How to Start a Limousine, Taxi or Charter Bus Business in Nebraska: PSC Certificate, $300 Application, 30-Day Notice and Rate Approval

Nebraska does not issue a general business license, but passenger transportation is one of the activities that requires state approval before you open. The Nebraska Public Service Commission (PSC) regulates intrastate for-hire passenger carriers. That includes taxicab, open class, limousine, special party and charter bus operators (including party buses and school-bus companies that carry non-students), plus unique service providers such as low-speed vehicle operators. If you want to know how to start a limousine business in Nebraska, the central task is obtaining PSC operating authority, and you cannot carry paying passengers until that authority is issued.

This guide covers the steps in the order most applicants encounter them. It is informational content, not legal or tax advice. Confirm every current figure with the agency named in each step before you file or pay.

Materials and Documents You Need Before You Start

Gather these items before you begin, because several filings depend on each other:

• A proposed business name that meets Nebraska naming rules
• Formation documents for your entity: a Certificate of Organization for an LLC or Articles of Incorporation for a corporation
• A registered agent with a Nebraska office
• The $300 non-refundable PSC application fee (fee schedule effective July 1, 2026)
• Entity documents and the materials needed for a Nebraska fingerprint-based background check
• A list of every vehicle you plan to operate, with seat counts, because seat count sets your insurance minimum
• An insurance agent who can write the required coverage and file a Form E with the PSC
• A proposed rate schedule for your service
• A budget for the $100 rate filing, PSC plates at $50 per vehicle, and annual vehicle fees

Step 1: Form Your Entity and Meet the Secretary of State Requirements

Most limousine and charter operators form a limited liability company (LLC). The Certificate of Organization carries a $100 filing fee online or $110 on paper. A corporation files Articles of Incorporation at the same fees. Both can be submitted through the Secretary of State's eDelivery portal at https://www.nebraska.gov/apps-sos-edocs/.

Your name must follow Neb. Rev. Stat. 21-108. An LLC name must include the words limited liability company or limited company, or the abbreviation LLC, L.L.C., LC or L.C. The name cannot be the same as or deceptively similar to a name already on record with the Secretary of State. Words such as bank, trust and engineer carry extra restrictions, so check your name in the Secretary of State business search before you file. If you need time to finalize the name, you can reserve it for 120 days for a $30 fee.

Two requirements apply to every new entity:

• Registered agent. Nebraska uses the term registered agent. The agent must be an individual who resides in Nebraska or an entity authorized to transact business in the state. Losing your agent can lead to administrative dissolution. Changing the agent or office costs $25 online or $30 on paper.
• Publication. 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.

Plan the recurring filings now. An LLC files a Biennial Report in every odd-numbered year, between January 1 and April 1, for a $25 online fee ($30 on paper). It becomes delinquent after June 16, and a company that stays delinquent can be administratively dissolved. A corporation files its Biennial Report and Occupation Tax by March 1 of each even-numbered year for a $26 minimum fee, delinquent after April 15. The corporate figure rises with paid-up capital stock above $10,000, so confirm the amount for your capital structure.

If your vehicles will operate under a name different from your entity name, register a trade name with the Secretary of State. The application costs $100 online or $110 in office, the renewal costs $110, and a separate newspaper publication is required. A trade name registration lasts 10 years.

Step 2: Register for State Taxes and Employer Obligations

Nebraska registration follows your activities rather than a single license. The Nebraska Department of Revenue at https://revenue.nebraska.gov/ handles two of the most common registrations:

• Sales and use tax permit. You need one if you make retail sales, rent or lease tangible personal property, or provide taxable services. The state rate is 5.5%. Whether your fares or add-on services are taxable depends on how you structure them, so confirm with the Department of Revenue before you quote prices. You can apply through the online registration page.
• Income tax withholding certificate. You need one if you have employees. Most drivers are employees, so plan for withholding from the first paycheck.

The Nebraska Department of Labor handles unemployment tax registration once you have employees and contractor registration if you use independent contractors. Do not classify drivers as contractors without review, since misclassification is a common and expensive mistake. Ask an attorney or CPA to review your driver model.

Income tax depends on your entity. An LLC taxed as a pass-through reports income on its members' Nebraska individual returns, with 2026 rates from 2.46% to 4.55%. An LLC taxed as a corporation pays the 4.55% Nebraska corporate income tax for tax years beginning on or after January 1, 2026. Nebraska has no franchise tax on LLCs, so the biennial report fee is the only recurring Secretary of State charge.

Step 3: File Your PSC Application

Your PSC application is the core filing. It carries a $300 non-refundable fee under the fee schedule effective July 1, 2026. Include your entity documents and complete the Nebraska fingerprint-based background check. Choose the correct service class, because each class has its own rules. Your application is published for 30 days in The Daily Record so that competitors and others can file protests.

Under Neb. Rev. Stat. 75-309 and 75-311, a common carrier must show that it is fit, willing and able to provide the service and that an identifiable public need exists. Protests filed during the 30-day notice period can extend the process, so prepare a clear written showing of your market, your vehicles and your management experience.

Do not operate before the authority issues. Advertising, taking deposits or accepting paid bookings before authority is granted creates serious risk, even if your vehicles and drivers are ready.

Step 4: Get PSC-Approved Rates

Before the PSC issues authority, your rates must be approved. The rate filing costs $100 and is published for 30 days. If you can show that the delay will cause you harm, the PSC can shorten the wait to 15 days after approval. Build your rate schedule with the PSC process in mind:

• Include base rates, hourly rates, minimum charges, and fees for airport pickups, gratuities and extra stops.
• Keep the schedule consistent with the service class you chose.
• Expect to answer questions from PSC staff, and keep your supporting cost figures ready.

