How to Form an S Corporation in Nebraska

Introduction

A corporation is a legal entity that can own property, enter into contracts, and be sued. In Nebraska, corporations are formed by filing articles of incorporation with the Nebraska Secretary of State. There are no residency or state citizenship requirements in order for an individual owner to form an S corporation in Nebraska. Corporations also offer owners limited liability protection, which other business structures don’t have. The process for forming an S corporation is similar to that of a C corporation:

File Articles of Incorporation with the Nebraska Secretary of State

If you want to form an S Corporation in Nebraska, you’ll need to file articles of incorporation with the Secretary of State. The Secretary of State’s office has a website where you can download the forms and find out more about the filing process. You will also find information on their site about fees charged by this agency.

The formation process is similar for most states, but it does vary slightly from state to state. If your corporation is going to operate in multiple states, then you’ll want to check with each state separately for specific requirements before initiating any steps towards forming your business.

No Residency or State Citizenship Requirements

There are no residency or state citizenship requirements in order for an individual owner to form an S corporation in Nebraska. If you are not a U.S. citizen, you will need to have a visa or green card allowing you to stay in the United States before you can form an S corporation there.

Similar Process To an C Corporation

The process for forming an S corporation is similar to that of a C corporation. First, you’ll need to file articles of incorporation with the Nebraska Secretary of State. Articles of incorporation must be signed by at least one owner and filed with the Nebraska Secretary of State. If you want to serve as your own secretary, you can do so; otherwise, you will have to appoint a registered agent or resident agent in order for the state government to communicate with your business entity.

Selling a Business Becomes Valuable

If you plan on selling your business at some point, it could be more valuable to incorporate as an S corporation. The corporate structure gives the business an air of legitimacy and credibility that can’t always be achieved with a sole proprietorship or LLC. This is especially true if you’re looking to attract investors or buyers for the company.

A corporation also enables you to offer stock options to employees, which may help with recruiting and retention efforts. This can help when it’s time for you to sell the company because employees are more likely than other stakeholders (such as vendors) supported by your business due to their stake in its success.

It Makes your Business Seem More Legitimate and Trustworthy

It can be difficult to convince investors to invest in a partnership or sole proprietorship, but incorporation makes your business seem more legitimate and trustworthy. A corporation is perceived as more credible than a partnership or sole proprietorship because it has legal backing. The benefit of this perception is that it can attract business customers and investors who would otherwise not consider doing business with your company. Incorporating also allows you to get loans at lower interest rates because lenders are more comfortable with the structure of an incorporated business.

As long as you meet the income threshold for S corporation classification in Nebraska, then you will start paying less tax on your profits (and avoiding self-employment taxes).

Corporations Also Offer Owners Limited Liability Protection

A corporation is a business structure that separates ownership from management. The owners (shareholders) of a corporation are not personally responsible for the debts and liabilities of the company or its employees. This means, for example, if your business gets sued and you lose in court, the court can only require you to pay what was in your personal checking account at the time of judgment—not everything you own or have ever earned as an owner (or anything they may come up with later).

If you decide to start an S corporation, there are several steps involved:

Tax Benefits and Protection of Personal Assets

There are many reasons why it’s sometimes better for small businesses to be formed as corporations so they can receive certain tax benefits and protect the owners’ personal assets from being claimed against the company’s creditors. One of the key reasons is that S corporations are pass-through entities, meaning the profits and losses are reported on the owner’s personal income tax returns. In contrast, C corporations are required to pay taxes themselves at both a corporate level as well as with their shareholders when money is distributed in dividends. Another benefit of forming an S corporation over a partnership or sole proprietorship is that all three must file state income taxes regardless of whether they have any employees while an S corporation only pays its federal income tax bill if it has employees who work more than 8 hours per week during its taxable year.

Conclusion

The process of forming an S corporation in Nebraska is similar to that of a C corporation. The steps listed above should be followed carefully, and you will want to make sure that you meet all the requirements before filing your articles of incorporation.