Nebraska Tax Application

Sole Proprietorship
A Sole Proprietorship is one individual or married couple owning a business. The owner is personally liable for all debts incurred by the business.

Partnership
A Partnership is composed of two or more persons who agree to contribute money, labor, or skill to a business. Each partner shares the profits, losses, and management of the business, and each partner is personally and equally liable for debts of the partnership.

Nonprofit Corporation
A nonprofit corporation is a corporation formed to carry out a charitable, educational, religious, literary, or scientific purpose. Most nonprofit corporations are NOT exempt from paying or collecting sales tax in Nebraska even though they have been granted income tax exempt status with the IRS.

Corporation
A “domestic” corporation for Nebraska is a corporation that was organized in Nebraska with the Nebraska Secretary of State’s office. A corporation is a separate taxable entity and is owned by its shareholders.

A “domesticated corporation” is a corporation that was organized in a state other than Nebraska but is engaged in business in Nebraska and has also registered as a corporation with the Nebraska Secretary of State.

Foreign Corporation
A “foreign” corporation is a corporation that was organized in a state other than Nebraska.

S Corporation
An S corporation, for United States federal income tax purposes, is a closely held corporation (or, in some cases, a limited liability company or a partnership) that has been approved to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code.

Fiduciary (Estate or Trust)
A trust is a legal relationship in which one person, called the trustee, holds property for the benefit of another person, called the beneficiary.

Nonprofit Organization
An unincorporated organization that has been granted income tax-exempt status from the IRS.

Cooperative
A cooperative is a private business organization that is owned and controlled by the people who use its products, supplies or services.

Limited Liability Company (LLC)
A Nebraska limited liability company is a business structure that is created under the Nebraska Uniform Limited Liability Company Act. A foreign LLC is created under the law of another jurisdiction. This combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.