required Licenses: Research and secure necessary state and local business licenses.
  5. Register as an Employer: Register with the Department of Labor if hiring employees.

Key Compliance Requirements:

  • Biennial Reports: Nebraska entities must file biennial reports with the Secretary of State.
  • Sales Tax Collection: Collect and remit 5.5% state sales tax plus applicable local taxes.
  • Corporate Income Tax: Corporations pay progressive tax rates from 5.58% to 7.5%.
  • Employment Taxes: Employers must register for unemployment insurance and workers’ compensation.
  • Professional Licensing: Various professions require specialized licenses through state boards.

Hiring & Payroll

Nebraska maintains a balanced approach to employment regulations with moderate business-friendly provisions.

Nebraska Payroll Requirements:

  • Unemployment Insurance: Rates from 0.1% to 7.5% on first $9,000 of wages.
  • State Income Tax Withholding: Required with progressive rates from 2.46% to 6.84%.
  • Workers’ Compensation: Required for most employers.

Nebraska Employment Laws:

  • Minimum Wage: $10.50 per hour (as of 2023).
  • No state-mandated paid sick or family leave.
  • New hire reporting within 20 days.
  • Final paycheck due on next regular payday.
  • Nebraska is an at-will employment state with right-to-work laws.

State Incentives

Nebraska offers strategic economic incentives to support business development.

Key Business Incentives:

  • Nebraska Advantage Act: Tax incentives for business investment and job creation.
  • Site and Building Development Fund: Support for business location and expansion.
  • Research and Development Tax Credit: Supports innovative company development.

Small Business & Startup Support:

  • Nebraska Small Business Development Center: Comprehensive business consulting.
  • Rural Mainstreet Program: Support for rural businesses.
  • Microenterprise Development Grants.

Regulatory Considerations

Nebraska offers a straightforward regulatory environment supporting business development.

Key Business Regulations:

  • Data Privacy: Laws protecting consumer and business information.
  • Environmental Compliance: Regulations for agricultural and industrial sectors.
  • Professional Licensing: Required for various service-based professions.

Additional Regulatory Areas:

  • Agricultural Industry Compliance.
  • Manufacturing and Transportation Regulations.

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