A common mistake is quoting rates on your website or to clients before approval. Wait until the rates are approved, then publish them.

Step 5: Secure the Required Liability Insurance

Liability minimums depend on the seat count of each vehicle, under Title 291, Chapter 3, Rule 003.03:

Vehicle seat count	Minimum liability coverage
7 seats or fewer	$500,000
8 to 15 seats	$1,500,000
16 or more seats	$5,000,000

Your insurer files a Form E with the PSC to confirm coverage. Ask your agent to confirm in writing how the seat count is calculated, including whether the driver's seat counts toward the total. Buying coverage for the wrong tier is one of the most frequent errors in this process, and a vehicle that is one seat over a threshold can change your premium substantially. Confirm the figures with the PSC before you buy.

Step 6: Obtain PSC Plates and Pass the Vehicle Inspection

Each vehicle needs PSC plates, which cost $50 per vehicle. Annual vehicle fees are due January 1. Under Neb. Rev. Stat. 75-305, the statute caps the annual vehicle fee at $80, so confirm the current amount with the PSC before you budget for a full fleet. After your insurer has filed the Form E, schedule the PSC vehicle inspection. Each vehicle must pass before authority is issued, so present each one in its final configuration, with seats, lighting and any signage in place.

Step 7: Check Local Taxi, Airport, Zoning and Liquor Rules

Nebraska has 93 counties and 528 municipalities (cities and villages), and local rules can control where and how you operate. Nebraska has no county business license, but local rules still apply:

• City taxi rules. If you plan to run a taxicab service, check the ordinances of each city you serve. Cities can regulate stands, meters, and vehicle standards.
• Airport rules. Airport authorities set their own pickup, staging and permit rules. Check with the airport authority before you schedule airport work.
• Zoning. A dispatch office, vehicle storage lot or garage may need zoning approval from the city or county. Confirm the zoning classification of any property before you sign a lease.
• Alcohol service. If your party bus or limousine will serve alcohol, the Liquor Control Commission works with the city or county that grants retail licenses. Ask the local licensing office what applies to your plans.
• City taxes. Some cities levy sales taxes and occupation taxes. Check the rates and registration requirements for each city you operate in.

Step 8: Decide Whether to Pursue Medicaid Transportation Work

Starting January 1, 2027, a person who provides Medicaid non-emergency medical transportation under a contract with DHHS, a Medicaid managed care organization or their agents needs a PSC license. The PSC sets the fee, which is capped at $250 under Neb. Rev. Stat. 75-311(4). If you want to pursue this work, plan for the license in your original budget and confirm the current requirements with the PSC and DHHS.

Step 9: Operate and Maintain Your Authority

Once authority is issued, your ongoing obligations begin. Build a compliance calendar with these recurring items:

• LLC Biennial Report in odd-numbered years, filed between January 1 and April 1 (delinquent after June 16)
• Corporate Biennial Report and Occupation Tax by March 1 in even-numbered years (delinquent after April 15)
• PSC annual vehicle fees due January 1
• Insurance renewals and updated Form E filings when coverage changes
• Registered agent continuity, since a lapse can cause administrative dissolution
• Sales tax, withholding and unemployment filings based on your Department of Revenue and Department of Labor registrations

Common Mistakes to Avoid

1. Operating before authority issues. Taking bookings or running trips before the PSC grants authority puts the entire business at risk.
2. Assuming a general business license exists. Nebraska registers businesses by activity, so your PSC authority, tax registrations and local permits are separate filings.
3. Buying insurance for the wrong seat tier. Confirm seat counts and how they are calculated before you buy coverage.
4. Skipping the 3-week LLC publication. New LLCs must publish and file proof with the Secretary of State.
5. Ignoring the registered agent requirement. A missing or nonqualified agent can lead to administrative dissolution.
6. Quoting rates before approval. Wait until your rate filing is approved.
7. Overlooking local rules. City ordinances, airport rules, zoning and alcohol licensing each apply separately.
8. Misclassifying drivers. Review your driver model with an attorney or CPA.

What Results to Expect

Operators who complete the filings in order are better positioned to launch on schedule and avoid rework. The PSC process has fixed waiting periods, including the 30-day application notice and the 30-day rate notice unless the PSC shortens it to 15 days, so the earliest realistic launch date is set by those notices and any protests. Operators who prepare complete, consistent documents and budget for insurance, plates, inspections and recurring fees may find the process more predictable. Results depend on your market, your vehicles and your local rules, so treat the timeline as a planning estimate, not a guarantee.

Resources and Next Steps

• Nebraska Secretary of State, Business Services Division: https://sos.nebraska.gov/business-services/corporate-and-business
• Nebraska Department of Revenue: https://revenue.nebraska.gov/
• Nebraska Business Development Center at the University of Nebraska at Omaha: https://www.unomaha.edu/nebraska-business-development-center/business-start-and-growth/index.php
• U.S. Small Business Administration, Nebraska district: https://www.sba.gov/district/nebraska
• Nebraska Public Service Commission: confirm the current application, rate, plate and vehicle fee forms on the agency's official website

Important Disclaimer

This article is informational content, not legal or tax advice. Fees, thresholds and deadlines can change, so verify every figure with the named agency before you file. Because passenger transportation involves licensing, insurance, employment and tax obligations, consult a qualified Nebraska attorney and a CPA before you form your entity, classify your drivers or set your rates.