If you’re moving your practice from a different state, there’s seven steps you’ll need to follow: Learn how to pay taxes in multiple states.
This article covers the bare essentials needed to get your therapy practice up and running in Nebraska.
1. Local Zoning Laws and Regulations in Nebraska
Nebraska boasts 58 counties, 895 cities, towns, and villages, and 1,281 special districts. Before you settle on a location for your therapy practice—even if that location is your own home—you must make sure the local zoning allows you to operate there.
In cases where you aren’t typically allowed to operate a business in a certain area—for instance, a home business in a residential area—you can apply for a zoning variance. A variance is more or less an exception to zoning laws.
To apply for a zoning variance for a therapy business in Nebraska, you can follow the instructions provided in the Application for Zoning Variance form of Loup County, Nebraska or the Application for a Variance to the Zoning Regulations of Sheridan County, Nebraska.
You can also refer to the zoning ordinance of the city or county where you plan to operate your business, such as the Zoning Ordinance of the City of Valley, Nebraska, or the Variance Procedures of the City of Blair, Nebraska. It is recommended to contact the local zoning department or a zoning attorney for more specific information on how to apply for a zoning variance for a therapy business in Nebraska.
2. Business Name Search in Nebraska
In Nebraska, business names are registered and managed at the state level by the Nebraska Secretary of State. To get a DBA name in Nebraska, you need to register your trade name with the Nebraska Secretary of State by submitting an application for registration of trade name form and paying a fee of $100.
You can file online at the Secretary of State’s Corporate Document eDelivery website or mail the form to the Secretary of State’s Office Business Services Division (Corporations). To get a DBA for your therapy practice in Nebraska, you need to register your trade name with the Nebraska Secretary of State by submitting an application for registration of trade name form and paying a fee of $100.
You can file online at the Secretary of State’s Corporate Document eDelivery website or mail the form to the Secretary of State’s Office Business Services Division (Corporations). Before registering your DBA name, you should conduct a name search on the Nebraska Secretary of State website to ensure that no one else is using your potential DBA name.
Although Nebraska does not require businesses to have a DBA, it is still a best business practice to file a DBA for a variety of reasons, such as opening a bank account under the trade name, receiving checks and payments to that name, and assisting with filing for a federal trademark.
3. Business Structure in Nebraska
The state of Nebraska recognizes several types of business structures, including sole proprietorships, general partnerships, limited liability companies (LLCs), and corporations. Only formal business structures like LLCs or corporations have to file formation documents with the state. LLCs are a popular type of business entity in Nebraska because they reduce liability exposure for owners while providing flexibility in management structure and taxation. To start a business in Nebraska, you need to file the necessary formation documents with the Secretary of State.
Sole proprietorship: A non-registered, unincorporated business run solely by one individual proprietor with no distinction between the business and the owner. The owner of a sole proprietorship is entitled to all profits but is also responsible for the business’s debts, losses, and liabilities. It is the simplest and most common business structure available in the United States.
General partnership: An association between two or more people in business seeking a profit. Partnerships can be created with little formality, but because more than one person is involved, a partnership agreement should be created. A partnership agreement stipulates the terms of the partnership by formalizing rules for management, profit sharing, and dispute resolution.
Limited partnership: A partnership that has both general partners and limited partners. General partners manage the business and are personally liable for the business’s debts and obligations. Limited partners are passive investors who contribute capital but have no management authority and are not personally liable for the business’s debts and obligations.
Limited liability company (LLC): A popular type of business entity that reduces liability exposure for owners (members) while providing flexibility in management structure and taxation. LLCs are not taxed as a separate entity, and profits and losses are passed through to the members’ personal tax returns.
Corporation: A legal entity that is separate from its owners (shareholders). Corporations can issue stock and raise capital, and shareholders are not personally liable for the corporation’s debts and obligations. Corporations are taxed as separate entities, and profits are taxed at the corporate level and again when distributed to shareholders as dividends.
4. Register Your Business in Nebraska
To fill the business registration in Nebraska, you need to file the necessary formation documents with the Nebraska Secretary of State. The documents you need to file depend on the type of business entity you want to form. For example, to register a Nebraska corporation, you need to file the Articles of Incorporation with the Nebraska Secretary of State.
The fee for incorporating a business in Nebraska varies depending on the type of business entity you want to form. For example, the state filing fee for incorporating a Nebraska business online is $78 or more, and you also need a registered agent located in Nebraska. The cost to start an LLC in Nebraska is $102 to file online and $110 to file in person or by mail. When you register an LLC in Nebraska, you’ll need to file with the Nebraska Secretary of State and pay a filing fee. The main cost to start an LLC in Nebraska is the filing fee with the Nebraska Secretary of State.
5. Business Licenses & Permits in Nebraska
To operate a therapy practice in Nebraska, you need to obtain the necessary licenses and permits required by the state. The Department of Health and Human Services (DHHS) is responsible for issuing mental health practitioner credentials in the state of Nebraska. Mental health practitioners in Nebraska must be licensed as a licensed mental health practitioner or a provisional mental health practitioner, and have satisfactorily passed an examination approved by the board.
The types of licenses and permits required for a therapy practice in Nebraska depend on the type of therapy practice you want to operate. For example, to operate an art therapy practice in Nebraska, you need to obtain a license under the Art Therapy Practice Act.
6. Business Insurance in Nebraska
As a therapy practice owner in Nebraska, it is important to obtain business insurance to protect your business from potential risks and lawsuits. The type of business insurance you need for your therapy practice in Nebraska depends on the specific needs of your business.
General liability insurance is a common type of business insurance that provides financial protection for third-party bodily injuries and property damage, along with advertising injuries. The median premium for general liability insurance for therapists and counselors is less than $30 per month, or $350 annually.
Professional liability insurance, also known as malpractice insurance, is another type of business insurance that provides coverage for claims of professional negligence or mistakes. The median cost for small businesses for professional liability insurance is $492 per year.
In addition to general and professional liability insurance, you may also need other types of insurance, such as workers’ compensation insurance, depending on the size and structure of your therapy practice.
To obtain business insurance for your therapy practice in Nebraska, you can contact insurance providers that specialize in providing insurance for therapy practices. You can also consult with a licensed insurance agent to help you determine the specific types of insurance your therapy practice needs and how to obtain them.
7. Business Taxes in Nebraska
To file and pay taxes in Nebraska, you can use the Nebraska Department of Revenue website to access the latest tax forms and schedules. You can also use online tax filing services such as TaxSlayer.com or FreeTaxUSA.com to file your Nebraska state taxes.
The amount you will pay in taxes in Nebraska depends on your income and other factors. Nebraska individual income tax rates range from 2.46% to 6.84%, depending on your income level. If you pay your taxes late, you may be charged interest of 5.0% on any unpaid taxes.
To file your taxes in Nebraska, you will need to provide information about your income, deductions, and credits. You can file your taxes online or by mail, depending on your preference. If you are mailing your tax return, you can find the appropriate mailing address on the Nebraska Department of Revenue website.