Forbes: This Business Banking Fintech Crossed $1 Billion in Assets on the Platform

How to Incorporate in Nebraska (May 2024 Update)

Meow Technologies, Inc.

Meow Technologies, Inc.

Incorporating a business in Nebraska establishes it as a legal entity separate from its owners. An incorporated business can enter into contracts, sue and be sued, and continue to exist even if ownership changes. Forming a Nebraska corporation also offers liability protection and potential tax advantages.

While incorporating requires more paperwork than operating as a sole proprietor or partnership, the benefits often make it worthwhile for small business owners planning long-term growth. This article provides a step-by-step guide to incorporating in Nebraska, covering key requirements and processes.

Choosing a Business Name

The first step to incorporating in Nebraska is choosing your corporation’s official name. You’ll want to check name availability to ensure no other active or reserved business entities in the state are using the exact name you want.

You can conduct a preliminary name search using the Nebraska Secretary of State’s free online business search tool. For an official determination, email a name request to sos.corp@nebraska.gov or fax it to 402-471-3666.

If your preferred name passes the availability check, you can reserve it for 120 days by filing an Application for Reservation of Name with the Secretary of State’s office ($30 fee).

In addition to uniqueness, your corporate name must follow Nebraska's naming guidelines, including:

  • Containing a required business identifier like "Corporation,""Incorporated," or "Corp." Banking corporations can use just "bank" without a corporate designator.
  • Not implying the business is being formed for an illegal purpose.

Once you land on an available name that meets requirements, you’ll use it consistently throughout the incorporation process.

Appointing a Registered Agent

All Nebraska corporations must designate a registered agent to receive important legal and tax documents on the company's behalf. The registered agent must have a physical street address in Nebraska where they can receive service during normal business hours.

You can serve as your corporation's registered agent yourself, but listing a commercial registered agent service can better preserve your privacy. These services let you use their Nebraska address on public filings related to your business.

Filing Articles of Incorporation

To formally create your Nebraska corporation, you’ll need to prepare and file Articles of Incorporation with the Secretary of State. While concise articles are recommended to save on the $5/page recording fee, make sure to cover these minimum required elements:

  • Exact corporate name
  • Names and addresses of incorporators
  • Number of authorized shares, classes, par values
  • Registered agent name and registered office address
  • Primary business purpose
  • Duration and effective date

Rather than your home address, consider listing a registered agent’s address for your registered office. You can file articles by mail with two copies and payment or file online through the SOS’s Corporate Document eDelivery system.

Publishing a Notice

After the state approves your Articles of Incorporation, statute requires publishing a notice in a legal newspaper local to your designated corporate address for three consecutive weeks (NE Code 21-2,229). This notice should include basic information like your corporate name and authorized shares.

Once published, the newspaper sends an affidavit of publication, which you must file with the Secretary of State to complete this requirement.

Obtaining an EIN

Now that your Nebraska corporation exists, head to IRS.gov to apply for an employer identification number (EIN). This number identifies your business for federal tax purposes and other needs like opening a bank account. EIN applications are free and can be completed online instantly.

Drafting Bylaws

Bylaws outline your corporation's internal management, from stock classes and voting procedures to director duties and shareholder meetings. While not filed publicly, adopting corporate bylaws is required by statute before you begin formal operations.

Carefully drafted, comprehensive bylaws prevent confusion down the road by addressing foreseeable situations like transferring stock, filling officer vacancies, or distributing income.

Holding an Organizational Meeting

Once you have bylaws established, the next step is holding an initial organizational meeting. Shareholders and directors can use this first corporate meeting to appoint officers, approve stock distribution, and discuss priorities for the new company.

Detailed meeting minutes should be prepared reflecting organizational decisions made. Ongoing corporate meetings will follow protocols defined in your bylaws.

Opening a Bank Account

Before you begin accepting investments or transacting business as a Nebraska corporation, open a dedicated corporate bank account. Keeping corporate finances separated from your personal funds is vital for liability protection.

Bring a copy of your Articles of Incorporation, EIN, and corporate bylaws to the bank to open an account. Some banks may require a corporate resolution formally authorizing account opening.

