Nebraska Tax Registration: Form 20, Your Nebraska ID, Sales Tax Permit and Withholding Account Step by Step

If you are starting a business in Nebraska and plan to make retail sales, rent or lease tangible personal property, provide taxable services, or hire employees, you need to register with the Nebraska Department of Revenue (DOR). Registration produces your Nebraska ID, which is the state tax ID number your business uses for sales tax and withholding. This guide covers the registration options, the sales tax permit, the withholding account, and the filing schedules that follow.

Nebraska has no general state business license and no county business license. Tax registration works by activity: what you sell, whether you pay employees, and what you rent. Your entity filing with the Secretary of State is a separate step, covered later in this guide.

Disclaimer: This guide is informational content, not legal or tax advice. Tax rules and forms change. If your business has multiple owners, several locations, out-of-state sales, or a complex payroll, talk with a qualified CPA or attorney before you file.

Do You Need to Register?

Register with DOR if your business does any of the following:

• Has employees who are paid wages
• Makes retail sales
• Rents or leases tangible personal property
• Provides taxable services

A service business with no employees may not need to register at all. Ask DOR to confirm before you assume you are exempt, because the answer depends on the specific services you provide and whether you pay anyone.

Step 1: Get a Federal EIN if You Have Employees

If you will have employees, get a federal Employer Identification Number (EIN) from the IRS before you register with DOR. You apply for an EIN using IRS Form SS-4. Have the EIN ready when you set up the withholding account, because DOR will ask for it.

Step 2: Choose Online or Paper Registration

You have two ways to register: online, or on paper using Form 20, Nebraska Tax Application. Which one you use depends on whether your business already holds a Nebraska ID.

Online Registration for New Businesses

If your business does not yet have a Nebraska ID, register online through the DOR new business registration page at https://revenue.nebraska.gov/businesses/register-your-new-business-online. When you register online, either your Nebraska ID is assigned at registration, or DOR contacts you within five business days.

Paper Registration with Form 20

You can file Form 20, Nebraska Tax Application, on paper. Allow two weeks for processing. Paper filing takes longer than online registration, so start early if you need your permit or account before a set opening date.

Important: A business that already holds a Nebraska ID cannot use online registration. If you already have a Nebraska ID and want to add a tax program, such as withholding after you hire your first employee, you must file Form 20.

Your Nebraska Tax ID Number (Nebraska ID)

Your Nebraska ID is the tax identification number DOR assigns to your business. It is the number you use in dealings with DOR for sales tax and withholding, and it is tied to each tax program you register for. Record it in your business records as soon as you receive it, so you can find it when you file returns or contact DOR.

Step 3: Get Your Sales Tax Permit

Nebraska's state sales tax rate is 5.5%. If your business makes retail sales, you collect sales tax and need a sales and use tax permit. You can apply through the DOR sales tax permit page at https://revenue.nebraska.gov/businesses/register-your-new-business-online, or on Form 20 if your business already holds a Nebraska ID.

Keep these permit rules in mind:

• Display the permit at each retail location. Each location generally needs its own permit application, unless the Streamlined rules apply to your business. Form 11 is used for combined filing. Confirm with DOR which setup fits you before you open a second location.
• The permit has no renewal. You will not renew it on a schedule. It stays in effect until you cancel it or change it.
• Use Form 22 to cancel or change the permit. File Form 22 when you close the business or change ownership or entity form.

Step 4: Set Up the Withholding Account

If you have employees, you must register for income tax withholding. Withholding is the state income tax you deduct from employee wages and remit to DOR. You will need your federal EIN for this account. If your business has no Nebraska ID yet, register online. If you already hold a Nebraska ID, file Form 20 to add withholding as a tax program.

Filing Schedules

Your filing frequency depends on how much tax you collect or withhold. DOR assigns the schedule, so confirm it when you register.

Tax	Filing Schedule	Due Date
Sales and use tax (Form 10)	Monthly, quarterly or annually, based on the tax you collect	20th of the month after the period ends
Withholding	Monthly if withholding exceeds $500 a month	Confirm with DOR
Withholding	Quarterly if withholding is $500 a month or less	Confirm with DOR
Withholding	Annual if withholding is under $500 a year	Confirm with DOR

Missing a filing deadline creates problems even when no tax is owed, so mark your due dates on a calendar the day your registration is confirmed.

Other Registrations to Check

Tax registration with DOR is only one part of forming and running a business in Nebraska. Several other agencies may apply, depending on your entity and your industry.

• Secretary of State (Business Services Division): An LLC files a Certificate of Organization, and a corporation files Articles of Incorporation. Each carries a $100 filing fee. New LLCs and corporations must publish a notice in a legal newspaper for three successive weeks and file proof of publication with the Secretary of State. Every LLC and corporation must designate a registered agent. The LLC biennial report is due in odd-numbered years and costs $25 filed electronically or $30 on paper. The corporation Biennial Report and Occupation Tax is due in even-numbered years and costs $26.
• Trade names: If you operate under a name other than your legal name, register it with the Secretary of State. The application costs $100 filed online through eDelivery or $110 in office or by mail. Renewal is $110. A separate newspaper publication is required. A registered trade name lasts 10 years.
• Department of Labor: Check with the Department of Labor about unemployment tax registration if you have employees, and about contractor registration if your business does construction work.
• Occupational licensing: Licensing depends on your trade. The State Electrical Division licenses electricians. Plumbers are licensed by the city or village nearest the job. The Department of Agriculture permits food and pesticide applicators. DHHS licenses health professions and child care. The Public Service Commission regulates only passenger carriers and household goods movers. The Liquor Control Commission works with the city or county that grants retail liquor licenses.

Nebraska has 93 counties and 528 cities and villages. There is no county business license, but cities may impose their own sales taxes and occupation taxes, and city and county zoning rules control where you can operate. Confirm local requirements with the city clerk or county zoning office where your business will be located.

Quick Registration Checklist

1. Confirm whether your business must register based on your activities and employees.
2. Get a federal EIN with IRS Form SS-4 if you will have employees.
3. Register online if you have no Nebraska ID, or file Form 20 on paper if you already have one or prefer paper.
4. Apply for a sales and use tax permit for each retail location, and display it where customers can see it.
5. Set up withholding if you have employees, and confirm your filing schedule.
6. Calendar your Form 10 and withholding due dates, and file Form 22 if you later close or change the business.
7. Check city, county, and trade-specific requirements before you open.

Questions to Confirm with DOR

Before you rely on any of the rules above, ask DOR to confirm the following for your situation:

1. Does my business need to register at all, given the services I provide and whether I have employees?
2. Which sales tax filing frequency applies to me?
3. Which withholding schedule applies to me, and what is my due date?
4. Do I need a separate sales tax permit for each location, or does a Streamlined arrangement apply?

Contacts and Official Resources

• Nebraska Department of Revenue: https://revenue.nebraska.gov/ (phone 800-742-7474 or 402-471-5729)
• Sales tax permit registration: https://revenue.nebraska.gov/businesses/register-your-new-business-online
• Nebraska Secretary of State, Business Services Division: https://sos.nebraska.gov/business-services/corporate-and-business
• Nebraska Business Development Center (SBDC), University of Nebraska at Omaha: https://www.unomaha.edu/nebraska-business-development-center/business-start-and-growth/index.php
• SBA Nebraska district office: https://www.sba.gov/district/nebraska

This guide is informational only and does not constitute legal or tax advice. Verify current forms, fees, and deadlines with the agency before you file, and consult a qualified CPA or attorney for complex situations.