This article provides three key state business startup requirements for self-employed sole proprietors and general partners who run residential house cleaning businesses. Information from the Secretary of State, the Nebraska Department of Revenue and selected city and county government sources were used to research this article.
Be aware that sole proprietor and general partner startup requirements in this state are always changing. Some requirements even vary from county to county. It is important that you call or visit your local county or city government to find out local requirements for residential house cleaning businesses and home-based businesses. This article is not intended to be exhaustive or a substitute for qualified legal or tax advice.
Business Name Registration
Sole proprietors and general partners who want a business name that does not include the owner(s) full names (for example, Janice Smith’s Cleaning Service or Martha Harris and Tom Graham’s Maid Service) need to find out whether the name they want to use is available in the state. Start with a statewide corporate business name search in Nebraska.
Then do an online search for names similar to the one you plan to use. For example, if you want to use the name, Crystal Clean Maid Service, do simple Google searches for “Crystal Clean Maid Service+Nebraska” plus Crystal Clean Maid Service+your county” and “Crystal Clean Maid Service+your town or city”. Search beyond the first page of results. Go at least five pages deep into the search results to see if the name you want or similar names are being used in your state, county or city.
The Nebraska Secretary of State’s office avoids registering the same or similar names to different businesses. However, the state of Nebraska will allow a business to register a similar name to an existing business with written permission of the original trade name holder. The new business has to get the trade name holder to sign a CONSENT FOR USE OF DECEPTIVELY SIMILAR NAME Form. If the existing trade name holder agrees, “…a name, although similar, may be used if the business entity affected consents in writing and such writing is filed with the Secretary of State.” (Nebraska Revised Statute 87-209).
Once the Trade Name is issued by the state, a duplicate of the registration form must be published once in a newspaper of general circulation in the city or town where the business is based. If there is no newspaper in the city or town, a duplicate must be published in a county newspaper of general circulation. Proof of publication must be filed with the office of the Secretary of State within forty-five days from the date of registration with the office of the Secretary of State. If proof of publication is not filed with the Secretary of State within the forty-five days, the trade name registration will be canceled by the Secretary of State.
Business License Registration
Register for state license through the Nebraska One-Stop Business Registration Portal.
Answer a series of questions and the forms needed to get started will be provided online, including:
• Registration of Trade (Business) Name
• Federal ID Number
• State Tax ID
• Other State Tax applications
In Nebraska, a general partnership is created when two or more owners form an oral or written agreement to start a business together. It is advisable for general partners to file a Trade Name or DBA (“doing business as” name) with the state. A written partnership agreement drawn up by a lawyer is important for both or all partners. Partnership agreements do not have to be filed with the state.
Sole proprietors and general partners may apply for an Employer Identification Number (EIN) from the IRS even if they do not plan to hire employees. Getting an EIN may make it easier to open a bank account and reduce your risk of identity theft. You can apply for an EIN online. In addition, some business registration forms will require a NAICS business classification number for the house cleaning industry.
Business Tax Registration
Housecleaning and maid services are taxable in the state of Nebraska. Cleaning services must collect and send the tax to the Department of Revenue.
Sole proprietors and general partners pay tax on business income to the state of Nebraska through their personal state tax return. Sole proprietors and general partners are responsible for paying estimated self-employment income taxes in Nebraska (on Form 1040N-ES) similar to the way self employment taxes are paid to the federal government. Get more information about estimated tax requirements by calling the Nebraska Department of Revenue at (402) 471-5729 or toll free (800) 742-7474.
Nebraska general partnerships that file a Federal partnership information Form 1065, may need to file state income tax Form 1065N. Get more information from a CPA or qualified tax preparer to find out if your partnership must file those returns.
Selected Nebraska City Licenses
Bellevue Business License: The city of Bellevue does not require a business license for residential house cleaning services.
Grand Island Business License: The city of Grand Island does not require a business license for residential house cleaning services.
Lincoln Business License: The city of Lincoln does not require a business license for residential house cleaning services.
Omaha Business License: The city of Omaha does not require a business license for residential house cleaning services.