With 2020 in the rearview mirror, January is showing a renewed confidence from Nebraska business owners, boosted by expectations for the future. A recent survey has revealed that although the recent conditions sub-index revealing changes in sales and employment had a negative value of 92.6, the expectations sub-index had shot up to 119.3 during the first month of 2021.
This has given the overall Business Confidence Index for Nebraska an overall positive value of 105.9. Although there are varying concerns among business respondents about customer demands, the economy, quality and availability of labor and other issues, expectations among business leaders are a key component of business confidence. Whether or not this forecast is just New Year’s optimism or will be more enduring remains to be seen.
Starting up a new business
For entrepreneurs thinking of starting a new business in Omaha, it is important to take into account several considerations in business formation. They must decide on the management and operational structure of the business, what liability and ownership interests they want, and the tax implications for the business.
There is no general business license in Nebraska, but depending on the choice of formation, the business owner must file specific formation documents with the Secretary of State. The most common types of business structures are:
- A sole proprietorship, in which there is only one owner of the business, and no separate legal entity apart from the owner. This means that the owner is personally liable for all business debts and obligations.
- A partnership involves two or more individuals as co-owners whose individual share of the business profit or loss is reported on their individual tax return. A general partnership will make the owners personally liable, but a limited partnership provides limited liability for some of the partners.
- A corporation is a separate legal entity from the owners, who are shareholders with limited personal liability. A board of directors manages affairs, and shareholders must engage in certain formalities such as regular meetings, issuing stock, electing directors and conducting business. The corporation is a separate tax identity.
- A limited liability company also limits the liability of the owners as in a corporation, but it has tax advantages by allowing business profits and losses to pass through to the individual owners.
Professional guidance in setting up a business
Finding an experienced business attorney to help with filing legal entity registrations, drawing up and reviewing contracts or protecting intellectual property can make all the difference in getting a new business started on a solid footing.