Learn the steps to create a General Partnership in Nebraska or get started with us below.
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A Nebraska general partnership (GP) consists of two or more owners who co-own a business together. There are a number of reasons you may be considering a partnership. We’ll go over who should consider a partnership and the steps needed to form a general partnership in Nebraska.
A Nebraska general partnership can be the right choice for some business owners, but others may need a different type of entity. Let’s explore some of the pros and cons of a Nebraska general partnership to see if it’s the right choice for you.
You probably wouldn’t be reading this if you didn’t have at least a passing interest in forming a partnership in Nebraska. Some of the primary benefits of a Nebraska general partnership include:
A Nebraska general partnership isn’t the right choice for everyone. Some of the potential drawbacks of a general partnership in Nebraska are:
Nebraska general partnerships can be a great option for short-term business projects. For longer projects or businesses with a lot of liability exposure, a general partnership might not be the best option.
Because a general partnership is not a formal entity, the name of your partnership will just be the last names of the partners. For example, if Michelle Andrews, Mike Garcia, and Ellen Freeman create a partnership, the name would be something like Andrews, Garcia, and Freeman. If you want to create a separate name for your partner, you will need to register a DBA (doing business as).
To register a DBA for your Nebraska general partnership you will need to register the name with the Nebraska Secretary of State. After you register your DBA, you will need to publish the name publicly within 45 days, as required by Nebraska law. Names should be different from existing businesses in Nebraska, and you will want to avoid names that are misleading or suggest you are engaged in an illegal enterprise. You can find out more about registering a DBA in Nebraska on our information page here.
A partnership agreement is one of the most vital parts of forming a partnership in Nebraska. A partnership agreement sets the rules and expectations of the partners. Having these rules laid out can help partners resolve disputes should they arise. Without a partnership agreement, the partners may have to rely on the Nebraska Uniform Partnership Act to solve conflicts, which may not bring the best outcome for the partners or the partnership.
General partnerships in Nebraska are subject to the same licensing and registration requirements as other Nebraska businesses. The State of Nebraska does not require a business license for all businesses, but it does require licenses for certain occupations. Some of the business licenses in Nebraska include:
Nebraska also requires licenses for private detectives, collection agencies, and sports agents, among other licenses. You may need to check with your county and city to see if your business requires any types of local licenses. We can help take some of the stress out of the search with our Business License Report.
An EIN is an identification number issued by the federal government to businesses. An EIN will be required if you plan on opening a bank account for your business, hiring employees, or obtaining financing for the partnership. Fortunately, we can help you obtain an EIN.
You may also need to register your business in Nebraska for tax purposes. Nebraska general partnerships may be subject to sales and use taxes in Nebraska. Corporations and LLCs may be required to pay business income tax. You can register your business with the Nebraska Department of Revenue.
Once you have formed your Nebraska general partnership, there are a few other items you may want to consider. If you have obtained an EIN, you may want to set up a business banking account. For certain businesses with exposure to risk and liability, insurance could be a good idea. Some businesses will also want to consider outside financing for specific projects or goals.
A general partnership is relatively easy to get up and running, but it’s not for everyone. If you want a business entity that will help keep you from being held personally liable for your business’s debts and liabilities, an LLC or a corporation may be a good fit. We can help you form either of these entities. We also offer a wide range of additional tools and services, including our Worry-Free Compliance Service to help keep your business legal. Contact us today to learn more.
If you want to have more liability protection for your business than what is given by a general partnership, we offer services to help you form a Nebraska LLC or a Nebraska corporation. And take a look at our many other tools and services to see how we can help you start, maintain, and grow your business today.
Disclaimer: The content on this page is for information purposes only, and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
General partnerships do not need to register as an entity, but they may need to register to file sales and use taxes.
General partnerships could be subject to sales and use taxes. You may have to pay federal income taxes on the income of the partnership.
A partnership includes two or more owners who co-own a business together.
A general partnership is formed by co-owning a business with another person or entity. While a partnership agreement isn’t required, it is encouraged.
Partners are jointly and severally liable for the debts and liabilities of the partnership.