For more information, take a look at our article on the key benefits of business checking accounts.

Reporting Requirements

On an ongoing basis, Nebraska corporations must submit a biennial report to the SOS by April 1st of even-numbered years. This report covers information like your current directors, officers, capital stock, registered office address, and nature of business.

You must also pay an occupation tax with your biennial report based on authorized capital stock. Tax ranges from $26 for corporations with under $10,000 in stock to $1,100 for those with over $100 million in stock.

In addition to biennial reporting, Nebraska corporations pay state income taxes—5.58% on the first $50,000 in income and 7.81% on income above $50,000. You may need additional tax registrations depending on your activities.

Conclusion

While forming a corporation in Nebraska entails more upfront work than other business structures, taking these key steps lays a solid foundation if you plan to grow. Plus, you’ll enjoy ongoing benefits like liability protection and flexible stock options. Don’t hesitate to seek legal or financial advice for business-specific needs.

Meow Technologies is a financial technology company, not a bank or FDIC-depository insured institution. Likewise, Meow Technologies is not an investment adviser and none of the information presented herein should be relied upon as financial advice or a recommendation to make any financial decision nor should it be considered to be tax or legal advice. The information is the opinion of Meow Technologies for educational purposes and may not be suitable for all companies. Products, like the one described herein, are offered through Meow Technologies and are not advisory services which are only offered through Meow Advisory, LLC.** The FDIC’s deposit insurance coverage only protects against the failure of an FDIC-insured bank.**

Get started with Meow

Apply Now

Put your company's idle cash to work

TwitterLinkedIn

Resources

Legal

*Disclaimer: Meow Advisory LLC is a registered investment adviser. Registration as an investment adviser does not imply any level of skill or training.
For accounts opened through Atomic Brokerage LLC: Meow Advisory LLC has an engagement with Atomic Brokerage LLC (“Atomic Brokerage”), a registered broker-dealer and member of FINRA and SIPC , to bring you the opportunity to open a brokerage account. Brokerage services for customers of Meow Advisory LLC are provided by Atomic Brokerage. For more details about Atomic Brokerage, please see the Form CRS, General Disclosures, and the Privacy Policy. Check the background of Atomic Brokerage on FINRA’s BrokerCheck.
For subadvisory services for accounts opened through Atomic Invest LLC: Meow Advisory LLC has an engagement with Atomic Invest, LLC (“Atomic Invest”), an SEC-registered investment adviser, to bring you the opportunity to open an investment advisory account. Investment advisory services are provided by Atomic Invest. Companies which are engaged by Atomic Invest receive compensation of 0% to 0.85% annualized, payable monthly, based upon assets under management for each referred client who establishes an account with Atomic Invest (i.e., exact payment will differ). Atomic Invest also shares a percentage of compensation received from margin interest and free cash interest earned by customers with Meow Advisory LLC. Meow Advisory LLC is not a client of Atomic Invest, but our engagement with Atomic invest gives us an incentive to refer you to Atomic Invest instead of another investment adviser. This conflict of interest affects our ability to provide you with unbiased, objective information about the services of Atomic Invest. This could mean that the services of another investment adviser with whom we are not engaged could be more appropriate for you than Atomic invest. Advisory services through Atomic Invest are designed to assist clients in achieving a favorable outcome in their investment portfolio. They are not intended to provide tax advice or financial planning with respect to every aspect of a client’s financial situation and do not include investments that clients may hold outside of Atomic Invest. For more details about Atomic Invest, please see the Form CRS, Form ADV Part 2A, the Privacy Policy, and other disclosures. Brokerage services for Atomic Invest are provided by Pershing Advisor Solutions LLC (“PAS”), a registered broker-dealer and member of FINRA and SIPC.
Neither Atomic Invest nor Atomic Brokerage, nor any of their affiliates, is a bank. Investments in securities are Not FDIC insured, Not Bank Guaranteed, and May Lose Value. Investing involves risk, including the possible loss of principal. Before investing, consider your investment objectives and the fees and expenses charged by Atomic Brokerage and/or Atomic Invest.
See the Legal Section within the Meow website for additional agreements.

