Many businesses require combinations of federal, state, county, and local licenses or permits to operate within the law. There are three general categories of business licenses and permits: general business licenses, tax or income-related licenses, and regulatory or professional licenses. Some, such as income and tax-related permits, are generally required of all businesses, while most others apply only to those in a specific industry, occupation, or location. If you’re starting a business in Nebraska, understanding how these license types fit together can make the process far more manageable.
There is no general statewide business license Nebraska; however, municipalities and counties often require one for firms based in or operating within their boundaries. General business licenses can involve a commitment by the business owner to manage the business safely and comply with the community’s standards and regulations.
On the other hand, you must register with the state of Nebraska if your business has employees, engages in retail sales, rents or leases tangible personal property, or provides services that are subject to sales tax.
The regulatory or professional license category is often overseen by state or federal agencies that regulate specific industries or occupations. Applicants for occupational licenses must demonstrate that they have completed the required education and training and show that they understand and agree to follow the relevant industry or occupational standards.
Do you need a business license in Nebraska?
The State of Nebraska does not have a statewide general business license, while most municipalities and counties have license or permit requirements. The State of Nebraska requires licenses or permits that depend on your industry or occupation, as found here.
How much does a business license cost in Nebraska?
You may be wondering, how much does a business license cost? The answer is that it varies not only state by state, but county to county within the state as well. The cost of business licenses in Nebraska varies by location and the level of government entity; however, we provide trends and examples below. The types of business licenses required in Nebraska include the following:
City business license
Most local business licenses cost under $250. Fees may be standard, while others vary with the business’s square footage, and or the nature of the company. For example, Omaha requires licenses for skilled trades, mobile food vendors, liquor establishments, and other businesses, with additional information found on its licenses and permits site.
Localities often require licenses or certificates of occupancy for those operating home-based businesses and commercial spaces so they can ensure you meet their zoning and safety requirements. To confirm the necessary local business licenses, contact the city or township clerk for the information and requirements.
County business license
Nebraska counties generally do not have general business licenses. Many county licenses cover issues similar to city business licenses, except they apply to businesses located in unincorporated areas. They often issue licenses for regulated activities such as alcohol sales and building contractors.
State-level licenses and permits
Nebraska requires various state-level business and professional licenses. Every new business in Nebraska must register with the Nebraska Department of Revenue (DOR). You must register is your business has employees, engages in retail sales, rents/leases tangible personal property, or provides services that are subject to sales tax.
Among the more specialized state business licenses are those for food establishments, pesticide dealers and applicators, liquor, and real estate. Nebraska’s One Stop Portal is a state government site with links to all state licensing and inspection processes and procedures.
Nebraska’s legislature established state licensing boards for various professions, and these boards determine the licensing fees for each profession. Nebraska has a Business Licensing page on Nebraska.gov, which provides links to all state-level business licensing information.
Nebraska’s professional fees are lower than those in other states, with almost all licenses costing less than $200. For example, the physician’s license fee in Nebraska is $100, with an additional fee for the background check.
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Federal licenses and permits
Federal regulatory licenses are required for businesses that perform specific functions or operate in industries subject to federal regulations. To determine whether your business needs a federal license, review the U.S. Small Business Administration guide that lists federal regulatory bodies and the businesses they cover: For example, the list includes:
- Agriculture
- Alcohol, tobacco, and firearms
- Food and drug manufacturing
- Trucking and logistics
- Radio and television broadcasting
- Ethanol production
Federal business license fees vary widely due to differences in industry, number of locations, revenues, or other volume measurements. For example, farms that buy or sell more than one ton of fresh or frozen fruits and vegetables per day need a Perishable Agricultural Commodities Act (PACA) license. The PACA license costs $995 plus $600 per additional location, not to exceed $8,000 annually.
Nebraska’s primary state-level licenses are for specific professions, occupations, and industries.
Pro Tip: Nebraska’s business licensing site offers links to the licensing processes for various industries, including health professionals, liquor sales, agriculture, and more. If you are involved in the sectors listed on the site, click the link or contact the appropriate agencies.
Renewing your business license in Nebraska
The type of license determines the process and timing of renewing your business license in Nebraska. Generally, the renewal process is similar to the one used to issue your business license. State renewals occur online at the same site.
Most state licenses are renewed annually or every other year and require updating when you add or change a business location, have a change in ownership, or experience other significant business changes.
City and county business licenses are typically updated annually and often require in-person updates.
Many professional licenses are renewed annually, using the same site used to obtain your original permit, though often on a different page. For example, many medical professionals can renew their licenses online or by submitting a printed renewal application.
Conclusion
The State of Nebraska requires nearly all businesses to register for tax purposes; however, it does not require general business licenses. Instead, it requires licenses for specific business types and professions. Additionally, localities often require all businesses to obtain a license, while others require licenses only for specific business types. If you’re still laying the groundwork, reviewing how to start an LLC in Nebraska can help clarify which steps are handled at the state level and which are determined locally.
Be sure to check the relevant resources provided above and consult with knowledgeable sources in your industry or occupation to inquire about licensing requirements. Also, be sure to contact your county and municipal clerks the determine the licenses and permits you may need.
FAQ
LLCs with more than one member must obtain a federal Employer Identification Number (EIN). Otherwise, having an LLC is unrelated to your licensing requirements.
LLCs (Limited Liability Companies) and business licenses are generally unrelated. An LLC is a type of business structure that offers some of the protections of corporations, along with the flexibility of a partnership. The need for business licenses is generally either universal or dependent on your occupation or industry, rather than your business structure.
The failure to obtain the required licenses in Nebraska makes you liable for penalties ranging from fines to business closures or imprisonment. The penalty depends on the business and the licenses you failed to obtain. Financial penalties are common and can increase the longer you do not have the necessary license. The immediate closure of your business is possible in numerous instances.
Finally, failing to obtain a license that compromises public safety can result in substantial fines and imprisonment.
Like the FAQ about LLCs, the nature of your business structure is independent of whether you need a business license. Licenses and permits generally depend on the nature of your business or occupation and your location.