Nebraska LLC: No Franchise Tax — What You Pay Instead
Nebraska does not impose a franchise tax, minimum business tax, or gross receipts tax on LLCs. This page explains what Nebraska LLCs actually owe (beyond income tax) and how Nebraska's fee structure compares to states that do charge franchise taxes. For the complete tax picture, see our tax guide. For formation, see our LLC guide.
What Nebraska Charges Instead of Franchise Tax
| Obligation | Amount | Frequency |
|---|---|---|
| Biennial Report | $13 (online) | Every 2 years (odd years, April 1) |
| Income tax (members) | 2.46%-5.84% | Annual |
| Sales tax (if applicable) | 5.5% + local | Ongoing |
| Franchise tax | $0 — None | N/A |
| Minimum business tax | $0 — None | N/A |
Total minimum annual state maintenance cost for a Nebraska LLC: $6.50/year (that's the $13 biennial fee spread annually). This is the lowest in the country.
Nebraska vs. Franchise Tax States
| State | Franchise/Minimum Tax | Annual Filing Fee | Total Minimum Annual |
|---|---|---|---|
| Nebraska | $0 | $6.50/year (biennial at $13) | $6.50 |
| California | $800/year | $20/year (SOI) | $820 |
| Delaware | $300/year (LLC) | $0 additional | $300 |
| Texas | $0 (under $2.47M revenue) | $0 | $0 |
| Illinois | $75/year | $0 additional | $75 |
| New York | $0 | $9/year | $9 |
| Oregon | $0 | $100/year | $100 |
Nebraska's $6.50/year effective cost makes it one of the absolute cheapest states for LLC maintenance.
The Biennial Report — Nebraska's Only Required Filing
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Get StartedThe Biennial Report is your LLC's sole ongoing obligation to the Secretary of State:
- Fee: $13 (online) / $13 (mail — same price)
- Due: April 1 of every odd-numbered year (2025, 2027, 2029, etc.)
- Filed with: Nebraska Secretary of State at sos.nebraska.gov
- Contents: Confirms current LLC information (name, address, agent, members/managers)
- NOT a financial report: No revenue, profit, or tax information required
This is dramatically simpler than states requiring annual reports, franchise tax calculations, or gross receipts reporting.
What Happens If You Don't File the Biennial Report
Even at $13, non-compliance has consequences:
- Due date passes (April 1 of odd year)
- Nebraska Secretary of State sends notice
- Administrative dissolution if not filed after notice period
- Reinstatement required (additional fees) to restore LLC
The reinstatement fee plus the overdue biennial report fees will always exceed just filing on time. Don't skip the $13 filing.
Corporate Income Tax (C-Corp Elected LLCs Only)
If your Nebraska LLC elects C-corp taxation:
- First $100,000: 5.58% corporate income tax
- Over $100,000: 7.25% corporate income tax
- This is in addition to personal tax on distributions (double taxation)
- Most small Nebraska LLCs should remain pass-through to avoid this
FAQ
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Get StartedWhy does Nebraska have such a low biennial fee?
Nebraska's revenue model doesn't rely heavily on business entity fees. The state generates revenue primarily through income tax and sales tax. The $13 biennial fee is essentially a records-maintenance charge, not a revenue-generation tool.
Is the $13 fee really the only thing I owe the state?
For Secretary of State compliance, yes — $13 every two years. However, you also owe Nebraska income tax on LLC profits (2.46%-5.84% to members) and sales tax if selling taxable goods (5.5%+). The $13 covers your entity maintenance only.
Does the low fee mean Nebraska has fewer protections?
No. Nebraska's LLC protections under the Nebraska Uniform LLC Act are comprehensive. The low fee reflects state policy, not weaker legal protections.