U.K. Gilt pricing quoted net of fees. ~5% U.K. Gilt yield is sourced from Investing.com December 2023 6-month United Kingdom 6-Month Bond Yield. ~5% Treasury Bill yield is sourced from treasurydirect.gov December 2023 12-week U.S. Treasury Bill auction.

**Disclaimer: Meow Technologies is a financial technology company, not a depository, bank or credit union, and your account at Meow is not, itself, an FDIC-insured product.

Meow currently partners with three banking providers. Banking services are provided by Third Coast Bank SSB; Member FDIC, Grasshopper Bank, N.A; Member FDIC, and FirstBank, a Tennessee corporation; Member FDIC.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by Grasshopper Bank, N.A, you deposit your funds into a deposit account at Grasshopper Bank, N.A. which sweeps those funds into deposit accounts across a network of Federal Deposit Insurance Corporation (“FDIC”)-insured banks, for up to the current standard maximum deposit insurance amount (“SMDIA”) of $250,000 per eligible depositor, per destination institution, for each ownership capacity or category, subject to applicable terms and conditions, including Grasshopper's ICS Deposit Placement Agreement. Grasshopper Bank, N.A. uses a third-party vendor and agent to help administer this sweep process. Visit https://www.intrafi.com/network-banks/ for a list of the banks and savings associations with which we/Grasshopper, N.A. have a business relationship for the placement of deposits at destination institutions, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by Grasshopper, N.A. or you). The current maximum deposit insurance amount for your funds is up to $125 million in FDIC insurance through the sweep network of Grasshopper Bank, N.A, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and restrictions and refer to the applicable rate sheets for additional information.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by Third Coast Bank SSB, you deposit your funds into a deposit account at Third Coast Bank SSB. If you also hold funds in a sweep program with Third Coast Bank SSB, Third Coast Bank SSB sweeps those funds into deposit accounts across a network of FDIC-insured banks, for up to the current SMDIA of $250,000 per eligible depositor, per receiving bank, for each ownership capacity or category, including any other balances you may hold at that receiving bank directly or indirectly through other intermediaries, including broker-dealers. Third Coast Bank SSB uses a third-party vendor and agent to help administer this sweep process. Visit Third Coast Bank SSB for a list of the banks and savings associations with which we/Third Coast Bank SSB have a business relationship for the placement of deposits at receiving banks, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by Third Coast Bank or you). The current maximum deposit insurance amount for your funds is up to $50 Million in FDIC insurance through the sweep network of Third Coast Bank, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and conditions and refer to the applicable rate sheet for additional information.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by FirstBank, a Tennessee corporation, you deposit your funds into a deposit account at FirstBank, which sweeps those funds into deposit accounts across a network of FDIC-insured banks, for up to the current SMDIA of $250,000 per eligible depositor, per destination institution, for each ownership capacity or category, subject to applicable terms and conditions, including FirstBank's ICS Deposit Placement Agreement. FirstBank uses a third-party vendor and agent to help administer this sweep process. Visit IntraFi for a list of the banks and savings associations with which FirstBank has a business relationship for the placement of deposits at destination institutions, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by FirstBank or you). The current maximum deposit insurance amount for your funds is up to $125 million in FDIC insurance through the sweep network of FirstBank, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and restrictions and refer to the applicable rate sheet for additional information.

***FDIC insurance coverage is only available to protect you against the failure of an FDIC-insured bank that holds your deposits (and does not protect you against the failure of Meow or other third party). Your account with Meow and all services provided to you are subject to the Meow Terms of Service (“Account Agreements”) and other applicable terms and no other representations or warranties, express or implied, are provided to you except as expressly set forth in those written Account Agreements. If you have any questions regarding your account, please contact team@meow.com.

FirstBank Funds Availability Notice

FirstBank’s general policy is to allow you to withdraw funds deposited in your account on the first business day after the day we receive your deposit. Funds from electronic deposits will be available on the day we receive the deposit. In some cases, we may delay your ability to withdraw funds beyond the first business day. Then, the funds will generally be available by the SECOND business day after the day of deposit.