Business Formation eGuide

Business Formation eGuide

The inception of a new business venture requires careful consideration of its legal structure and forms the foundation of the business. Selecting the appropriate business structure ensures legal compliance and operational efficiency. Entrepreneurs should conduct a thorough analysis of these options, considering specific business goals and long-term vision. This proactive approach can help mitigate risks and position the business for sustainable growth.

Business owners and entrepreneurs are advised to consult with professionals to make an informed decision tailored to their unique circumstances. SourceLink Nebraska can help make connections to these types of services. Request a Personal Action Plan!


Business Structure Options

Sole Proprietorship

A Sole Proprietorship is a business structure wherein a business owner retains absolute ownership. This business structure is the most basic but bears greater personal risk than other business structures.

General Partnership

A General Partnership entails two or more people jointly owning and operating a business venture. It allows multiple people to combine their skills, resources, and efforts in managing a joint business through cooperation and collective decision-making.

Corporation (C-Corp & S-Corp)

A Corporation is a legally separate entity from its owners, formed and regulated by state laws, providing limited liability protection for owners’ personal assets.

Limited Liability Company (LLC)

A Limited Liability Company (LLC) offers operational flexibility which makes it a common structure for Nebraska small business owners.

Taxes & Regulations

Nebraska Business Licensing & Permits

Obtaining the proper licenses and permits is an important step when starting and operating a business. The specific requirements can differ depending on several factors.

Labor Regulations & Taxes

Before hiring employees, you should thoroughly familiarize yourself with the requirements related to employment practices, taxation, workplace safety, and anti-discrimination policies.

State & Federal Business Taxes

Business owners navigate a complex tax system that operates at both federal and state levels.  This taxation system necessitates careful planning from business owners to meet legal obligations and optimize financial strategies.

State & Federal Reporting 

Nebraska requires biennial reporting for most business entities, which involves filing a report with the Secretary of State every two years to keep the business’s information current. The Corporate Transparency Act now mandates that many businesses file Beneficial Ownership Information (BOI) reports with the Financial Crimes Enforcement Network (FinCEN) to disclose their beneficial owners.

Business Operations

Additional Business Considerations

This information covers additional steps for setting up a new business, including the establishment of banking and accounting practices, legal support, securing business insurance, finding a commercial location, and relationships with suppliers.

Certificate of Good Standing

A Certificate of Good Standing is an official document that verifies a business entity’s legal establishment and ongoing compliance with the state’s statutory requirements and regulations. This certification serves as an authoritative third-party attestation of the organization’s legitimate existence and its adherence to the mandated rules and standards.

Disclaimer: This is for informational purposes only and does not constitute legal or professional advice. Consult with a qualified professional to understand all legal requirements before taking action to start a business.