Nebraska LLC for Freelancers — Simple, Low-Cost Protection
Nebraska's LLC structure offers freelancers liability protection at one of the lowest ongoing costs in the country: $105 to form, then $13 every two years. No franchise tax, no annual report anxiety — just a simple biennial filing. For formation, see our LLC guide. For all industries, see industry overview.
Why Nebraska Freelancers Form LLCs
- Client dispute protection: If a client claims your work caused harm, only LLC assets are at risk
- Credibility: Corporate clients prefer contracting with LLCs over sole proprietors
- EIN privacy: Give clients your EIN instead of SSN on W-9 forms
- Cost: $6.50/year effective maintenance — the cheapest liability protection available
- Tax flexibility: Can elect S-corp taxation later if income grows
Sales Tax for Nebraska Freelancers
Most freelance services are exempt from Nebraska sales tax:
- Writing, editing, marketing consulting: exempt
- Web development, graphic design: generally exempt (custom software)
- Business consulting, management advisory: exempt
- Photography: may be taxable (tangible product delivered)
- Video production: may be taxable (tangible product)
Check Nebraska Revenue Ruling for your specific service type. If exempt, you don't need a Sales Tax Permit.
Tax Summary
Ready to get started?
Get Started| Tax | Rate | Notes |
|---|---|---|
| Nebraska income tax | 2.46%-5.84% | On all LLC income |
| Federal income tax | 10%-37% | On all LLC income |
| Self-employment tax | 15.3% | On net SE income |
| Sales tax | 5.5% + local | Only if providing taxable services/goods |
| Biennial Report | $13 | Every 2 years (April 1, odd years) |
S-Corp Election for Nebraska Freelancers
When income exceeds $60K-$80K consistently:
- Save $3,000-$10,000+/year in SE tax
- Must run Nebraska payroll (withholding, unemployment insurance)
- Administrative cost: $1,500-$2,500/year for payroll + accounting
- See our S-corp guide
FAQ
Do I charge clients sales tax on my services?
Most likely no — professional and business services are generally exempt in Nebraska. However, if you deliver tangible products (printed materials, physical media, custom manufactured items), those may be taxable.
Is $6.50/year really the ongoing cost?
Yes — $13 Biennial Report divided by 2 years = $6.50/year to the state. Add a registered agent ($99/year if using a service) and your total is about $105.50/year. Still one of the cheapest in the country.