Are you looking to start a nonprofit corporation in Nebraska, but you’re not entirely familiar with how the formation process works?
Forming a nonprofit organization can have some tricky compliance requirements, and you don’t want to risk making any mistakes during this process. In this guide, we’ll discuss all the relevant details of forming a nonprofit corporation in Nebraska.
To get started, please reference our 11-step guide below or hire a professional online incorporation service to get started.
Rocket Tip: To see how some of the top online nonprofit incorporation services stack up, here are two of our most popular comparisons - Incfile vs LegalZoom & Northwest Registered Agent vs LegalZoom.
How to Form a Nebraska Nonprofit Corporation (in 11 Steps)
1) Name Your Nonprofit
The first step for forming a nonprofit organization in any state is to come up with a strong name for it. Remember that the name of your nonprofit is often your best opportunity to make a good first impression with people, and you should clearly describe your organization’s mission in your name.
Before you become too attached to one name idea, you should run a Corporate and Business Search on the Nebraska Secretary of State website. This will tell you if someone else is already using your desired name, or if it’s available for your nonprofit to use.
2) Designate an Incorporator and an Initial Board of Directors
The incorporator is the person who is responsible for preparing, signing, and filing your nonprofit’s Articles of Incorporation. This document is the form that officially creates your organization with the state of Nebraska.
At this time, you should also choose your initial board of directors.
In Nebraska, you are required to have at least three people on your initial board.
3) Designate a Registered Agent
Nebraska nonprofit corporations must designate a person or business to receive legal notices on behalf of the company. This important point of contact is known as the registered agent. You will be required to list the registered agent’s name and address when filing the Articles of Incorporation.
Who Can Be My Registered Agent? A registered agent must have a physical address within the state of Nebraska where mail and legal notices can be served during regular business hours. You can hire a service to act as your registered agent, serve as your own registered agent, or even use an accountant or other business professional’s address – with their consent, of course.
The Nebraska Secretary of State says that,
If you plan on forming a corporation or limited liability company, you will need to choose a registered agent. The registered agent is designated by law as the entity’s agent for service of process and official government communications. The name of the registered agent and the location of the registered office must be listed in the entity’s formation documents.”
Our Recommendation
We recommend hiring a professional registered agent service to act as your registered agent. Doing so will help eliminate junk mail and more importantly, keep your personal and/or corporate or personal address off the public record.
Rocket Tip: You can get a free registered agent service when hiring an incorporation service to form a nonprofit corporation. See our review of Incfile and review of Northwest Registered Agent to learn more.
4) File the Articles of Incorporation
The official document required to form your nonprofit corporation with the state of Nebraska is the Articles of Incorporation.
This Nebraska document includes all of the vital information describing the organizational structure of your nonprofit, including much of the following information:
- Name of your nonprofit corporation
- Whether or not your corporation will have members
- Your business address
- Activities of your nonprofit
- Email address for your nonprofit corporation
- Name and address of your registered agent
- Names and addresses of your incorporators
- Signatures of incorporators
Once you’ve finished filling out this form, you’ll need to have a credit or debit card on hand for the $10 filing fee (plus $5 for each additional page). Nebraska offers only an online option for this file.
The Nebraska Secretary of State typically processes nonprofit corporation formations within 2-4 business days of receiving your articles. This processing time assumes that all of your information has been filed correctly.
5) Acquire an EIN
According to the IRS, every nonprofit corporation should obtain a federal tax ID number, otherwise known as an employer identification number (EIN).
The EIN enables your nonprofit to hire employees, open business bank accounts, and file for 501(c)(3) tax exempt status. The process to acquire an EIN is quite simple, and includes the preparation and filing of one simple form. Obtaining an EIN is also free.
6) Establish Bylaws and a Conflict of Interest Policy
Think of the bylaws as a governing document for how your nonprofit corporation will be operated. Bylaws outline procedures for things like holding meetings, outlining your membership structure, defining your corporate purpose, describing the responsibilities of your board of directors, and other important details.
A conflict of interest arises when a contributor to your nonprofit has personal interests that compete with those of your corporation.
The conflict of interest policy protects your nonprofit in these situations. It includes a duty to disclose clause that says anyone involved with your nonprofit must disclose any financial interests and material facts to your directors. It also outlines procedures for addressing conflicts of interest if they ever arise.
7) Hold an Initial Meeting and Establish Your Corporate Record
At this point, you’re ready to hold an initial organizational meeting with your board of directors. At this important meeting, you need to elect directors and officers, approve the bylaws and conflict of interest policy, and adopt resolutions.
As with any meeting of your nonprofit corporation, you should take detailed notes of everything that takes place. This documentation can then become part of your corporate record, which is a permanent written record of all important organizational decisions.
8) File for Nebraska Tax Exemption
Most nonprofit entities in Nebraska can apply for tax exempt status. When it comes to income taxes, Nebraska defers to the federal government; if you’ve obtained a nonprofit tax exemption from the IRS as a 501(c)3, you are automatically exempt from the state income taxes. However, this does not automatically exempt you from the sales tax; you’ll need to fill out a Nebraska Resale or Exempt Sale Certificate. For more information on this important step, the NebraskAccess can help.
9) Register for Charitable Fundraising
In the past, Nebraska charitable organizations were required to register with the attorney general in order to solicit charitable contributions within the state. However, this law was repealed in 1996, so you won’t need to register before raising funds. That said, you’ll still be held accountable for your use of charitable assets. To learn more, check out the state’s resource on nonprofit corporations. This information will help you be ready to raise funds for your cause.
10) Obtain Business Licenses and Permits
While Nebraska does not have a general business license that applies to all companies operating in the state, there are hundreds of industry-specific permits and licenses that you may need to acquire for your organization.
For one, Nebraska upholds the licensing requirements of any federally-regulated industries. Check here to determine if your business must be licensed by a federal agency.
You’ll also want to take a look at the state’s list of licensing services to determine if any of them will apply to your nonprofit corporation.
Your city or county may also require general business licenses. Here some of the largest cities in Nebraska which require local licenses:
11) Acquire Insurance
Every business with employees located in the state of Nebraska is required by law to obtain two different kinds of insurance policies: workers’ compensation and unemployment insurance.
You can learn more about these insurance types and how they apply to Nebraska businesses by visiting the Department of Labor and Department of Insurance websites. No matter what line of business your nonprofit is in, you need these policies.
In addition, you should also pursue general liability insurance and other more industry-specific types of insurance, but these are not legally required.
Where Can I Find Help for My Nebraska Nonprofit?
The process of forming and maintaining nonprofit corporations can be tricky, no matter which state you’re located. Fortunately, there are great resources in Nebraska to help you out in case you get stuck.
As for the state of Nebraska, if you require assistance, you can always turn to the Nonprofit Association of the Midlands. (This particular organization serves both Nebraska and Western Iowa). In their own words, NAM “serves nonprofits of all sizes and…works to strengthen the collective voice, leadership, and capacity of nonprofit organizations to enrich the quality of community life throughout Nebraska and SW Iowa.”
NAM does require membership, but joining grants you several advantages, including unique insurance options, networking opportunities, vendor discounts, and more, so joining will be worth your while.
In addition, if you would rather hire a service to incorporate your nonprofit for you, that’s an option as well. There are plenty of services that can handle much of the formation process, leaving you more time to focus on the actual operation of your nonprofit corporation.
These service providers (like Northwest Registered Agent) also offer valuable and convenient bonus features, like the inclusion of a full year of registered agent service with the purchase of a nonprofit formation package. They can save you a considerable amount of hassle, and all without costing an arm and a leg.
Conclusion
As you can see, there are quite a few crucial steps that you’ll need to take if you want to form a compliant nonprofit corporation in the state of Nebraska. However, it’s important to remember that if you need help at any time, it is available to you ― you don’t need to DIY the entire process.
We hope this guide helped you understand the details of the Nebraska nonprofit corporation process, and we wish you the best of luck with your new charitable organization!